Updates from OceanaGold, Nexus Gold, New Age Metals and more
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, February 27th.
Gold traded between $1656 and $1628 on Wednesday, as it continues to trade with a largedegree of volatility, along with the stock market. Silver continued to underperform gold on Wednesday, hitting a low of $17.81 (March futures basis) and making an effort to test $18 as this commentary was written. The Mining Stock Journal said that it has no idea what the catalyst will be that lights a fire under silver, but noted that the gold:silver ratio, a 91.77 is close to a 5yr high. The mining stock newsletter added that silver has become extraordinarily cheap relative to gold and relative to all financial assets. The Mining stock were mixed on Wednesday, with the HUI index and GDXJ up slightly and GDX down slightly. The Mining Stock Journal said it is still looking for healthy pullback from the overbought condition that developed in this year through the end of last week but noted that the this technical set-up can be worked off with a sideways move.
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... Integra Resources
Integra Resources trades on the TSX-V under ITR and the OTCQX under IRRZF. Integra Resource is advancing its past producing DeLamar (DeL - a - Marr ) Gold-Silver project in SW Idaho through aggressive drilling and exploration. The latest Resources Estimate released earlier this summer showed approximately 4 million Gold equivalent ounces in the measured and indicated category.The maiden PEA for the project established a net present value of C$473-million and an IRR of 43%. The management of Integra successfully sold its previous brownfields project for C$590 million in summer 2017. Read more about the company and its successful management team at integraresources.com.
And here’s what you need to know this morning out of the junior sector.
OceanaGold says it has entered into a forward gold sale arrangement with the support of members of the Company's current banking group whereby the Company will receive a pre-payment of $78.5 million (approximately $1,635 per ounce) on February 28, 2020, in exchange for delivering 48,000 gold ounces between September and December 2020. The advanced gold ounces sold represents just over 30% of expected gold production across that period and 13% of the Company's total 2020 full year production. Mick Wilkes, CEO of the company, said The presale of future gold production more effectively aligns their second half weighted 2020 operating cash flow profile with the short-term requirement to continue advancing key organic growth projects within Oceana’s portfolio such as the Martha Underground project and Haile expansion whilst also managing the ongoing uncertainty around Didipio. The company also announced it had sold almost 40 million shares of its position of Gold Standard Ventures. The sale took place through a private off-market sale via a block transaction. OceanaGold trades on the TSX and the ASX with OGC. News Release
Nexus Gold has received early sampling results from its newly acquired Manzour-Dayere gold permit in Burkina Faso. Results of the first dozen grab samples have been received from an active artisanal zone in the northeast corner of the concession. Highlights of this initial round of sampling includes 9.60 grams-per-tonne (“g/t”) gold (“Au”), 7.07 g/t Au, 5.73 g/t Au, 3.84 g/t Au and 2.84 g/t Au. These new samples add to the historical data collected to date and will assist Company geologists in determining potential exploration targets for future drilling. Nexus Gold trades on the TSX Venture with NXS and on the OTC markets with NXXGF. News Release
New Age Metals shared a corporate update this morning regarding their River Valley PGM project. New Age says they plan to focus on following-up on the recommendations of the 2019 Preliminary Economic Assessment (PEA). Management has developed a three-phase exploration and development plan for the balance of 2020. Phase One will focus on drilling to expand the boundaries of the Pine Zone discovery and to generate rhodium data for future mineral resource estimations. Phase Two will involve drill testing further geophysical targets in the Northern area of the project. And finally, Phase 3 will be focused on metallurgy – with the primary objective being to improve process recoveries of platinum metals, particularly palladium and including rhodium. New Age trades on the TSX Venture with NAM and on the OTC markets with NMTLF. News Release
MacDonald Mines shared more drill results this morning from its North Pit area of the Scadding Deposit. The company says hole 26 returned 59.2 g/t gold over 19 meters in the Bristol Structure, which is just 18 meters north-east of the intersectin of the previous September 2019 maiden hole which reported 52 g/t gold over 12 meters. MacDonald says This reinforces the potential for a near-surface high-grade gold resource in the North Pit area as our on-going 2020 drilling program continues to expand the footprint of gold mineralization. MacDonald Mines trades on the TSX Venture with BMK. News Release
Golden Mineral shared their 2019 financials this morning. The Company reported revenue of $7.7 million and a net operating margin of $5.3 million in 2019, compared to $7.2 million and $4.9 million in 2018, respectively. Both are wholly related to the lease of the Company’s Velardeña oxide plant to Hecla. The Company also reported $3.2 million in other operating income in 2019 compared to $5.1 million in 2018. The Company reported a net loss of $5.4 million or ($.05) per share in 2019 compared to a net loss of $1.9 million or ($.02) per share in 2018. News Release
That is a wrap from us today here at Mining Stock Daily. Thanks again for tuning in. If you are planning on attending PDAC in a couple weeks, I will be presenting at the Letter Writer’s Presentation Sunday afternoon in the 2 o’clock hour. I will be sharing my topic; a young investors approach to the new gold bull market. Feel welcome to join me in room 801 that afternoon.
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Have a wonderful day. Be well.