Morning Briefing: NexGold Merges with Signal Gold
Good morning and welcome to the Mining Stock Daily Morning Briefing.
Its Thursday, October 10th
Yesterday gold and silver were range-bound after Tuesday's obvious price management operation the Comex. A rally in the dollar along with a rising 10yr Treasury yield may have flipped the sell switch at hedge funds. Gold closed down $14 at $2626 while silver lost 17 cents. The mining stocks were down along with the metals but not as much as would be expected given the sharp 2-day decline. GDX lost half a percent while the Arca Gold Bug index was lower by a quarter of a percent. The Mining Stock Journal expects the sector to resume its rally later this month.
We’ll get to the news from the miners and explorers here in a moment, but first a quick 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…..
NexGold and Signal Gold announced they have entered into a definitive arrangement agreement to combine the two companies and create a top near-term gold developer advancing the Goliath Gold Complex in ONtario and Signal’s Goldboro project in Nova Scotia. The deal eliminates the single asset risk for both companies with both Projects are in advanced stages of permitting, with the completion of project permits expected in 2025. The Goliath Project has Federal Environmental Assessment Approval and the Goldboro Project has Provincial Environmental Assessment Approval. Each SGNL share will be exchanged for 0.1244 of a NEXG Share. Upon completion of the Transaction, existing NexGold and Signal shareholders will own approximately 71% and 29% of NexGold, respectively, on a fully diluted in-the-money basis. In connection with the Transaction, each of Signal and NexGold will conduct a concurrent non-brokered private placement for the sale of units of Signal comprised of one common share and one-half of one warrant, and units of NexGold comprised of one flow-through common share and one-half of one warrant, issued on a non-flow-thorough basis, for total gross proceeds of up to C$11,500,000. (TSXV: NEXG; OTCQX: NXGCF)(TSX: SGNL; OTCQB: SGNLF) News Release
Orezone Gold provided new drill results from its multi-year exploration campaign at its flagship Bomboré gold mine. Initial targeting of this program centered on the North Zone, with wide spaced drilling successfully demonstrating the continuity of the mineralized system at depth, both in terms of grade and overall width. Results included 1.02 g/t Au over 57m from 100m below the reserve pit and 1.64 g/t Au over 46m 200m below the reserve pit. The company says these holes will extend the mine life at Bombre and achieving the company’s targeted long-term global resource base of 7 to 10 million gold ounces. With these results, the company is going to add a second drill rig. (TSX: ORE, OTCQX: ORZCF) News Release
Brixton Metals announced their first bath of assay results from the Trapper gold target situated on the Thorn Project in BC. The company says nine visible gold occurrences were observed across three drill holes. Results included 254m of .48 g/t Au from a depth of 6m and included a 41m interval of 1.08 g/t. Today’s batch of results present new opportunities for step-out drilling north of the main target area, according to the company. (TSX-V: BBB, OTCQB: BBBXF) News Release
Snowline Gold announced additional assay results from the Valley deposit on the Rogue Project in Yukon. Holes V-24-081 and V-24-084 returned strong, consistent gold grades from near surface along the southwestern edge of the Valley deposit, outperforming the model used for the Company's initial mineral resource estimate (MRE) earlier this year. Those holes returned 433.5m of 2.1 g/t Au and 273.2m of 1.31 g/t Au. Assays remain pending for 45 holes across 6 targets at Rogue and Einarson. The company also completed a phase of reclamation at the Plata mining camp near Rogue, which included organizing and inventorying debris and abandoned equipment from historical mining activities in the region for future demobilisation. (TSX-V:SGD) (OTCQB:SNWGF) News Release
Hercules Metals shared new drill results from its Phase III drilling program a the Leviathan porphyry copper system in Idaho. Results shared today were 480m of .47% Cu and 82 ppm Molybdenum in hole 8, 154.87m of .44% Cu in hole 1 and 217m of .33% Cu in hole 4. A quartz porphyry intrusion, interpreted to be a late phase of the porphyry system, is intersected in a number of drill holes. Preliminary modeling suggests a southeast plunging geometry, consistent with the interpretation that the system is tilted to the northwest. (TSXV: BIG) (OTCQB: BADEF) News Release
Regulus Resources says they have executed an agreement with Buenaventura to acquire the remaining 30% interest int he Colquirrumi claims that the company did not already own. In exchange for the remaining 30% interest, Regulus has granted Buenaventura a 2% NSR over the Colquirrumi claims, of which 0.5% can be repurchased within 10 years in exchange for US$ 1 Million. The Colquirrumi claims represent approximately 2,571 hectares of mineral rights. Less than 5% of the Colquirrumi claims have been properly explored, however, several encouraging mineralized areas were discovered in Regulus’ previous drill programs. (TSX-V: REG, OTCQX: RGLSF) News Release
Liberty Gold has published a Preliminary Feasibility Study for the Black Pine oxide gold project in Idaho. The report shows a simple, open pit, run-of-mine heap leach operation with a one-year construction period and a capex of $327M. The economics currently sit at an After-tax NPV of $552M and a 32% IRR. Payback for the mine is 3.3 years using a base case $2,000 per ounce gold price. (TSX:LGD; OTCQX:LGDTF) News Release
The Mining Stock Daily morning briefing is produced by Clear Commodity Network and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network.
The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.