Morning Briefing: Pure Gold Mine put on Care and Maintenance

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

Today is Monday October 24th. 

Gold and silver both soared Friday, along with the stock market, as an article in the Wall Street Journal by the reporter who covers the Fed reported that some FOMC members seem to be leaning toward slowing down rate hikes or even pausing after the November or December meetings. The Mining Stock Journal said that, while the article was largely based on the reporter reading into recent conversations with some FOMC members, the view expressed by the reporter is not consistent with the most recent public comments from several FOMC members. The newsletter noted that it will take any gains the market gives us with gold and silver. The newsletter also said that the latest COT report showed that hedge funds resumed shorting a large amount of paper gold and silver, thereby dramatically increasing the net short positioning by hedge funds in both futures contracts. 

The banks and commercial hedgers took the other side of the hedge fund repositioning by substantially reducing net short positioning, with the banks further increasing their net long in paper silver. The  Mining Stock Journal said this is potentially quite bullish for the metals. The mining stocks soared on Friday, outperforming the general stock market by quite a bit. The GDX jumped 5% and some silver miners were up between 7 and 10%.

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….

Perpetua Resources completed its 2022 summer field program to initiate water quality improvements in the historical Stibnite mining district in Idaho. This included lining and improving the existing Hennessy Creek diversion channel to prevent leakage into the dumps and the resulting uptake of metals, removing legacy waste from within and along a tributary to the Salmon River and restoring the original streamflow course, and creating a lined diversion for surface water that previously contacted with legacy contamination around the former mill and smelter site . Perpetua worked with the Environmental Protection Agency and the United States Department of Agriculture for more than three years to receive permission to conduct early action cleanup activities resulting in a 2021 Administrative Settlement Agreement and Order on Consent. Perpetua is however, still awaiting an environmental license for its Stibnite gold and antimony project. Perpetua Resources trades on the Nasdaq and TSX under PPTA. News release

Marathon Gold announced it has received full authorization pursuant to the federal Fisheries Act from Fisheries and Oceans Canada for the Valentine Gold Project in central Newfoundland. Receipt of this authorization allows Marathon to proceed with all site activities regulated by the Fisheries Act, such as dewatering of small freshwater ponds for open pit mine development, changes in flow due to site water management, and placement of water intake and effluent pipes. The authorization follows the successful completion of the federal Environmental Assessment process in August of this year. Marathon Gold trades on the TSX with MOZ. News Release

Pure Gold Mining provided a financial update regarding its operations on the PureGold Mine in Ontario. With $2 million dollars in the bank and no additional money coming in from the exercise of warrants, the company is suspending operations and placing the PureGold Mine on care and maintenance immediately. This step follows an evaluation of several potential alternative scenarios and has become necessary because the mine has not yet achieved consistent positive site-level cash flow, notwithstanding recent reductions in operating costs and sequential quarter over quarter increases in production. If additional outside financing is not obtained in the short term, PureGold will not be able to meet its obligations as they become due, resulting in a default under its debt obligations. Pure Gold trades on the TSXV with PGM. News Release

Mako Mining reported additional results from recent definition and expansion drilling at the Las Conchitas area on its San Albino-Murra property in Nicaragua. Highlights of the recent drilling at Las Conchitas, immediately south of the operating San Albino Mine included 2.1m grading 42.59 g/t Au and 31.3 g/t Ag at Las Conchitas North. Seven diamond drill rigs are currently drilling with five at Las Conchitas to test the strike and dip extension of the gold mineralization amenable to both open pit and underground mining methods, and for a mineral resource estimate. This year, the Company has completed 208 drill holes for 30,558m. Mako Mining trades on the TSXV under MKO and on the OTCQX under MAKOF. News release

Galantas Gold announced results for four holes from drilling at its Omagh Project in Northern Ireland. Three holes were drilled from an underground platform towards the south of the development on the Kearney Vein, and one was drilled from a new platform in the north. Highlights included 4.5m grading 14.2 g/t gold and 59.3 g/t silver in hole 191 targeting an extension to a proposed dilation zone, within a broader intercept of 11m grading 6.3 g/t gold and 32.1 g/t silver. Galantas Gold trades on the TSXV and AIM under GAL and on the OTCQX under GALKF. News release

Finally, exercise is good for you. Foran Mining said Fairfax Financial exercised 27.8 million warrants @ C$2.09 for proceeds of C$33.4 million. The five-year warrants were issued as part of a $100 million financing last year. The exercise boosts Fairfax’s stake from 23.1% to 27.9%. Foran Mining is a copper-zinc-gold-silver exploration and development company with the The McIlvenna Bay project in Saskatchewan, Canada. Foran Mining trades on the TSXV under FOM and on the OTCQX under FMCXF. News release

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