NexGen Publishes Arrow Deposit Feasibility Study
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, February 22nd.
After an intense pounding last week in the paper market, gold rose over $2 on Friday and is up another $17 this morning at time of recording. Silver was more impervious to manipulation last week as there appears to be a scramble for the acquisition of physical silver that exchanges and bullion dealers can actually deliver to buyers. After bouncing off its 50 dma on Friday at $26.13, March silver closed at $27.25. The Mining Stock Journal offered the opinion that silver may well be on the cusp of physical squeeze which could send the price of silver soaring. Silver on Sunday evening was trading up 1.2% from Friday's close. The mining stocks were largely flat on Friday, though a portfolio of cherry-picked junior mining stocks enjoyed nice gains. The commitment of Traders report on Friday revealed that the hedge funds' net long position plunged 22.5%. The Mining StockJournal said historically that hedge fund net long liquidation accompanies market bottoms. As an aside, the mining stock newsletter is starting to believe that, for the first time in 20 years, there's a strong likelihood of short squeeze in the precious metals. One quick note from the base metals complex, copper was trading as high as $4.21 last night, but currently is settling in at 4.10 this morning.
We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of 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.
NexGen Energy provided results of its independent Feasibility Study, Mineral Reserve and Mineral Resource update of the basement-hosted Arrow Deposit, located on the Company's 100% owned Rook I project in the Athabasca Basin in Saskatchewan, Canada. The study highlights a uranium project with an after-tax NPV of $3.47 billion dollars and an IRR of 52.4% with a payback period of less than 1 year. The first five years of the project, the mine will produce 28.8 million pounds of U3O8 for after-tax net cash flow of over $1 billion CDN using a $50 per pound base case. Mine life is expected to be about 10 and a half years. The FS defines Probable Mineral Reserves of 239.6 M lbs of U3O8 contained in 4,575 kt grading 2.37% U3O8 from the Measured and Indicated Mineral Resources. A majority of the Mineral Reserves are based on Measured Mineral Resources, and 100% of the Mineral Reserves allocated to the Probable category based on the Project's current development stage. NexGen trades on the TSX and the NYSE with NXE. News Release
Bunker Hill Mining reported it has intercepted strong zinc mineralization over significant widths in the upper levels of the Bunker Hill Mine. These intercepts in hole 7055 are above the water level and in close proximity to existing infrastructure. They are also outside the current resource boundary, and as such are expected to increase the resource base for the Preliminary Economic Assessment which remains on track for completion in early Q2-2021. Results included 2.4 meters of 16.9% zinc, 38.4 g/t silver and 2.8% lead representing a 20.2% zinc equivalent. Ongoing drilling is now being directed to high grade silver exploration. The program for 2021 currently envisages 10,000-12,000 meters of drilling. Bunker Hill trades on the CSE with BNKR. News Release
Revival Gold shared results from the final ten holes of the Company’s 2020 drilling program at the Beartrack-Arnett Gold Project in Idaho. Highlights from today’s drill results include two core holes drilled in the Joss target area at the southern end of Beartrack. The holes were drilled to test for high-grade sulphide mineralization and to validate a conceptual underground mining target hosted within the main shear zone as well as in cross structures. Results included 2.29 g/t gold over 45.7 meters and 2.41 g/t gold over 43.9 meters. An additional five core holes were drilled between the North and South Pits in the central Beartrack area and successfully confirmed the continuity of mineralized structure over 400-600 meters of strike in this previously untested area. Mineralization in this location remains open at depth. Revival trades on the TSX Venture with RVG and on the OTCQB with RVLGF. News Release
Solaris Resources reported more diamond drill assay results this morning from the Warintza project in south-eastern Ecuador. Results reported today included 600 meters of 1% copper equivalent, 736 meters of .74% copper equivalent, 462 meters of 1% copper equivalent and 688 meters of .57% copper equivalent. To date, 17,400 metres have been drilled at Warintza Central in 21 holes of which results have been reported for 13; drilling is ongoing with six rigs currently operating and six more being added by mid-year, which will lead to a commensurate increase in the pace of results being reported, according to the company. Solaris trades on the TSX with SLS and on the OTCQB with SLSSF. News Release
Aya Gold and Silver reported additional drill results this morning front he Zgounder Silver mine in Morocco. Results included 14.4 meters of 3,043 g/t silver and 7.2 meters of 4,944 g/t silver. The company also also provided its 2021 outlook, including production and cost guidance for Zgounder. The production outlook caries silver production of 1.2 million ounces with cash costs of $11.28. Aya Gold and Silver trades on the TSX with AYA. News Release
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I’m Trevor Hall. Have a wonderful day. Be well.
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