Vizsla Hits at Napoleon, Alexco Receives Water Use License
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday June 24th.
Gold soared $24 on Wednesday, with a big spike mid-morning after the Trump Government announced that another round of stimulus checks were in the offing, bigger than the first round. Gold closed the day session at an 8-year high of $1783, August paper gold basis, and is trading up in the overnight Globex digital session. The Mining Stock Journal noted that the $1788 to $1790 area has been established as the Demilitarized Zone by the Comex bullion banks who engage in price containment activities. The newsletter noted that if gold can bust through that ceiling, the $1800 level should fall like the Berlin Wall. Silver traded up slightly more than gold and looks poised to hold above the $18 dollar benchmark, July basis. The Mining Stock Journal said that the July Comex silver futures options expire on Thursday this week. Comex options expiry is usually used as a lever by the Comex banks to force gold and silver prices lower. The newsletter said that any sell-off on Wednesday through Thursday should be considered an aggressive buying opportunity. It added that, with the Fed making it clear that it will print an infinite amount of currency if that's what it takes to keep the stock moving higher, the current environment hosts the most bullish conditions supporting a huge move in the metals since the secular precious metals bull market commenced in late 2000.
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 robust list of project and company information on their website, rio2.com.
And here’s what you need to know this morning …
Vizsla announced the first drilling results from the Napoleon Vein Corridor at the Panuco silver-gold district in Mexico. Five holes have been completed to date and results have been received for the mineralized intervals of two holes, NP-20-02 and NP-20-03, with high grade intercepts returned. Hole 2 returned 1,544 g/t silver equivalent over 8.2 meters, which also included a 2 meter interval grading 3,348 g/t silver equivalent. Hole 3 returned 1,133 g/t silver equivalent ove 5.1 meters. True widths are estimated at between 46-66% of downhole lengths. All calculations assume 94% recovery for silver and 96% recovery for gold. The Napoleon Vein Corridor is located almost entirely on concessions optioned from Rio Panuco which Vizsla has the right to purchase 100% of including the 500 tonne per day El Coco mill, tailings facility, roads, power and permits for a total of US$23,000,000. Vizsla trades on the TSX Venture with VZLA an don the OTC markets with VIZSF. News Release
Galway Metals reported new assay results from wildcat exploration drilling located 950 meters SW and along strike of the western-most intersection of the Jubilee Zone at the company’s Clarence Stream project in New Brunswick, Canada. Results inluced 186.5 g/t gold over .6 meters from a 35 cm quartz vein that contains very fine sulphides, including arsenopyrite. The new discovery appears to be located along the same NE-SW trend as the Jubilee-Richard-George Murphy Zones, which are located 950m to the NE. The previously announced $17.35M private placement, which is expected to close within the next few days, will fully-fund Galway's newly expanded drill program through the end of 2021 to 75,000m, up from 25,000m for 2020 only. In doing so, Galway will soon increase its drill count to 5 rigs. Galway trades on the TSX Venture with GWM and on the OTC with GAYMF. News Release
Alexco Resources announced it has received a draft amended and renewed water use license for the Keno hill Silver district from the Yukon Water Board. With the draft terms and conditions of the water license now issued and established, the Company is moving forward with final development of its mines at Keno Hill, anticipating initial concentrate production and silver sales in Q4 2020. Separately, Alexco is also mobilizing personnel and equipment to begin the Bermingham deep surface exploration drilling program in July. This 4,000+ m drilling campaign will test for offsets and extensions of the previously discovered silver mineralization approximately 200 m vertically below the NE Zone of the Bermingham deposit, which overall contains an Indicated Mineral Resource of 32.9 million ounces of silver at an average grade of 930 grams per tonne. Alexco has also worked with Wheat Precious Metals to modify its original silver stream agreement. During the initial two years or eight million ounces of payable silver production, Wheaton will continue to receive 25% of the payable silver stream; however, the silver production payment to Alexco will be adjusted on a curve that reduces downside pricing risk, and enhances upside opportunity. And finally, Alexco has also entered into a bought deal for $20 million consisting of over 7 million common shares at a price of $2.73 Canadian. Gross proceeds from the sale of the Offered Shares will be used to fund continuing development at Keno Hill and for general corporate and working capital purposes. Alexco trades on the NYSE and the TSX with AXU. News Release
Riverside Resources announced it has entered into a Definitive Option Agreement with Hochschild Mining for Riverside’s Los Cuarentas Gold-Silver project in Sonora, Mexico. The agreement is comprised of 2 phases, including $8million in exploration expenditures over 5 years to earn 51% interest. In Phase 2, Hochschild can elect to earn an additional 24% by incurring a further $3,000,000 in exploration expenditures and delivering a completed Feasibility Study. Upon Hochschild completing Phase II Earn-in, Riverside will have the option to sell its interest in the Project to Hochschild for US$20,000,000, while retaining a 1% Net Smelter Royalty. Riverside Resources trades on the TSX Venture with RRI and on the OTC markets with OTCQB. News Release
GoldMining Inc. announced today the creation of Gold Royalty Corp., a newly incorporated wholly owned subsidiary, that will hold 14 newly created net smelter return royalties on its extensive gold-focused asset portfolio in the Americas. GRC's royalty portfolio is expected to comprise of 0.5% to 2.0% NSR royalties on the Company's interest in 14 existing projects with the opportunity to expand the royalty portfolio through the Company's buy-back rights on existing NSR royalties ranging from 0.5% to 2% held by third-parties on up to 5 of the 14 projects. News Release
And we have a few quick updates here as well. New Age Meals says its Phase 2 field session at the River Valley Palladium Project near Sudbury, Ontario will commence in July with exploratory drilling and environmental baseline studies.
Calibre Mining provided a revised 2020 production and cost guidance following the temporary suspens of operation in march. After a 10-week suspension of operations, Calibre now expects 2020 gold production of between 110,000 and 125,000 ounces at All-In Sustaining Costs of between $1,070 and $1,100 an ounce.
Great Bear Resources added Mr. Michael Kenyon to its board of directors. Most recently, Mr. Kenyon was Chairman and Interim CEO of Detour Gold Corp.
Genesis Metals has commenced a staged surface exploration program that will be executed the coming months at its Chevrier Gold Project in the eastern Abitibi Greenstone Belt of Central Quebec. The Company completed a Phase I drilling program in May which consisted of a total of 2,502 metres in 9 holes. Assays from a few of those holes are still pending.
Nighthawk Gold says it now plans to resume exploration activities within the second week of July and will target completion of its previously announced 25,000-metre drill program. Three drills will focus on the continued exploration of the Colomac Gold Project, as well as some of its more prominent satellite targets including the Leta Arm Gold Project and the Treasure Island Gold Project. Preparation of an updated mineral resource estimate was not affected, and the Company expects to release those results within the coming weeks.
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