Morning Briefing: Snowline Gold Out with their Highly Anticipated Assay Results
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Wednesday, August 24th
After an uneventful overnight trading session in gold and silver, both metals shot up when the Comex opened after semi-apocalyptic economic reports triggered a torrid rally across all financial assets, paper gold and silver being financial assets. Gold spiked up over $24 per ounce from $1744 to $1768 and silver soared from $18.65 per ounce to as high as $19.15. The news that new home sales in July tanked nearly 13% from June and nearly 30% year-over-year reignited the hope that the Fed would go back to zero interest rates and more money printing. The dollar fell nearly half of a percent on the day. Gold faded a bit to settle at $1760 and silver settled at $18.99.
The mining stocks took their cue from the action in the metals. The GDX closed up 1.7% but many silver producing stocks were up 4 to 5%. The Mining Stock Journal said that the Hulbert Gold Newsletter Sentiment Index took a deep dive on Monday to negative 20.3%, which indicates that, on a net basis, 20.3% of the newsletters that make recommendations on the precious metals sector are short. This is typically a reliable contrarian directional indicator but not with respect to timing. The Mining Stock Journal said that it is still confident that a big rally in the sector is coming but probably not until after Labor Day Weekend.
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 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….
Kenorland Minerals announced the commencement of exploration activities in addition to the 2022 exploration budget at the Tanacross Project in eastern Alaska under earn-in agreement with Antofagasta plc. The 2022 field program includes geophysical, geological, and geochemical surveys. A 42 line-kilometer induced polarization and magneto-tellurics survey will be carried out over the East Taurus-McCord Creek-West Taurus complex, along with detailed mapping and soil sampling. The complex hosts numerous mineralised intrusions and alteration systems variably enriched in copper, gold, and molybdenum. The budget for the program along with certain fixed costs in 2023, amounts to US$2 million with activities planned to carry on through August and September. Kenorland Minerals trades on the TSXV under KLD and on the OTCQX under NWRCF. News release
Filo Mining announced results from two drill holes at its Filo del Sol Project in San Juan, Argentina. It said holes 61 and 63 successfully extended the strike length of the Aurora Zone by 180m to a total of 1.6km, and it remains open to expansion. Highlights included 701.2m grading 1.13% CuEq in hole 61 including 406m grading 1.36% CuEq. The hole ended in mineralization at a depth of 1,093m. Hole 063 intersected 844.2m grading 0.53% CuEq from a depth of 16m. The Aurora Zone is interpreted to be continuous between these two holes, with large undrilled gaps remaining. Filo said drilling was interrupted by an unusually harsh winter with large snowfalls and strong winds occurring through several storms. The weather has now improved, and drilling is currently underway with six diamond rigs on site, and six holes in progress. The company will add two new, state-of-the-art diamond rigs in September to drill even deeper as it plans to drill about 40,000m over the next 12 months. Filo Mining trades on the TSX under FIL and on the OTCQX under FLMMF. News release
SNOWLINE GOLD announced assay results from its 2022 drilling program at the Valley Zone at its Rogue Project in Yukon, Canada with a highlights of 282.9m grading 2.30 g/t Au in the top of drill hole 7 including 146m grading 3.24 g/t Au. Assays for the bottom of the hole are pending. The company said that a 154 m step out to test the width of the system and a 340m step out along the length of the system encountered grades and intervals greater than those of its discovery holes last season. SNOWLINE GOLD trades on the CSE under SGD and on the OTCQB under SNWGF. News release
Maritime Resources announced feasibility study results for the Hammerdown gold project in the Baie Verte mining district of Newfoundland and Labrador in Canada. The study supports a technically straightforward, brownfields open pit mine and gold processing operation benefiting from low capital investment and rapid payback. The feasibility details an open pit mine with run of mine operations with an ore sorting plant producing a mill feed grade of 6.76 grams per tonne to provide 700 tonnes per day to the Nugget Pond mill facility, producing 50,000 ounces a year at an all-in sustaining cost of US$912/oz for just under five years following a C$75 million initial capital investment. The project would yield an after tax net present value of $102.8 million at a 5% discount rate and an internal rate of return of 48.1% based on a US$1,750/oz gold price, with a 1.7-year payback. Maritime contemplates ground-breaking in Q1 2023, with a total 12-month construction period and first gold production in Q1 2024 dependent upon the completion of the final permitting and the receipt of approval for Rehabilitation and Closure and Development plans, as well as financing. Maritime Resources trades on the TSXV under MAE. News release
Labrador Gold announced assays from six samples containing visible gold collected during prospecting in the Golden Glove area at Kingsway Project in Newfoundland as part of efforts to generate and upgrade targets for drilling along the 12km strike length of the Appleton Fault Zone covered by its Property. The samples were taken from quartz veins believed to be splays off the original Golden Glove vein with assays ranging from 7.51 g/t to 479.51 g/t Au. The company said the discovery of more veins containing high-grade gold at surface is encouraging as it gives additional information on the structural context of the mineralization at Golden Glove and will allow more efficient drill targeting. Labrador Gold trades on the TSXV under LAB and on the OTCQX under NKOSF. News release
Cornish Metals reported the remaining assay results from the Phase 1 drill programme at United Downs in the UK, including results from the Mount Wellington and United Mines Targets within the United Downs project, 8km east of South Crofty. All four of the holes intersected multiple mineralised zones. Highlighted intercepts included 4.25m grading 5.51% zinc in hole 1, and 2.42m grading 3.70% tin, and 9.09% zinc from hole 2. The tin intersects confirm a potential transition from copper to tin at depth, similar to the mineralisation transition seen at South Crofty Mine. The copper and tin intersections beneath United Mines have now been observed over a strike length of about 1.4km and the zone is open along strike and to depth. Cornish Metals trade on the TSX with CUSN. News Release
On Sunday, Endeavour Silver said a memorial service will be held in Vancouver for the company’s founder, Director and Executive Chairman, Bradford Cooke, who recently passed. The event will be live-streamed with details to be found on the company’s website. Endeavour Silver trades on the NYSE under EXK and the TSX under EDR. News release
That concludes today’s morning briefing.
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