Morning Briefing: Royal Road Minerals updates Caribe drilling

Welcome to Mining Stock Daily. Standing-in for Trevor Hall, I’m Paul Harris.

Today is Wednesday, August 3rd

Dog days of summer in the precious metals market...

Gold rallied overnight Tuesday, pushing back over $1800 per ounce to $1805 as the Comex opened for business. Gold was slapped around a bit by the paper gold traders, bouncing between $1792 and $1802, until FOMC member Loretta Meister threw water on the markets with hawkish interest rate policy comments. This in turn caused stocks and bonds to sell-off as the dollar spiked higher, while gold was slammed for $25 down to $1777 before settling at $1779. 

Similarly, silver traded up to nearly $20.50 per ounce overnight before getting hammered back to $19.92 and settling at $19.97. The Mining Stock Journal said that it had hoped that silver would hold above $20 but, from a seasonal standpoint, the precious metals are in one of the least liquid trading periods of the year plus Indian buying appetite is typically light ahead of its peak buying season that starts a month from now. The newsletter added that both gold and silver staged a big rally over the last 10 trading days and were probably due for a technical pullback. The mining stocks staged a strong rally early in the trading session but succumbed to the pressure from the big sell-off across the entire stock market, as the GDX closed down 1.26%.

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… Western Copper and Gold.

Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.

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

Royal Road Minerals provided a drilling update from its Caribe gold discovery in northeastern Nicaragua where infill drilling intersected 66m grading 1.3 Grams Per Tonne Gold in hole 40. The company said step-out holes intersected native copper, copper oxides and anomalous gold but have not, as yet, identified a possible copper and gold mineralized intrusive source. Results imply the gold mineralized system remains open for a further 300m towards the west and southwest and suggests a broad and significant copper anomaly towards the east. The newly identified gold mineralization located to the west of the project area, is hosted in the footwall to a major crustal scale fault-zone, which was previously assumed to be barren. 25m-spaced infill scout-RC drilling is planned in this area to better constrain geometry prior to diamond drilling.  Royal Road Minerals trades on the TSXV under RYR. News release

Seabridge Gold announced a Preliminary Economic Assessment for a copper-rich underground mine at its KSM project in the Golden Triangle of British Columbia, Canada. The PEA is a stand-alone mine plan to evaluate future expansion of the KSM mine to exploit the Iron Cap and Kerr deposits after the Pre Feasibility Study mine plan , released in June, has been completed. The PEA is primarily an underground block cave mining operation supplemented with a small open pit with a peak mill feed production of 170,000 tpd. The PFS plan is an open pit plan with a 33 year mine life on the Mitchell, East Mitchell, and Sulphurets deposits. Development of a Kerr block cave mine begins when Iron Cap development tapers off, 6 years in. The flotation plant will produce a gold/copper/silver concentrate and separate molybdenum concentrate with average annual production of 366Mlb pounds of copper, 368,000 ounces of gold, 1.8 million ounces of silver, and 400,000 pounds of molybdenum for 39 years. Seabridge believes the copper opportunity will help attract a partner. Seabridge Gold trades on the TSX under SEA and on the NYSE under SA. News release

Denison Mines announced the substantial completion of metallurgical test work to define the mechanical components for the planned Phoenix processing plant as part of the Feasibility Study for its Wheeler River uranium project in the Athabasca Basin in Saskatchewan, Canada. The program confirmed the ability to produce a yellowcake product that meets industry standard ASTM C967-13 specifications. The company said the test work demonstrated the ability to produce a saleable uranium product utilizing a simplified chemical precipitation process and a high-quality effluent for final discharge to the environment from a planned In-Situ Recovery wellfield planned for Phoenix, with metallurgical recovery rates of over 95%. Metallurgical test continues to further optimise processes. Denison Mines trades on the TSX under DML and on the NYSE American under DNN. News release

i-80 GOLD reported more results from ongoing underground drilling at its Granite Creek Mine Property in, Nevada with highlights of 9.1m grading 18.4 g/t Au in hole 18 in the Otto Zone, 33.9m grading 16 g/t Au in hole 45 in the Ogee Zone and 14.6m grading 24.4 g/t Au in hole 30 in the Adam Peak Zone. The 2022 program is focused on delineating mineralization for mining and upgrading and expanding resources for an upcoming resource update. The company is also mining a bulk sample to deliver an initial 10,000 tons to Nevada Gold Mines' nearby Twin Creeks Mine for metallurgical testing. i-80 GOLD trades on the TSX under IAU and on the NYSE under IAUX. News release

Golden Minerals reported assay results from the first 10 holes of a 22-hole, 1,286m, second phase diamond drill program recently completed at its Sarita Este property in Salta, Argentina. Highlights included 52.5m @ 1.49 g/t Au and 5.2 g/t Ag from surface. Drilling focused on following up on the ‘Sico’ epithermal target drilled in 2021 as part of an option agreement with Cascadero Copper. The 2022 results confirm mineralization extends to the east, west and south of earlier hole SE21008. The company is planning a follow-up campaign which is due to begin in mid-August. Golden Minerals trades on the NYSE-American and TSX under AUMN. News release

Fury Gold Mines provided results for seven drill holes at its Eau Claire project in the James Bay region of Quebec, Canada, which continue to show the potential to expand the deposit to the west. It said drilling confirms its belief that the Hinge zone is open for considerable growth and could add considerable ounces to its resources. Fury believes some of the holes reported today represent the apex of the targeted fold hinge and represent a potential 330m, increase to the mineralized strike length of Eau Claire. Highlights included 3.5m grading of 5.86 g/t gold and 1m grading 20.6 g/t gold. Fury Gold Mines trades on the TSX and NYSE American under FURY. News release

That concludes today’s morning briefing.

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