Pure Gold Set for Construction & Sending Condolences to Yukon
The spot price of gold is inching closer to the $1500 mark as Goldman Sachs says it no longer expects a trade deal to be struck before the 2020 U.S. presidential election. This and more here on Mining Stock Daily.
Everybody welcome to Mining Stock Daily. This is your host, Trevor Hall and today is Wednesday August 7th. Thank you so much for tuning in. The gold price withstood three separate flash crash attacks in the paper gold market on Monday and early Tuesday morning and managed to rebound back up to $1485 on the December contract. The Mining Stock Journal commented that the $1480 price area on the December contract is a key level of resistance and it represents a 50% retracement of the sell off from 2011 to December 2015.
The newsletter also explained that open interest in Comex paper gold contracts ballooned up over 13,000 contracts or 2.4% which indicates the amount of effort used to slow down gold's big move higher on Monday. It also noted that it looks like there is a chance the price of gold will blow over $1500 by Labor Day weekend. The Mining Stock Journal said the gold silver ratio has bounced off its 200 day moving average at $86 and traded it back up to its 50 day moving average at $90. The newsletter believes that the balance in the ratio will be short lived and is recommending buying physical silver over physical gold as it expects silver to outperform gold for at least the next few months. In addition based on inquiries about silver mining stocks the Journal said that an interest in silver and related assets is gaining momentum which historically has been a bullish indicator.
Today's briefing is sponsored by Integra Resources. 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 this year and the management of Integra successfully sold its previous Brownfields Project for $590 million dollars Canadian in the summer of 2017. And this morning the company announced it intends to raise approximately $8 million Canadian via a non-brokered offering which is expected to consist of a private placement of special warrants at a price of $0.86 issued to accredited investors followed by conversion of the special warrants to free trading common shares for no additional consideration through the filing of short form prospectus. CEO George Salamis stated several of Integra's larger shareholders have indicated a specific desire to have the company immediately increase their exploration drilling on the project by adding two to three drill rigs. So this financing will help fund such exploration for an additional 15,000 to 20,000m of drilling. Integra Resources trades on the TSX Venture under ITR and on the OTCQX with IRRZF.
And here's what you need to know out of the Junior Mining and Exploration Sector today. Pure Gold has closed a $90 million project financing package with Sprott Resource Lending to fully fund the cost to develop an underground mine at the company's Madsen Gold Project. With funding in place, the board of directors have approved a decision of construction for the Madsen Red Lake Mine and development activities which will begin immediately. The financing is comprised of a credit facility for $65 million US and a $25 million callable gold stream. First gold pour is expected in the end of next year with exploration drilling expected to continue throughout the balance of this year. Pure Gold trades on the TSX Venture with a simple PGM and on the OTC markets in the US with LRTNF.
Wallbridge Mining shared new exploration results this morning from the Fenelon Gold Property in Quebec from the Area 51 corridor of the project. Drill assays return 0.91 g/t gold over 191m. At the Tabasco Zone, drilling returned 5.5 g/t gold over 10.96m. The company says these results advanced the 2019 exploration goal of expanding the known footprint and demonstrating the large size potential of the Fenelon Gold System. Wallbridge trades on the TSX with the symbol WM and on the USO TC markets with WLBMF.
BonTerra Resources announced it has entered into an agreement with Sprott Capital Partners to increase its private placement to approximately $32 million. The offering will now consist of a combination of units defined in the offering. Each Unit will consist of one common share of the company and one-half of one common share purchase warrant. The net proceeds from the unit sold will be used for ongoing exploration and development work on the company's properties and for general corporate purposes. For a full list of the terms offered here, please connect with a licensed financial professional or broker. BonTerra trades on the TSX Venture with a simple BTR and on the USOTC markets with BONXF.
On the financial reporting stage, Hecla Mining, Premier Gold, First Majestic Silver and B2 Gold all reported second quarter financials and production numbers over the past 24 hours. I would refer you to those reports of interest to fill your number crunching due diligence.
And finally, I'd like to send condolences to the family, friends and colleagues of the two individuals who lost their lives yesterday in the Yukon. Early yesterday afternoon, Alkan Air C208 en route to Mayo, Yukon from a Rackla property was reported missing. Later in the day, the aircraft was located on the north side of the Mayo Lake and there were no survivors on board. Having been to the Yukon just last month and flown with the team at Alkan Air, I can attest to just how tight knit the mining and exploration community is there in the Territory. People who work in the Yukon absolutely love the Yukon. So I for one can only imagine how difficult it has been for everyone there. But please know here at Mining Stock Daily, we're sending all the love, all the prayers, all the energy and all the healing your way at this moment. I'm truly sorry for your loss.
That's going to conclude today's briefing. Mining Stock Daily is produced by Clear Creek Digital and Investment Research Dynamics' Mining Stock Journal. We hope you have a wonderful day. Be well. We'll chat with you again tomorrow.
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