New Exploration Results on the Back of a Rising Gold Price
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, May 10th.
After shooting up $29 on Thursday in the absence of any discernible news triggers, gold shot up another $30 on Friday after the release of the March unemployment report fell well short of Wall Street's consensus estimate. Gold settled on Friday at $1832, June basis. Silver jumped over $1 on Thursday and followed through on Friday with another 11 cent gain. The Mining Stock Journal said that after gold and silver hit their 52-week highs last August, days with back-to-back gains in the precious metals have been indeed rare and precious. But gold has finally moved back over $1800 while silver is over $27 and looks ready to head for $28. On a simplistic chart analysis basis, silver has broken out of a downtrend established at the beginning of February but gold has not yet jumped over the downtrend line of resistance that began in early August 2020. The mining stocks also have broken out above the August 2020 downtrend which could be a positive indicator that gold is on its way to a breakout possibly this week.
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.
McEwen Mining reported exploration results from the ongoing drilling at the Stock West project near Timmins, Ontario. The Stock West target, initially discovered in late-2019, is being drill-tested as part of a fully funded two-year $20 million exploration and delineation program at the Fox Complex. Results today included 8.43 g/t gold over 14.3 meters, 6.08 g/t gold over 25.7 meters and 6.21 g/t over 19 meters. Drilling is designed to support a Preliminary Economic Assessment (PEA), currently underway, to evaluate the potential of expanding mining operations. McEwen Mining has also committed $5 million toward drilling at the Gold Bar Mine in order to delineate new mineral resources, replace mining depletion, and further de-risk the geological and metallurgical models that are the basis of future production planning. A few results were reported from Gold Bar this morning, however, several holes have samples whose assays remain pending and are expected to be reported on in the near future. McEwen Mining trades on the NYSE and the TSX with MUX. News Release
Surge Copper shared new assay results for multiple resource definition and exploration holes from the Company's 100% owned Ootsa Property in British Columbia. Results included 830 metres grading 0.38% copper equivalent, 62 meters of .7% copper equivalent and 190 meters of .45% copper equivalent. Results from 8 additional holes are pending, including step out holes to the west, north, and the gap zone area between the Seel deposits. Drilling is scheduled to resume in late May to early June following spring breakup and snow melt in the area. Surge Copper trades on the TSX Venture with SURG. News Release
Kesselrun Resources provided drilling results from its Huronian Gold Project. The company says the first set of holes drilled on the McKellar Zone in 2021 program has been successful in extending the mineralized shoot to over 75 metres in vertical depth with multiple high-grade zones over significant widths within a wider zone of significant gold mineralization. Highlights included 7.2 g/t gold over 5.8 meters which was within a 678 meter interval of 1.6 g/t. The 2021 Huronian drill program is budgeted at 20,000 metres targeting the Fisher, Fisher North, McKellar and Huronian zones, all in close proximity along an approximate 1500 m strike length in the area of the historic Huronian Mine. As of today approximately 6500 metres has been drilled of which 2750 metres of drilling results have been released. Kesselrun trades on the TSX Venture with KES and on the OTC with KSSRF. News Release
EMX Royalty announced the execution of an agreement with Gold Line Resources to transfer EMX's newly acquired exploration reservation in Finland's Oijärvi greenstone belt to Gold Line. EMX will retain a 3% net smelter return royalty on the Property, 1% of which can be repurchased, and will be reimbursed its acquisition expenses in addition to other considerations. In essence, the Oijärvi Extension will be added as an additional property under the terms of its 2019 agreement with Gold Line from the spring of 2019. EMX trades on the NYSE and the TSX Venture with EMX. News Release
Fortuna Silver reported a record first quarter with a net income of $26.4 million and adjusted EBITDA of $60.8 million. Its $117.8 million in sales was a record, and an increase of 148% from the same period in 2020. As of March 31, 2021, the Company had cash and cash equivalents of $145.7 million, an increase of $13.8 million from December 31st. Fortuna says they remain on track to meet their consolidated guidance of 178,000 to 202,000 ounces of gold and 6.8 million to 7.6 million ounces of silver. The company trades on the NYSE with FSM and on the TSX with FVI. News Release
That’s it for the news briefing this morning. We’ll be back later today with more news and interviews.
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