Precious Metals and Mining Stocks Uneasy After FOMC Rate Cut
Gold's recent resiliency fades after Fed Chair Jerome Powell signaled the central bank is in no hurry to cut interest rates after a widely anticipated move of a 25 basis point cut yesterday. This is more today, right here on Mining Stock Daily.
Hey everybody, welcome to Mining Stock Daily. This is Trevor Hall, your host and today is Thursday August 1st. The price of gold dropped $15 as the dollar index spiked up on Wednesday after the Federal Reserve announced an expected quarter point reduction in the fed funds rate. The HUI AMEX Gold Bugs mining stock index was given an 11 point or 5.5% percent haircut. The Mining Stock Journal commented that gold and the dollar reacted in the Fed's insistence that this was not the start of an interest rate reduction cycle. However, the Fed also ended its quantitative tightening program two months early, which ultimately will prove to be bullish for the precious metals sector.
Today's briefing is brought to you by Integra Resources. Integra Resources trades on the TSX Venture under ITR and on the OTCQX under IRRZF. Integra Resources is advancing its past producing DeLamar Gold-Silver Project in southwest Idaho through aggressive drilling and exploration. The latest resource estimate released earlier this summer showed approximately 4 million gold equivalent ounces in the measured and indicated category. A made in PEA is expected in the second half of 2019. The management of Integra successfully sold its previous Brownfields Project for $590 million dollars Canadian in the summer of 2017. This morning Integra shared an update on the metallurgical test work for both Florida Mountain and DeLamar Deposits. Preliminary testing on the DeLamar unoxidized mineralization has generally shown the flotation gold and silver recoveries of approximately 90% can be achieved with mass pulls of approximately 10% to 15%. Test data indicates that the oxide and transitional mineralization from both the DeLamar and Florida Mountain Deposits behave similarly and is amendable to processing by low-cost heap leach signed cyanidation methods. On a tonnage basis, approximately 54% of the global DeLamar Project measured and indicated resources are hosted within oxide and transitional mineralization that will be modeled for heap leach processing in the upcoming PEA with 46% reported as unoxidized mineralized material that will be modeled for milling and flotation processing and the upcoming PEA. For more information on the recent met testing please visit IntegraResources.com.
Hudbay Minerals announced that late yesterday the U.S. District Court for the District of Arizona issued a ruling in the lawsuits challenging the U.S. Forest Service's issuance of the Final Record of Decision for the Rosemont project in Arizona. The court ruled to vacate and remand the Final Record of Decision such that Rosemont cannot proceed with construction at this time. Hudbay believes that the court has misinterpreted federal mining laws and Forest Service regulations that apply to Rosemont. As such, the company will be appealing the court's decision to the U.S. 9th Circuit Court of Appeals. Hudbay trades on the TSX and the NYSE with the symbol HBM.
Aurion Resources announced that it completed its private placement financing for an aggregate of 7.4 million common shares at a price of $1.50 per share for gross proceeds of $11.2 million. Eric Sprott was the lead buyer, contributing $5 million to the deal. Sprott now owns 5% of Aurion. In addition, Kinross Gold participated in the transaction in order to maintain its 9.9% ownership stake in the company. Aurion shares trade under AIRRF in the U.S. and AU on the TSX Venture Exchange.
Rugby Mining announced that it has entered into an option agreement to earn up to 100% of the El Zanjon Gold and Silver Project in Santa Cruz Province of Argentina. El Zanjon covers approximately 600 sq. km with the prolific Deseado Massif gold and silver district. It is situated near such world class mines as Newmont's Cerro Negro. The Mining Stock Journal will be reviewing Rugby Mining in its next issue of the Mining Stock Journal, released this evening. The company shares trade under RBMNF in the US and RUG on the TSX Venture Exchange.
And to quickly keep you abreast of production news today. Tauranga Gold, New Gold, Asanko Gold, and Endeavour Mining all shared Q2 financial and production reports this morning.
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