Morning Briefing: Newcore Publishes Updated PEA, BHP Makes a Move on Anglo American
Welcome to Mining Stock Daily. I’m Trevor Hall
Today is Thursday April 25th.
Wednesday was a largely uneventful day in the precious metals sector. Gold oscillated overnight and throughout the day between $2346 and $2326, settling at $2328 in the afternoon Globex session down $5 from Tuesday. Silver similarly was range-bound. After a rally up to $27.48 by midnight Tuesday, poor man's gold traded between $27.10 and $27.40, settling at $27.18 down 16 cents from the previous day. The trading action in the mining stocks was a total snoozer. The Arca Gold Bugs index closed down slightly while GDX closed slightly to the plus side. The Mining Stock Journal commented that the precious metals sector continues to work off the overbought condition created by the big rally between late February and mid-April. It added that, while impossible to predict how far the sector might pullback, the newsletter welcomes this pullback as a set-up for another big move higher.
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… Vizsla Silver.
Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 325,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at https://vizslasilvercorp.com/
And here’s what you need to know this morning….
Newcore Gold published its updated preliminary economic assessment for the company’s Enchi Gold project in Ghana. The PEA incorporated updated costing as well as development work completed on the Project since 2021 including a larger Mineral Resource Estimate completed in 2023, a significant amount of bench-scale and bulk sample metallurgical testwork and an updated environmental and social baseline study. At a gold price of $1,850/oz, Enchi hosts $586 million pre-tax net present value discounted at 5% ("NPV5%") and a 77% pre-tax internal rate of return. Its initial capital costs are estimated to be $106M with a payback period of 1.6yrs. The project looks at a technically straightforward open pit heap leach operation with average annual gold production of over 121K ounces. (TSX-V: NCAU, OTCQX: NCAUF) News Release
Orezone Gold provided drill results from its Bomboré Gold Mine located in central Burkina Faso. The results are part of Orezone’s ongoing infill and advanced grade control program which was designed to further delineate multiple high-grade structures within the P8P9 Zone. Results today included 18.41 g/t Au over 8.00m, 11.92 g/t Au over 4.00m and 33.49 g/t Au over 2.00m. (TSX: ORE, OTCQX: ORZCF) News Release
Kodiak Copper reported a new copper porphyry discovery at the 1516 Zone located on the southern portion of the 100% owned MPD copper-gold porphyry project in southern British Columbia. The new 1516 Zone is interpreted to be part of a larger, multi-centred 4.5 square kilometre porphyry system that also hosts the South, Mid and Adit Zones, based on drill core chemistry and historic copper in soils. It is twice the strike length of kodiak’s first discovery at the Gate Zone. This discovery hole returned 0.12% CuEq* over 258 metres, within a broader zone of 0.09% CuEq* over 525 metres. The company says the first holes into the 1516 discovery are interpreted to be within a lower grade shell and follow-up drilling is warranted to test for higher-grade zones within this large target. (TSXV: KDK) (OTCQB: KDKCF)
Brunswick Exploration reported the first assays from the Mirage winter drilling campaign where it drilled an additional thirty-five holes. The Mirage Project is located in the Eeyou Istchee-James Bay region of Quebec approximately 40 kilometres south from the Trans-Taiga Road. The winter drill campaign focused on the Central Zone and has continued to intersect multiple wide, well mineralized intervals on the MR-6 dyke and its vicinity where it remains open in all directions. Today’s results incuded 58.1m of 1.59% Li2O and 31.6m of 1.71%. (TSX-V: BRW, OTCQB: BRWXF) News Release
Snowline Gold is consolidating the Einarson Project. It is gaining 100% ownership of the project through purchase of a privately held 30% interest in 3,003 mineral claims (~61,000 ha). Einarson includes the Company's Jupiter discovery, which saw drill results of 13.2 g/t Au over 6.5 metres and 9.67 g/t Au over 38.7 metres. Einarson hosts multiple untested, kilometers-scale gold targets defined by prospecting and surface geochemistry. Einarson sits immediately to the north of and is contiguous with Snowline's 100% owned Rogue Project, which hosts the Company's flagship Valley discovery. Snowlines says their primary focus remains on the expansion and advance of Valley. (TSXV:SGD) (OTCQB:SNWGF) News Release
And in big-producer M&A news, it has been reported that BHP has proposed a $39B takeover of Anglo American that would bring the two companies together as one of the industry’s largest. BHP says it had offered .7097 BHP shares for each Anglo share as it looks to expand its copper portfolio. The deal would put BHP at the top of leader board in regards to copper producers.
And $39B in this sector certainly seems like a lot, but last night META lost $200B in value after it published its earnings.
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