Relief Canyon Delayed for Americas Gold & Silver

Welcome to Mining Stock Daily. This is your host, Trevor Hall

Today is Monday August 17th.

Gold and silver declined on Friday after a large two-day bounce from Tuesday's price massacre. The mining stocks per  GDX declined marginally Friday. The Mining Stock Journal said that, with India's strongest seasonal buying period just around the corner, if the price management teams at the western Central Banks and bullion banks want to push the precious metals lower before the Fed announces its inevitable next big round of money printing, it will have to happen over the next couple of weeks. The newsletter would not completely dismiss a deeper sell-off than what occurred last week. Historically the 50 day moving average has been the target of manipulated take-downs. For December gold that's $1863 and for September silver that's $21.18. The newsletter added, however, that given the strong underlying fundamentals supporting the metals prices it does not expect that kind of beat-down anytime soon. Moreover, the news that Warren Buffet took a position in Barrick Gold will likely inspire a lot of mainstream big money managers to allocate money to the mining stocks.

 

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… Integra Resources.

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 and the Nasdaq with the symbol KOR. 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…

Americas Gold and Silver reported their financial and operational results from the second quarter today. The company reported revenue of $4.6 million and a net loss of over $10 million. The company did note that a combination of higher silver prices and the re-opening of Cosala would allow the Company to target the higher-grade silver ores in the Upper Zone of San Rafael and develop the EC120 area moving forward. Mining these higher-grade areas of the Cosalá Operation is expected to significantly increase silver production to 2.5-3.0 million ounces per year starting in 2022. Relief Canyon continues to ramp up with tonnage and grade reconciling to the resource model. Mining has progressed through the lower grade upper fringe portion of the deposit near the historic North and Lightbulb pits but has now reached a more continuous and higher-grade area. Commercial production is expected to be delayed until Q4-2020 due to various start-up challenges including equipment issues with the radial stacker, inconsistent operating practices, and variable solution application rates. The company also reported some drilling results this morning from the Galena Complex. Initial drilling targeting extensions of three separate systems below known workings which historically contained some of the highest-grade ore and represented the main source of production during the peak years of silver production for the operation yielded 739 g/t silver and 1.6% copper over 4.2 meters and 2,381 g/t silver and 1.7% copper over 1.8 meters. Americas Gold and Silver trades on the TSX with USA and on the NYSE American with USAS. News Release

Marathon Gold reported drill results from recent exploration drilling at the Berry Zone of the Valentine Gold Project in Newfoundland. Assay reported today included 2.96 over 47 meters and 2.23 g/t gold over 30 meters. Currently, one drill rig is progressing northeastwards from Berry to the area of the “Frozen Ear Pond Road”, approximately 1.5 kilometres from where the company began in January. An additional drill rig is scheduled to be mobilized in early September, exploring southwestwards from the margin of the Marathon Deposit towards Frozen Ear Pond Road. At the end of this campaign Marathon will have drilling information along the full 6 kilometres of the Sprite Corridor between Leprechaun and Marathon. The company noted this is high-risk, greenfield exploration, with no certainty of success. However, the results achieved to date at the Berry Zone give confidence in the potential for additional discoveries along this highly prospective trend. Marathon Gold trades on the TSX with MOZ and on the OTC markets with MGDPF. News Release

Altus Strategies announced drilling results form the FT Prospect at the company’s Tabakorole gold project in southern Mali. Intersections included 4.7 g/t gold over 14 meters and 1.2 g/t gold over 31 meters. The project remains open along strike and down dip. Altus Strategies trades on the TSX Venture with ALTS. News Release

On Friday, the U.S. Forest Service released the  Draft Environmental Impact Statement on the Stibnite Gold Project for public comment.  Individuals will have 60 days to comment on the proposed redevelopment and restoration of the former Stibnite gold, silver, antimony and tungsten mine, which is located in Valley County, Idaho.  The comment period is legally required to be 45 days and the USFS has decided to grant a 15-day extension. Midas Gold trades on the TSX with MAX and on the OTC with MDRPF. News Release

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I’m Trevor Hall. Have a wonderful day. Be well.

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