Morning Briefing: Osino Makes Greenfields Gold Discovery at Eureka

Welcome to Mining Stock Daily. I’m Trevor Hall. 

Today is Wednesday August 9th. 

The precious metals sector continued to be a headache for gold and silver investors, as gold sold down $11 from Monday and silver was clubbed for 45 cents. Gold closed right on top of its 50 day moving average while silver fell below and closed below its 200 dma. Ostensibly the catalyst was a big rally in the U.S. dollar it would seem that the fall in Treasury rates should have offset that as continued weak economic data point to an eventual pivot, which should be bullish for gold and silver prices. The Mining Stock Journal noted that the more likely culprit was foul-play in the paper metals market, as the big decline in gold did not commence until just after the LBMA a.m. fix. Gold settled at $1959 per ounces and silver settled at $22.80. 

The newsletter added that it expects that the bottom may be near and it added some December silver futures to its investment portfolio. The mining stocks were affected by the double whammy of lower metals prices as well as big sell-off in the stock market. GDX closed down 0.85%. Sentiment in the sector continues to erode, which means the end of this misery may be near.

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….

Osino Resources says they have discovered significant gold mineralization at the Eureka greenfields exploration project in Namibia. Eureka is about 35km northeast of the company’s Ondundu Gold Project. The company released results form four RC holes and seven diamond drilling holes this morning. Highlights included 47m of 5.92 g/t gold, which included 27m of 8.69 g/t and 3m of 13 g/t in hole 5. Other results included 18m of 4.94 g/t gold, 17m of 4.12 g/t and 29m of 2.69 g/t. All of these drill holes also had shorter intervals of higher grade. The company said this is an entire greenfields discovery with no known previous exploration on it and no known local gold deposits. The gold is associated with massive sulphides (pyrrhotite, pyrite and chalcopyrite) adjacent to quartz veins. The massive sulphides often form the matrix of a breccia where the clasts are made up of fragments of vein quartz and country rock. Two holes await assay results, including hole 9, which the company says did have visible gold in the core. (TSXV:OSI) (OTCQX:OSIIF) News Release

Heliostar Metals reported additional drill results this morning from the Ana Paula Project in Mexico. Hole 299 tested the up-dip and central portion of the High Grade Panel. This hole extended mineralization towards the surface and returned 38m grading 6.95 g/t gold, including 11m grading 15.8 g/t gold. Hole 300 tested a gap in the high grade in the up-plunge area and returned 38m grading 13.4 g/t gold including 9.5m grading 31.8 g/t gold to better define the northern extent of High Grade Panel in this area. The Company is on schedule and on budget with the drilling program, which includes the first hole targeting mineralization further west into the down-plunge target. The company noted those holes have intersected sulfide mineralization. (TSXV: HSTR) (OTCQX: HSTXF) News Release

American Eagle Gold shared first drill results from their work at the NAK copper-gold porphyry project. Hole 8 returned 776m of .5% copper equivalent from surface. The hole was drilled into a previously untested area. With this results, the mineralized footprint at NAK has expanded to the west. The company says follow up holes 10 and 11 have encountered similar or better visual mineralization over similar intervals. Assays remain pending for those holes.(TSXV: AE) (OTCQB: AMEGF)  News Release

New Found Gold announced the results from nine diamond drill holes completed as part of a follow-up drill program at the Iceberg discovery located 300m northeast of Keats Main along the highly prospective Appleton Fault Zone at its Queensway project in Newfoundland and Labrador. Highlights included 4.7m grading 167 g/t Au. Iceberg-Iceberg East is now defined over a strike length of 665m, with high-grade gold mineralization starting at surface and extending to a vertical depth of 170m. Minimal exploration work has been completed below 200m vertical depth. The Company is undertaking a 500,000m drill program at Queensway with some 42,700m of core pending assay results. New Found Gold (TSX-V: NFG, NYSE-A: NFGC) news release

Labrador Gold announced results from drilling targeting the Appleton Fault Zone as part of a 100,000m drilling program at its Kingsway Project. Highlights of follow up drilling at Pristine included 6m grading  11.98g/t Au including 2.3m at 30.61g/t in Hole 270. All mineralization drilled to date at Pristine occurs above 86m vertical depth and extends over a strike length of 160m. Pristine is the third discovery along the Appleton Fault Zone, after Big Vein and Dropkick. The company is waiting to receive a permit to drill The 700m Gap between Pristine and Big Vein. Labrador Gold (TSX.V:LAB | OTCQX:NKOSF) news release

AbraSilver Resource announced assays from Phase III diamond drilling at the Diablillos property in Salta, Argentina, with step out holes to the northwest of the JAC zone, which coincide with a magnetic anomaly.  The new holes intersected a new silver zone, called the ‘JAC North zone’.  Highlights included 12m at 1,042 g/t Ag in oxides in hole 64 and including 6m grading 1,880 g/t Ag. JAC North is over 900m beyond the limit of the conceptual open pit that defines the current Mineral Resource estimate at Oculto and 100m northwest of the high-grade JAC zone. AbraSilver Resource (TSX.V:ABRA) (OTC:ABBRF) news release

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