Rio2 Announces Pre-Feasibility Results and Mineral Resource Estimate for Fenix

Gold is slipping a bit in early morning trading this morning, but still remains close to a six-year high as the concern of a global economic slowdown and the trade war still loom. We’ll chat precious metals and news from the explorers this morning. You are listening to Mining Stock Daily. 

Welcome to Mining Stock Daily. 

Today is Wednesday, September 4th. 

Gold and silver continued to soar in price, with gold up over $28 from Monday's close and silver up a dollar, or 5.85%, from Monday's close. Silver hit a 3-year high, while gold hit a price level not seen in 6 1/2 years. The Gold/Silver ratio has now pluned $10 - or 11% in just two weeks. The Mining Stock Journal commented that it feels like a real gold rush has now begun. It noted that the junior mining shares have started to percolate in a way it has not seen since November 2008 or mid-2000.  The newsletter believes the precious metals sector may well be setting up for a historic move.

Today’s briefing is brought to you by Pacific Empire Minerals. 

Pacific Empire Minerals Corp. is a junior exploration company focused on the discovery of gold-rich copper deposits in British Columbia, Canada. Pacific Empire trades on the TSX Venture Exchange under the symbol PEMC and on the OTCQB markets under the symbol PEMSF. The Company currently has a very tight share structure. Pacific Empires’ unique approach to the prospect generator business model incorporates the Company’s own reverse circulation drill to advance projects beyond that of typical prospect generators. More information on Pacific Empire can be found at pemcorp.ca.

Here’s what you need to know today out of the junior resource sector. 

Rio2 announced results of its highly anticipated mineral resource estimate and pre-feasibility study for its Fenix Gold Project in the Atacama Region of Chile. Base case economics for the pFS were calculated using a $1300 per ounce gold price. The company says the PFS is strategically focused on an optimally configured mine plan which will facilitate the shortest possible timeline to construction/production, a lower initial capex, higher grades initially being mined, and a lower initial strip ratio as compared with the 2014 PFS. The PFS focuses on a low-cost heap leach gold mine with 1.83 million ounces (“oz”) of gold reserves that will produce 1.37 million oz of gold. The PFS highlights include a 27.4% internal rate of return with 93,000 oz average annual gold production during the initial 13 years. Construction is currently targeted for Q4 2021 and first gold production in Q4 2022. The updated resource estimate for the Project is 5.0 million oz of gold in the measured and indicated category and 1.4 million oz of gold in the inferred category constrained within a $1,500 gold price pit shell. The mineral resource remains open at depth and along strike. Rio2 trades on the TSX Venture Exchange with with RIO and on the OTC markets with RIOFF. News Release


McEwen Mining shared exploration drill results from its Stock Property which is part of the Black Fox Complex near Timmins, Ontario. Assay results of 27 drill holes have been received which were drilled along a 3 km trend which hosts the historical Stock Mine and Stock East Deposit. McEwen Mining says A high-grade drill intersection of 18.0 g/t Au over 9.1 m, including 120 g/t Au over 1.3 m was encountered 250 m below the deepest intersection from exploration in 2018, and 650 m below the deepest workings in the Stock Mine. The company says this result reinforces their belief that the gold system remains strong and open with potential to extend mineralization below the mine workings. McEwen also says intersections to the East and West of the Stock Mine, including 10.9 g/t Au over 5 m,suggest potential for new mineralized zones along strike of the deposits. Drilling will continue this year and more results are expected in Q4. McEwen Mining trades on the TSX and the NYSE  with the symbol MUX. News Release

Anacando Mining announced results from 18 diamond drill holes drilled in the East Goldbrook Gold System at the Goldboro Gold Project in Nova Scotia. The 4000 metres of diamond drilling were part of a recently completed 5.7-thousand-metre diamond drill program and were designed to infill portions of the EG Gold System to upgrade resource categorization and to extend the EG Gold System east of the 2018 resource model limits. Infill drilling results included 50.6 g/t gold over 1 meter. Extension drilling included 27.12 g/t gold over 2.5 meters. You can read the full list of results on this morning’s news release form the company. Anacanda Mining trades on the tSX with ANX and on the OTC markets in the US with ANXGF. News Release


Lumina Gold shared results from the thirteen hole metallurgical and pit slope geotechnical drilling program. All of the holes were on the Cangrejos deposit and were drilled to support ongoing engineering and economic study work. The holes did not specifically target mineralization, yet the company says many cut significant intervals, including 1.18 g/t gold over 444 meters and .09% copper. Drilling at the Gran Bestia ridgeline is continuing with the expectation that drilling will conclude in September and a new resource estimate for Cangrejos, including Gran Bestia will be released in November. Lumina Gold trades on the Toronto Venture Exchange with LUM and on the OTC markets with LMGDF. News Release


Great Bear Resources announced that it drilled multiple gold discoveries along 3.2 kilometres strike length of the approximately 18 kilometre long LP Fault target at its 100% owned Dixie project in the Red Lake district of Ontario. Several of the intercepts showed extraordinary grades of up to 100 grams/tonne. Great Bear's shares, which trade under GTBDF in the U.S. and GBR on the TSX Venture exchange, spiked up nearly 30% on the news. News Release


That concludes today’s briefing.

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That is it from me today. Have a wonderful day and I’ll be back again tomorrow. Be well. 

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Trevor HallComment