SilverCrest Secures Project Financing Ahead of Las Chispas Feasibility Study
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, January 4th. Happy new year everyone. Happy to be back here at the MSD desk with you all to launch into 2021. And we’re off with a great start in precious metals with gold up over 2% this morning and silver up over 4%.
Gold and silver capped off the last week of 2020 with a considerable amount of volatility, as the yellow dog ping-pong'ed between $1875 and $1900 several times in the four-day span. February gold managed to close out the year just over $1900, which is a record high yearly close. Silver was surprisingly less volatile, as it soared last monday over $26 and held the $26's the entire week, closing the year at $26.52 on a March front-month contract basis. Both metals opened up the New Year on Sunday evening launching higher, with February gold jumping $25 to $1920 as this is being written while March silver soared 80 cents to $27.30.
Gold was up 7% in December while silver jumped 17%. This compares with 3.4% for the S&P 500. The mining stocks lagged the price performance of gold and silver although GDX was up 5.9% in December. The Mining Stock Journal said that the precious metals sector is set up fundamentally and technically for a huge move, albeit volatile, in 2021. The newsletter believes that the mining stocks in particular are going to make a jaw-dropping move higher this year.
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… Rio2.
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And here’s what you need to know this morning.
In anticipation of making a final construction decision based on a Feasibility Study for the Las Chispas Project, SilverCrest Metals announced that its Canadian subsidiary has entered into a credit agreement with an affiliate of RK Mine Finance to provide a secured project financing facility for a total of US$120 million for the purpose of funding the construction of Las Chispas. The Company's Mexican subsidiaries have also entered into a fixed price Engineering, Procurement and Construction contract with Ausenco Engineering Canada, and one of its affiliates, for construction of the Las Chispas process plant. That is a Lump sum turnkey price of US$76.5 million. While the Feasibility Study is still pending finalization by Ausenco, with announcement of results targeted for late January 2021, SilverCrest is confident entering into the Credit Agreement and the EPC Contract based on the substantial feasibility information currently available. However, in the absence of a feasibility study of mineral reserves demonstrating economic and technical viability, there is increased uncertainty and historically a higher economic and technical risk of failure associated with the development of a commercially mineable deposit until such time as the Feasibility Study has been completed. SilverCrest trades on the TSX with SIL and on the NYSE American with SILV. News Release
Arizona Metals announced it has entered into a purchase option and sale agreement with an arm’s length Arizona based private company to acquire 100% of six parcels of patented land totaling 107 acres, located 900 metres northeast of its Kay Mine VMS Project. The Property includes the surface, mineral, and water rights, among other rights and benefits. The Property will provide a base for the upcoming Phase 2 drill program, as well as a significant area of private land, including a number of operating water wells, for any future development or production scenarios. The Purchase Agreement to acquire the Property calls for total payments of US$2,250,000. The deal will be financed through a $5 million Canadian non-brokered private placement. Arizona Metals trades on the TSX Venture with AMC and on the OTCQB with AZMCF. News Release
McEwen Mining released their full year and Q4 production results this morning. consolidated production for the full year of 2020 was 92,100 gold ounces and 2,020,000 silver ounces. Both numbers of full year production were significantly lower than 2019 totals. McEwen Mining trades on the TSX and the NYSE with MUX. News Release
Gold Lion Resources say they have a new Carlin-type oxidized gold discovery on its Robber Gulch property located near Burley, Idaho. Trenching intersected a broad interval of disseminated oxidized gold mineralization situated along a height of land within the project’s Raider Zone gold-in-soil anomaly. The discovery trench, which remains open in multiple directions, intersected 0.45g/t Au over 174m, including a sub-interval of 0.51g/t Au over 138, and further sub-intervals of 0.88g/t Au over 45m, and 1.16g/t Au over 18m. The samples were collected as representative, even and continuous 2 to 3-metre-long chip samples, along the entire length of the trench, to exclude any potential sampling bias. Gold Lion trades on the CSE with GL and on the OTC with GLIOF. News Release
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I’m Trevor Hall. Have a wonderful day. Be well.
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