Morning Briefing: Precious Metals Get a Much Needed Bounce

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

Today is Tuesday August 22nd. 

Despite the big jump in the 10yr Treasury interest rate, which often triggers hedge fund algo-driven selling of gold and silver futures, the precious metals staged a rally Monday, with gold up $6.50 and silver jumping 61 cents from Friday. Something caused gold to shoot up at 6:30-ish a.m. NY time from $1915 per ounce to as high as $1928. Then just as suddenly and unexplainably, the yellow metal tanked back down to $1914 before rallying to settle at $1924. Silver started running higher in the early morning about 90 minutes ahead of gold, before the London a.m. price fix. It traded up to $23.35 per ounce, was smashed briefly below $23 and bounced to settle at $23.36. 

The price containment squad is having trouble keeping silver below $23, according to the Mining Stock Journal. The newsletter added, that in its opinion, and though it might not start until after the Labor Day Weekend holiday, silver is setting up for an epic move higher. The mining stocks, after spending the morning in the red, rallied from Friday's close with the GDX up nearly 1% for the day yesterday.

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.

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

Filo announced assay results from hole 84 testing the Aurora Zone at the Filo del Sol Project in San Juan, Argentina. Hole 84 infills a 160m gap between holes 55C and 57 with 1,406m at 1.13% CuEq from 170m including 46m at 310 g/t Ag from 394m in the Silver Zone, 642m at 1.70% CuEq from 616m and 56m at 5.79% CuEq from 772m. Assays received from the geotechnical program confirmed the presence of strong hydrothermal alteration extending up to 2km east of Aurora. Filo said the presence of either a parallel mineralized zone or a much bigger system than has been recognized to date opens up a large area of prospective ground for additional exploration. It said that the unexpected mineralization and alteration encountered in the geotechnical holes, combined with recent geophysical survey results, suggests the Filo del Sol system may be even bigger than it thinks. So large just got larger. Filo (TSX: FIL) (OTCQX: FLMMF) 

Omai Gold Mines announced additional drill results from the Omai gold project in Guyana from the Wenot target, where so far this year 14 holes for 5,235m have been completed. Hole 65 encountered very wide zones of gold mineralization starting at a vertical depth of 140m, with visible gold identified at 22 locations within the core. Highlights included 27.7m grading 4.54 g/t Au including 11.2m grading 8.17 g/t Au over. Omai said the shear-hosted rhyolite-diorite dike complex in this area has proven to be particularly wide and well-mineralized, which will be important for a future open pit operation. Drilling is testing undrilled gaps within the Wenot deposit model to increase the resource, expand the western "starter pit" area, and provide evidence of potential at depth. An updated resource is expected in September. Omai Gold Mines (TSXV: OMG) (OTCQB: OMGGF) news release

Eloro Resources provides results from a number of drill holes this morning from its Mina Casiterita Property and the Santa Barbara Deposit in Bolivia. Mina Casiterita lies within the southwest park of the Iska Iska property. Eight drill holes were put into the property with the best results coming form Hole 03, which returned 0.17% Sn, 5.48 g Ag/t and 0.15 g Au/t over 52.75m. Tin mineralization at Casiterita is located 2km southwest of the Santa Barbara deposit indicating that the overall Iska Iska mineralizing system is much more extensive as predicted from geophysical data, according to the company. At Santa Barbara, infill drilling returned 125.99g Ag eq/t over 125.79m and 145.69g Ag eq/t over 70.79m. The company also completed some reconnaissance drilling at the Mina 2 area which returned 81.99 g Ag eq/t over 15.14m. An inaugural mineral resource for Iska Iska is near completion and is expected to be released by the end of August. (TSX: ELO; OTCQX: ELRRF) News Release

Sierra Metals announced an additional 15.5 million copper equivalent pounds in measured and indicated mineral resources hosted by the Dulce structure at its Bolivar mine in Mexico. The results included 52 drill holes from a total of 91 completed in the 2023 program, which increases the mineral resource from that reported in the 2021 preliminary economic assessment. They extended the dimensions of the mineralized ore body by an additional 400m along strike by 300m vertically. Bolivar produced a record 10.7 million pounds copper equivalent in the June quarter. Sierra Metals (TSX: SMT) (OTC Pink: SMTSF) news release

HighGold Mining has an 8,000m drilling programme underway at its Johnson Tract polymetallic Gold Project in Southcentral Alaska July as part of a multi-year advanced exploration plan to de-risk the Project and support future studies to evaluate the potential for a high-grade underground mine. HighGold. 2,500m of exploration drilling have been completed in 12 holes at Ellis Zone, East Difficult Creek and at JT Deposit. Work continues on collecting data for permitting efforts to expand the airstrip and develop a proposed 2.6 mile connecting road which would provide for more efficient logistics. HighGold entered this quarter with $16M in cash and equivalents. The Project hosts a 1.05 Moz indicated resource at 9.39 g/t gold equivalent in the JT Deposit. HighGold Mining (TSXV: HIGH) (OTC Pink: HGMIF) News release

American Pacific Mining completed a first phase of sampling and property evaluation at the recently acquired Danny Boy Project. Danny Boy is immediately west, and contiguous to its Tuscarora Project in Nevada. 10 rock chip samples were collected at Danny Boy during the first phase of reconnaissance evaluation work, returning values up to 20 grams per tonne gold with three initial target areas identified. The Tuscarora District now has 10 targets and large unexplored areas that will be mapped and sampled in the coming weeks. (CSE: USGD / OTCQX: USGDF) News Release

Elemental Altus Royalties published their financial results from the 2nd quarter of the year. The company highlighted Record revenue of $2.6 million, up 25% compared to Q2 2022 with another record gold equivalent ounce son the books totalling 2,377 ounces, which was more than double from the same quarter last year. (TSXV: ELE) (OTCQX: ELEMF) News Release

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