Morning Briefing: Newcore completes 90,000m at Enchi

Welcome to Mining Stock Daily. Standing-in for Trevor Hall, I’m Paul Harris.

Today is Wednesday, July 27th.

Gold bounced between $1725 and $1719 per ounce late Monday night and early Tuesday morning before succumbing to the suffocating selling of paper gold derivatives after the Asian and Indian markets closed for the day at 3 a.m. NY Time. Gold was pushed down $1715 with a couple of brief down-spikes to lower levels but $1715 was where it settled. An outsized move higher in the US dollar likely was the catalyst to trigger hedge algos to dump paper gold, which means the next COT report should show the hedge funds even more short gold than last week while the banks continue to cover their paper short aggressively. 

Data showed that India hungrily imported gold after several weeks of relative dormancy due to the recent import duty increase on gold. Silver bucked the trend, rising over 1% from Monday's settlement, closing at $18.51 after trading as high as $18.62. The Mining Stock Journal could not find any news that might have stimulated the buy interest. As such, the newsletter's working theory is that investors may be starting to wake up to the fact that silver may be the most undervalued liquid asset in the world. The mining stocks had a firm bid, with the GDX and the Amex Gold Bugs Index both up a little over 2% despite the big selloff in the stock market. The Mining Stock Journal said it's likely attributable to some bottom-fishing coming into the sector.

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 Company.

Arizona Sonoran Copper Company is a lower-risk copper developer with a significant exploration potential on private land just south of Phoenix, in an infrastructure rich area of Arizona. The Cactus Project PEA illustrates an 18 year mine life, generating US$1 Billion post-tax free cash flow. It is a scalable, low capital intensity project with strong leverage to the copper price. 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 complemented by global capital markets expertise. Read more about the company at arizonasonoran.com.

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

Newcore Gold announced the final drill results of a 90,000m program at its Enchi Gold Project in Ghana which the company said delivered on its goals of outlining potential resource growth along strike at all four deposits as well as returning strong results at previously drilled zones outside of the resource area and intersecting high-grade gold at depth, outlining the potential to delineate underground resources; and making new discoveries from first pass drilling on early-stage targets. This was the largest drill program ever completed on the Project with results to be incorporated into an updated Resource Estimate by the end of the year. Newcore is now planning the next phase of discovery and resource expansion drilling at Enchi. Highlights from the latest results included 20m grading 1.16 grams per tonne within the southern extension of the Boin Gold Deposit. Newcore Gold trades on the TSX-V under NCAU and on the OTCQX under NCAUF. News release

FPX Nickel presented key results from Phase 2 and initial results from Phase 3 of ongoing metallurgical testing to support the development of its Baptiste Nickel Project in the Decar Nickel District in British Columbia. The overall program is aimed at validating and optimizing the flowsheet parameters outlined in the 2020 Preliminary Economic Assessment. Testwork confirmed the ability to consistently produce very high-grade flotation concentrates of greater than 60% nickel and indicated the potential for an alternative flotation regime which can produce excellent metallurgical performance while reducing flotation operating costs and complexity. Bench-scale and pilot-scale testing confirmed metallurgical performance and the 85% DTR nickel recovery assumed in the PEA with bench-scale flotation nickel recoveries of up to 91% in batch testing and 87% in locked cycle testing. Testwork confirmed pilot-scale grinding results in preferential grinding of dense awaruite particles, leading to primary magnetic separation recovery improvements of approximately 5%. FPX said testwork is demonstrating the potential to use a simple flowsheet with conventional operations. FPX Nickel trades on the TSX-V under FPX and on the OTCQB under FPOCF. News release

Outcrop Silver & Gold announced results from three additional drill holes within the Naranjos vein on its Santa Ana high-grade silver-gold project in Tolima, Colombia with a highlight of 6.93m grading 2,184 grams per tonne silver equivalent, including 1.06m grading of 8,786 grams per tonne in hole 270. Los Naranjos is 350m from and parallel to the Santa Ana vein system and shows abundant and locally coarse native silver and electrum. Los Naranjos is 200m wide and extends from surface to 250m depth.  On a gram x metre basis, the new results provide the thickest and highest-grade drill intercept to date on the Santa Ana project. Outcrop Silver & Gold trades on the TSXV under OCG and on the OTCQX under OCGSF. News release

Northern Dynasty Minerals entered into an agreement with an unnamed investor to receive up to US$60 million over the next two years, in return for the right to receive a portion of the future gold and silver production from the Pebble Project in Alaska for the life of the mine, and it has received an initial payment of $12 million. The company said the financing gives it the financial wherewithal to keep fighting against what it considers to be unfounded interference by U.S. Federal Government agencies in an otherwise well-established, legal permitting process, as well as to deal with challenges from well-funded parties from outside the area that lack scientific or other factual studies to support their opposition. The Royalty Holder will have the right to receive 2% of the payable gold production and 6% of the payable silver production for a notional payment of $1,500 per ounce of gold and $10 per ounce of silver. The Royalty Holder has the right to invest additional funds, in $12 million increments, within two years, in return for the right to receive up to 10% of the payable gold and up to 30% of the payable silver. Northern Dynasty Minerals trades on the TSX under NDM and on the NYSE American under NAK. News release

NorthWest Copper announced an updated Mineral Resource Estimate for its Lorraine property about 40km from its Kwanika-Stardust Projects in British Columbia of 12.9 million tonnes grading 0.55% copper indicated containing 156 million pounds and 45.5Mt grading 0.43% copper inferred containing 428Mlb at a $US3.50/pound for Cu. Lorraine also hosts gold. Lorraine could be a spoke for a hub and spoke development concept. NorthWest Copper trades on the TSX-V under NWST and on the OTCQX under NWCCF. News release

That concludes today’s morning briefing.

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