Morning Briefing: Newmont Revises Newcrest Offer; Collective Drills 271.3m of 3.35 g/t AuEq
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Tuesday April 11th.
The price of gold staged a typical rally overnight Monday, rising from $2005 to as high $2018 per ounce during Asian physical buying market hours and, surprisingly, into and through the London price fix. But, like clockwork, the price was smashed heading into the opening of paper gold Comex floor trading, with the price pushed all the way down to $1997, as the Comex market maker banks unleashed a flood of paper contracts. However, like a beach ball being held under water, the gold price snapped back over $2000 and settled the afternoon Globex session at $2006. As this commentary is being written, June gold is trading at $2,009. Silver followed the price path of gold, only in bigger percentage moves, as it ran up to $25.22 per ounce and was smashed back down to $24.88 before closing right at $25, May Comex contract basis.
The Mining Stock Journal commented that it looks like, for now anyway, the price management team is trying to contain silver at or below $25 and gold at or below $2000. The newsletter added wryly that the effort will fail. The mining stocks were not happy with the apparent metal price manipulation effort and closed lower Monday. Both the GDX and the Amex Gold Bugs index were down a little under 1.3%. That said, the Mining Stock Journal said that the sentiment has cooled somewhat per the Hulbert Gold Newsletter Sentiment Index, which fell over the weekend, indicating the potential for surprise move higher this week.
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….
Newmont submitted a revised non-binding indicative proposal to Newcrest Mining which would see Newcrest shareholders receive 0.4 of a Newmont share per each Newcrest share up from 0.38 of a Newmont share previously. This bumps the value of the transaction from US$16.9 billion to $19.54 billion, a 16% increase over its initial bid and a 35% premium based on the closing price of their shares from the last trading day prior to the initial offer. Newmont and Newcrest shareholders would own 69% and 31% respectively of the combined company. Newcrest would also have the right to pay its shareholders a special dividend of up to USD$1.10 per share. Newmont said its improved offer is its best and final offer unless a superior proposal emerges. Newcrest granted Newmont confirmatory due diligence access to its data and exclusivity to enable Newmont to put forward a binding proposal. Due diligence is expected to be completed within four weeks. Newmont (NYSE: NEM, TSX: NGT) Newcrest (ASX and TSX :NCM news release
Collective Mining announced assay results from an additional two drill holes completed from Pad 7 at the Apollo target at its Guayabales gold-copper project in Caldas. Highlights included 271.3m at 2.37 g/t gold, 23 g/t silver and 0.42% copper for a 3.35 g/t gold equivalent from surface in hole 43 which expanded the high-grade shallow zone of the apollo porphyry system to the west. This is the longest continuous interval drilled to date. The hole extended the vertical dimension of the system in the southernmost part of the deposit by 100m to 270m. Step out drill hole 40 also intercepted a none too shabby 169.25m @ 2.81 g/t gold equivalent which extended the strike length of the shallow mineralization 20m to the west and expanded the maximum known area of shallow mineralization to 150m X 130m. Five additional holes have been completed from Pad 6 and Pad 7 with assay results expected soon. Collective Mining (TSXV: CNL, OTCQX: CNLMF) News Release
Nova Minerals announced a JORC Resource of 9.9 Moz of gold at its Estelle Gold Project in Alaska. Measured and Indicated resources increased 13.3% to over 34% of the global resource, with 325Mt grading 0.3gt for 3.4Moz M&I, with another 6.5Moz in inferred. This included 180,000oz @ 4.1 g/t Au of measured resources at RPM North. The Resource is based on 85,000m of RC and diamond drilling completed up to 9 March. Nova is advancing to a Scoping Study and PFS. The exploration focus over the next 12 months will pivot to resource growth at the RPM Mining Complex along strike and at down dip extensions at RPM, and the high priority untested targets. Nova Minerals (ASX: NVA, OTC: NVAAF news release
Luminex Resources announced drill results from four holes at Cuyes West in Ecuador where the previously announced widening hanging wall mineralization adjacent to Cuyes West has expanded into a new breccia pipe with drilling hitting intervals of more than 200m of gold mineralization over one gram per tonne. Highlights included 211m grading 1.18 g/t Au Eq, including 20m grading 4.78 g/t in hole 20 and 211m grading 1.16 g/t Au Eq in hole 22. Step out drilling from this new breccia pipe and Cuyes West is ongoing, which will contribute towards updating the resource for Condor North by Q4 2023. Luminex Resources (TSXV: LR) (OTCQX: LUMIF) news release
Enduro Metals said a drone magnetic survey identified a "Bullseye" geophysical anomaly coincident with a 2.5km long copper and gold anomaly in outcrop at North Toe at its Newmont Lake project in the Golden Triangle in British Columbia. Rock chip surface samples returned grades of up to 4.08% Cu and 57.83 g/t Au over an area of 2.5km. North Toe is a new priority target for future drilling and demonstrates similarities of mineralization style, structural orientation and scale, to Newcrest's Red Chris Mine. Enduro Metals (TSXV: ENDR) (OTCQB: ENDMF) news release
Magna Mining released their first assays from the 2023 diamond drilling at the Crean Hill Mine in Sudbury, Ontario. Today’s results included Hole 13 from the 109 footwall zone which returned 0.2% Ni, 0.6 % Cu, 11.0 g/t Pt + Pd + Au over 95.4m, including 0.6% Ni, 2.3 % Cu, 122.5 g/t Pt + Pd +Au over 2.8 m. At the 101 Footwall zone, hole 11 returned 2.1% Ni, 3.0 % Cu, 1.1 g/t Pt + Pd + Au over 2.2m. Magna has mobilized a second diamond drill rig and will drill several holes to better define the near surface 109 Footwall Zone to allow it to better design a surface bulk sample at Crean Hill, which should commence within the next 6 to 9 months. Approximately 14 drill holes have been completed to date in 2023 at Crean Hill. Magna Mining trades on the TSXV with NICU. News Release
Western Copper and Gold said that Rio Tinto will exercise its participation right in full following the strategic investment by Mitsubishi Materials into the company announced in March. Rio will subscribe for 878,809 shares for proceeds of C$2.3 million to maintain its 7.84% interest. Mitsubishi will subscribe for 8.1M shares for proceeds of C$21.3 million. Western Copper and Gold (TSX and NYSE American: WRN) News Release
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