Morning Briefing: Oversold and Looking for the Bounce

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Tuesday, May 10th

On Monday gold continued its downward path, with nearly $30 per ounce removed from Friday's settlement price. Similarly, silver was hammered for 2.4% or 55 cents yesterday. The Mining Stock Journal insists that the price action occurring in the gold and silver markets is confined to the paper derivative markets on the Comex and LBMA. In other words, other than coin dealer bullion sales to retail buyers, the selling driving down the prices is occurring 100% in the paper gold and silver markets. Hedge funds are selling anything not nailed down in their offices right now and they do not own physical gold, just Comex contracts, primarily. 

While silver has broken down technically, albeit it is now extremely oversold, gold is still above its 200 day moving average, currently at $1836. The newsletter has suggested that it's quite likely that the 200 dma will be stout support for gold. The mining stocks also have broken down completely although, as with silver, are extremely oversold technically. The Mining Stock Journal added that, as with paper silver and gold, the mining stocks are selling off with the general stock market.

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….

Doré Copper Mining reported a preliminary economic assessment for the restart of the Chibougamau copper-gold mining camp in Quebec, Canada with a hub-and-spoke operation around the Rand mill. The operation would produce 53 million pounds of copper equivalent for 10.5 years at an all-in sustaining cost of US$2.24/lb following an initial capital investment of C$180.6 million with production coming from the Corner Bay underground mine, Devlin copper deposit and the former Joe Mann gold mine. Doré said the project would yield an after-tax net present value of C$193 million at an 8% discount rate and a 22.1% internal rate of return using base case metal prices of US$3.75/lb copper and US$1,820 per ounce gold. At spot metal prices, the project economics improve to a NPV of C$303 million and 29.4% IRR. Doré plans to commence a feasibility study and submit permit applications with the provincial government. Doré Copper Mining trades on the TSXV under DCMC and on the OTCQX under DRCMF. News release

Aton Resources reported assay results from Phase 2 diamond drilling at its Rodruin gold exploration project in Egypt. Highlights included 88.6m grading 5.76 grams per tonne gold, 42g/t silver, 0.31% copper and 2.40% zinc in hole 71 which included 9.9m grading 39.4g/t gold , 261.7g/t silver, 0.84% copper and 3.55% zinc, the best intersection yet at the project. 35 holes have been completed at Rodruin for 3,862m. The company said that the identification of high grade primary sulphide-rich altered sediment hosted mineralisation at depth indicates the potential for Rodruin to become a really significant sized deposit. Aton Resources trades on the TSXV under AAN. News release

Cassiar Gold announced a new Mineral Resource Estimate for the Taurus deposit at its Cassiar Gold Property in northern British Columbia in Canada. The inferred resource is now 37.9 million tonnes grading 1.14 grams per tonne gold for 1.39 million ounces. The company said 45% of the ounces occur within 50m of surface, 76% within 100m and 90% within 150m. It said eastern areas of the deposit near the historical Taurus underground mine were excluded as mining shapes could not be accurately recreated in 3D due to lack of survey constraints. The company now hopes to close a C$10 million bought deal financing. Cassiar Gold trades on the TSXV under GLDC and on the OTCQX under CGLCF. News release

Banyan Gold shared results from the first nine diamond drill holes completed in the Company's 2022 exploration program at the Powerline deposit located on the Company's AurMac Property in Yukon. Results included 32.1m of 0.78 g/t gold from surface and 34.8 m of 1.07 g/t gold from surface. Banyan initiated its 2022 exploration program in January and has three drills operating. 75 drill holes and over 17,000m of drilling have been completed to date which together have expanded the mineralization around the Powerline Zone by over 600m to the east and 1,000m west from 2021 drilling. Banyan Gold trades on the TSX V with BYN and on the OTCQB with BYAGF. News Release

Probe Metals provided the initial results from the 2022 drill program on its Val-d’Or East Monique property in Quebec, Canada. Results from 28 holes returned gold intercepts within and surrounding the conceptual pits from the 2021 Preliminary Economic Assessment. Drilling in the Monique gold zones continues to expand along strike and depth with a highlight of 16.4m grading 6 grams per tonne gold. Probe said almost half of the 150,000m program completed in the first four months of the year with results from over 165 holes drilled since the beginning of the year at Monique still pending. Probe Metals trades on the TSXV under PRB and on the OTCQB under PROBF. News release

Fireweed Zinc announced the acquisition of the Gayna River Zinc project in Northwest Territories, Canada. The Gayna River project contains the critical metals Zinc, Gallium, and Germanium in addition to Lead and Silver. The project comes with 28,000 m of historical drilling by Rio Tinto which outlined large-tonnage exploration targets. The historical drilling intersected many zinc-rich intervals, such as 21.3 m of 8.14% zinc, and 12.2 m of 6.65% zinc including 6.1 m of 11.25% zinc Recent academic studies indicate potential for very-high grade massive sulphide targets which were not recognized by previous owners. Fireweed Zinc trades on the TSX V with FWZ and on the OTCQB with FWEDF. News Release

Arizona Sonoran Copper announced it has added three new names to their operations team. Both Dan Johnson, Project Manager and John Peterson, Senior Environmental Professional, are well-known and well-respected individuals with long careers in the Arizona mining industry, while Kevin Canario, Director of Finance has been a key member of mining finance teams as both an auditor and CFO. The company said these new positions are the first of several to set ourselves up for an effective evolution of the Cactus Mine through the technical studies, and towards the Project Financing post-construction decision. Arizona Sonoran Copper trades on the TSX with ASCU. News Release

That concludes today’s morning briefing.

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