Summa Silver's New Drill Results; Outback Gold Resumes Trading
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, December 17th.
Gold had it's own recession and V-bounce on Wednesday, after rallying overnight up to $1869 then selling off after the London a.m. price fix to $1860 in preparation for the FOMC's policy statement release. Then, as is customary, the price was slammed down to $1848 right after the FOMC's news release hit the tape, afterwhich gold quickly ran back up to $1868. The Mining Stock Journal said that, despite the lack of any surprises in Wednesday's policy statement, in the press conference that followed, Jay Powell made it clear that the Fed has room to print a lot more money - which it will. Silver was up over 3% on Wednesday, outperforming gold by more than a 3:1 ratio. The gold/silver ratio dropped to 74.2, which is its lowest reading since September 18th. The mining stocks jumped 1.9% per GDX, with the larger cap producers generally outperforming the juniors, although some junior exploration stocks recorded much larger percentage gains. To this point, the Mining Stock Journal said that it believes the prices of gold and silver have the potential to run considerably higher into year-end, especially with India buying hand-over-fist. This implies that mining stock investors could well find some Christmas presents under the tree this year in the form of double-returns on many mining stocks between now and year-end.
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.
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.
Summa Silver announced additional silver-gold intersections from the Hughes Property in Nevada this morning. Results front he Rescue Veins in the Belmont Mine Target Area included 6,220 g/t silver equivalent over .7 meters, 3,182 g/t silver equivalent over 1.4 meters and 3,760 g/t silver equivalent over 2.5 meters. Drilling at the Ruby Discovery returned 1,597 g/t silver equivalent over .5 meters. And drilling at the Murray Target returned 1,079 g/t silver equivalent over .9 meters. CEO Galen McNamara stated in this morning press release that It is now even more apparent that the Tonopah Mining District still hosts significant zones of high-grade silver and gold mineralization. Summa Silver trades on the CSE with SSVR and on the OTCQB with SSVRF. News Release
O3 Mining was back this morning with new drill results. These assays come from the Simkar Zone within the SEctor 3 of the Alpha property in Val d’Or, Quebec. Drilling returned 413 g/t gold over 1.2 meter. Currently, the Corporation has seven drill rigs operating, four at Alpha and three at its Malartic properties. With all of these holes about 600 metres from the historical mine, it strongly suggests the presence of an important ore shoot in the down-plunge extension of the Simkar. O3 Mining trades on the TSX Venture with OIII. News Release
Amex Exploration also reported results from several holes targeting the near surface portion of the Denise Zone of the Eastern Gold Zone. Today's results significantly confirm and increase the high metal factor core of the Denise Zone with large intervals of gold mineralization. Of note the large mafic intrusive body to the west of the Denise Zone appears to have a significant control on the size and grade of the intervals identified to date. Highlights include1.51 g/t gold over 81.5 meters, .66 g/t gold over 187 meters and .84 g/t gold over 39 meters. Amex Exploration trades on the TSX Venture with AMX and on the OTCQX with AMXEF. News Release
Sokoman Minerals announced drilling at South Pond has returned near-surface high-grade gold values under the cluster of high-grade float sampled in July 2020. Assay results returned 26.88 g/t gold over 5 meters, including 60.59 g/t gold over 2.15 meters. The Moosehead Gold Project is located along the Trans-Canada Highway in North Central Newfoundland. Sokoman trades on the TSX Venture with SIC and on the OTCQB with SICNF. News Release
Royal Road Minerals announced it has entered into a binding letter of intent to which the Company has agreed to sell to Mineros its entire 50% interest in the Luna Roja Project, comprising the Monte Carmelo I and Monte Carmelo II mining concessions, in Nicaragua. The Luna Roja Project is currently jointly owned and operated by the Company and Hemco. Mineros will pay to the Company a purchase price of US$22.5 million payable in cash on the closing of the proposed transaction, plus a 1.25% net smelter royalty on all future mineral production from the Monte Carmelo I and Monte Carmelo II mining concessions commencing from the first production therefrom. Royal Road Minerals trades on the TSX Venture with RYR. News Release
Vizsla Resources says they have expanded the Panuco District with even more targets from a round of surface and underground sampling. Work from Aguita Zarca returned 3,042 g/t silver equivalent over 1 meter and 1,304 g/t silver equivalent over 1.2 meters. Other results came from El Batel, La Bomba and Huaco. The Company has completed drilling 27,400 metres up until December 5th and is focused on expanding the mineralized zones at Napoleon, Papayo, Tajitos and our new discovery at Aquita Zarca. Material updates for these zones will be released as they become available in January 2021. Vizsla Resources trades on the TSX Venture with VZLA and on the OTCQB with VIZSF. News Release
Gatos Silver says since completing its IPO through a dual NYSE and TSX listing in late October 2020, achieving the only dual-listed precious metals IPO on these exchanges since 2010, it will also be added to the Russell 2000 small capitalization stocks index effective Monday. This comes in combination with the company being included into the GDXJ ETF as well. Gatos Silver trades on the NYSE and the TSX with GATO. News Release
And Outback Goldfields will resume trading on the Canadian Securities Exchange at market open today under the new trading symbol OZ. The Company recently completed the acquisition of a package of highly prospective gold projects located around the Fosterville Gold Mine in Victoria, Australia. The Company is currently prioritizing and ranking drilling targets and anticipates launching an exploration program early in 2021. We will be welcoming CEO Chris Donaldson onto the show later today for an introduction into the company, so please keep a look out for that episode to hit your podcast inbox.
Mining Stock Daily is distributed over a dozen different networks throughout the world and in proud partnership with the Junior Mining Network. It is produced by Clear Creek Digital and Investment Research Dynamic's Mining Stock Journal.
I’m Trevor Hall. Have a wonderful day. Be well.
Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein.