The Curipamba Copper Project Receives Financing
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Tuesday, January 18th.
After spending most of last week trading between US$1,812 and $1,828 per ounce, gold drifted a little higher Monday in international trading with the US markets closed. Silver last week traded between $22.85 and $23.40/oz, spending most of its time above $23. As with gold, it traded up moderately on Monday. The mining stock journal said that India and China, based on trade data from both countries, were quiet buyers of gold on Monday. The mining stock newsletter also noted that gold has been in a quiet uptrend since hitting $1,720 at the end of September.
After Friday's price ambush, gold remains above the key 50 and 200 day moving averages. Over the same period, silver has been trending sideways and remains below its key moving averages. As with gold, the mining stocks are in an uptrend. The GDX rose 7.8% in the fourth quarter of 2021 and sentiment is neutral to slightly positive. The Hulbert Gold Newsletter Sentiment Index is in the mid-30's. When this sentiment measure has been rising, often a mid-30's reading is a level from which bull move in the sector occurs.
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… Integra Resources
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration and plans on delivering a pre-feasibility study in Q4 2021 to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning….
Big news day for Ecuador
Adventus Mining and Salazar Resources entered into a precious metals purchase agreement with Wheaton Precious Metals for their Curipamba copper project in Ecuador, and Adventus entered into an offtake financing agreement with Trafigura. Together, the deals provide US$235.5 million of the $248 million estimated capital cost to build Curipamba. Wheaton will provide $180.5 million in return for gold and silver streaming rights, while Trafigura will provide a $45 million senior debt facility in return for life of mine concentrate offtake rights. Wheaton will also provide up to $5 million in equity to Adventus and Trafigura $10 million in equity. Wheaton will purchase 50% of the payable gold production until 150,000 ounces have been delivered, thereafter dropping to 33% for the life of mine; and 75% of the payable silver production until 4.6 million ounces have been delivered, thereafter dropping to 50%. Ongoing payments will equal 18% of the spot prices until the $175.5 million is repaid, when they will increase to 22% . Adventus Mining trades on the TSXV under ADZN and on the OTCQX under ADVZF. Salazar Resources trades on the TSXV under SRL and on the OTCQX under SRLZF. News release
Also in Ecuador, Solaris Resources announced a new discovery with its initial drilling at the Warintza South target at its Warintza porphyry copper-gold project in southeastern Ecuador. The initial hole was drilled vertically and returned 606m grading 0.32% copper, 0.02% molybdenum and 0.02 grams per tonne gold, or 0.41% copper equivalent of continuous porphyry copper mineralisation from near surface, within a broader interval of 755m grading 0.36%. Warintza South is the fourth copper discovery within the 7km x 5km Warintza porphyry cluster, with the adjacent Yawi and Caya targets still to be tested. Solaris Resources trades on the TSX under SLS and on the OTCQB under SLSSF. News release
In the US, it seems to have taken forever but AngloGold Ashanti completed its acquisition of long time Mining Stock Daily sponsor Corvus Gold, under its C$4.10 per share cash offer for the remaining 80.5% of the junior it did not already own. Congratulations to the Corvus team and thanks for the support and encouragement.
Arizona Sonoran Copper published its 2022 work plan for the Cactus project in Arizona. The plan has a budget of US$20 million to advance the project. A preliminary feasibility study has begun with completion expected this summer and a full feasibility study expected by Q1 of next year. The company also plans to drill about 38,000m in exploration, expansion and infill drilling. The Aquifer Protection Permit (APP) is currently in the process of being amended to include the Cactus West and East deposits, in addition to the Stockpile project where the company already has an Aquifer Protection Permit. The company also noted it will continue to work on a path to establish a net-zero carbon emissions operation at the Cactus Project. Arizona Sonoran Copper trades on the TSX with ASCU. News Release
Also in the USA, Liberty Gold extended gold mineralisation at the Rangefront Focus Area (RFA) at the Black Pine oxide gold deposit in Idaho, USA over 1km2 with highlights including 41.1m grading 1.95 grams per tonne gold. The company has foregone the typical winter drill shut-down to work through as it seeks to undertake a resource estimate and PEA on Black Pine later this year. Liberty Gold trades on the TSX under LGD and on the OTCQX under LGDTF. News release
In Finland, Rupert Resources said infill drilling at its Ikkari gold deposit in Finland is returning higher gold grades and extended mineralisation at the largely untested Heinä Central target. Infill drilling at Ikkari returned highlights of 13m grading 9.4 grams per tonne gold, and at Heinä Central 14.7m grading 4.5g/t gold and 2.1% copper. Rupert has six drill rigs turning at Ikkari and other targets with a plan to drill almost three times the number of metres in the key winter season than was achieved in the equivalent period last year. About 80,000m is planned for 2022; 60% focused on upgrading and expanding the Ikkari resource estimate, with the remainder allocated to regional exploration. Rupert Resources trades on the TSXV under RUP and on the OTCQX under RUPRF. News release
District Metals reported assay results from grab and chip rock samples recovered from fieldwork carried out late last year at the Gruvberget project in the Bergslagen district of Sweden. Chip sampling from outcrop at the Gruvberget South zone returned 41.9% ZnEq 1 (132.0 g/t Ag, 30.1% Zn, 7.6% Pb, 0.5 g/t Au, and 0.1% Cu). Grab sampling from mine dumps at the Gruvberget North zone returned 28.7% ZnEq 1 (367.0 g/t Ag, 4.7% Zn, 15.7% Pb, 0.2 g/t Au, and 0.04% Cu). This fieldwork concentrated on reconnaissance prospecting and geochemical sampling at the Gruvberget South and North zones, which represents less than 10% of the mineralized trend that is enclosed by the 5,286 hectare Gruvberget Property. District Metals trades on the TSX Venture with DMX. News Release
Alexco Resource has updated and expanded the mineral resource estimate for its Bermingham deposit within the Keno Hill Silver district in Yukon, Canada. The Bermingham indicated resource has expanded 43% to 47.2 million ounces of contained silver at an average grade of 939 grams per tonne. The inferred resource is now 19.9Moz grading 735g/t. With this increase, the total indicated resource for Alexco’s two primary mining centers including Bermingham and Flame & Moth, increased 24% to 74.1Moz and the inferred 51% to 24.1Moz. Alexco is re-evaluating the life of mine plan for both deposits. Alexco Resource trades on the TSX and NYSE American under AXU. News release
That concludes today’s morning briefing.
The Mining Stock Daily morning briefing is produced by Clear Creek Digital and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network.
The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.