Morning Briefing: Royal Gold buys NGM royalty for US$525M cash
Welcome to Mining Stock Daily. Standing-in for Trevor Hall, I’m Paul Harris.
Today is Tuesday, August 2nd
Overnight Monday gold rose steadily from $1774 per ounce to as high as $1792 on a falling dollar plus weak economic data released on Monday morning. After bouncing around with the stock market, gold settled up $5 from Friday's close.
The end of the week strength in silver carried through to Monday, as silver ran from $20.10 per ounce to as high as $20.50 before fading in correlation with the stock market. But silver settled at $20.36, up about 16 cents from Friday's close. The Mining Stock Journal said that it is encouraged that silver closed above $20 for the second day in a row. It is up over 10% over the last five trading days.
The mining stocks closed slightly lower, ignoring the rally in the metals. The Mining Stock Journal said that mining stock investors and traders do not trust the move in the metals yet. Perhaps this is the makings of the start of a bull move in the sector that climbs the proverbial wall of worry.
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…Integra Resources.
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning…
Royal Gold acquired a sliding-scale royalty on an area including the Cortez mine and the Fourmile development project in Nevada from Rio Tinto for US$525 million in cash. The Cortez Complex is owned or controlled by Nevada Gold Mines, a joint venture between Barrick Gold and Newmont. The Fourmile development project is owned by Barrick. At current gold prices the Royalty is a 1.2% gross royalty. The Royalty is payable after cumulative production from the Cortez Complex of 15 million gold equivalent ounces from January 2008 onwards. Royal Gold expects the royalty to begin paying in the third or fourth quarter of 2022. The Cortez Complex has been operating since 1969, has produced over 26 million ounces of gold with substantial further exploration and production potential to contribute towards production for decades. Shares in Royal Gold trade on the NASDAQ under RGLD. News release
Sprott launched the Sprott ESG Gold ETF (NYSE Arca: SESG) the world's first ETF to exclusively source and refine gold from globally recognized mining leaders in ESG based on special criteria developed by Sprott. Sprott has partnered with the Royal Canadian Mint to provide investors with an ETF that only sources gold from companies and mines that meet Sprott’s ESG screening criteria. Initially, Gold will be sourced from several Canadian mines operated by Agnico Eagle Mines and Yamana Gold. Sprott said it will provide a convenient way for investors to own physical gold that aligns with their ESG values. Sprott said it will identify world-class North American gold mining companies with proven, highly transparent ESG track records with additional due diligence at individual mine sites to ensure they are meeting local ESG best practices. Sprott trades on the NYSE and TSX under SII. News release
Western Alaska Minerals announced the first assay results for massive Carbonate Replacement Deposit sulfide mineralization in the Waterpump Creek target area at its Illinois Creek Project in western Alaska. Highlights included 11.5m of massive sulfide grading 337 g/t silver; 16.7% zinc and 10.0% lead in hole 11, including 3.1m grading 565 g/t silver; 8.9% zinc and 15.0% lead. The company said the emerging mineralization trend is now over 300m long. Western Alaska Minerals trades on the TSXV under WAM. News release
Canadian Copper announced exploration results from the first seven drill holes at its Chester Copper Project in the Bathurst Mining Camp, New Brunswick, Canada. Highlights included 10m grading 1.4% copper and 1.8% zinc from 12.5m in hole 5, confirming near-surface massive sulphides, 23.5m of 0.79% copper and 0.9% zinc in hole 6 and 75cm grading 3.55% copper in hole 7 which hit several copper veins. The Copper Stringer Zone represents a wide mineralized copper system and extends laterally and at depth. Canadian Copper trades on the CSE under CCI. News release
Karora Resources announced drill results that confirm the consistency of the Western Flanks Main shear mineralization up to 150m below the current Mineral Resource at its Beta Hunt project in Australia. In addition to extending the Main Shear mineralization, drilling also outlined significant footwall mineralization which is not included in the current Mineral Resource. Highlights included 5.3m grading 13.6 g/t in hole 3AE. Karora Resources trades on the TSX under KRR and on the OTCQX under KRRGF. News release
That concludes today’s morning briefing.
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