Newcore PEA Results, Drill Results from Alphamin and Orezone
Welcome to Mining Stock Daily. This is your host, Trevor Hall.
Today is Tuesday June 8th.
On Monday gold shrugged off a price take-down that took the price down to $1884, August contract basis. But the price took off shortly after the London price fix and ran up and over $1900, settling for the day at $1902. Silver followed a similar price path as gold, bottoming in the early morning at $27.60. But poor man's gold took a couple hours longer to get untracked to the upside, shooting up quickly starting 30 mins before the NYSE opened, peaking at $28.08 and settling just above $28. The Mining Stock Journal had suggested a couple weeks that gold and silver would go through a period of two-way volatility around $1900 and $28, before embarking on another big bull cycle move higher. The mining stock newsletter noted that the weekly charts for both gold and silver look incredibly bullish. The mining stocks were red Monday despite the price rally in the metals. The Mining Stock Journal reiterated that, after a 30-plus percent move in the sector that started in February, the mining stocks continue to work off an overbought technical condition and that patience will be richly rewarded.
We’ll get to the news out of the miners and explorers in a 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 list of project and company information on their website, rio2.com.
And here’s what you need to know this morning.
Newcore Gold provided the results of its highly anticipated preliminary economic assessment for the Enchi Gold Project in Ghana. The study contemplates a technically simple, open pit mine and heap leach operation processing 6.6 million tonnes per annum. The PEA also reflects an updated, pit constrained, Inferred Mineral Resource of 70.4 million tonnes ("Mt") grading 0.62 grams per tonne gold ("g/t Au") containing 1.4 million ounces gold. At a gold price of $1,650/oz, Enchi is estimated to deliver a $333 million pre-tax net present value discounted at 5% ("NPV5%") and a 54% pre-tax internal rate of return. At an $1850 per ounce gold price, those numbers jump up to $471 million NPV and a 69% IRR. Only 20,195 metres of drilling from the ongoing 66,000 metre drill program was included in the updated Mineral Resource Estimate. We are scheduled to speak with CEO Luke Alexander about this study later today on the podcast, so stay tuned for that to hit your inbox later today. Newcore trades on the TSX Venture with NCAU and on the OTCQX with NCAUF. News Release
Alphamin Resources, who produces 4% of the world’s mined tin from its operation in the Democratic Republic of Congo, provided additional assay results on its Mpama South Exploration Drilling programme. Results reported this morning included 6.4 meters of 7.32% tin from the main zone and 1.1 meters of 31.55% tin from the newly discovered footwall zone. 10,000 meters of the 16,800 meter drill program has been completed. Phase 3 drilling has commenced to test downdip and strike extensions of the interpreted high-grade shoot. Alphamin trades on the TSX Venture with AFM. News Release
Orezone also published new drill results this morning from the Bomboré Gold Project, located in Burkina Faso. The drilling program has been very successful returning the best hole to date with several other wide, multigram gold intercepts near surface outside of the current reserves and resource envelopes. Results reported today included 32 meters of 3.87 g/t gold, 30 meters of 2.76 g/t gold and 22 meters of 1.97 g/t. The company plans to continue drilling along strike to establish the continuity of an untested gap. Orezone trades on the TSX Venture with ORE and on the OTCQX with ORZCF. News Release
Calibre Mining provided results on the company’s 80,000 meters drilling program on the company’s Libertad project. Results reported this morning included 11.37 g/t gold over 5.4 meters at the Volcan Vein, 16.78 g/t gold over 2.8 meters and 13.83 g/t over 4.4 meters at the Tranca Vein. 16 drill rigs currently active on Calibre’s 100% owned properties. Calibre is guiding 170,000 – 180,000 ounces of gold production for the year, generating cash flows to self-fund new growth opportunities and an extensive 80,000 metre exploration and infill drilling program. They trade on the TSX with CXB and on the OTCQX with CXBMF. News Release
Aya Gold & Silver reported their second highest exploration drill intercept ever this morning at its Zgounder Silver Mine in the Kingdom of Morocco. That results was 6.5 meters of 6,437 g/t silver in a step out extension to the East. Eight diamond drill rigs are exploring the target zones below the mine to the granite contact and the lateral extensions. Aya Gold & Silver trade on the TSX with AYA. News Release
Outback Goldfields says they have been granted the exploration license for the Ballarat West tenement, which is one of the company’s four key assets in the Victoria Goldfields of Australia. It's a large package that is completely underexplored due to shallow cover despite the fact that over 17 million ounces of gold has been produced within 10 km of the property. Outback Goldfields trades on the CSE with OZ. 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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