New Gold Selling Blackwater to Artemis
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday June 9th
After trading up overnight from a low of $1680 to $1702, August gold was given its obligatory ride on the down elevator at the start of Comex floor trading hours, smashed down to as low at $1690. But with no news as a trigger, a spark hit the Comex paper tinder short interest and gold shot up to as high as $1708 before settling at $1704. Silver outperformed gold by a 2:1 ratio and the gold/silver ratio lost a point to $95.29. The mining stocks as represented by the GDX ETF bounced off of and up from the 50 day moving average. The Mining Stock Journal commented that India is re-opening with the potential for game-changing demand for physical gold and the price data indicates that dore bar importation likely occurred on Monday. The newsletter noted that India's "demand for physical gold" means gold that is actually physically delivered to India rather than an alleged delivery of bars that never leave the custodial vault.
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 …
New Gold announced it has entered into a definitive agreement with Artemis Gold to divest its Blackwater project located in British Columbia. Blackwater is one of the largest open-pit gold deposits in Canada with a 9.5 million ounces in the measured and indicated category. The deal consists of C$190 million in cash comprised of C$140 million in cash upon closing of the Transaction and C$50 million in cash payable twelve months following closing of the Transaction. New Gold will also obtain a 8% gold stream from Blackwater and reducing that to 4% of gold production once approximately 280,000 ounces of gold have been delivered. $20 million in Artemis shares will also be provided to New Gold but is subject to New Gold not acquiring more than 9.9% of Artemis issued and outstanding common shares, in wich case the difference between the $20 million and the value of te shares issued to New Gold shall be added to the second instalment. New Gold trades on the TSX and the NYSE with the symbol NGD. News Release
Talisker Resources announced results this morning from its Bralorne Gold Project in British Columbia. At the Pioneer area, results included 27.6 g/t gold over a half meter. From the Bralorne Area, results included 19.97 g/t gold over 5.1 meters with a shorter 1.5 meter interval grading 57.8 g/t gold. This result came from hole 5A and marked the beginning of Stage 2 of the drilling plan, which is designed to target known structures proximal to historic workings, guided by historic underground exploration drift assay data. Stage 2 targets are at depths between 750 and 1,500m below surface near the historic Bralorne Mine. Assay results from the lower portion are pending. For a breakdown of this project, you can go back to my conversation with CEO Terry Harbort which aired a week ago. Talisker trades on the CSE with the symbol TSK and on the OTC TSKFF. News Release
Kincora Copper says the second diamond drill hole of their maiden drilling program at the Trundle Project is complete. The company says the second hole intersected strong halo indicators of a mineralized porphyry intrusion system confirming the targeted geological setting. These indicators include significant intervals with visually interpreted localized moderate copper grades. Assay results from initial Trundle Park and Mordialloc drill holes are anticipated within 4 weeks and 5-6 weeks respectively. The third of the six-hole program is in progress testing the Bayleys porphyry target. Kincora trades on the TSX Venture with KCC. News Release
Bluestone Resources reported more assay results from its infill drilling activities currently underway at the CErro Blanco gold project in Guatemala. Results from 14 underground and 4 surface holes are reported this morning. Highlights included 21.6 g/t gold and 52 g/t silver over 15 meters, including 48.5 g/t gold and 97 g/t silver over 3.8 meters. In addition to the drill results, Bluestone announced that John Robins, Founder and Executive Chair has transitioned to the role of non-executive Chair; this change is part of the Company's efforts to streamline reporting structures as the Company moves into the engineering and development phase of the project. Bluestone Resources trades on the TSX Venture with BSR and on the OTCQB with BBSRF. News Release
VanGold reported results from its 1,000 tone bulk sample and metallurgical test of material from its El Pinguico silver and gold project located near the city of Guanajuato, Mexico. The material used for this test came exclusively from the Company's surface stockpile of waste material which was left behind when mining ceased at El Pinguico in 1913. The material has been exposed to the elements since that time and was therefore somewhat oxidized. Average recovery from the stock pile were just over 75% of gold and just over 60% of silver. After separating and storing a small amount of the concentrate which the Company will have on hand to conduct future analytical tests, the final product consisted of 4.265 dry tonnes averaging 132.0 gpt Au and 6661 gpt Ag. Total recoveries from the final product credited to the Company by Endeavour were 18 ounces of gold and 913 ounces of silver. Vangold trades on the TSX Venture with VGLD and on the OTC with VGLDF. News Release
Corvus Gold provided an update on its ongoing detailed mining studies in the Bullfrog Gold District, Nevada where Corvus controls two adjacent, 100% owned projects, Mother Lode and North Bullfrog. Corvus envisions a phased mining plan that will differ from the 2018 initial Preliminary Economic Assessment (PEA) that saw the development of both projects at the same time. At the North Bullfrog project, the Company is evaluating an initial, lower capex, mining option that could have the potential to generate cash flow to fund the development and expansion of all of its other projects throughout the District. Preliminary metallurgical, mining and processing data for this Phase-1 option are outlining a project that could jump-start near-term production in this re-emerging Nevada gold District. Final detailed data for the Phase-1 starter project will be incorporated into an updated PEA scheduled for release this fall and will also include information on the North Bullfrog Phase-2 expansion and the Mother Lode deposit. In addition, the updated PEA will also incorporate an updated mineral resource estimation for all projects from Corvus’ multiple drill programs that have occurred since 2018. Corvus Gold trades on the TSX with KOR and on the OTCQX with CORVF. News Release
FireFox Gold provided an update into its 2020 exploration plans in the Central Lapland Greenstone Belt in Finland. Based on favorable results from the summer of 2019 and recent emerging discoveries on neighbouring properties, the FireFox technical team intends to focus its activities on portions of the Seuru and Jeesiö properties during the summer field season. At Seuru, the FireFox team plans to carry out its first detailed program at the Sarvilehto target area. Geologists will conduct reconnaissance mapping and sampling, and contract a detailed airborne magnetic survey using an unmanned aerial vehicle. At the Jeesiö Project, FireFox will be focusing on the newly discovered Katajavaara Target where field teams collected a 6.4 g/t gold sample on one of the last traverses of the 2019 summer season. The 2020 program plans include a detailed airborne UAV magnetic survey to supplement the small ground magnetics survey conducted in 2019. FireFox trades on the TSX Venture with FFOX. News Release
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