Morning Briefing: Tesoro Gold Drills 434m of 1.22 g/t Au
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Wednesday, August 31st
On Tuesday gold popped early morning in London trading in response to a sudden flash crash in the US dollar index. But just as quickly as the dollar plunged and gold soared, the two assets reversed as the dollar spiked up and gold flash-crashed. The Mining Stock Journal said the extreme volatility is a bad omen and likely the market's response to extreme problems brewing beneath the surface in the EU and US credit markets. The newsletter reiterates that the current patterns in the market are strikingly similar to the patterns that unfolded late in the summer of 2008, ahead of the great financial crisis. That said, gold round-tripped from Monday and erased all Monday's gains. Silver traded up briefly early Tuesday morning to $18.60 per ounce before abruptly flash-crashing down to as low as $18.12, then it bounced between $18.13 and $18.20 for the rest of the day.
The flash crash occurred as the NYSE opened, leading the Mining Stock Journal to conclude that its theory that hedge funds are the culprits doing the selling and shorting of paper silver is correct. Tuesday's action will be reflected in Friday's COT report and it will likely show a big increase in the net short positioning of the hedge funds. The mining stocks were trampled again, with the GDX down 2.15% and the Amex Gold Bugs Index down 2.7%. Currently as August winds down, there's no love for paper gold and silver or for mining stocks. Meanwhile, Central Banks globally continue to accumulate physical gold bars and China is actively importing gold both from Russia and London via Swiss refineries.
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
ASCU 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….
K2 Gold completed a ground-based Magnetic and Very Low Frequency electromagnetic geophysical survey at its Wels Project in Yukon, Canada. A total of 60.73 line-km of ground was surveyed, with multiple VLF-EM anomalies delineated including several previously unidentified trends with coincident rock and soil geochemical anomalism, an entirely new exploration target in the southwest of the property was also identified. Highlights included a west-northwest trending VLF anomaly interpreted as a controlling structure or contact is observed immediately adjacent to high-grade gold historically drilled at the Saddle Zone. The anomaly has not been tested by drilling, extends for 850m, and is coincident with high-tenor gold-in-soil results. K2 Gold trades on the TSXV under KTO and on the OTCQB under KTGDF. News release
Ridgeline Minerals provided an update of drilling and exploration at its Selena and Swift projects in Nevada and its Robber Gulch project in Idaho. At Selena, a 10-15 hole drill program will begin in September to test shallow Ag-Au-Pb-Zn mineralization at multiple targets with the objective of defining multiple shallow-oxide mineralized zones with open-pit potential. In the June quarter, the Carbonate Replacement Type mineralization intersected in a step-out drill program returned 3m grading 40.2 grams per tonne silver, 3g/t gold, 0.2% lead and 6.8% zinc. At Swift, which is operated and funded by Nevada Gold Mines, the next phase of a framework drill campaign began in August with deep, wide-spaced core holes targeting favorable Devonian age carbonate host rocks. Ridgeline Minerals trades on the TSXV under RDG and on the OTCQB under RDGMF. News release
Brixton Metals shared more drill results from the thorn Project in British Columbia this morning. Assay results have returned 47m of 1.1 g/t gold and 146m of .63 g/t gold, including 48m of 1.05 g/t gold, all coming at the Trapper target. A total of approximately 10,665 meters have been drilled this season to date, including 4919m at the Camp Creek Porphyry target, 3924m at the Trapper target and 290m at the Metla target. Brixton currently has drills turning at its Camp Creek and Metla targets. Brixton Metals trades on the TSXV with BBB and on the OTCQB with BBBXF. News Release
Revival Gold updated the agreements to acquire certain property interests at its Beartrack-Arnett Gold Project in Idaho, USA. Yamana Gold agreed to a two-year extension for Revival to complete its earn-in obligations to acquire the Beartrack property and related infrastructure, until September 2024. Revival committed to continue to fund certain site operating and management costs and increase the required earn-in exploration spend from US$10 million to US$15 million, of which, about US$12 million has been spent to date. The Beartrack property includes an estimated $40-50 million in site infrastructure value and hosts the bulk of Mineral Resources at Beartrack-Arnett. In April, Revival paid the final US$250,000 option payment under the Barnett Agreement to acquire a 100% interest in the Barnett claims which host a portion of the Haidee Mineral Resource and are central to Revival potential future heap leach re-development plans. Revival Gold trades on the TSXV under RVG and on the OTCQX under RVLGF. News release
Mundoro Capital has entered into an Option Agreement with Kinross regarding the GT7 property in Serbia. The GT7 Property occupies 97 sq.km and is in the northern portion of the Serbo-Macedonian Metallogenic Province, which is part of the Tethyan Orogenic Belt. The area is considered highly prospective for gold-copper porphyry and related epithermal precious metals mineralization. The GT7 Property contains exposures of diorite porphyry gold-copper type quartz vein stockwork mineralization and is likely related to precious and base metals veins hosted within surrounding sedimentary country rocks. Kinross can earn-in a 100% interest in the GT7 Property by completing US$6,000,000 of exploration expenditures over 5 years with a firm commitment of US$1,500,000 exploration expenditures in the first 18 months. While Mundoro is the Operator of the GT7 Property, the Company will receive Operator Fees. Mundoro Capital trades on the TSXV with MUN. News Release
Tesoro Gold announced assay results from two drill holes from the El Zorro Gold Project in Chile which returned exceptionally long mineralised intervals from within the Ternera Gold Deposit. Both holes were drilled to test and confirm the down plunge continuity of gold mineralisation within the main intrusive body, hosting gold mineralisation at Ternera. They also provided sufficient drill coverage to potentially increase the resource classification within the existing Mineral Resource Estimate and extend mineralised zones. Highlights included 434.60m @ 1.22g/t Au in hole 297. Tesoro has completed 7 holes at Ternera for 3,275m with assays pending for 5 holes. Tesoro Gold trades on the ASX under TSO and on the OTCQB under TSORF. News release
That concludes today’s morning briefing.
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