Talon, Tesla and Tin
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Tuesday, January 11th.
After rallying overnight back over US$1,800 per ounce on eastern hemisphere physical buying, on Monday morning around 6 a.m. East Coast the paper gold price was smashed back below $1,800 to as low as $1,790 for no reason other than to keep the price below $1,800. However, the yellow dog failed to obey its master and managed to claw back over $1,800 by the afternoon Globex settlement.
At the same time gold was hammered with Comex paper, silver was gut-punched from $22.52 per ounce down to $22.28 from where it managed to rally back to $22.50, where it settled for the day session. Both metals closed in the green from Friday.
The mining stocks, after trading down in the morning, were quite responsive to the post paper smash rally in the metals. The Amex Gold Bugs Index closed up 2% and the GDX closed up 1.67%. The Mining Stock Journal believes a big move in the sector is getting started and it put its money where it's mouth is by going long various call options on the GDX and a handful of silver stocks.
We’ll get to the news out of the miners and explorers in a moment but first a mention of today’s sponsor…
This episode of Mining Stock Daily is brought to you by… Western Copper and Gold.
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning….
Talon Metals entered an agreement with Tesla to supply nickel concentrate from its Tamarack project in Minnesota, USA. Tesla committed to purchase 165 million pounds of nickel in concentrate (75,000 metric tonnes), with an additional preferential right to purchase additional nickel concentrate. The agreement will last for six years or until 75,000 metric tonnes of nickel in concentrate has been delivered to Tesla. Talon owns a 51% interest in Tamarack and can increase this to 60% by completing a feasibility study and paying US$10 million to joint venture partner Rio Tinto. Tamarack has a February 2021 PEA for a 3,600 tonnes per day operation with three production scenarios, with initial capex ranging from US$316-$553 million. The deposit has an indicated resource of 3.9 million tonnes grading 1.91% nickel, 1.02% copper, 0.05% cobalt and precious metals for a 2.62% nickel equivalent. Talon Metals trades on the TSX under TLO. News release
Newcore Gold announced additional drill results from the 90,000m program underway at its Enchi gold project in Ghana. Reverse Circulation drilling at the Nyam gold deposit intersected high-grade oxide gold mineralization near surface with a highlight of 24m grading 1.79 grams per tonne while RC drilling at Kwakyekrom intersected 29m grading 0.99g/t, which the company said extended the drill-tested gold mineralization at Kwakyekrom by 500m to the north, increasing the drill tested strike extent of gold mineralization at Kwakyekrom to 1.5km. Newcore Gold trades on the TSXV under NCAU and on the OTCQX under NCAUF. News release
Osisko Mining announced an updated mineral resource estimate for its Windfall gold deposit in the Abitibi greenstone belt, near James Bay in Quebec, Canada. The measured and indicated resource increased 73% and the average grade increased 9% to 3.2 million ounces grading 10.5 grams per tonne. It also has an inferred resource of 3.6Moz grading 8.6g/t. Within this, Lynx contains 60% of the total gold with the Lynx M&I resource being 2.3Moz grading 12g/t. The resource is based on 1.7 million metres of drilling. Osisko said it has drilled another 70,000m of infill and expansion drilling since September 2021 which will be integrated into the database for the pending feasibility study expected to be completed in the December quarter. Osisko Mining trades on the TSX under OSK. News release
We’re hitting that time at the beginning of the quarter when metal producers begin publishing their production numbers. Alphamin Resources published their Q4 number this morning. Reminder, Alphamin produces 4% of the world’s mined tin from operations in the Democratic Republic of Congo. The company produced over 3,114 tons of contained tin, thats up 10% from the prior quarter. Tin sales were up 13% from the prior quarter to just over 3,000 tones. Earnings before interest, taxes, depreciation, and amortization reached a US$74million on the quarter, up 38% from the prior quarter. The company now has a net cash position of $68million and will be paying a annual dividend of $.03 per share declared. Alphamin Resources trades on the TSX Venture with AFM. News Release
Ero Copper announced record copper production in 2021 from its MCSA complex in Bahia, Brazil of 45,511 tonnes of copper in concentrate, surpassing guidance. Its NX gold mine also beat guidance with production of 37,798 ounces of gold. The company said its guidance for 2022 at MCSA is production of 43,000 to 46,000t of copper in concentrate. At NX, the 2022 guidance is 39,000 to 42,000oz. Ero also provided a five-year operating outlook in which copper production is forecast to more than double to a range of 92,000 to 102,000t tonnes of copper in concentrate in 2025, assuming contributions from Boa Esperanca. Annual gold production is forecast to increase to 55,000 to 60,000oz by 2024. Ero Copper trades on the TSX and NYSE under ERO. News release
Chakana Copper provided a maiden inferred resource estimate for the Soledad copper-gold-silver breccia pipe project in Ancash, Peru with an underground resource of 4.8 million tonnes grading 0.72 grams per tonne gold, 61g/t silver and 0.97% copper and an open pittable resource of 1.9Mt grading 1.29g/t gold, 37.1g/t silver and 0.65% copper. Chakana said it has only drill-tested 16 out of 110 targets so far. Chakana Copper trades on the TSXV under PERU and on the OTCQB under CHKKF. News release
Rio2 said a second phase test work of the patented IXOS purification polymer will begin on site at its Fenix gold project in Chile in mid-January 2022, following the successful completion of ore tests at Sixth Wave Innovations’ Salt Lake City Utah facility in August last year. Sixth Wave will perform adsorption tests using IXOS beads with solution from installed heap leach columns to evaluate adsorption kinetics and other parameters to validate IXOS performance and refine the cost/benefit analysis. Potential positive ESG impacts and a reduced carbon footprint will also be explored. The IXOS process operates at a significantly reduced power consumption and with fewer reagents than activated carbon. Rio2 trades on the TSXV under RIO and on the OTCQX under RIOFF. News release
That concludes today’s morning briefing.
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