Morning Briefing: Pre-Feasibility Studies from Osino, Bunker Hill and O3

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

Today is Thursday, September 6th

Last week in light-volume trading gold was taken down $28 per ounce on the week, closing at $1722 after briefly testing $1700 on Thursday. $1700 was the low in mid-July and is a support level that goes back to the summer of 2020. Silver was taken down 87 cents per ounce on the week to close the week at $17.88, after briefly dropping below $17.50. The Mining Stock Journal said that the weakness in the metals last week was purely a product of the paper market in NY and London as well as in correlation with the decline in the stock market.

Ex-duty import premiums from India this past Thursday and Friday show that India was importing kilo bars full-throttle on both of those days. A combination of the gold price take-down to the low $1700's and India's seasonal demand kicking in generated some of the highest premiums in India in the Mining Stock Journal's recollection. In addition, the data from the Shanghai Gold exchange on Thursday and Friday showed a surge in gold buying in China at the end of last week.

The mining stocks were also lower on the week, though the entire precious metals sector bounced on Friday, led by the mining stocks, with the GDX jumping over 3%. The Mining Stock Journal will be discussing the gold:silver ratio and the possibility that it reflects a big move higher in the sector percolating in Thursday's new issue. The issue will also discuss American Pacific Mining plus update several current recommended stocks.

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

ASCU is an early-stage copper developer and explorer of the Cactus Mine and its satellite project, Parks/Salyer, both situated on a 4km mine trend on private land in Arizona’s porphyry copper district. Opportunity for significant growth and scale exist along the mine trend, while future capex requirements outlined in the Cactus PEA benefit from significant onsite and nearby access to infrastructure. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America. For more information, please visit www.arizonasonoran.com.

And here’s what you need to know this morning….

Osino Resources has completed its pre-feasibility study for its Twin Hills Gold Project in central Namibia. Using a 5% discount rate and a $1700 per ounce gold price as its base case, the report highlights a pre-tax NPV of $783M and an IRR of 33%. The project hosts a 13-year mine with a 5 million tonnes per annum processing capacity for an average gold production of 200,000 ounces for the first 4 years at an all-in sustaining cost of $890 per oz. The final 10 years looks to produce 169koz at an all-in cost of $930.Total Proven and Probable Reserves are 2.150 Moz from 64.3 Mt at 1.04 g/t with a 0.3g/t cut-off. The total capital costs as it sits now for Twin Hills is $375M which appears to be paid back in 2.3 years. Important to note, this PFS was published only 3 years after the company’s initial discovery at Twin Hills. Osino trades on the TSXV with OSI and on the OTCQX with OSSIF. News Release

O3 Mining announced a Pre-Feasibility Study for its Marban Engineering gold project near Val-d'Or in Québec, Canada. It features an increased production profile of 161,000oz a year for 10 years from 115,000oz/y in the 2020 Preliminary Economic Assessment at an All-in-Sustaining Cost of US$882/oz supported by a 50% increase in mill throughput, 15% increase in peak mine rate, lower cut-off grade of 0.30 g/t Au, lower strip ratio of 5.1 and increased mill gold recovery. The project will yield an after-tax net present value of C$463 million at a discount rate 5% and an internal rate of return of 23.2% using a long-term gold price of US$1,700 per ounce following an initial capital investment of C$435 million. As it works towards a Feasibility Study in 2023 it will perform trade-off studies assessing new technologies including autonomous haulage and trolley assist mine fleet that may impact project economics and reduce environmental footprint. Additionally, O3 Mining will continue with a brownfield exploration. O3 Mining trades on the TSXV under OIII and on the OTCQX under OIIIF. News release

Bunker Hill Mining reported a Prefeasibility Study for the first phase of the restart of the Bunker Hill Mine in Idaho’s Silver Valley, USA. The Phase 1 mine plan will produce 61.8 million pounds of zinc, 28.7Mlb of lead and 598,000 ounces of silver in concentrate for five years following a US$55 million initial capital cost in a 1,800 tonnes per day operation. A second phase would seek to exploit Inferred Resources, further increase scale and include ore sorting. The project would yield a net present value of $63 million at an 8% discount and a 36% internal rate of return. Bunker Hill Mining trades on the CSE under BNKR. News release

Meridian Mining provided an update on its Cabaçal Mine Corridor exploration program. The recent completion of a Gradient Array Induced Polarization survey has linked the open C4-A gold-silver precious metal discovery, to the Cabaçal copper-gold deposit 1.8km to the northwest. Multiple enhanced chargeability responses along this new trend, provide strong targets for follow-up evaluation and next drill programs. The Company also retrieved an additional 1,625 historical multielement soil sample records from archival maps of BP Minerals following improved survey control. It has connected the Sucuri prospect, the Santa Helena Mine and the Álamo prospect into a highly prospective 6.5 km copper-gold-silver VMS trend, known as the C2 Trend. After the Cabaçal deposit, this will be the focus of future resource development and exploration programs. The Cabaçal maiden resource statement is on schedule for the end of Q3, this year. Meridian Mining trades on the TSX with MNO and on the OTCQB with MRRDF. News Release

Mundoro Capital and JOGMEC announced the commencement of an exploration program on the recently approved JOGMEC-Mundoro Copper Project located in western Bulgaria. The JOGMEC-Mundoro Copper Project is considered highly prospective for sediment-hosted stratiform type deposits similar to that of the Kupferschiefer in Germany and Poland and the Central African Copperbelt in Zambia and DRC. From 1953 to 1992 the total mining production from the historical mines in the license area is reported as 3,263,200 tons of ore with contained 20,611 tons of copper and 990 tons of lead and zinc. Mundoro Capital trades on the TSXV with MUN and on the OTCQB with MUNMF. News Release

Orosur Mining announced assays from the first drill three drill holes at the Pepas prospect at its Anzá gold Project in Antioquia, Colombia. Highlights included 150.90m grading 3g/t Au from surface in hole 1. Orosur’s JV partner, Minera Monte Águila owned by Agnico Eagle Mines and Newmont, has met its expenditure commitment of US$4million for the current year and has completed its Minimum Phase 1 Earn-In Work Requirement. Orosur and Aguila will now form a new Company to hold the Project's concessions with Orosur owning a 49% ownership interest and Aguila 51%. Pepas is the most northern prospect at Anza, about 12km from the central APTA prospect. Orosur Mining trades on the TSXV and AIM under OMI. News release

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