Morning Briefing: Rupert PEA, Metalla Royalty Deal, Viva Drill Results

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

Today is Monday November 28th. 

After successfully testing a triple-bottom at $1620, gold launched toward $1800 during November, hitting $1791 before pulling back to Friday's close of $1754. Through Friday, gold jumped 8.4% over three weeks. Silver fared even better, running up 11.6% through Friday's close of $21.43 over the same three weeks after trading as high as $22.38. Even more impressive, silver has soared 23.1% since hitting $17.40 at the beginning of September. The Mining Stock Journal said that the chart for silver is incredibly bullish, as it established an uptrend from the beginning of September from which it launched in early November, shooting over its 200 dma and closing just above the 200 dma on Friday after testing it with a pullback. The gold/silver ratio is in a definitive downtrend, closing at 81.8 on Friday after hitting 97.5 in September. The Mining Stock Journal added that the move in silver is supported by the current supply/demand fundamentals. The mining stocks have also had a nice move, with GDX staging a 25.6% rally from early November. The sentiment had gotten a bit frothy a week ago but the Hulbert Gold Newsletter Sentiment Index plunged late last week. The HGNSI is a good contrarian indicator for the sector and as such is signalling the potential for another nice move into the end of the year. The rally so far has left the junior microcap segment behind. The Mining Stock Journal said that, at some point, this unloved segment of the mining stocks could stage a jaw-dropping move, as many are trading well below book and even cash value.

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….

Metalla Royalty announced it has signed a royalty purchase agreement with First Majestic Silver to acquire eight royalties. The aggregate consideration payable by Metalla for the purchase of the royalties will be satisfied by Metalla issuing $20 million of common shares based on the 25-day volume-weighted average price of shares traded on the NYSE. The portfolio comprises a total of eight royalties, including one producing gold royalty from La Encantada, four development silver royalties, and three advanced exploration silver royalties. Other counterparties included in they deal are Sierra Madre, GR Silver and Silver Dollar Resources. The royalty portfolio is predominantly silver and will add approximately 1.7Moz of attributable silver in the measured and indicated categories, and 5.2Moz of attributable silver in the inferred category to Metalla. Metalla Royalty and Streaming trades on the TSXV and the NYSE with MTA. News Release

Rupert Resources published its preliminary economic assessment for the company’s Rupert Lapland Project in Northern Finland. The PEA highlights an open-pit operation at Ikkari in first 11 years, transitioning to Ikkari underground (years 10-23) and Pahtavaara concentrate (years 12 to 24). Economics as of right now represent an after-tax NPV of $1.6 billion with unlevered Internal Rate of Return (“IRR”) of 46% and payback after only two years, assuming a gold price of $1,650 per troy ounce. The company expects the lowest quartile all-in sustaining cost (“AISC”) of $759/oz over LOM, and $596/oz during open-pit operation. Rupert Resources trades on the TSXV with RUP. News Release

Viva Gold provided initial assay results from reverse circulation drilling at its Tonopoah gold project located in the Walker Lane of Nevada. Highlights included 5 g/t gold over 58m starting at a depth of 40m, and included an 11m zone of 24 g/t gold and 3m of 53.6 g/t gold and 87.9 g/t silver. The hole targeted the southern extension of a north-south structural feature in the central area of the PEA1 resource pit. The hole extended mineralization to the south and is likely to add tonnes, increase grade, and convert a number of resource blocks from inferred to indicated category. Over results reported this morning were 86.9m of 1.3 g/t gold and 38m of .8 g/t gold. 10 more drill holes front his program are awaiting assays. Viva Gold trades on the TSXV with VAU and on the OTCQB with VAUCF. News Release

White Gold reported initial assay results from the 2022 drill program at the Betty Ford and Mascot targets, situated 6km apart on its Betty property. Results reported today at Betty Ford included 55.15m of 1.50 g/t Au from 22.85m which has extended gold mineralization by 40m along strike to the east and to 70m at depth. Total strike length has been increased to 140m and remains open. At Mascot, drilling returned 1.14 g/t Au over 27.43m from 6.10m depth, including 8.74 g/t Au over 1.53m. Additional drill results from the Betty as well as the Company’s flagship White Gold project and regional exploration work will be announced in due course as results are received and interpreted. The 2022 program has been designed to advance prospective new targets on the Betty and other properties and to increase the Company’s significant gold resources on the White Gold property. White Gold trades on the TSXV with WGO and on the OTCQX with WHGOF. News Release

New Pacific Metal announced an updated mineral resource estimate for the silver sand project in Bolivia. The Silver Sand Deposit now sits at 54.26 Mt of 116g/t silver measured and indicated for 201.77Moz. In the Inferred category, the deposit host 4.56Mt of 88 g/t silver for 12.95 Moz. The PEA study is well on track to be complete by the end of 2022. New Pacific Metals trades on the TSX with NAUG and on the NYSE with NEWP. News Release

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