Rio2 Evaluating Financing Options for Fenix

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

Today is Thursday, October 22nd. 

Gold began lifting off Tuesday evening and continued into Wednesday, with December gold trading as high as $1936 before pulling back in correlation with the sudden late afternoon sell-off in the stock market. It's currently trading at $1924 as this is being written. Silver outperformed gold on roughly a 2:1 ratio percentage-wise. Despite the abrupt sell-off in the stock market, the mining stocks diverged positively, with GDX closing up 1.2%. The Mining Stock Journal said gold briefly popped its nose over its 50 day moving average but closed just below it. However, the newsletter said that the fact that the mining stocks closed up 1% with major stock indices selling off hard into the close Wednesday is an encouraging sign. It added that, based on data for Wednesday coming from India, the Indians were feeding with hunger at the gold trough, which will put a floor under the gold price regardless of what happens to the stock market over the next several weeks.

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 11 billion pounds of copper and 21 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.

Contact Gold provides an exploration update for its ongoing drill program at the Green Springs gold property in Nevada. Since beginning in early September, the RC drill rig has completed 13 holes totalling just over 2,000 meters. The diamond core rig has completed 4 holes totalling over 500 meters. 9 holes in total have been submitted to the laboratory for assay, however they are pending due to very high demand for assay laboratory services. We will be sure to report those results once they become available. Contact Gold trades on the TSX Venture with C and on the OTCQB with CGOL. News Release

Earlier this week we heard from Kodiak Copper CEO Claudia Tornquist. This morning the company reported additional drill results from its 100% owned MPD copper-gold porphyry project in southern British Columbia. The Company released new results for hole MPD-20-002 and the remaining upper and lower sections of hole MPD-20-004 at the newly discovered Gate Zone. The overall mineralized envelope in MPD-20-004 now assays 0.49% copper, 0.29 g/t gold and 1.76 g/t silver (0.76% CuEq*) over 535.1 metres Hole 2 returned 642 meters of .27% Cu equivalent. Kodiak Copper trades on the TSX Venture with KDK and on the OTC markets with KDKCF. News Release

Americas Gold and Silver provided exploration results from their Galena Complex which is 60% owned by Americas and 40% owned by Eric Sprott. Results included 582 g/t silver over 2.2 meters, 809 g/t silver over .6 meters and 1,783 g/t silver over .3 meters. A targeted Mineral Resource addition for the remainder of Phase 1 drilling through June 2021 is expected to be at least another 50 million ounces of silver. Americas Gold and Silver trades on the TSX with USA and on the NYSE American with USAS. News Release

Roscan Gold says they have made a new major gold discovery at Walia from the ongoing regional exploration program. This new Mineralized Trend extends for an estimated 1,500m to date, and returned high grades of 21.4gpt over 8m including 77.8gpt over 2m very close to surface. Other results reported today included 11.4 g/t gold over 2 meters directly from surface and 7.96 g/t gold over 2 meters just below surface. Follow up diamond and RC drilling will commence on this target to establish the depth and boundaries of the mineralization applying a similar strategy being undertaken at Kandiole North and Mankouke South targets. Roscan Gold trades on the TSX Venture with ROS and on the OTC with RCGCF. News Release

Palladium One Mining says their hole 16 has the best combination of grade and width of all the results from the LK Project to date. Those assays returned 3.52 g/t palladium equivalent over 62.7 meters, including 18.5 meters of 4.58 g/t palladium equivalent. This hole was 1,350 meters east of the most westerly hole in Kaukua South. All holes drilled in the Kaukua South Extension have returned PGE-Ni-Cu mineralization and are open along strike and at depth. Palladium One trades on the TSX Venture with PDM and on the OTC with NKORF. News Release

Rio2 has taken another key step in developing the Fenix Gold Project in Chile by engaging with Scotiabank to act as the company’s financial advisor in evaluating financing options to fund the development of Fenix. In preparation for construction, Rio2 is currently completing detailed engineering for the project based on a Pre-Feasibility Study (“PFS”) completed by the Company in August 2019. The Project demonstrates strong returns with an after-tax NPV5% of $121 million and an after-tax IRR of 27.4% using the base case gold price of $1,300 per oz or an after-tax NPV5% of $481.2 million and IRR of 73.7% at $1,900 per oz gold. Rio2 trades on the TSX Venture with RIO and on the OTCQX with RIOFF. News Release

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

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