Morning Briefing: NGEx Minerals drills 1,290m grading 0.74% copper equivalent
Welcome to Mining Stock Daily. Standing in for Trevor Hall, I’m Paul Harris.
Today is Wednesday, May 25th
Yesterday, despite the continued sell-off in the stock market, the precious metals sector staged an impressive rally, with gold up $17 per ounce, or almost 1%, silver up 34 cents per ounce, or 1.6% and the mining stocks up 1.5% per the GDX. The largest cap miners were up over 2%. The Mining Stock Journal said that gold started moving higher just before midnight and and ran from $1848 to $1869 before settling at $1864. This was despite the absence of demand from India based on import data. Silver's rally also started just before midnight, as it rallied from $21.65 up and back over $22 to as high as $22.20 before pulling back to settle at $22.09.
The Mining Stock Journal is encouraged that silver managed to close back over $22 for the first time since May 6th. The Mining Stock Journal noted that the Hulbert Gold Newsletter Sentiment Index has jumped from a negative reading up to positive 29% in the last couple of days. The HGNSI is often a good contrarian indicator. Typically it's a bullish signal when the index moves from a net short recommendation to a mildly net long recommendation from newsletters.
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…Rio2
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning….
Integra Resources has further defined a high-grade gold-silver feeder system at the Sullivan Gulch area of its DeLamar project in Idaho, including its best silver results to date. Highlights included 26.97m grading 4.10 grams per tonne gold and 446.92 g/t silver for 9.85 g/t gold equivalent in hole 228 which included a sub interval of 40cm grading 80.40 g/t gold and 14,054 g/t silver. The company said the results confirm the presence of a new, Northwest trending structural zone hosting high-grade gold-silver dipping to the Northeast, which may be a new, high-grade feeder system . Drilling at Sullivan Gulch has delineated a mineralized zone over a strike length of 1,000m with a width of 200m and a depth of up to 350m. An IP chargeability anomaly extends 900m to the south beyond any drilling completed by the Company, suggesting the mineralization at Sullivan Gulch continues. Shares in Integra Resources trade on the TSXV under ITR and on the NYSE American under ITRG. News release
Royal Road Minerals provided an exploration update from its Los Milagros gold and copper district in the Mining Triangle region of Nicaragua which incorporates the Nueva America, Silvi and Oro Fino projects. A total of 2,502 combined grab and channel rock-chip samples have been collected from these prospect areas, as well as from other outcrop occurrences in an area represented by epithermal style gold veins, gold and polymetallic mineralized brittle shear zones and copper-bearing vein stockworks. The average grade for all the samples collected from Los Milagros is 1 gram per tonne gold. Mapping, further channel sampling and drill preparation is underway at both Nueva America and Oro Fino. Diamond drilling is expected to commence at Nueva America in June and Reverse-circulation drilling is expected to commence at Oro Fino in August of this year. Royal Road Minerals trades on the TSXV under RYR. News release
Not to be outdone by its Lundin Group sibling Filo Mining, NGEx Minerals reported an intercept of 1,290m grading 0.74% copper equivalent in hole 76 at its Los Helados copper-gold project in Chile, its best hole to date with a copper-equivalent by intercept length, of 954.6. The hole confirms the Company's new geological interpretation that Los Helados contains at least two centres of high-grade mineralisation. The hole ended in strong mineralization at 1,400m depth with the last sample returning 1.5% CuEq. Los Helados is 16km northeast of Filo Mining’s Filo del Sol deposit. NGEx Minerals trades on the TSXV under NGEX. News release
Tinka Resources entered into an equity subscription agreement with Nexa Resources, the largest zinc producer in Latin America, while Buenaventura said it will exercise its pre-existing participation rights on the same terms and conditions. Nexa will subscribe for 40.8 million shares priced at C$0.22 per share for proceeds of C$8.97 million. Nexa previously held a 9% stake in Tinka which will increase to 18.2%. Buenaventura will subscribe for 9.8 million shares for additional proceeds $2.15 million and upon closing, will continue to hold 19.3% of Tinka shares. The $11.12 million in proceeds will be used for development of the Ayawilca project including exploration and infill drilling programs, metallurgical programs, and other technical and environmental studies), and continued early-stage exploration of the Silvia project. Shares in Tinka Resources trade on the TSXV under TK and on the OTCQB under TKRFF. News release
Liberty Gold announced the final tranche of results from the winter drill program on the Rangefront Focus Area at its Black Pine gold oxide deposit in Idaho. The highlight of the 19 reverse circulation holes and one core hole reported today was 100.4m grading 1.38 grams per tonne gold in hole 511, one of its best intercepts to date, with drilling continuing to extend mineralisation to the north and east, with portions beyond the current exploration permit boundary, for which amendments to the Plan of Operations to allow access and drilling are in progress. Liberty is working to update the resource estimate and Preliminary Economic Assessment in the second half of 2022. Liberty Gold trades on the TSX under LGD and on the OTCQX under LGDTF. News release
Troilus Gold filed the Initial Project Description for its Troilus Project in Quebec with the Impact Assessment Agency of Canada at the Federal level and the Project Notice with the Ministère de l’Environnement et de la Lutte contre les Changements Climatiques at the Quebec Provincial level. These filings are the first step in the Environmental and Social Impact Assessments approval required under Canadian and Quebec law for a mining project to proceed to construction and into production. Since approval is required at both the federal and provincial level, Troilus will essentially be running a concurrent dual assessment process. At the Federal level, the 180-day Planning Phase will see members of the public and Indigenous peoples provide comment and will result in a set of guidelines for Troilus to follow in preparing the ESIA. Troilus is also advancing a Pre-Feasibility Study on the project. Troilus Gold trades on the TSX under TLG and on the OTCQB under CHXMF. News release
That concludes today’s morning briefing.
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