Russia Invades Ukraine; Precious Metals and Commodities Rocket Higher
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday, February 24th.
Gold turned in yet another stellar performance on Wednesday, as did silver. After getting pushed back below US$1,900 per ounce to as low as $1,892 overnight, gold took off higher about an hour after the a.m. London price fix. It traded up to $1,914 before settling just below $1,912. Silver also drifted lower overnight but took off running from $24.05 per ounce to $24.62 before settling at $24.58.
That was yesterday afternoon. Later in the day, specifically the early morning hours in eastern Europe, geopolitics and military aggression in Ukraine from the hands of Russia and President Vladimir Putin took hold. As Russia began its military operations within Ukraine, gold and silver skyrocketed. Gold reached a high of $1,976 early this morning while silver breached the $25.50 level. Market futures in the US continue to tread deep in the red. General commodities, from natural gas to agriculture also shot up alongside the metals.
We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning….
Integra Resources announced drill results from the 2021 Florida Mountain drill program at the DeLamar gold-silver project in Idaho, USA which continue to demonstrate the potential for a high-grade resource below the existing Florida Mountain deposit. Drilling highlights included 90.98m grading 1.79 grams per tonne gold and 45.17g/t silver for 2.37g/t gold equivalent. It also received approval from the US Bureau of Land Management for an underground development and exploration drill program at Florida Mountain which will allow it to drill structures on tighter drill spacings and with fewer meters than from surface drilling. Integra Resources trades on the TSXV under ITR and on the NYSE American under ITRG. News release
Artemis Gold executed a credit-approved commitment letter and term sheet from Macquarie Bank and National Bank of Canada to jointly underwrite a US$360 million project loan facility to fund a significant part of the $645 million initial capital cost estimate to build its Blackwater gold project in British Columbia, Canada. The loan will bear interest at the Canadian dealer offered rate plus 4.5% pre-project completion, reducing to 4% post-completion, and include a hedging program. The loan also provides for a $40 million standby cost overrun facility. Early works at Blackwater are expected to commence in the June quarter as the company targets receipt of the BC Mines Act permit mid-year with major construction activities to commence thereafter. Artemis aims to produce 339,000 ounces a year from Blackwater. Artemis Gold trades on the TSXV under ARTG. News release
Gold Standard Ventures has released a feasibility study on its South Railroad gold project located in Nevada, USA for an open pit mine and run-of-mine heap leach operation to produce 124,000 ounces a year for 10.5 years at an all-in sustaining cost of US$1,021/oz from mid-2024. The project would yield an after-tax net present value of US$315 million at a 5% discount rate and an internal rate of return of 44% at a $1,650/oz gold price assumption following an initial capital cost of $190 million, which increases to 62% at spot gold prices. The company is targeting raising 75% of construction finance from non-equity sources later this year. Gold Standard Ventures trades on the NYSE AMERICAN and TSX under GSV. News release
Calibre Mining reported a 254% increase in reserves at its Nicaragua operations to more than 1 million ounces of gold grading 4.62 grams per tonne and a 62% increase in indicated resources to 1.8Moz. The company said that reserve growth and a trend towards higher grades means it anticipates higher production in 2023 and 2024. It has a 85,000m drilling program underway this year targeting deposits hosting 250,000oz or more. Calibre beat its 2021 production guidance with output of 182,755oz, which beat the guidance range of 170,000-180,000oz. For 2022, guidance is increased to 220,000-235,000oz with the inclusion of the Nevada assets of Fiore Gold which it purchased in February. Calibre Mining trades on the TSX under CXB and on the OTCQX under CXBMF. News release News release
Thesis Gold announced the balance of drilling results from the Thesis III zone, completed during its inaugural program at its Ranch gold project in central British Columbia, Canada. Highlights included 33.13m grading 17.49 grams per tonne gold in hole 5. The company plans to continue drilling around Thesis III to expand areas of known mineralization and to further understand controls on high-grade gold and elsewhere within the >1.5km strike-length structural corridor. Earlier this month the company raised C$24 million, which saw Eric Sprott buy a 6.65% stake in the company. Thesis Gold trades on the TSXV under TAU. News release
Summa Silver provided an update from on-going drilling at the Mogollon property in New Mexico. The company says five more holes have intersected the Queen Vein, therefore all six holes drilled thus far have intersected 17-50m zones of intermittent quartz-carbonate veining and brecciation with local concentrations of silver-bearing sulfides. The focus of the ongoing drill program is testing un-mined extensions of the Consolidated Mine, centered on the north-trending, epithermal-related Queen Vein. Two rigs are currently drilling at the Consolidated Extension target where the company anticipates that a minimum of 25,000m of drilling in 50 holes is necessary for a spacing of about 50m covering an area of about 500 x 300m. Summa Silver trades on the TSXV with SSVR and on the OTCQB with SSVRF. News Release
Western Copper and Gold says the Yukon Government has commenced construction of the Carmacks Bypass Project, required for Casino's construction and operation, following award of the contract in November 2021. The Carmacks Bypass will allow industrial vehicles to circumvent the Village of Carmacks; reducing heavy traffic and increasing community safety, while improving access to the Casino Project site located approximately 200 km from the community. Western Copper and Gold trades on the TSX and the NYSE with WRN. News Release
Timberline Resources announced initial results from the second phase of the 6,526m 2021 drilling program at its Eureka project in Nevada, USA. Drilling returned one of the best hole to date in Eureka, with a highlight of 22.9m grading 6.11 grams per tonne gold in hole 220C, including 12.2m grading 8.92g/t. Timberline Resources trades on the TSXV under TBR and on the OTCQB under TLRS. News release
That concludes today’s morning briefing.
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