New Wesdome Drill Results; Unfavorable Ruling for Skeena

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

Today is Tuesday, February 8th. 

The gold price shot up from US$1,810 per ounce to as high as $1,825, starting at 2am Monday morning EST, likely in response both to the perception of heightened financial markets and to somewhat robust physical gold buying in India on Monday. Gold settled at $1,822. Silver was the belle of the ball Monday, running from $22.50 per ounce early Sunday evening to as high as $23.10 before settling 4 cents above $23. 

Meanwhile, the mining stocks showed signs of a pulse on Monday, as the Amex Gold Bugs index soared 3.6% while the GDX jumped nearly 3%. Most of the primary silver producing stocks, like Hecla, Coeur and First Majestic jumped 5 to 6%. It's starting to feel like a big move in the precious metals sector is percolating.

We’ll get to the news out of the miners and explorers here in just a moment, but first a quick word from 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 shared underground exploration dril results from the Kiena Deep A Zone at the company’s Kiena Mine in Val d'Or, Quebec. Recent underground definition and exploration drilling at the Kiena Deep A Zones area has confirmed the A Zone continues down plunge along the basalt – ultramafic contact. It has also confirmed the Footwall Zone comprises three subparallel zones and one crosscutting zone that have now been extended over 300 metres down plunge. Results were 74.6 g/t gold over 30 meters, 38.3 g/t over 37.3 meters and 35.9 g/t over 30.3 meters. The company is planning on spending over $17 million in exploration this year at Kiena, which includes 50,000 meters of underground drilling and 30,000 meters of surface drilling. Wesdome trades on the TSX with WDO. News Release

I-80 Gold provided more results this morning from exploration drilling at the Granite Creek Property in Nevada. The primary target of surface drilling is the South Pacific Zone where mineralization is being defined at depth below, and to the north of, the mine workings at Granite Creek. At the Ogee zone, drilling returned 73.2m grading 7.4 g/t gold, including 13.3 g/t over 13.1m. This represents one of the deepest holes drilled to-date at this target. At the Mag zone, results returned 3.4 g/t gold over 12.6m and 3.4 g/t over 16.8m. I-80 Gold trades on the TSX with IAU and on the OTCQX with IAUCF. News Release

Revival gold shared results from the final seven infill drill holes completed in the Haidee target area in connection with the Company’s 2021 exploration program at the Beartrack-Arnett Gold Project located in Idaho. Each of the seven holes encountered above cut-off grade, near-surface oxidized gold mineralization. Results did include .92 g/t gold over 16.2 meters and .75 g/t gold over 44.1 meters. The 2021 drilling program at Haidee was designed to upgrade and expand the deposit’s current Inferred heap leachable mineral resources. In addition, the program included holes drilled to obtain engineering data for Revival Gold’s planned late-2022 Pre-Feasibility Study. Revival Gold trades on the TSX Venture with RVG and on the OTCQX with RVLGF. News Release

Newmont says it has entered into a definitive purchase agreement with Buenaventura to acquire its 43.65% interest in the Yanacocha Mine. Under the terms of the agreement Newmont will acquire Buenaventura’s interest for $300 million plus contingent payments of up to $100 million, in part tied to higher metal prices. Concurrently, Newmont will transfer its ownership interest in the La Zanja joint venture to Buenaventura in exchange for royalties on any future production from the La Zanja operation. Newmont will also contribute $45 million to Buenaventura to cover future closure costs at La Zanja. Newmont may also have an opportunity to fully consolidate ownership of Yanacocha, as Sumitomo is assessing whether to exercise a right in its 2018 purchase agreement to return its 5% interest to Yanacocha in exchange for the original purchase price.

Sabina Gold & Silver completed final documentation for a US$520 million financing package for the development of the Goose mine at its Back River project in Nunavut, Canada with Orion Mine Finance and Wheaton Precious Metals. The financing is comprised of a $225 million senior secured debt facility, a $75 million gold prepay facility, a $125 million gold stream arrangement and a $95 million private placement. The feasibility study estimates the initial capital expenditure at $466 million. Sabina is working to finalise its 2022 work programs and budgets, and aims to pour first gold in the March quarter of 2025. Sabina Gold & Silver trades on the TSX under SBB and on the OTCQX under SGSVF. News release

Candente Copper announced a preliminary economic assessment for its Cañariaco copper project in Northern Peru which outlined a 40,000 tonnes per day operation to produce an annual average of 78,543 tonnes copper, 31,395 ounces gold and 703,588oz silver for 28 years. The project would yield an after-tax net present value of US$1 billion at an 8% discount rate, and an internal rate of return of 16.3% following a $1.04 billion initial capital investment using a copper price of $3.50/lb, $1,650/oz gold and $21.50/oz silver. At current prices, the IRR increases to 21.9%. Candente may move directly into a feasibility study. Candente Copper trades on the TSX under DNT. News release

Scottie Resources reported additional new assays on the Blueberry zone near the past-producing Scottie gold mine in the Golden Triangle region of British Columbia, Canada including a highlight of 13.5m grading 15.3 grams per tonne gold. The drilling extended the high-grade gold mineralization to a depth of 225m where it remains open in all directions. Blueberry was discovered in 2019 and now extends 650m in strike and 225m deep. The area will be the primary focus of Scottie’s 15,000m 2022 drilling program which aims to extend it in all directions as well as infill untested areas in the structure. Scottie Resources trades on the TSXV under SCOT and on the OTCQB under SCTSF. News release

And we conclude with some interesting news from Skeena Resources. An individual holding a mineral claim on the lands that underlie Skeena's Albino Lake Storage Facility, applied to the Chief Gold Commissioner on August 27, 2021, for a determination as to the ownership of the "minerals" in the materials deposited in the Albino Lake Storage Facility by the previous operators of the Eskay Creek Mine. Yesterday, the Chief Gold Commissioner handed down a decision, determining that the individual, Richard Mills, owns all the materials in the Albino Lake Storage Facility. Skeena believes that the Chief Gold Commissioner's decision is in error and intends to appeal the decision to the Supreme Court of British Columbia in accordance with the appeal provisions in the BC Mineral Tenure Act.

That concludes today’s morning briefing.

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