MSD Returns for 2020: Ascot Resources Drill Results on the Back of a Doubling Share Price

Welcome to Mining Stock Daily. This is your host, Trevor Hall.

Today is Monday, January 6th. And this is our first episode of the new year. We have changed a little bit of the format for this season. 

Lets talk quickly about precious metals. 

Gold spiked up $25 on Sunday evening in response to the escalating war rhetoric between the U.S. and Iran. While that may be a one-off event trigger, the gold price has risen over $90 from the end of November through this past Friday's close. Accompanying the rapid rise in the price of gold is the even more rapid rise in the Comex paper gold open interest. The Mining Stock Journal suggests that this is evidence that the western Central Bank effort to manipulate the gold price using paper derivatives is beginning to fail. Without question, it requires an increasing amount of paper gold to slow down the rate of ascent in the gold price. As an example, between Thanksgiving and this past Friday, the open interest in Comex paper gold rose 19% while world spot price of gold rose just 6%. For those inclined to speculate that the banks are losing control, the price of silver should start to outperform gold.  And the mining shares will likely surprise even long term bulls to the upside.

We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor. 

Today’s 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 10 billion pounds of copper and 18 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 today out of the junior sector.

Ascot Resources announced more drill results this morning from the Silver Coin deposit on its Premier Gold Project near Stewart British Columbia. 3 drill results were reported this morning and included 30.81 g/t gold over 6.69 meters and 28.96 g/t gold over 3.2 meters. Ascot CEO Derek White said The new intercepts underpin a better understanding and predictability of the geological model and provides Ascot a stronger base to work from for the development of the forthcoming updated resource statement and feasibility study. The Silver Coin deposit is located approximately five kilometres to the north of the Premier mill and 800 metres south from the Big Missouri deposit. In 1991, the Premier mill processed 102,500 tonnes of Silver Coin ore at a grade of 8.88g/t Au. Shares of Ascot have doubled since a bottoming in late October. The company trades on the TSX with the symbol AOT and on the OTC markets with AOTVF. News Release

Banyan Gold shared results from the final seven diamond drill holes on the McQuesten Airstrip Zone on the company’s Aurex-McQuesten Gold Project in the Yukon. Banyan says the drill results expanded mineralized strike length of the zone by more than 1 kilometer, which is what the company was expecting to do during its this Phase 2 drilling campaign. Results reported today included .61 g/t gold over 76.9 meters and .4 g/t gold over 33.7 meters. The Airstrip Zone is open to the east, west and to depth. Banyan Gold trades on the TSX-Venture with BYN. News Release

On Friday, Scottie Resources shared drilling results from its Bend Vein target on the Bow Property, located 2 kilometers northeast of the past-producing Scottie Gold Mine in British Columbia’s Golden Triangle. Drill results reported late last week included 73.32 g/t gold and 71.1 g/t silver over 4.38 meters core length. The 2019 drilling program was designed to confirm historical results and expand the known extent of the high-grade gold and silver mineralization at the Bend Vein. The company integrated the historical data and recent 2018 and 2019 exploration work into new structural models to better understand the geometry of mineralization. Scottie Resources trades on the TSX Venture with the symbol SCOT and on the OTC markets with SCTSF. News Release

Generation Mining shares results from an independent Preliminary Economic Assessment on the Marathon Palladium and Copper Project in northern Ontario. Generation acquired a 51% interest in the Project from Sibanye Stillwater in July, 2019, and has an option to earn up to an 80% interest by spending $10 million within four years. The PEA indicates an after-tax IRR of 30% and an NPV of $871-million at a 5% discount rate using a $1,275 palladium price. Generation says the Project would produce an average of 194,000 palladium-equivalent ounces per year over a 14-year mine life with an all-in sustaining cost of $586 US per ounce, net of by-product credits, including copper, platinum, gold and silver. Generation Mining trades on the Canadian Securities Exchange with the symbol GENM. News Release

That is a wrap from us today here at Mining Stock Daily. Thanks again for tuning in and we look forward to providing you the news out of the metals and mining sector each trading day throughout 2020. Remember, you can find this show on a number of different podcast networks, including iTunes, Spotify, Google Podcast and even Amazon Alexa. And if you haven’t done so already, please be sure to hit that subscribe button on your device so you don’t miss any of the briefings or our interviews.

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Have a wonderful day. Be well.

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