Yesterday's V-Shaped Recovery in Gold

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

Today is Tuesday, January 19th

At commencement of the CME's Globex electronic futures trading platform Sunday evening, gold promptly and swiftly had as much as $25 removed from its trading level at Friday's close. Heavy physical buying in Asia and India on Monday caused a "V price recovery Monday morning. The Mining Stock Journal said that it's typical for the price management team to make every effort to push the gold price lower when U.S. markets are closed for a holiday as they were on Monday. Silver followed the same pattern as gold, only the price ambush and subsequent recovery was much larger on a percentage basis than gold's price swings. Silver managed to trade back over $25 after being pushed down to the low $24's. The mining stocks were demolished on Friday, with GDX down 3%, partially in correlation with the stock market sell-off in general and partially on fears of an aggressive official effort to force gold and silver lower. The Mining Stock Journal told subscribers that it was expecting higher volatility in the precious metals sector ahead of a big move higher in 2021 that will be fueled by massive fiscal spending deficits which will require another big round of money printing by the Fed on top of the $120 billion per month being printed weekly.

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… Western Copper and Gold.

Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.

And here’s what you need to know this morning.

Roscan Gold provided new diamond and rc drill results from 23 holes at its Kabaya target. Results included 2.96 g/t gold over 30 meters starting from surface, 2.38 g/t gold over 30 meters, and 2.66 g/t gold over 17 meters and 10.6 g/t gold over 3 meters. Hole 14 ended ing old mineralization at a depth of 247 meters. Since acquiring Kabaya in June 2020, all 23 holes drilled intersected gold mineralization which reflects a 100% drill success rate. The Kayaba deposit has a pit-constrained mineral resource to a depth of 58m, which contains 105,000 ounces of Indicated Resource and 35,000 ounces of Inferred Resource. We have now established mineralization to a depth of 196m which remains open. Roscan Gold trades on the TSX Venture with ROS and on the OTC with RCGCF. News Release

Yesterday, Brixton Metals provided their last batch of 2020 drill results from its Thorn Project in the Golden Triangle of British Columbia. Results from Hole 181 intercepted porphyry style mineralization returning just over 439 meters of .34% copper equivalent. The hole bottomed in higher grade mineralization with the last 6.22 meters returning 2.27% copper equivalent. CEO Gary Thompson said they believe this hole confirms a new porphyry discovery at the Camp Creek target. The company plans to drill deeper holes this year. Brixton Metals trades on the TSX Venture with BBB and on the OTCQB with BBBXF. News Release

Ascot Resources released additional gold intercepts at the Day Zone at the company’s Premier Gold Project, also in BC’s Golden Triangle. The new drill holes have extended previously reported mineralization 150m to the north. Highlights included 23.2 g/t gold and 9.6 g/t silver over 2 meters, and 2.31 g/t gold and 125.1 g/t silver over 5.93 meters. The Day Zone is located on the Big Missouri Ridge, approximately 5km north of the Premier mill. Ascot trades on the TSX with AOT and on the OTCQX with AOTVF. News Release

Monarch Gold shared the first set of results from its 2020 surface exploration diamond drilling program on its wholly-owned Beaufor Mine project, 20 kilometres northeast of Val-d'Or. The results include a significant number of high-grade assays, including 535 g/t over 0.5 metres, 180 g/t Au over 0.5 metres, and 148.5 g/t au over 0.5 metres. The Beaufor Mine began commercial production in the early 1930s and over the years has produced over 1.1 million ounces of gold. The mine is currently on care and maintenance, which has given Monarch an opportunity to complete a 3D compilation and targeting program to identify, define, and drill exploration targets throughout the mine area. Monarch trades on the TSX with MQR ando n the OTCQX with MRQRF. News Release

Palladium One Mining released their final drill results from 2020 drilling on the Tyk property. Results included massive magmatic sulphides garding up to 9.9% nickel equivalent over 3.8 meters starting at less than 9 meters true-depth. That intercept is within a broader interval that returned 6.1% nickel equivalent over 7.5 meters. Palladium One trades on the TSX Venture with PDM. News Release

Vizsla Resources provided results from ten new holes at the Napoleon prospect at the Panuco silver-gold project in Mexico.  These results continue to expand the discovery and it remains open to the north and beneath wide intercepts at depth. Results included 2,383 g/t silver equivalent over 1.09 meters, 569 g/t silver equivalent over 3.54 meters and 561.6 g/t silver equivalent over 3.23 meters. Deeper drilling is continuing at Napoleon as the Company seeks to define the extent of economic mineralization.  Assays remain outstanding for deeper holes and drilling has recommenced in 2021 with two rigs – one continuing the deeper drilling and another expanding the zone towards the north. Vizsla trades on the TSX Venture with VZLA and on the OTCQB with VIZSF. News Release

Rupert Resources provided an exploration update and reported new drill results from its ongoing exploration programme at Area 1, a 5km long highly prospective section of a regional domain-bounding structure, 20km of which is contained within Rupert’s 100% owned Pahtavaara Project in the Central Lapland Greenstone Belt, Finland. Results included 1.2 g/ gold over 57.9 meters and 2.2 g/t gold over 15 meters. 75% of drillholes assayed to date form Area 1 have yielded gold grades greater than .4 g/t gold nominal cut-off. Rupert Resources trades on the TSX Venture with RUP. News Release

Montage Gold reported the final results of its Phase 1 resource expansion drill program at the Morondo gold project in Côte d'Ivoire. Results included .8 g/t gold over 200.9 meers and .58 g/t gold over 330.7 meters. Resource expansion drilling extends known mineralization to depths of up to 450m and expands strike length of the current deposit to over 2km. A 35,000m Phase 2 drill program underway and a PEA is on track for end of Q1. News Release

And in some quick bullet point items for you: 

Newcore Gold begins trading on the OTCQX today in the United States. Condor Gold has mobilized a second drill rig at its La India starter pits. Outback Goldfields reminds the owners of Skarb Exploration Corp to exchange their common shares to receive Outback shares. It SolGold CEO Nick Mather has advised his Board of Directors that he will retire from the role of CEO after 13 years a helm of the company.  

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

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