Morning Briefing: Newcrest Mining Moves into Nevada
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday, September 29th
On Wednesday the precious metals rallied along with the rest of the markets, as the Bank of England was forced to renew its QE program to prevent a blood-bath in the gilt market that was unfolding as pension fund exposure to interest-rate swaps were blowing up, forcing these funds to unload longer-maturity UK Government bonds in order to meet margin calls on the interest rate derivatives. The Mining Stock Journal said there's a possibility this will happen in the U.S. Gold shot up to $1672 per ounce from an overnight low of $1620 and settled at $1665. Silver ran up more than a buck from a low of $17.90 per ounce to $18.94 before settling at $18.92. The Mining Stock Journal said that it has been puzzled by the lack of adverse consequences from the sudden and massive sell-offs in the euro, yen and pound as well as the blood-bath in the bond market. It suspects that the pension fund-driven crisis in the UK bond market will be the first of many such accidents reported over the next several months. This will be like rocket fuel for gold and silver.
The mining stocks responded quite positively to the move in the metals. The GDX soared over 7%, tripling the percentage gain in the broad stock market indices. Several individual mining stocks, like Fortuna Silver, New Gold and Silvercrest Metals were up anywhere from 10% to 13%. For now this may be an oversold bounce. But at some point there will be a series of credit market blow-ups like the one in the U.K. that will send the precious metals sector into orbit.
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…Western Copper and Gold.
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning….
Australia’s Newcrest Mining is moving into Nevada as it signed an option and earn-in agreement with Gunpoint Exploration to explore the Appaloosa property, a 7km long mineralized structural zone that hosts a hydrothermal system where the presence of low temperature silica flooding over a large area with low temperature quartz veining and stockwork are indications of the top of a major quartz adularia precious metal system. Newcrest has the right to acquire up to a 75% interest for cumulative exploration and development expenditures of US$35 million, cash payments of US$5 million over eight years and completing a minimum indicated resource estimate of 1 million ounces. Newcrest will then have the option to acquire Gunpoint's remaining 25% interest for the greater of Fair Value and US$25.0 million. Gunpoint Exploration trades on the TSXV under GUN. News release
Ero Copper announced the discovery of a regional nickel sulphide system within the Curaçá Valley in Brazil over an initial strike length of 5km. Named the Umburana System, it is 20km from the Company's existing Caraíba processing facilities. It is highlighted by multiple surface expressions of nickel mineralization. First-pass drilling comprised of 48 drill holes initially testing where ultramafic rocks have been mapped at surface on two of the identified zones and returned highlights of 16.5m grading 1.22% Ni, 0.17% Cu and 0.03% Co for a 1.37% NiEq in hole 17 in the VB Zone and 24.1m grading 0.81% Ni, 0.18% Cu and 0.04% Co for 0.97% NiEq in hole 3 in the Lazaro Zone. Ero Copper trades on the TSX and NYSE under ERO. News release
Infinitum Copper reported drilling results from its La Adelita copper project in Sonora and Sinaloa, Mexico with highlights of 32.25m grading 1.01% copper (Cu), 0.52 grams per tonne gold and 39.69g/t silver or 1.74% copper equivalent in hole 19 in the Cerro Grande zone. It said the highest grade copper-gold-silver mineralization is associated with semi-massive to massive magnetite. The company said a well-mineralized skarn at Cerro Grande ranges from 3 to 36m true thickness, over 250m depth and a strike length exceeding 200m. Infinitum Copper trades on the TSXV under INFI and on the OTCQB under INUMF. News release
Kodiak Copper reported five drill holes at the MPD porphyry copper-gold project in British Columbia which infilled a 170m gap at the south end of Gate zone. Drill-testing geophysical anomalies northeast of Gate also identified a 400m long, parallel mineralized trend at the Prime Zone. Highlights included 117m grading 0.69% Cu, 0.46 g/t Au and 2.22 g/t Ag for 1.03% CuEq in hole 6. The company said the Gate Zone now extends 1km north-south to a depth of 900m. The company has expanded exploration to other areas like as Dillard and Man. Kodiak Copper trades on the TSXV under KDK and on the OTCQB under KDKCF. News release
Goldshore Resources is back with more assays from the ongoing 100,000-meter drill program at the Moss Lake Project in Northwest Ontario, Canada. Results for five holes, drilled to infill historic but poorly surveyed drill sections in the Main Zone, have confirmed higher-grade gold mineralization within a large volume of well mineralized diorite. Intercepts included 192.75m @ 1.02 g/t Au from 94.45m, 11.85m @ 1.87 g/t Au from 441.15m and 34.25m @ 1.03 g/t Au from 209.0m. Goldshore trades on the TSXV with GSHR and on the OTCQB with GSHRF. News Release
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