Morning Briefing: Quarterly Production Numbers Roll In

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


Today is Thursday August 10th. 


Gold yesterday continued its pattern of moving higher during eastern hemisphere physical markets trading but then getting pushed lower when London and New York trading venues assume control. Gold sold down from $1,965 per ounce to $1848, where it settled in the afternoon Globex session. Silver followed the same trading path, moving up to test $23 per ounce but then pushed lower to $22.72 where it settled in the afternoon. The Mining Stock Journal commented that, from a seasonal standpoint, this period is usually the worst period for price performance and sentiment in the sector, as investor attitude seems to have found the bottom of the Mariana Trench. 

The mining stocks turned their nose up at the action in the metals, as both the GDX and the Amex Gold Bugs index traded marginally higher despite a big sell-off in the stock market. Speaking of mining stocks, the Mining Stock Journal in the new issue released later today will explain why the stock market acted irrationally toward the earnings releases of Silvercrest Metals and Hecla Mining, both of which had their butts handed to them after reporting Q2 numbers. You can learn more about the newsletter at InvestmentResearchDynamics.com

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….

Western Copper and Gold has been informed by the Executive Committee of the Yukon Environmental and Socio-Economic Assessment Board that the deadline for issuance of the final revised Environmental and Socio-Economic Statement Guidelines for the Casino Copper-Gold Project’s review by a Panel of the Board has been extended to September 15 from August 17. The Company said it is working on its Environmental and Socio-Economic Statement and will be able to give guidance on the timing of submittal after receipt of the final Guidelines. Western Copper and Gold (TSX: WRN; NYSE American: WRN) news release


Tembo Gold entered into an dated with private Australian company Lake Victoria Gold to acquire the Imwelo Gold Project in Tanzania for C$5.5M consisting of 23.6M Tembo shares and USD$221,000 cash. The Project is near Anglogold Ashanti’s Geita Gold Mine and has a 2021 PFS, is permitted for construction and production, and hosts about 300,000oz in all categories. Tembo also entered into a letter of intent for a C$11.5M financing with Taifa Mining and Civils, a Tanzanian mining contracting firm, for a 27.1% stake in Tembo, with Lake Victoria owning 13.3%. Tembo Gold (TSXV: TEM) news release


Nevada King Gold announced assay results form four vertical reverse circulation holes this morning at its Atlanta Gold Mine Project in Nevada. Highlights included 44.2m of 3.18 g/t gold and 53 g/t silver in hole 25. This hole has extended the mineralization further westward into the West Atlanta Graben from the WEst Atlanta Fault. Other results reported today included 38m of .82 g/t Au and 42.7m of .32 g/t Au and 14.3 g/t Ag. The company says their drilling appears to show historic holes consistently under estimated interval grades, primarily from not drilling near higher grade feeder structures and not fully penetrating the mineralized zones. The continue to say that they are optimistic they can significantly increase the size and grade of the resource at Atlanta. (TSXV: NKG) (OTCQX: NKGFF) News Release


Frontier Lithium shared drilling results on 4 additional holes drilled on the Bolt pegmatite. Hole 111 returned 109.5m of pegmatite averaging 0.96% Li2O while hole 112 intersected 90.1m of pegmatite averaging 0.72% Li2O. Until this year, the Bolt pegmatite had only been mapped and channeled on surface exposures. It is located between the Spark and PAK spodumene-bearing lithium deposits on the PAK Lithium Project. With these two holes, the Bolt pegmatite has a horizontal width of up to 75m wide. (TSXV: FL) (OTCQX: LITOF) News Release


And we’re inundated with a round of quarterly production results this morning. Here’s a rundown of those results: Lundin Gold produced 129,731 ounces at an all-in sustaining cost of $802 per oz in the June quarter and increased its 2023 production guidance to 450,000 to 485,000 oz while reducing its AISC guidance to $820 to $870 per oz. Calibre Mining achieved record gold sales of 69,009 ounces in the June quarter at an all in sustaining cost of $1,178 per ounce. Pan American Silver is touting the gains it made from buying Yamana Gold with production up 55% for silver and 102% for gold compared with the first quarter. It also repaid $55.4 million of debt and distributed $36.4 million in dividends in the past quarter, and is on track to meet its target of realizing $40 million to $60 million in synergies through the transaction. However, it reported a net loss of $47.4 million reflecting non-cash accounting impacts, including a tax impairment charge of $33.3 million related to the sale of its 92.3% interest in the Morococha mine. Lundin Gold (TSX: LUG) Calibre Mining (TSX: CXB; OTCQX: CXBMF) Pan American Silver (NYSE: PAAS) (TSX: PAAS)


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