New Nickel Drill Holes from FPX

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

Today is Monday, March 14th. 

On Friday the gold price was smashed in the paper gold market back below US$2,000 per ounce to as low as $1,963. It then ripped back up to $1,996 before settling at $1,992 for the week. IT opened this morning some $30 lower.

Silver chased the same price-path as the yellow metal, taking a dive from $26.40 per ounce down to $25.70 and then back up to $26.35 before settling at $26.22. The Mining Stock Journal said that, in the absence of any material fundamental news that might have caused the "V" shaped sell-off and rally, it can only be attributed to the customary effort on Fridays to push gold and silver lower by the western bank price management team. It would appear, however, that said price management operation was offset by fundamental investors harbouring a growing fear of price inflation along with incipient distrust of the world's paper fiat currencies. 

The mining stocks mostly ignored the extreme price volatility in the metals but were lower on the day, with the GDX falling 1.6%. The Mining Stock Journal said that, while the sector is quite overbought technically, it can continue moving higher and remain overbought for a while, predicated on the news flow from Ukraine plus further persistence in rising price inflation expectations.

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

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

Turquoise Hill says it has acknowledged receipt of a non-binding proposal from Rio Tinto outlining its proposal to acquire the approximately 49% of the outstanding shares of Turquoise Hill held by the Company's minority shareholders for cash consideration of C$34.00 per share. Rio Tinto has stated that its proposal is conditional on, among other things, Turquoise Hill not raising additional equity capital, including through a rights offering, bought deal or other share placement, pending completion of the proposed transaction. The Rio Tinto proposal does not amend the terms of the amended and restated Heads of Agreement entered into by Turquoise Hill and Rio Tinto on January 24, 2022 which establishes a binding funding plan for the completion of the Oyu Tolgoi underground mine. The board of directors of the Company will be establishing a special committee of independent directors to review and consider Rio Tinto's proposal. Turquoise Hill shareholders do not need to take any action with respect to the proposal at this time. Turquoise Hill is focused on the operation and continued development of the Oyu Tolgoi copper-gold mine in Mongolia. News Release

FPX Nickel announced results of the summer 2021 infill drilling program at the Baptiste project at its Decar nickel district in central British Columbia. Holes in the area of the planned starter pit in the southeastern portion of the Baptiste deposit all returned near-surface, broad intervals with average DTR nickel grades at or above the global resource grade of 0.120% DTR nickel, including hole 73 which intersected 254.9m grading 0.151% DTR nickel from 48.1 m downhole, including 157.3m grading 0.154% DTR nickel, representing the third-highest grading, near-surface interval ever intersected at the Baptiste deposit. The company says these results validate the PEA block model and potentially expanded higher grade, near-surface DTR nickel mineralization at the Baptiste deposit beyond the 2020 PEA resource model. FPX Nickel trades on the TSXV with FPX and on the OTCQB with FPOCF. News Release

Luminex Resources said it discovered high-grade gold and silver mineralisation in an un-tested area immediately west of the Los Cuyes mineral resource at its Condor project in Ecuador. The drill hole targeted the down dip extension of a steeply dipping, structurally controlled mineralised zone and intercepted 8.6m grading 5.10 grams per tonne gold and 24.85g/t silver within 17.6m grading 2.91g/t gold and 15.23g/t silver. A follow up drill program is planned to test continuity of the zone with the intention of building a resource for inclusion in future economic studies. Luminex Resources trades on the TSXV under LR and on the OTCQX under LUMIF. News release

Bluestone Resources obtained a US$30 million loan from the Lundin family’s Zebra Holdings and Investments, and Lorito Holdings, with funds to be used to advance the Cerro Blanco gold project in Guatemala through engineering and permit approval. In consideration for the loan, Bluestone has issued 150,000 shares and will issue an additional 4,000 shares per month for each $1 million of the principal amount outstanding each month up to maturity on March 11, 2023. At Bluestone’s current share price, that works out as a maximum of more than $3 million, which would represent a coupon of about 10%. Bluestone Resources trades on the TSXV under BSR and on the OTCQB under BBSRF. News release

GoldMining acquired an existing 1% net smelter return (NSR) royalty on its own Yarumalito gold project in Antioquia, Colombia from Newrange Gold for C$100,000 in cash and 10,000 shares. GoldMining did not say that it has cancelled the NSR and so MSD imagines it may well end up in the hands of Gold Royalty, a royalty company GoldMining created and into which it spun out royalties on most of the projects in its bank of gold properties. Shares in GoldMining trade on the TSX under GOLD and on the NYSE American under GLDG. News release

Golden Shield Resources announced the drill results from the final four holes of a seven-hole program at the Mazoa Hill, one of eight prospects at its flagship, 5,457-hectare, Marudi Mountain gold project located in the Rupununi district of southwestern Guyana. The seven drill holes drilled at Mazoa Hill were designed to extend mineralization beyond the extents of the historical resource and confirm the historical resource. Results included 50m grading 9.1g/t gold which confirms continuous mineralization at Mazoa Hill. Golden Shield trades on the CSE with GSRI. News Release

That concludes today’s morning briefing.

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