New Drill Results from Alphamin, Eskay Mining, Red Pine Exploration, and more

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

Today is Monday November 8th.

Gold and silver ripped higher on Thursday and Friday last week, with gold shooting up $50 over the two days to close out the week at $1820 and silver up 67 cents to close comfortably over $24 at $24.22. 

Gold is back over the key 50 and 200 day moving averages and silver is back over its 50 day moving average but is still below the 200 dma. 

The Mining Stock Journal said that it was unclear what triggered the move, as the dollar also staged a strong rally on Thursday and Friday and India was absent both days in observance of an important holiday. 

The GDX jumped 2.8% Thursday and Friday, with silver stocks looking particularly explosive. With the Fed signaling that its taper program could be short-lived, investor sentiment toward mining stocks is still in the gutter, and given the recent trading action in the sector, the Mining Stock Journal is ready to declare that the precious metals sector has lifted off the runway and is getting ready to pull its wheels up.

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

This episode of Mining Stock Daily is brought to you by… Rio2.

Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.

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

International Tower Hill published an updated pre-feasibility study for the Livengood gold project in Alaska, USA, which improved the economics but still not yet to an attractive level. The new PFS improves the post-tax internal rate of return from near-zero to more than 5%, but other metrics were similar to the 2017 study. These include the US$1.9 billion capex, ten-year payback, mire than 20-year mine life, average annual production of around 300,000 ounces a year and reserves of about 9 million ounces. The big increase was in the gold price assumption, which increased from $1,250/oz to $1,680/oz. All-in sustaining cost estimates also increased from $976/oz to $1,171/oz. International Tower Hill trades on the TSX under ITH and on the NYSE-MKT under THM. News release

NorthWest Copper drilled a new copper-gold porphyry discovery at its East Niv property in British Columbia, Canada, in what it says is the first drill campaign to ever be conducted on the property. Highlights included 81.6m grading 0.56% copper equivalent in hole 4 including 42.9m grading 0.78% copper equivalent and 14.8m grading 1.02%, with mineralisation starting at surface. Ten holes have been drilled on the property testing various geological, geochemical and geophysical targets. “This new copper-gold system in the heart of BC porphyry country is incredibly exciting and significant,” said president and CEO Peter Bell. NorthWest Copper trades on the TSXV under NWST. News release

Alphamin Resources released more drilling results from its Mpama North mine and Mpama South deposit today. At Mpama North, additional drilling has uncovered the existence of a crosscutting fault causing a downward and westward offset of the deeper mineralisation. By refocussing drilling closer to the final drill line from previous exploration, holes drilled at 75m further along strike succeeded in intercepting significant zones of cassiterite mineralization. At Mpama South, assay results did come in a returned 14.4 meters of 3.2% tin and 2.6 meters of 8.5% tin. Mpama South drilling intercepts are now within 200 metes of the Mpama North orebody, with potential for synergies and fast-tracking of underground access to Mpama South exists. Alphmin trades on the TSX Venture with AFM. News Release

Eskay Mining shared the results of the first assay results from its 2021 diamond drill campaign at its Consolidated Eskay precious metal rich volcanogenic massive sulfide project, British Columbia. Results were highlighted with 140 meters of 2.6 g/t gold equivalent, 92.3 meters of 2.7 g/t gold equivalent, and 115.4 meters of 5 g/t gold equivalent. The company says these holes suggest the presence of an extensive VMS feeder zone at TV. Mineralization remains open along strike to the north and south and down dip to the east. Eskay Mining believes the TV deposit is comprised of a stacked VMS system, and therefore, these intercepts are interpreted to be from the stockwork feeder system that fed the upper massive sulfide deposit discovered in drilling late in the season. Assays from massive sulfide mineralization are awaited. Eskay Mining trades on the TSX Venture with ESK and on the OTCQX with ESKYF. News Release

Red Pine Exploration reported a significant gold intersection from its 2021 drilling in the Surluga South discovery area of its Wawa project in Ontario, Canada. The company returned an interval of 55.66m grading 3.08 grams per tonne gold in the Jubilee Shear Zone including 3.81m grading 27.21g/t. The Surluga South discovery now extends up to 500m down-dip from the boundary of the current mineral resource of the Surluga deposit with visible gold observed in several holes for which assays are pending. Drilling is testing the northern and southern extensions of the Surluga deposit, and the extension of the Minto mine deposit beyond the footprint of their mineral resources. Red Pine Exploration trades on the TSXV under RPX. News release

Cerro de Pasco Resources is to acquire the Santander underground zinc mine and 2,000 tonnes per day mill in Peru from Trevali Mining in a cash and stock deal. Cerro de Pasco will pay C$1 million in cash, 10 million shares and a 1% net smelter royalty on all new deposits beyond resources currently defined at the Magistral and Santander Pipe deposits. A contingent payment of up to US$2.5 million will also be payable in the event that the LME average zinc price for 2022 is equal to or greater than US$1.30/lb. Trevali guidance for Santander’s 2021 operations is for production of 50-55 million pounds of zinc, 4Mlb lead and about 300,000 ounces of silver. Cerro de Pasco plans to develop the Santander Pipe orebody by linking to the existing underground mine. Cerro de Pasco Resources trades on the CSE under CDPR. Trevali Mining trades on the TSX under TV. News release

Asante Gold announced that all activities planned to bring its’ Bibiani mine in Ghana into production in 2022 are on track. The company plans to deliver a mine that can produce about 190,000 ounces of gold during its first 12 months of operation and 240,000 ounces a year thereafter for a minimum of six years. All work activities are proceeding as planned.  Bibiani hosts resources of 21.7 million tonnes grading 3.6 grams per tonne for 2.5 million ounces. Asante Gold trades on the CSE under ASE. News release

That concludes today’s morning briefing. We’ll be back later today with more market commentary and corporate updates. 

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