NexGen Feasibility Drilling Results, McEwen Mining Shares Hit in After-hours Trading
The FOMC minutes are scheduled to be released later this afternoon, keeping precious metals prices in check this morning. Asian and European stock markets were weaker overnight and indices in the US are down on the revelation from President Trump could add more trade tariffs on China. Trade tensions also heated up after the US Senate passed a bill supporting the protesters in Hong Kong, a move seen as shaking relations with Beijing.
Welcome to Mining Stock Daily.
Today is Wednesday, November 20th.
This is Trevor Hall and I welcome you to today’s briefing.
The price of gold yo-yo'd overnight on Tuesday, plunging to as low as $1465 and then spiking back up to the $1473 area. The catalyst for the sell-off appears to be coming from London, as recent LBMA price fixings have featured heavy offerings relative to bids. But gold spring-boarded back up to as high as $1475 before settling around $1473 after the NY Fed's John Williams delivered a speech in which he advocated furhter interest cuts and easy monetary policy. The Mining Stock Journal said that Williams' speech on Tuesday was music to the ears of gold investors and ushered in a $10 move higher. The newsletter also noted that the gold silver ratio continues to fall away from the 200 day moving average, which supports a bullish thesis for the precious metals sector going into the holiday season.
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And here’s what you need to know today out of the junior sector.
Shares of McEwen Mining were hit hard in after-hours trading yesterday after the company announced it intends to offer shares of its common stock and warrants to purchase its common stock in a registered underwritten public offering. Yesterday’s press release gave little details to the financing and market reacted after the closing bell dropping the share price of MUX in New York close to 14% to $1.30 per share. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/951-tsx/mux/69917-mcewen-mining-announces-proposed-public-offering.html
In Uranium news, NexGen Energy released assay results for twenty holes from the company’s recently completed feasibility-stage drilling program at the Rook I property in the Athabasca Basin in Saskatchewan. Results reported today included 3.81% U-3-O-8 over 48 meters and 3.42% U-3-O-8 over 41 meters. The feasibility study is expected to be concluded in the first half of 2020 with an environmental assessment scheduled for submission in Q3 of next year. 80 assays from the drilling program are still pending. NexGen trades on the TSX and the NYSE with the symbol NXE. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/622-tsx/nxe/69927-nexgen-releases-second-batch-of-assay-results-from-the-2019-feasibility-stage-drilling-program-intersects-high-grade-uranium-in-all-a2-and-a3-high-grade-domain-targets.html
Rugby Mining announced that is has commenced preliminary exploration activitie on its prospective Pastora and El Playon gold concessions in Columbia. Rugby is currently waiting for a full grant of the concessions from the Columbian Government but the ongoing ground exploration programs are intended to identify high priority gold targets which will allow drilling to commence as soon as the full concessions are granted. Bugby's shares trade in the U.S. under RBMNF and on the TSX Venture under RUG.V. The Mining Stock Journal has as strong highly speculative buy rating on Rugby's shares.
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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