New Drill Results from Wesdome, Brixton & Victoria
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday, December 8th.
After smashing the gold price down $20 to $1825 shortly after the London a.m. fix early Monday morning, gold began a move - slowly at first and then suddenly - that saw the price rocket up over $50 from the post a.m. London fix to as high as $1872 December basis. The Mining Stock Journal said that what made the move more remarkable was the lack of news event triggers plus the dollar was slightly green. The Mining Stock Journal commented that moves like gold and silver made today unaccompanied by news are typically uber-bullish. Speaking of silver, poor man's gold jumped over 50 cents and closed decisively above its 50 day moving average. The Mining Stock Journal commented that, from a chart perspective, silver has built an impressive base from which it likely will launch considerably higher. As suggested would start to happen in yesterday's market commentary, the gold/silver ratio dropped close to 1% and appears ready to head down to 70, for starters. The mining stocks jumped 3-4% generically, with the large caps outperforming the smaller cap stocks. The Mining Stock Journal commented that sustainable moves higher in the sector are usually started off with the large cap, less risky stocks leading the way.
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… 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 11 billion pounds of copper and 21 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 this morning.
Wesdome Gold Mines shared results from the ongoing underground exploration drilling program at the Company’s wholly-owned Eagle River Mine in Wawa, Ontario. Ongoing extension and definition drilling of the 300 East Zone has continued to return high grade gold intersections, including 41 g/t gold over 10 meters, 54.9 g/t gold over 10.1 meters and 47.3 g/t gold over 5.9 meters. In addition, limited drilling has intersected a new zone of mineralization approximately 40 m north and in the hanging wall of the high grade 300 East zone. That result brought back 43.1 g/t gold over 1.5 meters. This zone remains open down plunge and along strike and highlights the potential of finding additional sub-parallel zones in this area and will remain a priority throughout 2021. The recent drilling results will be included in the 2020 year end mineral resource and reserve statement. But wait, there’s more. Wesdome also continues to develop and explore 311 West Zone along the western margin of the mine diorite. Ongoing development on 750 level and associated sub-levels have defined high grade mineralization over 100 m in strike length. Recent drilling returned 56.7 g/t gold over 2 meters and 44.8 g/t gold over 2.9 meters. The 311 West Zone remains open up plunge and along strike to the west within the mafic volcanics, and will be a focus of 2021 drilling. Wesdome trades on the TSX with WDO. News Release
Brixton Metals shared initial drill results from its fall/winter exploration program on the Langis Mine project in the Cobalt Camp of Ontario. The company has received assay results for the first 17 holes. Results included 647 g/t silver over 3 meters, 222.9 g/t silver over 7 meters and 333 g/t silver over 4 meters. These drilling results continue to support the existence of new, shallow, high-grade silver-cobalt mineralization around the Shaft 3 area. Historical drilling around the Shaft 3 area is very limited and mostly underground. Brixton trades on the TSX Venture with BBB. News Release
Victoria Gold provided the Company’s first exploration results from Lynx, one of several targets along the extensive Potato Hills Trend which hosts a corridor of mineralization within the greater Dublin Gulch Gold Camp. Results included .49 g/t gold over 153.8 meters from surface, and included an 8.4 meter interval grading 6.14 g/t gold. Exploration work at Lynx consisted of a short, focused program including four diamond drillholes totalling 590 meters, 720 meters of surface trenches from six trenches and the collection of over 1,600 grid based soil geochemical samples. The program was designed to test the near-surface mineralization potential of the Lynx target. Lynx is located centrally in the Dublin Gulch claim block, approximately five kilometers southwest of Raven, the main target of Victoria’s 2020 exploration campaign. Victoria Gold trades on the TSX with VGCX. News Release
Cassiar Gold announced assay results for the remaining ten diamond drillholes from its recently-completed 2020 drill campaign on its 100%-owned Cassiar Gold Property in northern British Columbia, Canada. The primary goal of the program was to confirm and expand the 43-101 inferred near-surface resource of 1 million ounces at 1.43 g/t Au estimated at Taurus in 2019. Highlights from recent drilling include 5.43 g/t gold over 18.22 meters at the Sable Zone and 2.51 g/t gold over 9.59 meters at the Taurus Zone. Cassiar Gold trades on the TSX Venture with GLDC and on the OTCQB with CGLCF. News Release
Outcrop Gold announced assay results from the first holes drilled in the El Dorado target on its 100% owned Santa Ana project in north Tolima, Colombia. A drill discovery was made in the second hole. El Dorado is located five hundred metres west of La Ivana, one kilometre north of the Megapozo and two kilometres north of the Roberto Tovar discoveries. All shoots discovered to date are hosted in different veins within the Santa Ana system. Results included 17.7 g/t gold equivalent or 1,293 g/t silver equivalent over .87 meters only 11 meters from surface. Less than 25% of the currently recognized vein zones at the core Santa Ana project have been tested by drilling. The company believes more veins are likely to be identified with continuing exploration. Outcrop Gold trades on the TSX Venture with OCG and on the OTCPK with MRDDF. News Release
EMX Royalty announced t has executed a purchase agreement for a portfolio of royalty and property interests from Frontline Gold for C$800,000, which will be paid 50% in cash and 50% in shares of EMX. The Portfolio consists of 41 legacy claims, distributed over four properties (Gullrock Lake, Duchess, Red Lake, and Tilly) in the heart of the Red Lake mining district, Ontario, all of which are currently optioned to, or operated by, Pacton Gold Inc. It is expected the Portfolio will generate cash flow to EMX over the next two years from option payments of C$117,500, as well as share-based payments valued at ~C$600,000 using current market prices, with the Company retaining upside optionality from net smelter returns royalty interests that range from 0.25% to 2.25% on the four properties. EMX Royalty trades on the TSX Venture and the NYSE American with EMX. News Release
Paramount Gold Nevada announced today that in response to higher gold prices it has initiated a program to evaluate restarting the historic Sleeper Mine. From 1986 to 1996 the Sleeper mine produced 1.7 million ounces of high-grade gold at costs well below $400 per ounce. The 38,300 acre property in Humboldt County Nevada currently hosts 3 million ounces of measured and indicated gold resources, nearly 1.5 million ounces of inferred gold resources and a considerable silver resource. Paramount Gold trades on the NYSE American with PZG. News Release
Osisko Development says they have upsized the previously announced non-brokered private placement of $50 million. In response to the significant demand to purchase those units, Osisko Development has agreed to add an additional $30 million to the financing for a total of $80 million. The Units are being offered a price of CDN $7.50 per Unit . Each Unit will consist of one common share of the Corporation and one-half of one common share purchase warrant of the Corporation, with each whole warrant entitling the holder thereof to purchase one additional common share in the capital of the Corporation at a price of CDN $10.00 per share on or prior to December 1, 2023.
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I’m Trevor Hall. Have a wonderful day. Be well.
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