Morning Briefing: West Red Lake Seeing Synergies between Rowan and the Madsen Mine

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

Today is Tuesday August 29th. 

Yesterday gold faded in the early morning going into and after the close of the Asian physical gold trading markets. In a shocker, the yellow metal took off like a scalded cat at the Comex open, running from $1941 per ounce to as high as $1954 before getting pushed back down to $1945 into the close of Comex paper trading before settling the afternoon Globex digital session at $1948. The mining stock newsletter noted that the trading reflects the possibility that the price management team continues to cover its gross and net short exposure to paper gold. 

Silver undulated sideways overnight before a quick take-down attempt before the NYSE opened, right after which poor man's gold shot up from $24.10 per ounce to $24.40 before fading to settle the p.m. Globex session at $24.26. 

The Mining Stock Journal noted that the precious metals are trading like they could do a moonshot at any time. The GDX traded up 2.11%, finally showing some signs of life and outperforming the stock market by a factor of more than 2 to 1.

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 Company. 

Arizona Sonoran Copper is focused on developing its brownfield copper project on private land in Arizona, a tier 1 location. The Cactus Mine Project is located less than an hour's drive from the Phoenix International airport via highway i-10, and with grid power and the Union Pacific Rail line situated at the base of the Cactus Project main road. With permitted water access, a streamlined permitting framework and infrastructure already in place, ASCU's Cactus Mine Project is a lower risk copper development project in the infrastructure-rich heartland of Arizona.

And here’s what you need to know this morning….

Orla Mining amended its existing US$150 million credit facility with its syndicate of lenders, with the ability to increase it to US$200 million. It replaces the existing facility, which consisted of a US$100 million term facility and US$50 million revolving facility. The new facility has a 4-year term, extending it by two years until August 2027. The interest rate is SOFR plus a margin ranging from 2.50% to 3.75% based on the Company’s leverage ratio each quarter, a 25 basis point decrease compared to the previous facility. The standby fee for the undrawn portion has also been lowered from 25% to 22.5% of the applicable margin. Orla has drawn US$113.4 million under the Amended Credit Facility with an applicable margin of 2.50% based on its leverage ratio at closing. Orla Mining (TSX: OLA; NYSE: ORLA) News release

West Red Lake Gold Mines reported additional drill results from its Phase 1 exploration program on its Rowan Property in the Red Lake Gold District of Northwestern Ontario. Highlights included 2m at 66.66 g/t gold in hole 153. The company has completed 37 holes for 11,467m to date of a 17,000m campaign that has been expanded to 25,000m on the back of exploration success. It said drilling shows real potential for broader zones of high-grade gold mineralization which could prove advantageous for any future mining scenario. Rowan has an inferred resource of 827,500oz grading 9.2 g/t Au. West Red Lake believes synergies could exist between Rowan and the troubled Madsen mine. West Red Lake Gold Mines (TSXV:WRLG) (OTCQB: WRLGF) news release

Lavras Gold calls it a “potentially game-changing discovery” this morning with a new dril results out of its LDS Project in southern Brazil. Hole 2 returned 340m of 1.09 g/t gold beginning at 117m depth, and also included a 160 m interval of 1.79 g/t. The hole tested a blind target with no obvious signs of surface mineralization in an area of recessive topography across an interpreted northeast trending fault. The company has two drill rigs in the target area and will follow up on the discovery. (TSXV: LGC, OTCQB: LGCFF) News Release

Thesis Gold reported the first drill results of its 2023 drill campaign at the Dukes Ridge Deposit in the Toodoggone Mining District in British Columbia, which extended high-grade mineralization to a depth of ~400m. Highlights included 53m at 2.12 g/t Au and 104.95 g/t Ag, including 16.52m grading 9.68 g/t AuEq in hole 3. Additional drilling along strike and at depth below these results encountered visually strong mineralization and alteration with results anticipated shortly. Drilling at the Lawyers Project is confirming high grade mineralization >200m beneath the base of the modelled Dukes Ridge pit shell as defined in the 2022 PEA by Benchmark Metals. Thesis sees an opportunity to incorporate this deep, high-grade mineralization into an underground mining scenario. The primary focus of 2023 drilling at Lawyers is to confirm and expand the mineral resource below the modelled open pits. Thesis Gold (TSXV: TAU) (OTCQX: BNCHD) news release

Ascot Resources shared results from a 2023 induced polarization survey on its Premier Gold Project in the Golden Triangle of British Columbia. These results are from 28 IP lines totaling 29 line-kilometers across three grids – one near the Premier mill targeting the western extension of the Sebakwe Zone, one targeting the northern extension of the Day Zone at the Big Missouri deposit, and one testing the strike and depth extent of the Dilworth deposit. Strong IP anomaly shows potential that the Sebakwe Zone structure extends about 1,000m beyond the westernmost extent of surface drilling from 2022. The survey also shows the Day Zone signature continues approximately 800m to the north of previous surface drill results. The Dilworth IP shows strong chargeability anomaly to the west and below where most drilling was previously focused. The company is currently planning drill programs to test these targets as soon as they can. (TSX: AOT; OTCQX: AOTVF) News Release

Galantas Gold announced results of the third and fourth exploration holes on the Gairloch Project in Scotland. Hole 4 intersected 31m grading 4.42g/t gold, 0.71% copper, 0.52% zinc, 69 g/t cobalt and 3.74 g/t silver, including 6.95m grading 15.46 g/t Au, 0.8% Cu, 1.91% Zn, 133 g/t Co and 6.35 g/t Ag. Hole 03 intersected 18m at 1.34 g/t Au, 0.86% Cu, 0.16% Zn, 82 g/t Co and 3.2 g/t Ag. Five holes have now been completed over the main deposit area for 580m. The Company is now focused on generating additional drill targets along strike of the deposit. (TSX-V & AIM: GAL; OTCQX: GALKF) News Release

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