Morning Briefing: Orla Mining to Acquire Contact Gold
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Monday February 26th.
Last week gold rose $34, from $2015 to $2049, using the April front-month contract basis. About half of the week's gain in price occurred on Friday. The Mining Stock Journal said that it's not sure what triggered the prive move on Friday, as there were not any specific news or event triggers that day. Silver, on the other hand, closed flat vs the previous week at $22.98. As with gold, there was an absence of any material news or events that might have affected the price-action in silver. The mining stocks continue to spin their wheels in the mud, unable to gain any price traction on news that is good, bad or indifferent. In that regard, Newmont was hammered Thursday on Q4 earnings that missed estimates. The Company also announced job cuts and a $1.9 billion impairment charge at three of its mines. This dragged down the sector, though GDX on Friday recovered most of its losses from the previous day. The Mining Stock Journal opined that, with sentiment toward the sector plumbing the Mariana Trench plus geopolitical, economic, financial and Government fiscal risks escalating, it's only a matter of time before the precious metals sector takes off.
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… Arizona Sonoran Copper.
Arizona Sonoran Copper Company (ASCU:TSX) is focused on developing its brownfield copper project on private land in Arizona, a tier 1 location. The Cactus Mine Project is located less than an hour's drive from the Phoenix International airport via highway i-10, and with grid power and the Union Pacific Rail line situated at the base of the Cactus Project main road. With permitted water access, a streamlined permitting framework and infrastructure already in place, ASCU's Cactus Mine Project is a lower risk copper development project in the infrastructure-rich heartland of Arizona.For more information, please visit www.arizonasonoran.com.
And here’s what you need to know this morning….
Orla Mining has entered into an agreement with Contact Gold to acquire all of the issued and outstanding common shares of Contact. The total purchase prices is proximately $8.1M and represents a 77% premium based on Orla's and Contact's 20-day volume weighted average price as of February 23rd. Contact's key asset is the 100%-owned Pony Creek property, a 4,500 hectare exploration land package, strategically located adjacent to Orla's South Railroad property in the heart of the Carlin trend in Nevada. (TSX: OLA) (NYSE: ORLA)(TSX-V: C) News Release
Calibre Mining provided new drill results from last year’s resource expansion and infill program at the Tigra, Limon Norte and Pozo Bono open pit deposits located next to the Limon processing plant. Highlights reported today include 68.72 g/t Au over 2.0 and 16.49 g/t Au over 5.9 metres both both coming from hole 4875. There was also 18.68 g/t Au over 5.9 metres ETW including 55.68 g/t Au over 2.0 metres in hole 4876. The company says that these intercepts and positive news form its Panteon VTEM Gold Corridor demonstrates that the Limon district remains open for expansion and discovery. (TSX: CXB; OTCQX: CXBMF) News Release
Dundee Previous Metals reported new assay results from its ongoing infill drilling program at Čoka Rakita in eastern Serbia, where DPM recently announced an Inferred mineral resource estimate of 1.8 million ounces of gold. Highlights included 81 metres at 50.57 g/t Au and 0.15% Cu, 85 metres at 8.80 g/t Au and 0.13% Cu and 45 metres at 10.08 g/t Au. The company also reported results from the scout drilling program at the Dumitru Potok and Frasen prospects, which are located on the Čoka Rakita licence and are approximately 1.0 to 1.5 kilometres north of the Čoka Rakita deposit. Results included 26 metres at 3.54% Cu and 3.03 g/t Au from 1,155 metres and 30 metres at 1.36% Cu and 1.11 g/t Au from 1,214 metres. (TSX: DPM) News Release
Reunion Gold published results of an updated mineral resource estimate at the Kairuni zone on its Oko West Project in Guyana. The project currently sits with 64.6 million tonnes of 2.05 g/t Au indicated and 19.2Mt of 2.59 g/t Inferred. Total contained gold in open pit and underground Indicated Resources increased by 72.4 % relative to the June 2023 MRE. The gold grade in both open pit and underground indicated resources increased by 11.6 % to 2.05 g/t Au, while the grade of the total Inferred ounces increased by 28.5 % to 2.59 g/t Au. This resource will bemused in the preliminary economic assessment expected to be released in Q2. (TSXV: RGD; OTCQX: RGDFF) News Release
Hot Chili also updated its mineral resource estimate for the Costa Fuego project in Chile. The MRE update follows 24 months of material investment, totalling 24.5 km of drilling across Costa Fuego; a mix of development, metallurgical, geotechnical, resource expansion and exploration drilling, designed to progress the Costa Fuego project towards its Pre-feasibility Study (PFS) expected in H2 2024. It indicated resource now sits at 798 Mt grading 0.45% CuEq for 2.9 Mt Cu, 2.6 Moz Au, 12.9 Moz Ag & 68 kt Mo. The inferred resource stands at 203 Mt grading 0.31% CuEq for 0.5 Mt Cu, 0.4 Moz Au, 2.4 Moz Ag & 12 kt Mo. (TSXV: HCH) (OTCQB: HHLKF) News Release
District Metals published a news release this morning highlights news that the Swedish Ministry for Climate and the Environment stated that a rapid invetigation will commence with the purpose to remove a ban on uranium mining. This press release is of particular importance to District and its shareholders given the Company’s 100% ownership of the Viken Energy Metals Deposit in Sweden, which is amongst the largest deposits of uranium and vanadium, based on total historic mineral resources, in the world. (TSX-V: DMX) (OTCQB: DMXCF) News Release
And remember the news out of Osino that some mysterious buy came out with a better offer for the company? Turns out that buyer is Yintai Gold which is listed on the Shenzhen stock exchange with a market capitalization of $5.6B. Shandong Gold is its largest shareholder.
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