Newmont Sells Red Lake Complex; Exploration Results from BeMetals, Firefox Gold and more

Integra Resources closes its financing with Coeur Mining for the Delamar project in Idaho. And Kirkland Lake’s acqusition of Detour wasn’t the only M&A news in the industry involving an Australian miners. We have more news to cover this morning. You are listening to Mining Stock Daily. 

Welcome to Mining Stock Daily. 

Today is Tuesday, November 26th. 

This is Trevor Hall and I welcome you to today’s briefing. 

Once again the price of gold spiked up overnight to $1469 where it traded until the Indian gold market closed for the day. GOld was promptly hammered down to $1460 in the London and New York gold derivatives markets. During New York trading gold was volatile, oscillating between $1468 and $1462.  The Mining Stcok Journal noted that, for now anyway, gold seems to have found a solid floor at $1460. That said, there's still over 200,000 December contract with just 3 days left before delivery notices start going out. The Mining Stock Journal expects an aggressive from the Comex banks, which are extremely short paper gold, to push the gold price lower and force longs to liquidate or roll out to February, the next front month. The newsletter also added the gold/silver ration contines to trend sideways, just below its 200 day moving average.

Today's episode of Mining Stock Daily brought to you by the Association for Mineral Exploration British Columbia. AME advocates for and promotes a healthy business environment for its members working in mineral exploration through advocacy and leadership. AME is proud to support Mining Stock Daily as the organization leads up to January's much-anticipated Roundup Conference taking place in Vancouver, BC January 20th through the 23rd. More information about AME and the Roundup Conference can be found online at amebc.ca.

And here’s what you need to know today out of the junior sector.

BeMetals announced results of three drill holes from the Phase 1 underground drilling program at the South Mountain Base and Precious Metal Project in southwestern Idaho, U.S.A. Highlights reported this morning included 12.20 metres grading 18.16% Zinc, 122.6 grams per tonne Silver, 4.41 g/t Gold, 1.55% Lead, and 0.16% Copper. The principal objectives of the phase 1 work plan at South Mountain was to test for potential extensions of the mineralized zones and confirm the grade distribution of the current polymetallic mineral resource estimate. The Company has now successfully completed the phase 1 program comprised of 20 underground drill holes for a total of approximately 2,250 metres. BeMetals trades on the TSXV with the symbol BMET and on the OTCQB in the United States with BMTLF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2624-tsx-venture/bmet/70131-bemetals-drilling-results-exceed-expectations-at-the-high-grade-base-and-precious-metal-south-mountain-project-in-idaho.html

African Gold Group shared intersections from the Kobada Gold Project. The company says the recent high-grade intersections continue to indicate there is considerable upside potential at the Kobada Gold project. Drilling returned 1.59 g/t gold over 11.0 metres and 6.39 g/t gold over 1m. The Phase 1 drilling program is designed to build on the existing mineral resource estimate originally released in February 2016 of 1.2 million ounces of gold grading 1.1 g/t gold in indicated and 1.0 million ounces of gold grading 1.0 g/t gold in inferred categories. Drilling to date shows a very strong correlation to the existing resource, and if future drilling results, particularly in the Central Zone, continue to produce favourable results, there could be a material increase in grade. Phase 1 drilling is nearly complete and sites for the planned Phase 2 drilling campaign are currently being prepared. African Gold Group trades on the Toronto Venture with AGG and in the US OTC markets with AGGFF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/359-tsx-venture/agg/70136-african-gold-group-intersects-further-exceptional-high-grade-gold.html

And the Kirkland Lake acquisition announcement of Detour Gold yesterday wasn’t the only M&A news in the industry, although it was the biggest news of the day. Newmont also shared news that it has sold its Red Lake complex in Ontario to Australian miner Evolution Mining for  $375 million in cash and contingent payments of up to an additional $100 million tied to new resource discoveries. Under terms of the $100 million contingent payment, Evolution will pay Newmont $20 million for each one million ounces of new gold resources added to the existing Red Lake resource base over a fifteen year period. The contingent payment is applicable to the first five million ounces of new resources. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1101-nyse/nem/70124-newmont-goldcorp-successfully-reaches-agreement-to-sell-red-lake-375-million-in-cash-plus-up-to-100-million-in-contingent-payments.html

And Integra Resources announced it has closed its previously announced strategic placement with Coeur Mining whereby Coeur has invested C$6.6 million in Integra by way of a non-brokered private placement of common shares. Under the terms of the subscription agreement between Integra and Coeur, Coeur purchased 5.7-million common shares of Integra at a price of C$1.15 per Strategic Placement Common Share. The net proceeds from the Strategic Placement will be used to fund exploration and pre-feasibility level study expenditures at the DeLamar Project and for general corporate purposes. Integra trades on the TSX Venture with ITR and on the OTC markets in the US with IRRZF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2170-tsx-venture/itr/70114-integra-resources-closes-c-6-6-million-strategic-placement-with-coeur-mining.html

That is a wrap from us today. Thanks again for tuning in. If you have any questions or followups, please feel free to email me at trevor@clearcreekdigital.com. I’ll be sure to get back to you in a timely manner. 

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