Skeena Publishes PFS for Eskay Creek
Welcome to Mining Stock Daily. I am Trevor Hall.
Today is Thursday July 22nd.
Wednesday it was silver's turn to rally, as September silver surged 1% back above $25 to settle at $25.25. Gold on the other hand had traded up to $1814 by early a.m. Wednesday only to be pushed back down below $1800 to as low as $1794, August basis, before bouncing back over $1800 shortly after the Comex floor opened. Gold settled at $1803, down $8 from Monday. The Mining Stock Journal notes that the hit job on gold occurred right after China's markets closed. Furthermore, the bounce after the Comex opened is suggestive of short-covering by the banks, which means the price control team is looking to reduce its short-exposure to paper gold. The important point to take away is that once again gold tested $1800 and closed above it. The mining stocks traded higher Wednesday, with GDX closing up nearly 1%. Some of the risky junior development mining stocks jumped even more. The Mining Stock Journal believes that the precious metals sector is setting up for a big move sometime between now and October. It will be making that case in the next issue, released this afternoon, as well discussing mining stocks that it believes are particularly undervalued. You can learn more about the Mining Stock Journal 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… 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.
Skeena Resources shared the results of the Prefeasibility Study completed for the Eskay Creek gold-silver project in the Golden Triangle of British Columbia. The study highlights an after-tax NPV of $1.4Billion CAD and a 56% IRR at a $1,550 gold price and a $22 silver price. With a $488M capex, Eskay Creek appears to have just under 10 years of mine life with an average annual productin of 249,000 ounces of gold and over 7 million ounces of silver. The PFS is derived from the Company's pit-constrained resource estimate and does not include results from the recently initiated and ongoing 2021 drill program. Skeena trades on the TSX with SKE and on the OTCQX with SKREF. News Release
Millennial Precious Metals shared drill results from its its Phase 1 drill campaign at the Red Canyon project in Nevada. Gold assay results from holes -003, -004, -005, -007, and -009 report oxidized mineralization throughout a zone consistent with that of previously reported holes. Results included 3.05 g/t gold over 11 meters, including 10.32 g/t over 3 meters with a higher grade meter of 20.5 meters. Other results included 2.8 g/t gold over 30 meters with an 18 meter interval of 5.05 g/t. Phase 1 drill holes are designed to test the extents of oxidized mineralization in the central zone of the Heavenly target, while tightening the geological model. Millennial Precious Metals trades on the TSX Venture with MPM. News Release
K92 Mining provided results from ongoing diamond drilling of the Kora deposit at the Kainantu gold mine in Papua New Guinea. Highlights from the 43 holes published this morning included 71.64 g/t gold equivalent over 3 meters, 37.98 g/t gold equivalent over 5.35 meters and 23.04 g/t gold equivalent over 8.93 meters. The results continue to demonstrate the grade and continuity of Kora, with intersections largely focused on increasing drill density up-dip, down-dip and to the south to upgrade resources for the Stage 3 Expansion Feasibility Study. Results also include some step out drilling to the south outside of the existing resource envelope. K92 trades on the TSX with KNT and on the OTCQX with KNTNF. News Release
Marathon Gold was back in the news with the latest assay results from their Berry Deposit on the Valentine Gold Project in Newfoundland. These latest holes represent in-fill drilling within less delineated hanging-wall portions of the deposit, and in the connecting area between the northeastern and southwestern resource pit shells. Results included 5.59 g/t gold over 21 meters and 4.16 g/t gold over 5 meters. The company noted that expect to be reporting results from the drill programs on a regular basis throughout the year. Marathon trades on the TSX with MOZ. News Release
EMX Royalty has sold its Svärdsjö polymetallic project in Sweden to District Metals. The agreement provides the Company with additional share equity in DMX that brings EMX's ownership of District to 9.9%, annual advance royalty payments, a 2.5% Net Smelter Returns royalty interest in the Project, and other consideration. The Svärdsjö Project is located in the prolific Bergslagen mining region of southern Sweden, nearby District's Tomtebo and Trollberget polymetallic VMS projects, which are also EMX royalty properties. The Svärdsjö Project hosts multiple zones of polymetallic volcanogenic massive sulfide and carbonate replacement style mineralization and is located in the vicinity of the historic Falun VMS mine and Boliden AB's active Garpenberg mine, one of the largest and most efficient underground polymetallic mines in the world. EMX trades on the NYSE American and the TSX Venture with EMX. District Metals trades on the TSX Venture with DMX. News Release
First Cobalt says they have successfully extracted nickel, cobalt, copper, manganese, lithium and graphite from a "black mass" product recovered from recycled batteries. Black mass represents the main chemical composition of the battery and is obtained after removal of the mechanical housing of the battery. Work is now underway to leverage the existing operating permits, flow sheet and equipment at First Cobalt's Canadian hydrometallurgical refinery to become the first facility to recycle battery materials on a large scale for reintroduction into the electric vehicle battery supply chain. First Cobalt's near-term strategy is to leverage its existing processing facilities to process black mass and recover payable metals. Longer term, the Company intends to produce "battery grade" materials for reintroduction into the electric vehicle supply chain. First Cobalt trades on the TSX Venture with FCC and on the OTCQX with FTSSF. 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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