Morning Briefing: Victoria Gold Placed into Receivership by Government of Yukon
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Thursday, August 15th.
The gold price was smashed hard yesterday starting of course at the Comex open. After spiking up to $2519 on the better than expected CPI reported, paper gold was promptly and abruptly slammed down to $2476 before a small bounce carried it back up to close in the afternoon at $2486, down $21 from Tuesday. Silver similarly was hammered lower at the Comex open, getting spanked lower from a high of $28.10 to as low as $27.23 before a nice bounce rallied it back up to close at $27.61, down just 16 cents from Tuesday. The Mining Stock Journal finds it amusing that the better than expected inflation report was good for tech stocks but bad for precious metals. More likely the Comex banks are taking advantage of very low mid-August volume to force long-side disgorgement of contracts from hedge funds so the banks can book profits and reduce their short exposure to the metals ahead of peak Indian buying season and the eventual Fed rate cuts. The mining stocks were hammered early but managed to close well off the lows of the day. GDX was down 0.72% though some mining stocks closed in positive territory.
We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Vizsla Silver.
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And here’s what you need to know this morning….
Solaris Resources reported drill results from its ongoing 60,000m and 8-rig drilling program at its Warintza Project in Ecuador. Drilling has extended near surface mineralization to the north, northwest and southeast of the Mineral Resource estimate. Select highlights reported today included 57m of 1.11% CuEq, 33m of .81% CuEq and 191m of .43% CuEq. In addition to these step-outs, more district exploration efforts are underway with geotechnical drilling in the Caya-Mateo target area encountering epithermal clay alteration in the sandstone and high temperature alteration in the underlying volcanics. This drilling is expected to provide information to aid in more focused targeting efforts. Fieldwork in the emerging Celestina epithermal gold/silver area continues with the next batch of results expected soon. (TSX: SLS; NYSE: SLSR) News Release
Cartier Resources are back in the news this morning with new drill results from the Chimo Mine Project in Quebec. Results reported today were 11.2 g/tAu over 2m and 9.1 g/t Au over 1m. These results come from the East Cadillac property. The current Drill Program is currently exploring 54 targets over half (10 km) of the Project's gold discovery potential. (TSXV: ECR) News Release
DLP Resources announced drill results from a single hole this morning coming from the Aurora porphyry project in Southern Peru. Drillhole A24-016 was drilled off the same drill platform as A24-015 towards the northwest and intersected copper-molybdenum and silver mineralization throughout the hole to a depth of 1080.15m Overall, the entire length returned .32% Cueq but had shorter intervals of89m of .48% CuEq at the beginning of the hole and 216m of .82% CuEq towards the end of the hole. Two drill rigs are in operation at the project. (TSXV: DLP) (OTCQB: DLPRF) News Release
The Government of Yukon published a statement regarding the heap leach failure at Victoria Gold’s Eagle gold mine. They stated that the government has lost confidence in the management team for failure of seriously responding with urgency to the situational demands. They say the company does not possess the capacity itself and has failed to carry out the work that is required. The Government of Yukon made an application with the Ontario Superior Court of Justice to have a receiver appointed to take control of the assets of Victoria Gold Corp., including the Eagle Mine, under the federal Bankruptcy and Insolvency Act. The order granted by the Court appointed PricewaterhouseCoopers Inc. as the receiver, who will administer the assets and liabilities formerly under the control of Victoria Gold at the direction of the Government of Yukon and under the supervision of the court. The Yukon Government has entered into an agreement with PricewaterhouseCoopers to advance funding required to undertake mitigation work. The money advanced by the Government of Yukon for this work will constitute a debt owed to government, which is to be recovered from the assets of Victoria Gold.
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