Morning Briefing: Western Alaska Release First Step-Out Results; Tomagold Looks to Make Moves in Chibougamau

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

Today is Monday, August 13th. 

Last week gold declined every day and silver was red every day except Thursday. The Mining Stock Journal noted that, with the exception of last Monday, the price decline occurred almost entirely during LBMA and Comex trading hours. The newsletter also said that, at least through the Tuesday cut-off date for the COT report, the banks went net long Comex silver futures and covered an enormous amount of silver and gold futures shorts. Conversely, the hedge funds dumped long positions and shorted the contracts scooped up by the banks. It added that with the prices of gold and silver moving lower Wednesday through Friday in all probability the bank net long position in silver increased and the hedge funds likely continued reducing their net long exposure. 

This pattern in the COT report historically more often than not is bullish. Interestingly, the mining stocks traded sideways despite the decline in gold and silver. The GDX closed Friday just slightly below its close the previous Friday. The Mining Stock Journal commented that the trading action in the stocks could possibly be indicative of a cyclical bottoming process in the sector and a set up for a nice move higher this fall.

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 Copper Company (ASCU:TSX) 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….

Western Alaska Minerals reported first assay results from the initial step-out phase of its this year’s drilling program at Waterpump Creek. Hole 3 returned a cumulative 71.6m of multiple zones, including 22m of 146 g/t silver, 3.3% lead and 9.8% zinc. There was also 40.2m of 262 g/t silver, 10.9% lead and 4.5% zinc. This hole has extended Waterpump creek’s strike length to 495m. The company also shared some visuals from the first drilling at the Last Hurrah target, which shares similarities to previously drilled holes with positive mineralized results.  (TSX-V:WAM) News Release

New Found Gold entered into a non-binding memorandum of understanding with Maritime Resources to conduct due diligence and exclusivity to negotiate with Maritime regarding a toll milling agreement at the existing Pine Cove Mill at the Point Rousse project near Baie Verte, Newfoundland and Labrador as it looks for a processing option for its Queensway high-grade gold project. The Pine Cove Mill is a fully permitted gold processing facility rated at 1,400 tonnes per day with a large capacity tailings storage facility and access to port infrastructure. It is 270km from Queensway by paved highway. New Found Gold also intends to purchase non-convertible senior secured notes and common share purchase warrants of Maritime for US$2,000,000. The Note Warrants will entitle New Found to purchase Maritime stock equal to 40% of the aggregate principal amount of the Notes. New Found Gold (TSX-V: NFG, NYSE-A: NFGC) Maritime Resources (TSX-V: MAE) news release

TomaGold has entered into agreements with SOQUEM, Chibougamau Independent Mines and Globex Mining Enterprises to acquire 20 mining properties that form the majority of the Chibougamau Mining Camp, in Québec, Canada. In order to acquire the Properties, the Corporation will make aggregate cash payments of $13,805,000, work commitments of $10,425,000, issue 16,625,000 common shares of TomaGold and issue an additional amount of $1,825,000 in common shares of TomaGold over a period of 2 to 5 years in accordance with the specific agreements. Upon signing, TomaGold will make cash payments of $540,000, issue 6,625,000 common shares of TomaGold and issue an additional amount of $25,000 in common shares of TomaGold. The Corporation is in advanced discussions with potential financial and mining partners to finance the acquisition, exploration and development of these projects. (TSXV: LOT) (OTCQB: TOGOF) News Release

Alpha Lithium announced an updated Preliminary Economic Assessment for its Tolillar lithium brine project in Salta Argentina including additional resources identified less than a month ago. The PEA evaluated a 25,000 tonnes per annum operation for 35 years to produce battery-grade lithium carbonate chemicals. The project would yield an after tax NPV of US$1.7 billion at an 8% discount rate and IRR of 25.6% following an initial capital cost of $777 million, with a 3.7 year payback. The project features a direct lithium extraction production process, and will benefit from nearby national high-grade highway, high-pressure natural gas pipeline, 3-phase power, and nearby international rail lines. Alpha Lithium (NEO: ALLI) (OTC: APHLF) news release

Ascot Resources provided a construction update this morning for its Premier Gold Project in Canada’s Golden Triangle. At the end of Q2 2023, overall construction excluding mine development was 48% complete, with engineering at 99% and procurement at 99%. The Project remains on schedule and budget for first gold production in the first quarter of 2024. Capital costs, including mining, incurred as of June 30, 2023 were $200 million. As of June 30, 2023, the remaining project construction capital required to complete construction and achieve the first gold pour is approximately $110 million including mining but excluding certain pre-operating costs and working capital. (TSX: AOT; OTCQX: AOTVF) News Release

Kingfisher Metals commenced drilling at the HWY 37 Project in British Columbia’s Golden Triangle. A 2500m drill program is planned to test the Cliff porphyry target to follow up on untested stockwork on surface adjacent to a single historical drill hole that bottomed in mineralization. Sampling by Kingfisher at Cliff returned 1.7% Cu. The company will also test the Mary Root zone target for the first time and will head south along the trend. (TSX-V:KFR)(OTCQB:KGFMF) News Release

Aldebaran Resources completed the US$30 million in expenditures required to earn a 60% interest in the Altar copper-gold project in San Juan, Argentina pursuant to its joint venture agreement with Sibanye-Stillwater. It notified Sibanye that it intends to proceed with the second option to spend US$25 million over three-years to acquire an additional 20% interest in Altar, for an eventual 80% interest. As of June 30, Aldebaran has spent about US$38 million on the project. Aldebaran Resources (TSX-V: ALDE, OTCQX: ADBRF) news release

The Mining Stock Daily morning briefing is produced by Clear Commodity Network and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network. 

The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.