Morning Briefing: New Found Gold Makes New Discovery at Queensway
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday June 22nd.
After drifting a little lower in overnight trading, gold was once again hit hard at the Comex open, dropping quickly from $1946 to as low as $1930. The price abruptly bounced during Jay Powell's congressional testimony, trading up to as high as $1949 before fading to settle at $1943, down $6 from Tuesday. Silver followed a similar price path except the price smash was more severe, as silver was monkey-hammered from $23.15 to as low as $22.50 before bouncing to settle at $22.68. The Mining Stock Journal noted that an effort by the Comex banks to cover short positions as well suppress the prices of each metal while Jay Powell perseverated on monetary policy are the likely reasons the metals were hammered. The newsletter said that sentiment in the sector per the Hulbert Gold Newsletter Sentiment Index plummeted to a level that indicates newsletters on balance are recommending shorting gold and silver. This is typically a catalyst that helps put in a bottom to a downtrend and stimulate move higher. The mining stocks were red in response to the action in the metals but not as much as one might think given the shock and awe show staged at the Comex. GDX was down less than 0.30% and outperformed the general stock market.
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…Arizona Sonoran Copper.
ASCU is an early-stage copper developer and explorer of the Cactus Mine and its satellite project, Parks/Salyer, both situated on a 4km mine trend on private land in Arizona’s porphyry copper district. Opportunity for significant growth and scale exist along the mine trend, while future capex requirements outlined in the Cactus PEA benefit from significant onsite and nearby access to infrastructure. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America. For more information, please visit www.arizonasonoran.com.
And here’s what you need to know this morning….
Discovery Silver provided a general corporate update for the Cordero Project this morning. The company says they are set to initiate the permitting process in the next three to four weeks with the submission of its Environmental Impact Statement to the Mexican Federal Environmental Department. The feasibility study for the project is on schedule for completion in the first half of next year while recent drill results highlight the potential to further grow reserves within and on the margins of the open pit. The Company has reviewed the expected changes to be made with the new mining law recently introduced in Mexico and does not expect the new law will have a material impact on the Project timeline. (TSX: DSV, OTCQX: DSVSF) News Release
New Found Gold says they have made a new discovery at the Queensway Project in Newfoundland and Labrador. 95.7 g/t Au over 3.25m in NFGC-23-1292 was intersected in a new zone named “Jackpot” located 2.5km north of Keats and 950m north of Lotto. This new discovery is at a vertical depth of just 20m and is situated 280m east of the Aplpleton Fault Zone. Keats-Baseline Fault Zone. Jackpot is characterized by a brittle fault zone that is laced with coarse-grained visible gold. An aggressive follow-up program is currently underway and several intervals are already pending assay results. (TSX-V: NFG, NYSE-A: NFGC) News Release
Aston Bay Holdings and American West Metals reported new drill results form the spring reverse circulation drilling program at the Storm Copper Project at Somerset Island in Nunavut. Hole 13 intersected 29m of 1.2% Cu from a depth of 62.5m and included 1.5m of 8.2% Cu. Other holes reported today included 25.9m @ 1.3% Cu from 61m and 10.7m @ 1.3% Cu. Copper mineralization remains open laterally in all directions. The program was conducted this April and May by American West Metals, who are the project operator since entering an option agreement with Aston Bay in March 2021. (TSXV:BAY) (OTCQB:ATBHF) News Release
Omai Gold Mines announced additional drill results from the Company's Omai gold project in Guyana. Drill hole 63 Wenot returned 4.07 g/t Au over 31.1m, 3.38 g/t over 9.6m and 14.21 g/t Au over 1.8m. The company says they have not seen any limitations to the Weno deposit and are confident that additional drilling can further expand the gold resources. This hole 63 was at the west end of Wenot where no previous mining was done below the surficial saprolite. (TSXV: OMG) (OTCQB: OMGGF) News Release
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