Rio2 Finances Fenix; Newcore & Summa Silver Hit High-Grade
Welcome to Mining Stock Daily. I am Trevor Hall.
Today is Wednesday July 21st.
The gold price ran up to $1,826 overnight on Tuesday but stalled out just before the p.m. London fix. It was then monkey-hammered $20 down to $1806 at the p.m. price fix. The yellow dog bounced 90 minutes later and settled at $1808. Silver is a different story. It peaked at $25.30 just before midnite Monday and headed lower shortly thereafter. Silver had another 35 cents removed from its price in concert with the p.m. London silver fix at 10:00 a.m., taking it below $25 before bouncing to settle at $24.98. The mining stocks popped at the NYSE open, went red during the London p.m. fix and managed to close marginally higher despite the poor market treatment endured by the metals. For those getting frustrated with the precious metals sector performance this year, the Mining Stock Journal reminds us that since the end of 2000, gold is up 720%, silver is up 650%, the Amex Gold Bugs index is up 400%, the Nasdaq is up 594%, the Dow is up 323% and the SPX is up 300%. Obviously gold, silver and the mining stocks should be up multiples of their 20-yr performance but they are still among the best performing assets over that time period. That's a remarkable feat considering that the Fed works to keep a lid on the gold price and, conversely, does its best to inflate the stock market. In Thursday's new issue, the Mining Stock Journal be discussing its favorite "buy low" mining stocks. You can learn more at InvestmentResearchDynamics.com
We’ll get to the news out of the miners and explorers in a 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.
Yesterday afternoon, Rio2 announced it has arranged mine construction financing totaling approximately US$125 to US$135 million to finance the construction of the Fenix Gold Mine in Chile. The package includes a Non-binding term sheet with Wheaton Precious Metals for a US$50 million Gold Purchase Agreement, or gold stream, a senior project debt facility of US$50-60 million from BNP Paribas, a Marketed public offering of common shares of the Company for gross proceeds of approximately C$25 million, at a price per share to be determined in the context of the market with a syndicate of underwriters co-led by Scotiabank, CIBC Capital Markets and Raymond James, a finally, a Non-Brokered private placement of common shares of the Company to WPMI or an affiliate for proceeds of US$5 million at a price per share equal to, and concurrent with, the market public offering. We look forward to scheduling a discussion with CEO Alex Black in due time, right here on Mining Stock Daily. Rio2 trades on the TSX Venture with RIO and on the OTCQX with RIOFF. News Release
Newcore Gold provided results of additional drilling from its 66,000 meter drill program at the Enchi Gold Project in Ghana. Results this morning included the highest-grade interval to date with 95.16 g/t gold over 2 meters starting 109 meter depth from the Boin Deposit. Other results included 1.28 g/t over 74 meters starting at 121 meters. The company noted that approximately half of the Boin gold-in-soil anomaly remains untested by drilling. However, An airborne geophysical anomaly coincident with the Boin structure extends for a further two kilometres north and four kilometres south beyond the limits of current drilling. Newcore trades on the TSX Venture with NCAU and on the OTCQX with NCAUF. News Release
Summa Silver announced the discovery of an additional high-grade silver and gold mineralization int he first two holes of the year at the Hughes Property near Tonopah, Nevada. Results reported today included 11,992 g/t silver equivalent over .9 meters within a 2.8 meter interval of 4,408 g/t silver equivalent. Drilling to date has demonstrated strong continuity of high-grade mineralization in the Rescue vein system where 8 holes have now been completed and grades often exceed 2,000 g/t AgEq. Summa Silver trades on the TSX Venture with SSVR and on the OTCQB with SSVRF. News Release
Gold Bull Resources reported assay results from resource extension drill holes at the North Hill and Silica Ridge Prospects within its Sandman Project located in Humboldt County, Nevada, USA. Holes SA-0024 and SA-0027 drilled at the edges of the Silica Ridge and North Hill deposits have intersected gold mineralization that is currently open in several directions. Those results included 19.8 meters of .67 g/t gold, starting at 111 meters at hole 24. Hole 27 returned 19.8 meters of .6 g/t gold, 15.2 meters of .39 g/t and 21.3 meters of .44 g/t. Fore assay results from the drilling work on the project are expected imminently. Gold Bull trades on the TSX Venture with GBRC. News Release
Condor Gold shared assay results from a further twelve diamond core drill holes located between and along strike of the planned high-grade La India Starter Pits, which sit within the fully permitted La India Open Pit Mineral Reserve Estimate of 6.9Mt at 3.1 g/t gold for 675,000 oz gold. The Company says they are encouraged by higher than expected grades in three of the drill holes, particularly as two high grade, wide intercepts are between the two starter pits in an area previously interpreted as having lower grade gold mineralisation. Results were highlighted with 60.6 meters of 1.98 g/t gold, 3.75 meters of 9.94 g/t and 9 meters of 4.98 g/t gold. These results will be incorporated into a revised feasibility-level mine plan and are expected to have a positive impact on the Project's economics. Condor trades on the TSX with COG. News Release
Vizsla Silver announced they have signed a binding amending agreement to acquire 100% of the Panuco-Copala silver and gold district in Sinaloa, Mexico. Under the Amending Agreement, Vizsla and Minera Rio Panuco have agreed to amend the terms of the original Panuco option agreement in order to accelerate the Company's exercise of its option on the Panuco property. The acceleration was agreed upon in consideration for a cash payment of $4.25M to Minera Rio Panuco upon signing the agreement, the issuance of over 6M common shares of Vizsla at a price of $2.44 CAD per share upon completion of the transfer and a cash payment of $6.1M on or before February 1, 2022 following the refurbishment of and transfer of ownership of the El Coco Mill. In addition, the company has also amended the terms of the original Copala option agreement to accelerate the full acquisition of the Copala property. That agreement will be put in place with Silverstone for $9.6M payable to Silverstone upon completion of the transfer and just over 5M common shares issued to Silverstone as well. When all this is said and done, Vizsla noted they will still have over $57M in the bank and ten drill rigs operating. Vizsla Silver trades on the TSX Venture with VZLA and on the OTCQB with VIZSF. News Release
And Minera Alamos provided an operational update for the Santana gold mine in Sonora, Mexico. The company says commissioning work continues to proceed according to schedule with the gold recovery plant tested thoroughly and operational despite the significant rain fall covering southern Sonora in the first half of July. Leach solution pumping and processing systems are all available and have been thoroughly tested during normal commercial operational flowrates. Excess rainwater contained in the pregnant pond (pictured below) is currently being transferred to the barren pond to avoid unnecessary dilution of gold leach solutions. As the Nicho Norte pit continues to advance, additional in pit (or near pit) roads are being developed in parallel to mining operations in order to provide required access for the future operations. To date, mining (and ore placement) has taken advantage of the smaller haul trucks that were already at site as part of the mine contractor's (Trigusa) earlier site construction works. Minera Alamos trades on the TSX Venture with MAI. News Release
And finally, enduro Metals says the first diamond drill ris is now drilling on the Newmont Lake property in the Golden Triangle of British Columbia and a second drill rigs will be added in August. The rig in place is at the Chachi project with several targets in place to test this season. Chachi represents a multi-element system of copper, silver, gold, lead, zinc, nickel and cobalt, discovered by Enduro in 2019. Enduro trades on the TSX Venture with ENDR and on the OTCQB with ENDMF. News Release
That’s it for the news briefing this morning. We have a couple of great interviews coming your way later today.
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