New Drill Results from Galway's Richard Zone

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

Today is Wednesday July 15th

Gold on Tuesday was down marginally as the yellow dog continued to consolidate its recent rally from $1700 in early June. Silver underperformed gold, falling 1.3% after Monday's big price rise. The gold/silver ratio, after literally plunging below its 200 dma on Monday, rose 1.28% to 92.85. The mining shares as represented by the GDX ETF completely ignored the action in the metals and jumped nearly 4%, presumably in correlation with  the big rally in the general stock market. The Mining Stock Journal commented that it is still looking for a pullback in the sector based on the extraordinarily high sentiment numbers registered by the Hulbert Gold Newsletter Sentiment Index plus Marketvane's gold and silver sentiment measures. That said, given the heavy physical market offtake in both gold and silver, it's quite possible that the term pullback could be a sideways price consolidation as opposed to corrective price decline.

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… 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 robust list of project and company information on their website, rio2.com.

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

First Majestic Silver says total production in the second quarter of 2020 reached 3.5 million silver equivalent ounces consisting of 1.8 million ounces of silver and 15,764 ounces of gold. Quarterly production was impacted following Mexico’s Ministry of Health’s Federal Decree requiring all non-essential businesses, including mining, to temporarily suspend activities throughout most of April and May in response to the global pandemic. Despite having limited operations in the quarter, total production was better than expected due to a slower ramp down at San Dimas compared to the other mining units. In the first half of 2020, the Company has produced a total of 9.7 million silver equivalent ounces. First Majestic trades on the NYSE with AG and on the TSX with FMV. News Release

Galway Metals reported assay results from drilling on the west side of the Richard Zone at the Company's Clarence Stream project in southwest New Brunswick, Canada. Highlights reported today included 54.7 grams per tonne (g/t) Au over 2.5 metres (m), including 191.0 g/t Au over 0.5m. The 3 highest grade individual assays from drilling on the entire Clarence Stream property are all from Galway's 3 new discoveries, and now 6 of the top 10 assays are also from those 3 new discoveries. Galway trades on the TSX Venture with GWM and on the OTC markets with GAYMF. News Release

Arizona Metals says drilling at both the North and South Zones of its Kay Mine Project, located near Black Canyon City, Arizona, has intersected massive sulphide mineralization in two recently completed drill holes. Branch hole KM-20-10A intersected an interval of 10.7 m at a grade of 4.4% CuEq, including 1.5 m at a grade of 8.6% CuEq, 3.1 m at a grade of 4.2% CuEq, and 1.4m at a grade of 12.2% CuEq, from a vertical depth of 442 m. In the North Zone, hole KM-20-11 intersected an interval of 2.7 m at a grade of 9.2% CuEq, from a vertical depth of 490 m. Arizona Metals trades on the TSX Venture with AMC. News Release

Minera Alamos provided a construction update for its Santana project this morning. The heap leach pad area has been cleared of all vegetation and is undergoing contouring ahead of clay placement and the pad liner installation The completed explosive storage & detonator bunkers are awaiting final inspection from the Mexican authorities ahead of the explosive permit issuance. Bypass road construction at either end of the heap leach pad area is underway. Fabrication of the plant carbon columns is complete with work underway for the remaining plant steel structures. And an earthworks contractor selected has worked previously with the Minera Alamos team when they were building the El Castillo mine in Durango. We’re looking forward to welcoming back Minera Alamos President Doug Ramshaw later today for some more corporate commentary on this update. Minera Alamos trades on the TSX Venture with MAI and on the OTC markets with MAIFF. News Release

GR Silver Mining says it has started a surface drilling program at its 100%-owned Plomosas Silver Project in Sinaloa, Mexico. The Company has mobilized three drill rigs, with one rig already on site. The initial 4,500 m surface core drilling program is expected to continue through 2020 and will have a dual focus: shallow drilling (up to 150 m below surface) to expand the known mineralized zones along strike at the Plomosas Mine and San Juan-La Colorada Areas, and follow-up drilling on several new high-grade Au-Ag low sulphidation epithermal vein occurrences at the Yecora and El Saltito. In addition to drill testing of the areas with historic drill holes at the Plomosas Project, the Company will also commence initial reconnaissance and surface exploration on 11 priority targets. GR Silver trades on the TSX Venture with GRSL and on the OTCQB with GRSLF. News Release

And there seems to be a little bit of a bidding war now for Cardinal Resources. The company disclosed that Nord Gold sent an unconditional on-market takeover offer for Cardinal at $0.66 cash per share which was announced on the ASX Market Announcements Platform this morning. Cardinal notes that it has obligations under the Bid Implementation Agreement entered into with Shandong Gold Mining. Cardinal also notes that as the Nordgold Takeover Bid was unsolicited, it will need to be considered in detail by the board, together with the special purpose committee and its financial and legal advisers.  Cardinal will provide an update to shareholders as soon as it is able.

There was lots of news out this morning and we were not able to cover all of it this morning here on the briefing. For a list of all the company updates, please make sure you visit the newsroom of the Junior Mining Network. Its a wonderful resources for all of the day’s news from junior explorers. 

Mining Stock Daily is distributed over a dozen different networks throughout the world and in proud partnership with the Junior Mining Network. It is produced by Clear Creek Digital and Investment Research Dynamic's Mining Stock Journal. 

I’m Trevor Hall. Have a wonderful day. Be well.

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