New Gold Discoveries for Newcore; Meridian Mining Drills 64.3m of 1.9% CuEq

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

Today is Monday, March 7th. 

Gold shot up US$30 per ounce on Friday and this morning has topped $2,000, while silver jumped 58 cents on Friday and this morning has jumped again to over $26 per ounce. The primary driver is the geopolitical news flowing out of eastern Europe. But the Mining Stock Journal said the precious metals are responding to various financial indicators like the MOVE index, which is basically a VIX index for the bond market, that suggest a considerable amount of stress is beginning to fester in the financial system. 

The mining stocks responded positively to the move in the metals on Friday despite the continued bloodbath in the stock market, as the GDX soared nearly 4%. The Mining Stock Journal noted that, although the precious metals sector has started to go parabolic and is technically overbought, the world may be about to find out why tin-foil hat conspiracy gold bugs insist that gold and silver are the ultimate flight to safety assets.

We will get to the news from the miners and explorers in a moment, but first a word about 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….

Newcore Gold announced two new gold discoveries from the 90,000m drill program underway at its Enchi gold project in Ghana. First pass Reverse Circulation drilling on two grassroots targets, Tokosea and Sewum South, intersected shallow oxide gold mineralization demonstrating the potential to delineate additional resource areas. Drilling at Tokosea intersected shallow high-grade oxide gold mineralization with a highlight of 9m grading 3.52 grams per tonne including 4m grading 7.36g/t. Drilling at Sewum South intersected 15m grading 0.95g/t from 25m. The company said it is thrilled with the success of inaugural drilling on some of the largest gold anomalies identified at Enchi. Newcore Gold trades on the TSXV under NCAU and on the OTCQX under NCAUF. News release

Meridian Mining provided assay results from hole 94 drilled at the Cabaçal copper-gold VMS project in Mato Grosso, Brazil. The hole was drilled through the mine sequence and intercepted some of the strongest intervals of copper-gold mineralization seen to date and is one of the few angled holes in the central zone able to hit the over-printing sub vertical gold veins. The 64.3m interval graded 1.9% CuEq from 22m and confirms that the vast majority of high-grade copper-gold mineralization remained unmined at Cabaçal, and locally, the higher-grading gold overprint has been poorly defined by historical drilling. Drilling is ongoing with assays pending. Meridian trades on the TSX V with MNO.

i-80 Gold said that the underground, advanced-exploration, program at its McCoy-Cove property in Nevada, USA has begun with the construction of a decline underway. It said McCoy-Cove is one of four projects being advanced as a key component of its plans to restart the Lone Tree autoclave. The development program will include construction of an initial level with multiple drill bays to provide drilling access for upgrading resources with about 40,000 metres of underground definition and expansion drilling anticipated to commence in the second semester to be followed by a feasibility study in 2023. Cove is one of North America's highest grade gold deposits with grades in excess of 10 grams per tonne gold. i-80 Gold trades on the TSX under IAU and on the OTCQX under IAUCF. News release

Three Valley Copper started block caving operations at its Papomono copper project in Chile, having suspended the development in January following poor operational performance at its Don Gabriel copper mining operation which threatened the cash flow it planned to use for the development. The start allows it to retain its mining contractor and avoid the cost of demobilization. The senior secured lenders intend to provide US$11 million of super senior secured funds to Three Valley, which will provide additional time to negotiate a longer-term funding solution for the company, which estimates it will require at least an additional $10 million of capital during 2022. Three Valley Copper trades on the TSXV under TVC and on the OTCQB under TVCCF. News release

Fortune Bay announced assay results for the remaining four step-out drill holes completed at the Box gold deposit of its Goldfields project in Saskatchewan, Canada as part of a resource expansion program. The four holes returned significant gold intercepts outside of the 2021 resource estimate with highlights of 8m grading 13.22 grams per tonne in hole 340 including 1m grading 103.3g/t. The results confirm expansion of Box mineralization of up to 280m outside of the 2021 resource estimate with higher grades occurring along structural trends consistent with those observed in the shallower portions of the deposit. Drilling confirmed a thickening down dip, from an average of about 30m at surface to over 100m at 300m below surface. Fortune Bay trades on the TSXV under FOR. News release.

Alphamin Resources announced a mineral resource estimate and results for a preliminary economic assessment for Mpama South in the Democratic Republic of Congo. With 0.83Mt @ 2.58% Sn for 21.5kt contained tin in the Indicated category; and 1.95Mt @ 2.52% Sn for 49.1kt contained tin in the Inferred category, Mpama south is now the second highest grade publicly reported tin mineral resource globally. The PEA for Mpama South lays out  an estimated annual contained tin production of 7,232 tonnes at an estimated AISC of US$15,188/t tin. It will use a known implementation with a similar mining method, mining fleet and processing route as currently applied at the company’s adjacent Mpama North mine. Alphamin trades on the TSX V with AFM. News Release

Aton Resources provided another tranche of results from the phase two drilling at its Rodruin gold exploration project in Egypt. 21 holes have been completed to date for 1,992m with a highlight of 129.5m grading 1 gram per tonne gold and 8.8g/t silver in hole 56, which was mineralised over its entire length in the Central Buttress Zone. The results continue to confirm that a substantial block of predominantly gossanous carbonate hosted oxide gold mineralisation outcrops at surface at the Central Buttress Zone. The company said the results confirm its long held interpretation of there being zones of bulk open pittable oxide mineralisation at Rodruin, starting from surface. It is working to complete a maiden resource estimate as soon as practically possible. Aton Resources trades on the TSXV under AAN. News release

That concludes today’s morning briefing.

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