Morning Briefing: Montage Published Updated Resource Estimate, Collective Drills 451.4m at 2.67 g/t AuEq at Apollo

Welcome to Mining Stock Daily. I’m Trevor Hall. 


Today is Thursday September 7th. 


Wednesday featured another drop in the price of gold. It's the fourth day out of five that the yellow metal has been hit pretty hard, with nearly the entire price decline occurring during London and Comex paper gold and silver trading hours. Gold was largely flat overnight up until 10 a.m. NY time, when it was suddenly pushed off a cliff, dropping from $1954 per ounce to as low as $1940, before bouncing around and settling at $1941. Silver suffered a similar fate but it jumped off the cliff just after 6 a.m. NY time, falling from $23.90 per ounce to as low as $23.30 before bouncing a bit to settle at $23.49. The Mining Stock Journal could not find any specific news that might have triggered the sell-off in either metal. In fact, the economic reports and comments from a Fed official in the morning, if anything, should have stimulated a rally. 

The inevitable conclusion is that nefarious forces are trying to push gold and silver lower, likely in an effort to hide deteriorating economic and financial conditions. The mining stocks were lower, but not as low as would have been expected given the size of the sell-off in the metals. The GDX was barely red and spent some portions of the day in the green. Speaking of mining stocks, the next issue of the Mining Stock Journal will be released this afternoon. To learn more about this newsletter go to InvestmentResearchDynamics.com

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… Fireweed Metals

Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.

 

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

Recent graduate to the TSX main board, Collective Mining announced assays for holes from expansion drilling at the Apollo area at its Guayabales project in Caldas, Colombia. Highlgihts included 451.4m at 2.67 g/t Gold Equivalent in hole 64 in the sheeted CBM vein zone above and contiguous to the Apollo porphyry system, and 593.65m at 1.69 g/t Gold Equivalent from Surface in hole 63 from surface in the same sheeted CBM vein zone before transitioning into the brecciated porphyry system.  These holes extend the known area of outcropping mineralization to 320m by 220m. Collective Mining (TSX: CNL, OTCQX: CNLMF) News Release


First Mining Gold announced a PEA for its Duparquet Gold Project in the Abitibi region of Quebec for a 15,000tpd open pit and underground mining operation. It would produce 233,000oz Au/y at an all in sustaining cost of US$976/oz for 11 years and would generate and after tax net present value of C$588 million at a 5% discount rate with an 18% IRR with a 4.8-year payback at US$1,800/oz Au following an initial capital cost of C$706 million and sustaining and underground development costs of C$738 million. First Mining Gold (TSX: FF) (OTCQX: FFMGF) news release


Troilus Gold reported assays from the X22 Zone at its Troilus Project in Quebec. X22 was identified in 2022 and originates at the Z87 open pit and extends into the Gap Zone. The reported holes further demonstrate continuity of mineralization between the high-grade trends of this zone and are the final holes from the X22 definition drill program for inclusion in the upcoming mineral resource estimate. Highlights included 10m at 10.13g/t AuEq within a broader intersection of 80m at 1.80 g/t AuEq in hole 71. The resource estimate is expected in the coming weeks. About 240,450m have been drilled since the 2020 estimate. A Feasibility Study is also expected by the end of 2023 or early 2024, with Troilus now focusing on mine development and permitting. Troilus Gold TSX: TLG; OTCQX: CHXMF) news release


Montage Gold published an updated mineral resource estimate for the company’s Kone Gold Project in Cote d’Ivoire. Drilling at Gbongogo Main achieved a high level of resource conversion from inferred to indicated while also seeing an increase in grade. The indicated resource now sits at 12Mt grading 1.45 g/t Au for 559koz. Those grades improved by 10% since its estimate last spring. The company noted that further drilling is expected to increase the deposit grade even more. The total combined indicated and mineral resources at Kone has grown to ta total of 4.83Moz plus an additional inferred resource of .32 Moz. (TSXV: MAU, OTCQX:MAUTF). News Release


I-80 Gold shared results from ongoing underground drilling at the McCoy-Cove Property in Nevada. Results from five holes included some of the widest and highest-grade intercepts so far in the underground program. Hole 14 intersected four zones of gold mineralization including the widest zone of high-grade mineralization intersected in 2023 with 38.3m at 10.6 g/t Au. Several holes returned intercepts in excess of 20 grams per tonne, such as 27 g/t Au and 9.2 g/t Silver over 8m, and 49.3 g/t Au and 21 g/t Ag over 2.2 m. The Phase 1 development program, consisting of the decline and exploration platform, is now complete. A large-scale drill program, expected to comprise more than 40,000m, is being completed on 30m spacing in advance of an updated resource estimate and economic study related to the construction of a mining operation at McCoy-Cove. (TSX: IAU) (NYSE: IAUX) News Release


Liberty Gold reported 8 more holes drilled in the Rangefront Zone at its Black Pine project in Idaho with most holes focused on the eastern margin of the known deposit area. The results, outside the current pit constrained resource area, show the known mineralization continues to the east and becomes thicker with better grades and extends the known extents of mineralization at the Rangefront Zone to roughly 1000m x 1000m with room to grow. Highlgihts included 76.2m grading 0.61 grams per tonne gold. Liberty Gold (TSX: LGD; OTCQX: LGDTF) news release


Sierra Madre Gold and Silver provided an update on the La Guitarra Silver-Gold Mine Complex in Mexico. The company estimates to complete a new resource estimate by the end of the year, followed by a Mine Restart Study, which would include a cost study, mine plan, and a reserve estimate. Underground and plant rehabilitation, as well as a rebuild and refurbishment program of mine and plant equipment have also begun. The Company anticipates that, given adequate funding and assuming project execution tracks internal projections, restart of production at La Guitarra could be feasible within 20-22 months. (TSXV:SM) (OTCQX:SMDRF) News Release

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Trevor HallLondon, Comex, Gold, Silver, GDX