Why India Could be Waiting Until May for More Gold Buying
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Thursday, April 21st
Late Tuesday night, gold and silver were hammered lower, with a mysterious gap-down in the futures contracts just after midnight. A slight rise in the dollar might possibly explain a small portion of the price decline. Shortly after midnight, gold rallied steadily higher, as gold rose from $1,941 per ounce to the $1,960 afternoon settlement. Silver's rally was delayed until 4 a.m. but it rose from just under $25 per ounce to as high as $25.40 before settling at $25.30. The mining stocks, after selling off in the first 30 minutes of NYSE trading, also rose steadily during the rest of the trading session, with the GDX rising just over 1% from Tuesday. The Mining Stock Journal noted that the GDX has pulled back to its 21 day moving average, from which it has staged a rally in every pullback since early February.
On another note, Indian gold import numbers for March show an 80% decline from February and 90% decline from March 2021. The Mining Stock Journal said that this trend for sure continued into April. The newsletter commented that the lack of Indian physical demand makes the rally in gold since early March all the more impressive. More importantly, India struck a deal with the United Arab Emirates in which gold bullion imports from the UAE will receive a 1% import duty concession and the duty on jewelry imports from the UAE will be reduced from 20% to 15%. In light of this it's likely that the Indians have deferred their demand for gold until May, when the agreement becomes effective. This will be interesting to watch.
We will get to the news from the miners and explorers in a moment, but first a word about 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 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….
And we will start with Integra Resources. The company announced this morning an exploration program to expand the Oxide and Mixed resource at its DeLamar Project while advancing the heap leach stage of the project into permitting and development on a stand-alone basis. Exploration efforts going forward will target heap leachable material to expand the heap leach life-of-mine. During the 8-year heap leach operation, the Project averages 136,000 ozs per year AuEq with a site level AISC of US$814/oz Au Eq. The Company will advance permitting of the heap leach operation while preserving the optionality presented in the PFS in terms of other development scenarios, once in production. The heap leach stand-alone strategy will result in total project capital savings of over US$235 million and a decrease in site level AISC of 15%. The Company will continue to assess timing for development of the mill and related operations based on market factors and other variables in the future, once the heap-leach mine is fully operational. Integra Resources trades on the TSX Venture with ITR and on the NYSE American with ITRG. News Release
Magna Gold reported the results for its maiden mineral resource estimate for the Margarita silver deposit at its Margarita Project in Chihuahua, Mexico. Indicated mineral resources are estimated to be 1.854 million tonnes at 204.9 g/t Ag and Inferred mineral resources of 0.454 Mt at 153.4 g/t Ag above a 75 g/t Ag cut-off grade. This includes Indicated resources of 12.22 million ounces of Ag and inferred resources of 2.24 Moz Ag. Magna Gold trades on the TSX V with MGR and on the OTCQB with MGLQF. News Release
Radisson Mining shared new intercepts from the ongoing 130,000 m exploration drill program at its O’Brien gold project located along the Larder-Lake-Cadillac Break , halfway between Rouyn-Noranda and Val-d’Or in Quebec, Canada. Highlights included 37.86 g/t gold over 2 meters, including 75.6 g/t over 1 meter and 12.69 g/t gold over 3.5 meters, including 27.1 g/t over 1.6 meters. Results include 3,376 m directional drill campaign comprising one pilot hole and 7 branches to drill test an area extending approximately 150 m along strike and between 75 m and 250 m depth below the limits of previous drilling in the area. Radisson Mining trades on the TSX V with RDS and on the OTC with RMRDF. News Release
White Gold says soil geochemistry surveys carried out during the 2021 field season on its Hayes and Pilot properties have identified significant copper, gold, and other multi-element soil anomalies. Geochemical zonation and elemental distributions indicate the anomaly may represent the surface expression of a Copper-Molybdenum porphyry core surrounded by epithermal style Silver-Lead-Zinc mineralization. The Hayes property is located within the southern portion of the Company’s land package contiguous with the Company’s Betty property and is located approximately 40 km east of Western Copper and Gold Corporation’s Casino copper-gold porphyry deposit. The Pilot property is located 55 km south-southwest of Newmont Corporation’s Coffee gold deposit. The Hayes and Pilot soil anomalies have not seen detailed exploration, trenching, or drill testing. Follow-up work is currently being planned. Details of the Company’s fully funded 2022 exploration program focused on new discovery follow-up and continued regional evaluation to be announced in the coming weeks. White Gold trades on the TSX V with WGO and on the OTCQX with WHGOF. News Release
Chilean lithium producer SQM has a partnership with transport companies Viggo GrandLeasing, Transportes CVU and Andes Motor, a fleet of 34 fully electric vehicles as part of its sustainability plan to reduce CO2 emissions. The fleet includes passenger buses, minibuses, vans, mobile solar checkpoints, and Chile’s first high-tonnage electric truck. With the launch of the new fleet, SQM said it is on track to achieve carbon neutrality in all its products by 2040. SQM had already introduced Chile’s first high-tonnage electric truck to be used in large-scale mining onto an 86km route from the its Coya Sur plant to the port of Tocopilla, saving approximately 3,840 tons of CO2 per year. SQM trades on the NYSE under SQM
That concludes today’s morning briefing.
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