Morning Briefing: Vale Settles Tailings Dam Safety Charges

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Wednesday March 29th.

Gold traded lower overnight Tuesday in Asian and European markets on the perception that the banking crisis is over. But literally right after the a.m. London price fix, the price of gold took off like a golden retriever chasing a wild rabbit. Gold soared during the paper derivatives trading hours, running from $1968 to $1994 per ounce and settling the post-Comex Globex trading session at $1992. The Mining Stock Journal commented that the price-action in gold suggests that the Comex banks may be scrambling to cover their massive short-exposure in response to the fact that the financial system crisis is just getting started. Silver followed the same price pattern as gold, trading down to test the $23 per ounce level overnight but then launching back up to $23.50 before settling the afternoon trading session at $23.47. The Mining Stock Journal noted that it smells a potential short-squeeze in silver percolating. 

The mining stocks once again diverged positively from the general stock market, with the GDX rising 2.5% despite the sell-off in the stock market. Of specific note, US Gold, which trades under the symbol "USAU" shot up nearly 16% on huge volume. The newsletter, which has been heavily invested in the stock for five years and recently pounded the table on the stock, suggested that either a mining stock fund started a position or a strategic investor started acquiring the shares. The newsletter noted that US Gold is absurdly undervalued relative to the potential of the Company's gold-copper project which is likely  about 18 months away from the start of mine construction.

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….

Vale agreed to pay US$ 55.9 million to the United States Securities and Exchange Commission to terminate a lawsuit filed by the SEC against the Company in April 2022, to settle tailings dam safety charges related to the Brumadinho disaster in 2019, without admitting or denying the settled claims. The SEC will not oppose Vale’s motion to dismiss all claims that the company acted with fraudulent or reckless intent regarding its disclosures. News release

GoGold Resources announced additional drilling results from Los Ricos South in Jalisco, Mexico, within the Eagle and Main Deposits.  Highlights included 23.3m grading 617 g/t silver equivalent including 80cm grading 5,818 g/t AgEq in hole 126. The company said its goals for 2023 include completion of a preliminary economic assessment at Los Ricos North by the end of April, a revised mineral resource and revised preliminary economic assessment including the effects of the Eagle at Los Ricos South targeting the end of June, and a pre-feasibility study, final engineering, and permitting for Los Ricos South targeting a construction decision by the end of the year.  GoGold Resources (TSX: GGD) (OTCQX: GLGDF) news release

Li-FT Power announced it has commenced the first diamond drill program at the Rupert Lithium Project located in the James Bay region of Quebec. A total of 17 holes have been planned for 5,000 meters of diamond drilling that will test targets generated by the 2021 and 2022 exploration programs. At Target B, nine drill holes are planned for a total of 2,500 meters. Holes are planned to cross the head of a 1 kilometer long, Li-in-tills dispersion train where the head terminates abruptly against a structure in a WNW direction. Target A is located 3 kilometers to the northwest of Target B at the head of a 3 kilometer long Li-in-tills dispersion train. The dispersion train is oriented in a northwest-southwest orientation where it disappears under a N-S oriented lake. Eight exploration holes totaling 2,500 meters have been planned to cover the entire 1.2 kilometer length of the head. Li-FT Power trades on the CSE with LIFT. News Release

P2 Gold restarted a preliminary economic assessment on its Gabbs gold Project in the Walker-Lane Trend in Nevada, which is expected to be completed in the September quarter. It wsa paused last year waiting for cost inflation to ameliorate. The initial interpretation of a 48.3-line kilometer Natural Source Magneto Telluric survey covering all four known zones of mineralization at Gabbs and the prospective locations of the potential gold-copper porphyry source at depth identified a high priority area in the center of the property that hosts a gold-copper porphyry exploration target. The Company requires an additional permit in order to drill the exploration target. P2 also issued additional shares to Waterton in respect of the restructuring of the outstanding payment terms for the acquisition Gabbs which will increase Waterton’s interest to 19.9%. P2 Gold (TSX-V:PGLD) (OTCQB:PGLDF) news release

Jervois Global Limited has decided to suspend final construction and full concentrator commissioning at its Idaho Cobalt Operations mine. The company sites continuing low low cobalt prices and U.S. inflationary impacts on construction costs as its main reason for the suspension. Jervois expects to complete construction of and commission ICO when cobalt prices recover, which it also expects will align with cobalt refining capacity in the U.S. brought into operation by Jervois and/or third parties. Jervois has spent ~US$130 million on construction at ICO, has a cash balance of ~US$52 million, and since the December 2022 year end, has paid down US$45 million of its US$150 million Mercuria loan facility resulting in a decrease from the end December 2022 drawn balance of US$115 million down to US$70 million. Jervois trades on the TSXV with JRV and on the OTC with JRVMF. News Release

KORE Mining said the US District Court for the Eastern District of California denied a motion by NGO's to overturn authorization granted by the United States Forest Service of its proposed drill program at the Long Valley Gold Project in California. KORE now intends to proceed with exploration mid-year with details to be announced over the coming weeks. KORE said its team worked closely with the USFS to avoid cultural impacts and mitigate other potential Program impacts, and it will complete pre-disturbance cultural surveys, remove 100% of all drill cuttings, have zero water or waste discharge and intensively remediate all sites. The USFS thus granted KORE a categorical exclusion from the National Environmental Protection Act for the Program's plan of operations. Kore has identified opportunities to expand the shallow oxide mineralization and add to the deposits’ almost 2Moz in all categories. KORE Mining (TSXV: KORE) (OTCQB: KOREF) news release

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