Morning Briefing: Positive Environmental News Out of Chile, New Drill Results from Integra
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris
Today is Thursday, July 21st.
Precious metals are experiencing yet another move down on the market elevator this morning with gold currently trading around $1680 and silver at $18.21 per ounce. All eyes are on the European Central Bank today as they announce what is expected to be the bank’s first rate hike since 2011. Financial historians may remember back then the decision triggered a sovereign debt crisis and the bank quickly reversed course only a few months following. There is little doubt the global economy is slowing, with many companies announcing hiring freezes and a few even announcing layoffs. It's the next textbook step in the progression towards official recession and demand destruction. This will also be the queue for Central Banks to reverse its course, ease monetary policies once again, and light a new bullish fire for precious metals.
And this just in, the European Central Bank have announced a 50 bps hike.
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. 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….
We start today with a positive environmental decision in Chile as Los Andes Copper reported that the Second Environmental Court revised and lifted a preliminary injunction issued in March relating to the protection of the Andean Cat which suspended drilling at its Vizcachitas Copper. The decision means drilling can continue, with certain restrictions. Following the injunction, the Company filed several scientific reports, technical studies and legal opinions with the Environmental Court showing that the drilling program is compatible with the protection of the Andean Cat and the overall environment. The Court decision authorizes the Company to continue drilling at Vizcachitas, with certain operational conditions, including a restricted drilling plan for the first 12 months which will allow the Company to pursue its original program of defining extensions of the mineralized body as it pursues its the larger goal of completing a Prefeasibility Study in the December quarter. Los Andes Copper trades on the TSXV under LA and on the OTCQX under LSANF. News release
Integra Resources announced drilling results from the DeLamar gold-silver Project in southwestern Idaho, which included long runs of strong mineralization with multiple high-grade hits of silver. Highlights included 102.1m grading 0.57 grams per tonne gold and 131.29 g/t silver including 1.53m grading 1.3g/t Au and 2,718 g/t Ag in hole 204. Drilling extended mineralization below the Pre-feasibility Study Pit Constrained Resource by 30m and the potential for resource in the historical stockpiles and backfill. The drill holes were part of a metallurgical drilling program. Sullivan Gulch is defined by a 100 m to 300 m wide thicknesses of disseminated low-grade, gold-silver mineralization underlain by a newly discovered high-grade gold-silver zone. Integra Resources trades on the TSX-V under ITR and on the NYSE American under ITRG. News release
Pan American Silver released results for 22 infill and exploration drill holes for 18,071 at its La Colorada Skarn project in Zacatecas, Mexico including the highest-grade intercept from the more than 200,000m drilled to date. Hole 22 returned 295.5m grading 234 g/t Ag, 6.36% Pb and 5.72% Zn, including 97m grading at 654 g/t Ag, 15.35% Pb and 11.38% Zn. Pan American plans to provide an update to the mineral resource estimate for the La Colorada Skarn in the September quarter. Pan American Silver trades on the NASDAQ and TSX under PAAS. News release
Moneta Gold announced assay results from seven holes from infill drilling on the Westaway deposit at its Tower Gold project in Ontario, Canada. Highlights at Westaway included 7.85m grading 4.06 grams per tonne in hole 281 as part of a 70,000 m infill and resource upgrade program. Tower has an indicated resource of 4.3 million ounces indicated and 7.5 Moz inferred. Moneta Gold trades on the TSX under ME and on the OTCQX under MEAUF. News release
First Majestic Silver reported a 20% increase in year on year production for the June quarter to 7.7 million silver equivalent ounces consisting of 2.8 million ounces of silver and 59,391 ounces of gold, from its four producing operations. Part of the boost was production from its recently acquired Jerritt Canyon gold operation in Nevada, although this fell 10% from the March quarter to 18,632 ounces, primarily due to a major failure in the oxygen plant to produce liquid oxygen which significantly reduced roasting capacity in May. The company anticipates a further 25% production increase in the second semester. First Majestic Silver trades on the NYSE under AG and on the TSX under FR. News release
That concludes today’s morning briefing.
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