Reasons to be Bullish on Gold Miners and Explorers
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday, May 5th. Happy Cinco de Mayo to everyone.
After rallying to as high as $1725 early Monday morning, the gold price withstood an aggressive paper gold attack as soon as the Comex pit opened at 8:20 a.m. on Monday, which beat the gold price down to $1705. Gold closed the daytime trading session in the U.S. at $1710. Silver traded as high as $15.18 on a futures contract basis before succumbing to an aggressive paper-induced sell-off when the gold price attack started. Silver ended up closing at $14.80. The mining stocks per GDX closed up 2.1% on Monday. The Mining Stock Journal said that the Hulbert Gold Newsletter Sentiment Index dropped from 70 early last week to 36 on Friday. The newsletter added that the HGNSI is a fairly consistent contrarian indicator and a reading of 36 is neutral to semi-bullish thereby suggesting the potential for bullish move in the mining stocks at least this week.
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 10 billion pounds of copper and 18 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 …
Talisker Resources announced results from the second drill hole at the Bralorne Gold Project located in British Columbia. Talisker is undertaking a 11,200m drill program targeting high-grade veins at the Project. Results from Hole 2 included 17.35 g/t gold over .8 meters and 32.2 g/t gold over .97 meters. The company says similar to hole one, significant gold mineralization was also identified in the altered halos surrounding the veins in both footwall and hanging wall locations. Talisker trades on the CSE with TSKk and on the OTCQB with TSKFF. News Release
G2 Goldfields shared more assay results from its Oko-Aremu Project in Guyana. Holes 30, 31, 32 and 33 were all reported on today and included 14.9 g/t gold over 1.8 meters from hole 30, 12.7 g/t gold from hole 31, 20.1 g/t gold over 1 meter at hole 32 and 10.5 g/t gold from hole 33. G2 also confirms that a second drill rig is expected to be fully operational within the next week. G2 trades on the TSX Venture with GTWO. News Release
Cartier Resources says it has increased its gold resources at the Chimo Mine Property in Quebec, specifically in the North and South Gold Corridors of the property. The Chimo Mine property now hosts mineral resources of just over 4 million donnes at an average grade of 4.54 g/t gold for a total of 585,000 ounces of gold in the indicated category, and 4.8 million tonnes at an average grade of 3.82 g/t gold for a total of just under 600,000 ounces of gold in the inferred category. Cartier is still drilling and exploring the project where continuity of the mineralization has been shown to extend to a depth of 1,300 meters. Cartier Resources trades on the TSX Venture with ECR and on the OTC markets with ECRFF. News Release
Gold Standard Ventures shared an initial mineral resource estimate for the Virgin gold and silver deposit on its 100%-owned/controlled Lewis Project in Nevada’s Battle Mountain Trend. The report estimates an Inferred Mineral Resource of 7.74 million tonnes grading 0.83 grams gold per tonne, totaling 205,800 ounces of gold and 14.22 grams silver per tonne totaling three and a half million ounces of silver. The Lewis Project is a separate exploration project located approximately 100 km west of GSV’s flagship South Railroad development project. It shares a common land boundary with Nevada Gold Mines’ Phoenix mine, one of the most prolific and active gold-silver-copper producers on the Battle Mountain-Eureka trend. The Company believes that the Lewis Project inferred mineral resource estimate at the Virgin Deposit is a continuation of the Phoenix-Fortitude mineralization currently being mined by Nevada Gold Mines in the Phoenix mine. Gold Standard Ventures trades on the TSX and the NYSE with the symbol GSV. News Release
And now, lets turn to Kai Hoffman for this week’s Oreninc Weekly update on financings throughout the junior sector.
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And while we’re on the topic of financing, Americas Gold and Silver announced a $25 million bought deal consisting of just under 9 million common shares at a price of C$2.80. Both Pierre Lassonde and Eric Sprott have indicated they intend to subscribe for a total of $8.75 million. News Release
IAMGOLD shared their quarterly production numbers yesterday. The company produced 170,000 ounces at an all-in sustaining cost of $1,230 per ounce sold. The company says target production was achieved despite challenges faced due to COVID-19 which included self-confinement of Essakane and Rosebel, and the placement of Westwood on care and maintenance following provincial directives. The company has lowered its 2020 full year guidance to the range of 685,000 to 740,000 ounces. IAMGOLD trades on the TSX with IMG and on the NYSE with IAG. News Release
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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