Nord Gold Looking to Acquire Cardinal Resources; Precious Metals Getting Pummeled
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, March 16th.
Gold and silver were annhihilated on Friday but the cliff dive in price in both metals did not occur until after the Comex floor opened for trading on Friday morning. The Mining Stock Journal said that the price decline in gold and silver on Thursday and Friday occurred primarily during New York trading hours. As most of you know by now, the Fed announced that it was cutting the Fed funds rate to zero and implementing $700 billion in additional quantitative easing money printing. The Mining Stock Journal said that this explains why the price of gold was systematically taken down in the paper gold market on Friday. The Fed and the bullion banks pulled the same stunt in 2008 right before Helicopter Ben sent his money helicopters airborne. Precious metals dealer inventories of silver eagles are becoming scarce, the US Mint appears to be shut down due to the virus but it had run out of silver eagle inventory last week. The Mining Stock Journal suggests that anyone with spare cash on hand should buy physical gold and silver and start bottom-fishing in the larger cap mining shares. Gold Futures were down just under 3% this morning at the time of recording. Silver was again getting hit hard, down 17%.
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... Corvus Gold.
Corvus Gold. Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning out of the junior sector.
Cardinal Resources says it has received notification from Nord Gold that it has acquired a 19.9% interesting the shares of Cardinal and that Nordgold would like to provide a non-binding indicative and conditional proposal to acquire all of the issued capital of Cardinal that it does not already own. Despite the acquired shares, there has been no formal proposal or offer from Nordgold to acquire Cardinal shares, and, according to the Cardinal, it is not certain that a formal proposal will be made. This will be an interesting story which plays out. We’ll give you the latest updates here on Mining Stock Daily.
Alamos Gold today announced that it has entered into an agreement to acquire and cancel a 3% net smelter return (“NSR”) royalty payable on production from the Island Gold mine for total cash consideration of C$75 million. The Royalty was acquired from a privately held company and is payable on gold production within four patented claims that comprise the majority of currently defined Mineral Reserves and Resources within the Island Gold deposit. Alamos says the acquisition and elimination of the royalty will immediately reduce operating costs and increase operating cash flow while providing increased exposure to Island Gold’s significant exploration potential. With the elimination of the Royalty and associated cost savings, the Company has lowered its 2020 total cash cost and mine-site all-in sustaining cost guidance by $40 per ounce. Alamos Gold trades on the TSX and the NYSE with the symbol AGI. News Release
Maple Gold Mines shared new exploration results for the 531 Zone on the Douay Gold project in the Abitibi Greenstone Belt in Quebec. Drill results included 5.96 g/t gold over 3.5 meters and included a 1.7 meter section of 11.35 g/t gold. The company says drills have been mobilized to other zones given the potential impact of a new 3D induced polarization results, which the company believe could support the concept of the zone being wide open to the East - Southeast and to the West-NorthWest and to depth. Maple Gold trades on the TSX Venture with MGM and on the OTC with MGMLF. News Release
VanadiumCorp shared new drilling results from the first three holes from the company’s summer and fall 2019 infill and extensions drilling program at is Lac Dore Vanadium property in the James Bay Territory of Northern Quebec. Highlights included .66% Vanadium over 29.4 meters. And .72% Vanadium over 10.7 meters. There are 32 holes still awaiting assays. The 2019 drill program targeted the Company's Lac Doré Vanadium prospect where historical drilling and surface channel sampling conducted between 1958 and 2013 have revealed the presence within property limits of massive, semi-massive and disseminated bands of VTM mineralization. VanadiumCorp trades on the TSX Venture with VRB. News Release
Turquoise Hill shared an update from the Oyu Tolgoi mine in Mongolia. Despite the movement of good and people within Mongolia has been restricted within and across its borders to prevent the spreading of COVID-19, the mine continues to operat and deliver shipments of copper concentrate to its customers across the border. The company does have temperature and health screens in place at the mine. Work on the underground project continues, however there is restricted access for various teams. The company said the full impact of the slowdown on the underground project is unknown at this time.
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