Morning Briefing: Minera Alamos Reports Record Monthly Gold Production

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Thursday, August 25th

Gold and silver experienced another day of late August, low volume price volatility. For the second day in a row gold exhibited strength in the early morning European trading hours, running up $8 per ounce into the a.m. London fix. That was followed by a $10 price smash and then a spike up to $1769 before the yellow metal fatigued from being treated like a yo-yo and settled at $1765. Silver followed a similar price path with a higher degree of yo-yo volatility, trading up and down between as high as $19.08 per ounce and as low as $18.82. Silver settled at $18.98, once again just below $19. 

While the precious metals appear to flail around listlessly, there is a subtle uptrend that has been in play since the end of July. The Mining Stock Journal expects more volatility around the Jackson Hole Economic Symposium and through Labor Day Weekend. The mining stocks took their cue from the metals, as the GDX rose nearly 1%. The Mining Stock Journal noted that if the three day bounce holds and continues to move higher, GDX will have established a higher low from the downtrend that occurred from late April to late July.

We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.

This episode of Mining Stock Daily is brought to you by…Integra Resources.

Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.

And here’s what you need to know this morning….

Minera Alamos reported record Monthly Gold Production in July as Water Availability Improved at its Santana operation in Sonora, Mexico. Severe drought conditions through to the end of the June quarter reduced access to water for gold leaching impacting production. Following the onset of the seasonal rains toward the end of June, Alamos was able to ramp up gold recovery operations with July gold recovery of about 2,275oz, almost twice that of any previous month this year. Gold recoveries from areas under leach in excess of 30 days have consistently trended towards 75% or greater with residual leaching ongoing and ultimate recoveries on track to approach those from test pad operations. The erratic nature of the recent drought conditions remains the final hurdle to the Company being in a position to declare commercial production. Alamos also said it is nearing completion of a Preliminary Economic Assessment for its second mining operation at Cerro de Oro in Zacatecas which is due for completion next month. Minera Alamos made a net profit of C$2.7 million on revenues of $7.3 million in the June quarter. Minera Alamos trades on the TSXV under MAI. News release

Marathon Gold received a positive decision for the federal Environmental Assessment for its Valentine Gold Project in Newfoundland and Labrador in Canada by the Honourable Steven Guilbeault, Minister of Environment and Climate Change Canada. The Project has now been fully released from environmental assessment allowing development to proceed. The completion of the federal Environmental Assessment allows permits to be acquired for on-site activities pertaining to federal jurisdiction. The conditions on the federal Assessment process pertain to the implementation of monitoring and mitigation programs outlined in the Project’s Environmental Impact Statement to address potential environmental effects on water quality, fish and fish habitat, birds and fauna and greenhouse gas emissions. Marathon aims to produce 180,000oz/y over a 14-year mine life following an initial capital cost of C$450 million. Marathon Gold trades on the TSX under MOZ. News release

Clean Air Metals announced new assay results from the 2022 drill campaign from both the Escape and Current PGE-Cu-Ni Deposits at its Thunder Bay North Project in Ontario as it works towards completing a prefeasibility study. Highlights from holes at Current drilled to obtain material for metallurgical testing included 19m grading 3.92g/t Platinum, 3.90g/t Palladium, 0.98% Copper and 0.56% Nickel in hole 7 which the company said supports the grade profile of the production area in Years 1-4 of the preliminary economic assessment mine plan. It said there is considerable exploration potential for massive sulphides outside the PEA production area at Escape and Current and it is expanding its Work Permit footprint to accommodate a drill program on these targets this winter. The PFS is expected mid-year 2023. Clean Air Metals trades on the TSXV under AIR and on the OTCQB under CLRMF. News release

Sticking in Ontario, Moneta Gold announced assay results from seven drill holes from infill drilling on the South West gold deposit at the Tower Gold project near Timmins. Highlights included 37.4m of 1.12 g/t gold, 21.9m of 1.43 g/t, 14.28 m of 1.98 g/t and 56.5 m of 1.03 g/t.  Results have confirmed both good grade and widths across wide zones of mineralization within the current South West open pit and underground mineral resources. The drilling was conducted as part of the current 70,000 m infill and resource upgrade drill program on the recently announced mineral resource estimate of 4.3 million ounces indicated and 7.5Moz inferred. A preliminary economic assessment is in the works and will be completed in this year’s third quarter. Moneta Gold trades on the TSX with ME and on the OTCQX with MEAUF. News Release

FireFox Gold reported final results from the 2021 - 2022 drilling program at its Mustajärvi Gold Project in Lapland, Finland. The last two core holes tested the East Target and encountered significant gold mineralization, sometimes coming to surface beneath thin glacial sediments. Hole 18 returned multiple gold intervals starting near-surface and continuing to depths of 80m, an extension of nearly 50m down-plunge from previous drilling. Highlights included 11.6m grading 5.06 g/t Au in hole 18 including 4.2m grading 10.60g/t. FireFox has now drilled six holes into three different target areas at Mustajärvi with > 90 gram-metres of gold mineralization along more than 1.5km strike of the shear zone. FireFox Gold trades on the TSXV under FFOX and on the OTCQB under FFOXF. News release

That concludes today’s morning briefing.

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