Production Numbers and 2022 Guidance
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday, January 13th.
On Wednesday, both gold and silver staged a nice move higher that got started after the routine price take-down that occurs going into the London am price fix. Gold ran from US$1,815 per ounce to as high as $1,828 before settling at $1,826. Silver moved sharply higher from $22.68 per ounce to as high as $23.25 before settling at $23.17. Percentage-wise silver outperformed gold a little more than 3 to 1.
The Mining Stock Journal said that the CPI came in a little hotter than expected, sending the dollar into a tail-spin and catapulting the metals higher. Technically speaking, gold is now solidly above the key 50 and 200 moving averages. Silver closed right at its 50 day moving average but has a lot of work to do to get over its 200 dma. The gold/silver ratio dropped to 78.74. It's down from the recent high of 82.
The Mining Stock Journal commented that the falling gold/silver ratio is yet another technical indicator that puts a check in the bullish column for the sector.
The mining stocks responded bullishly to the move in the metals, with the GDX jumping 1.83% and closing on its 50 day moving average. With sentiment in the sector still highly tentative, and with India and China exhibiting good demand for physical gold, the Mining Stock Journal believes the ingredients are in place for a nice move higher in the sector.
We’ll get to the news out of the miners and explorers in a moment but first a mention of today’s sponsor…
This episode of Mining Stock Daily is brought to you by… Integra Resources
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration and plans on delivering a pre-feasibility study in Q4 2021 to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning….
Ascot Resources announced additional assay results from the 2021 exploration drill program at its Premier gold project in British Columbia, Canada, which included the remainder of the assay results from drilling at the Day Zone. Assays returned 58.6 g/t gold and 24.8 g/t silver over 1.9m where the company is internally evaluating preliminary stope shapes for potential extraction early in the mine life at Big Missouri. The company says the final outstanding assay results from last year are now being received and will be released in the coming weeks. Ascot trades on the TSX with AOT and on the OTCQX with AOTVF. News Release
Endeavour Silver has agreed to acquire the Pitarrilla project in Durango, Mexico from SSR Mining for US$70 million and a 1.25% net smelter returns royalty. Pitarrilla is an undeveloped silver, lead, and zinc project with a historical measured and indicated resource of 164.79 million tonnes grading 99.1 grams per tonne silver for 525.27 million ounces. Pitarrilla adds to the company’s development pipeline which includes the Terronera and Parral projects in Mexico. Endeavour Silver trades on the TSX under EDR and on the NYSE under EXK.
New Found Gold expanded the high-grade gold zone in the Keats footwall at its Queensway project near Gander in Newfoundland, Canada returning 2.45m grading 56.69 grams per tonne in hole 407. Hole 407 also cut a second vein in the Keats Footwall Zone which returned 2.9m grading 4.89g/t. The company said the area between the Keats Main Zone and the Appleton Fault Zone is of high-priority because it has been subjected to the same gold-bearing fluids and related deformation responsible for producing the Keats Main Zone. New Found Gold trades on the TSXV under NFG and on the NYSE-A under NFGC. News release
Hot Chili announced drilling results from its Cortadera copper-gold deposit in Chile which continue to expand it ahead of a global resource upgrade for its Costa Fuego development. Highlights included 156m grading 0.4% copper and 0.1 gram per tonne gold from surface including 32m grading 0.5% copper and 0.2g/t gold, or 0.6% copper equivalent. The company plans to update the Cortadera resource later during the March quarter to include 46,000m of additional drilling completed in 2021, which will upgrade inferred resources to indicated as well as providing a global resource for Costa Fuego with the inclusion of the Productora resource. A combined pre-feasibility study will follow in the September quarter. Hot Chili debuted on the TSXV at the start of this month having raised C$30 million in its IPO. Hot Chili trades on the ASX and TSXV under HCH and on the OTCQB under HHLKF. News release
Western Copper and Gold announced the appointment of Ken Engquist as COO to oversee operations at the Casino copper-gold deposit in Yukon, Canada. Engquist brings nearly 30 years of leadership and extensive development experience overseeing the de-risking and advancement of numerous mining projects from early-stage exploration through start-up and operations. Most recently, he was COO of First Mining Gold where he worked on the Springpole gold project and he previously led the infrastructure engineering for the underground design of the Oyu Tolgoi mine in Mongolia for Rio Tinto. Western Copper and Gold trades on the TSX and NYSE American under WRN. News release
Its been a busy week for production numbers throughout the industry as well. Today Equinox Gold announced record production for the quarter of over 210,000 ounces of gold to boost their annual gold production by 26% from the prior year. Wesdome’s total gold production hit almost 124,000 ounces of gold, that was up 37% from the previous year. The company’s 2022 guidance for this year is up to 180,000 ounces, which would be a 45% increase from 2021. And Amerigo Resources produced 63.4 million pounds of copper at an average cash cost of $1.75 per pound. Annual copper production was 4% over guidance, due to higher fresh tailings tonnage and grade.
That concludes today’s morning briefing.
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