Sibanye-Stillwater Acquires Atlantic Nickel and Mineração Vale Verde for US$1
Welcome to Mining Stock Daily. This is Trevor Hall
Today is Tuesday October 26th.
On Monday the precious metals sector continued its upward trajectory, with gold up $10.50, silver up 14 cents and the GDX up 1.4%. Gold closed above its 200 day moving average for the second day in a row. Silver and GDX are still below their respective 200 day moving averages.
The Mining Stock Journal commented that gold rose steadily overnight and during U.S. trading hours in correlation with the dollar moving higher.
With an absence of specific news or events that might push gold and silver higher, it's likely that professional investors are moving capital into the precious metals sector in anticipation that inflation is going to get much worse before the major Central Banks are forced to implement policies that attack price inflation.
The Hulbert Gold Newsletter Sentiment Index has popped up to 32.2%, which means that 32.2% of market timing newsletters are recommending long positions in gold net of the newsletters that are still recommending short positions. Historically big moves in the sector are underway when the HGNSI transitions from highly negative into meaningful positive territory.
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… Integra Resources.
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration and plans on delivering a pre-feasibility study in Q4 2021 to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning.
Appian Capital Advisory has sold its Atlantic Nickel and Mineração Vale Verde (MVV) nickel operation in Bahia, Brazil to Sibanye-Stillwater for US$1 billion in cash and a 5% net smelter returns royalty on production from the Santa Rita underground expansion. Appian acquired Atlantic Nickel (previously Mirabela Nickel), owner of Santa Rita, one of the largest open pit nickel sulphide mines in the world out of bankruptcy in 2018 for $68 million and MVV for $40 million, which owns the Serrote greenfield open-pit copper-gold asset in Alagoas, Brazil. Santa Rita will produce about 20,000tpy of nickel at first quartile C1 cost with an underground mine life of 35 years. Appian will retain ongoing investment exposure to the upside potential of both assets, through a 2.75% NSR royalty at Atlantic Nickel, which will step up to 7.75% on metal produced upon completion of mining the open pit reserve and a 35% stream on gross gold revenues at MVV. Sibanye has been pivoting into energy transition metals having made investments in lithium and nickel assets. Sibanye Stillwater trades on the JSE under SSW and on the NYSE under SBSW. Appian Capital Advisory is a London-based private equity firm. News release
Adventus Mining announced a feasibility study and reserves for the El Domo volcanogenic massive sulphide deposit at its Curipamba project in central Ecuador for an open-pit mine to produce concentrates of copper, zinc and lead with gold and silver credits. The feasibility covers the first 10 years of mine life and details annual production of 10,463 tonnes per year copper and 21,390tpy copper equivalent over the life-of-mine at a C1 cash cost of US$1.14/lb from proven and probable reserves of 6.5 million tonnes grading 1.93% copper, 2.49% zinc, 2.52 grams per tonne gold, 45.7g/t silver and 0.25% lead. The project will yield an after-tax net present value of US$259 million at an 8% discount rate and an internal rate of return of 32% from the initial open-pit development following an initial capital cost of $248 million. Adventus may earn a 75% interest in Curipamba project with a preferential 95% payback of future cash flows until its investment has been fully repaid. After filing the technical report, Adventus will have fulfilled its earn-in requirements having also spent more than the required $25 million, and it will then enter into a joint venture agreement with Salazar. Adventus has initiated a comprehensive review of all strategic development options, including concentrate off-take and project finance packages, as well as potential options for strategic investment or corporate transaction. Advanced discussions are underway for up to $240M in non-equity financing. Adventus Mining trades on the TSXV under ADZN and on the OTCQX under ADVZF. Salazar Resources trades on the TSXV under SRL and on the OTCQB under SRLZF. News release
Newcore Gold is back in the news with another round of drill results from the Enchi gold project in Ghana. Drilling at Nyam continues to encounter mineralization from surface, with wide zones encountered in both the oxide and sulphide mineralization. These results also tested the southern extension at Nyam, increasing the drill tested strike extent at Nyam to three kilometres. Drilling on the southern portion of Nyam encountered multiple wide zones of near surface gold mineralization, including 2.04 g/t Au over 35.0 m, including 4.89 g/t Au over 8.0 m from 8 m. Drilling on the central portion of Nyam tested oxide and sulphide mineralization and encountered multiple zones of gold mineralization, such as 2.14 g/t Au over 19.0 m from 84 m, including 4.14 g/t Au over 2.0 m from 92 m. 30 of the 34 holes reported this morning intersected gold mineralization. Results from 59,559 metres of the total 90,000 metre drill program have been received and released. Drilling continues at Enchi with recent drilling testing Eradi and Sewum South, gold targets with no defined mineral resource. Newcore Gold trades on the TSX Venture with NCAU and on the OTCQX with NCAUF. News Release
Outback Goldfields provided an update on drilling activities at its Yeungroon project in central Victoria, Australia. A diamond drill rig is currently in operation and focused on investigating the extent of high-grade gold mineralization historically mined at the Golden Jacket mine. Most holes to date have intersected zones of quartz veining with locally high sulfide contents. Drill core samples are being rushed for analysis and additional drill holes are planned. In addition, the final batch of results from the multi-rig drill program at the Glenfine property have been received and interpreted. A few results released this morning included 2.4 meters of 4.76 g/t gold, including .8 meters of 6.71 g/t. A series of reconnaissance RC drillholes were also completed to test for parallel structures east of the Reef 2 to Glenfine South corridor. Hole OGR011 intersected a zone of mineralization interpreted to be a parallel structure to Reef 2 and is thought to be open at depth. Outback Goldfields trades on the CSE with OZ. News Release
Aurelius Minerals reported important news from Nova Scotia this morning, but from the company’s Tangier and Forest Hill projects in Nova Scotia. The Company recently completed a review of 10 historical, NQ sized drill core, that had been drilled from surface by diamond drill. Five of the holes are from the Tangier project and five holes are from the Forest Hill project. Samples from Tangier returned 302 g/t gold over .43 meters and 32.9 g/t over .29 meters. Samples from the Forest Hill Project returned 100 g/t gold over .3 meters. The Tangier property has had a very long history, with gold first identified in 1860. Several campaigns of mining and exploration have been conducted since then, however, little modern exploration and almost no exploration has occurred outside of the traditional gold veins. Aurelius Minerals trades on the TSX Venture with AUL and on the OTCQB with AURQF. News Release
Scorpio Gold announced a high-grade intercept from a hole drilled to test the on-strike and down-dip continuity of mineralization within and below the current underground mine workings at its Goldwedge property in Nevada, USA. Hole 15 returned 5.6m grading 50.2 grams per tonne including 90cm grading 260g/t. The mineralization is hosted within sheared, interbedded limestones and argillites with quartz and calcite veining. Drilling to further test the extent of high-grade mineralization along strike and at depth below the existing mine workings is ongoing. The Goldwedge deposit has been traced over a strike length of ~350m from near surface to a vertical depth of 160m. Scorpio Gold trades on the TSXV under SGN. News release
That concludes today’s morning briefing. We’ll be back later today with more market commentary and corporate updates.
The Mining Stock Daily morning briefing is produced by Clear Creek Digital and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network.
The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.