New Drill Results from Corvus and Marathon
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, April 15th.
The gold price traded as high as $1790 on Tuesday before an aggressive attack in the Comex paper market ahead of the p.m. price fix in London sheared over $30 off the paper market price. That said, gold closed $7 higher on Tuesday when using the close of the NYSE to measure a closing price. The Mining Stock Journal commented that Tuesday's market activity across the board was dominated by a risk-on theme and likely it was easy for the gold price management team to get the hedge fund algos to switch into sell mode with hedge fund paper gold positions. Silver on the other hand was up close to 4%, trading over $16 and closing just above its 50 day moving average. The gold/silver ratio dropped over 3% and appears to be ready to head a lot lower. The Mining Stock Journal commented that, even though gold still closed higher than Monday, the huge sell-off from the $1790 high could be looked at as part of a healthy price correction and ultimately sets the stage for a big move higher. The newsletter also noted that the mining stocks, per the GDX ETF, are up 62% since March 13th and some sort of pullback would be a healthy set-up for the next move higher.
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.
This episode of Mining Stock Daily is brought to you by... Integra Resources
Integra Resources trades on the TSX-V under ITR and the OTCQX under IRRZF. Integra Resource is advancing its past producing DeLamar (DeL - a - Marr ) Gold-Silver project in SW Idaho through aggressive drilling and exploration. The latest Resources Estimate released earlier this summer showed approximately 4 million Gold equivalent ounces in the measured and indicated category.The maiden PEA for the project established a net present value of C$473-million and an IRR of 43%. The management of Integra successfully sold its previous brownfields project for C$590 million in summer 2017. Read more about the company and its successful management team at integraresources.com.
And here’s what you need to know this morning …
Corvus Gold shared additional results from its ongoing Main Zone infill deposit expansion and Phase-4 drill program at the Mother Lode project in Nevada. Results included1.43 g/t gold over 47.2 meters and 1.98 g/t gold over 42.7 meters. Corvus says these results expand the Main deposit in unestimated parts of the 2018 mineral resource model in addition to extending the newly identified CEntral Intrusive Zone at depth. The latest drilling has shown that mineralization in this area is thicker than the prior drilled surrounding holes and comparable in grade. Infill holes are continuing to increase the overall quality and size of the deposit as well as demonstrate continuity, which is intended to augment the mine design. Corvus trades on the TSX with the symbol KOR and on the OTCQX with CORVF. News Release
Marathon Gold also shared new drill results this morning. These results came from sixteen drill holes located in the high priority Berry Zone area and northeastwards along an 850 metre strike length towards the Frozen Ear Pond Road at the Valentine Gold project in Newfoundland. Highlights included 8.06 g/t gold over 14 meters and 13.32 g/t gold over 5 meters. Exploration drilling in the six kilometre long Sprite Corridor between the Leprechaun and Marathon Deposits is continuing to outline “Main Zone”-type mineralization of a type characteristic of the Valentine Gold Project. These were the last exploration holes completed prior to the COVID-19 related closure of the exploration camp on March 14th. Marathon Gold trades on the TSX with MOZ and on the OTC markets with MGDPF. News Release
G2 Goldfields shared drill results front heir ongoing drilling program at the Oko - Aremu project in Guayana. Results shared today included 116.6 g/t gold over 2.4 meters and 7.2 g/t gold over 11.7 meters. Drilling to date has been shallow with the vast majority of intercepts above 110 meters vertical. G2 trades on the Toronto Venture Exchange with GTWO. News Release
Golden Mineral shared a Preliminary Economic Assessment for its Rodeo open pit gold project in the state of Durango in Mexico. At a $1,622 per ounce gold price and a $14.38 silver price price, the project shows an after-tax net present value of $22.5 million using an 8% discount rate. Life of Mine contained production included 41,000 ounces of gold and 118,000 ounces of silver. All0in sustaining cash costs per ounce of gold produced is $843. The company said with the Hecla lease coming to an end this year, we intend to bring Rodeo into production in 2021. Golden Minerals trades on the NYSE and the TSX with AUMN. News Release
Auryn Resources also shared a new preliminary economic assessment this morning for its Homestake Ridge gold project located in British Columbia. The company used a $1,350 gold price, a $12 silver price and a $3 per pound copper price for the study. With those guidelines, the report shoes an NPV of $108 million and an IRR of 23.6%. Pre-production costs are $88 million with a payback period of 3 years. The PEA lays out a 13 year mine life with a $670 all in sustaining cost per ounce of gold. Auryn trades on the TSX and the NYSE with the symbol AUG. News Release
Silver Elephant Mining announced it is undertaking a non-brokered private placement involving the issuance of up to 14 million units at a price of $.13 per unit. Each unit will consist of one common share in the capital of the company and one share purchase warrant. Each Warrant entitles the holder to acquire an additional Share at a price of $0.16 per Share for a period of three years from the date of issuance. The company expects to raise just over $1.8 million.
Fireweed Zinc has completed the non-brokered private placement for a total of $1.1 million. Insiders of the Company acquired an aggregate of 845,668 Units in the Offering. The company will issue an aggregate 3.8million units at a price of $.30 per unit. Each whole Warrant is exercisable to acquire one Share at an exercise price of CDN$0.60 per Share until April 14, 2024 which is 48 months from the date of issuance. Fireweed trades on the TSX Venture with FWZ and on the OTC with FWEDF.
An Equinox Gold shared news today that effective on Friday of this week, the company will be included in the VanEck Vectors Gold Miners ETF, also known as the GDX. Last month, Equinox was added to the junior portfolio ETF, the GDXJ
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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