Silver Outperforming Gold 5:1
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday July 21st.
Gold and silver were off to races again on Monday, as gold jumped up to $1817 and silver soared over $20. Silver outperformed gold by a 5:1 margin and the gold/silver ratio dropped to 90. The mining stocks per the GDX ETF were up 2.7%, with many junior exploration stocks up anywhere from 10 to 30%. The Mining Stock Journal said that there was not any specific news or event catalysts that would have triggered the big move in the sector. But the newsletter suggested that the continued irrational move higher in the stock market's favorite tech stocks is a direct product of the Fed's extreme amount of money printing and the precious metals sector's natural response is to protest against reckless monetary policy by rising in price versus the dollar. The newsletter further added that the M2 measure of the money supply is growing at 25 on a year over year basis and it's likely that precious metals investors are responding to this currency debasement by seeking shelter in gold and silver and wealth enhancement in the mining stocks.
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… Corvus Gold.
Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning…
Probe Metals says it has made a new discovery at the on the Val-d’Or East Cadillac Break East Option property located near Val-d’Or, Quebec. The property is currently under option from O3 Mining Inc. Results from an additional twenty-one exploration drill holes and one drill hole extension identified a new gold trend in the eastern part of the Property. New discoveries were made along a 4.5-kilometre long portion of the trend, which has seen limited drilling in the past. Results today included 8.0 g/t Au over 8.8 metres, including 45.9 g/t Au over 1.0 metre. New targets are also being generated at the project. The Property is relatively underexplored, and it is generally recognized that the geological environment shows potential for both gold and base metals. Probe trades on the TSX Venture with PRB and on the OTC markets with PROBF. News Release
Velocity Minerals reported results from 13 drill holes at the Rozino gold deposit and the Rozino South target this morning. At the Rozino deposit, resource expansion drilling to the south of the known deposit has intersected near-surface gold mineralization up to 200m south of the Preliminary Economic Assessment design pit limits. Results there included 23.2m @ 0.95 g/t gold. At the Rozino South target, drilling continues to intersect gold mineralization at depth and included 12.4m grading 0.83 g/t gold. Mineralization is open at both areas and drilling is ongoing. Velocity Minerals trades on the TSX Venture with VLC. News Release
IAMGOLD Corporation and Sumitomo Metal Mining say they intend to proceed with the construction of the Côté Gold Project. The Project, located in northern Ontario approximately 20 km southwest of Gogama, 130 km southwest of Timmins, and 200 km northwest of Sudbury, is a 70/30 JV with SMM. IAMGOLD's expected go-forward capital obligation (exclusive of sunk costs) is $875 - $925 million for its 70% share of project construction costs, assuming the leasing of major mining equipment of approximately $80 million. To mitigate financial exposures associated with the expenditures, including currency and commodity risk, and to protect future operating cash flows, the Company may opportunistically enter into derivative contracts. The Company has substantially completed a fuel hedge program over the construction period and has initiated a Canadian dollar hedge program for up to 90% of its Canadian dollar exposure. To date, the Company has hedged just over 5% of the attributable C$ exposure at rates that average $1.3605. News Release
Galway Metals says it has reached an agreement to buy back with an arm's length third party royalty holder to buy back a two percent (2.0%) net smelter returns royalty ) covering certain mineral claims at the Company's Clarence Stream property in southwest New Brunswick. The mineral claims fully cover the South, North and George Murphy Zones, the gap area between the George Murphy and Richard Zones, and potential extensions to these zones and other prospective targets. The purchase of the Royalty was closed effective today pursuant to an agreement dated July 15, 2020. The original agreement allowed only for buyback of one percent (1.0%) of the royalty for $500,000 for each 0.5%. Galway was able to negotiate with the royalty holder to purchase the royalty in its entirety. Under terms of the Agreement, Galway Metals will pay a total purchase price of $3,000,000 in six equal annual installments of $500,000. Galway trades on the TSX Venture with GWM and on the OTC markets with GAYMF. News Release
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I’m Trevor Hall. Have a wonderful day. Be well.
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