Why Silver's $28 Level is Key Today

Welcome to Mining Stock Daily. This is your host, Trevor Hall

Today is Tuesday, February 23rd.

Tuesday was an interesting day in the precious metals sector, as uncharacteristically of late the metals were sold down overnight, bounced after the a.m. London price fix/ But then they were hammered hard when the Comex floor trading commenced. By the end of the day, gold traded

down $4 from Monday while silver was hit for 39 cents and driven below $28. The Mining Stock Journal said that based on data from India, the Indian market was mostly dormant on Tuesday, having gotten used to paying below $1800 for a couple of days. This price-shock hesitance is not expected to last. The Mining Stock Journal noted that the silver action was more interesting, with March silver getting pounded below $28. The $28 benchmark is significant because today is options expiration for the March Comex paper silver contract options. The market makers are on the short side of the call options and stand to reap a big payday if March silver closes below $28. This is because of the large amount of call open interest that will expire worthless, enabling the market making banks to keep the premium from shorting the calls. This is the typical modus operandi surrounding options expiry for front month contracts. The Mining Stock Journal believes that buying silver on any price ambush on today will be well-rewarded. The mining stocks were hit over 2% on Tuesday, along with the sell-off in the entire stock market. As with the metals, the Mining Stock Journal is confident that sell-offs should be viewed as an opportunity to accumulate your favorite mining stocks. 

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 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.

GoGold Resources provided results for 12 diamond drill holes from the El Favor deposit in the Los Ricos North project. Today’s results included 2,245 g/t silver equivalent over 2.3 meters, which was within a broader 8.8 meter interval grading 636 g/t silver equivalent. Other results included 478 g/t silver equivalent over 10.1 meters and 115 g/t silver equivalent over 70.5 meters. President and CEO Brad Langille says The El Favor target is demonstrating that not only does it have some high grades in the kilos, but also potentially bulk mineable zones approaching 100m in combined intercepts that are near surface. GoGold trades on the TSX with GGD and on the OTCQX with GLGDF. News Release

Banyan Gold announced the 2020 exploration season diamond drill hole results from the Airstrip Zone, AurMac Property, Yukon. These results include .92 g/t gold over 63.5 meters, .89 g/t gold over 59.2 meters and .62 g/t gold over 59.8meters. Airstrip remains open down-dip to the south and to the west where the mineralization is showing consistent higher grade. The 2021 drilling program is slated to begin next month. Banyan trades on the TSX Venture with BYN. News Release

Surge Copper announced assay results for multiple resource definition and exploration holes from the Company's 100% owned Ootsa Property in British Columbia. A 15,000-metre drill program is currently underway along the Seel Trend at Ootsa. One drill is focused on testing the expansion and near-deposit exploration potential at the West and East Seel porphyry Cu-Au-Mo-Ag deposits, and the second is testing new exploration targets. Results reported today include 70 meters of .63% copper equivalent and 400 meters of .37% copper equivalent.  Assays for 15 holes are pending and will be released regularly as they are received and interpreted. Surge trades on the TSX Venture with SURG. News Release

SilverCrest Metals announced the commencement of drilling and initial results from the El Picacho property located near its Las Chispas Project in Sonora,Mexico. Drilling returned 3,297 g/t silver equivalent over 7.25 meters and 689 g/t silver equivalent over 16.4 meters. Drilling has discovered a near parallel vein to El Picacho Vein, El Picacho HW Vein with 7 drill hole intercepts, and expanded the mineralized footprint from the previous historic unverified resource area. Three core drill rigs are active at El Picacho, as well as six core drill rigs at the Las Chispas Project as part of a US$42 million company-wide 2021 exploration program. A majority of this program will be focused on the Las Chispas Project. News Release

ValOre Metals announced assay results for 562 soil and 56 rock samples collected from the Santo Amaro target area at ValOre’s 100%-owned Pedra Branca Platinum Group Elements Project in northeastern Brazil. A few highlights from the samples included 19.1 g/t palladium, platinum and gold and10.2 g/t palladium, platinum and gold. High-priority follow-up Trado® auger drilling and trenching program has commenced to further define these multiple PGE anomalies. ValOre trades on the TSX Venture with VO and on the OTC with KVLQF. News Release

Artemis Gold announced t has submitted documents to Environment and Climate Change Canada to commence the Federal Schedule 2 amendment regulatory process under the Metal and Diamond Mining Effluent Regulations in respect of its Blackwater Gold Project in Central British Columbia. An Environmental Assessment for the Project was approved by the Federal and BC governments in 2019. As part of the normal course of work forming part of the EA process, an objective and rigorous assessment of alternatives for mine waste disposal was completed to mitigate environmental risks. In addition, a fish habitat compensation plan was designed.  These two key elements have now been submitted to commence the formal regulatory amendment process. Artemis trades on the TSX Venture with ARTG. News Release

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I’m Trevor Hall. Have a wonderful day. Be well.

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