Important Development Updates from Marathon Gold and Paramount Gold Nevada
Welcome to Mining Stock Daily. I am Trevor Hall.
Today is Tuesday July 20th.
On Monday the precious metals was swept lower along with stock markets globally, as the Mining Stock Journal said it looks like general fears about inflation, the economy and the coronavirus triggered a big risk-off trade from hedge funds. It added that recently hedge funds had increased their net exposure and leverage to stocks the highest level in a long time. Overnight gold sold down to as low as $1794. Interestingly, gold shot back up over $1800 when the Comex opened and traded as high as $1816 before settling just below $1814. The Mining Stock Journal said that price action was either banks covering paper derivative gold shorts or a general flight to safety movement into gold, US Treasuries and the US dollar. Silver, on the other hand, had another 60 cents removed from its price as it came close to dropping below $25 before bouncing back up and settling at $25.23. The mining stocks were sand-blasted again, with GDX falling nearly 2.2% and several individual stocks getting pasted for 5 to 10 percent. The Mining Stock Journal said that the ratio of GDX to gold has traded back down to an uptrend line that goes back in September 2018, not including the massive gap-down in stocks in March 2020. It suggested that that once the sector stabilizes, it will create the best buying opportunity in quite some time.
We’ll get to the news out of the miners and explorers in a 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.
Marathon Gold announced it has entered into an exclusive non-binding Indicative Term Sheet with Sprott Resource Lending Corp. for a senior secured project financing facility of US$185 million. Proceeds from the Credit Facility are to be used to fund the construction of the Valentine Gold Project, located in the central region of Newfoundland and Labrador. The Credit Facility is structured as a term loan with a 6.5 year tenor. Conditions precedent to closing include the completion of technical, legal, and environmental and social due diligence, the receipt and review of the Project’s final development budget and schedule, the completion of definitive documentation, and the receipt of applicable environmental permits, operating licences and regulatory approvals. Closing is scheduled for not later than March 31, 2022. Marathon Gold trades on the TSX with MOZ. News Release
Orezone Gold provided additional results from its ongoing drilling program to test the expansion potential of the P17 trend at its Bomboré Gold Project, located in Burkina Faso. The focus of this latest drilling was to test the continuity of high-grade mineralization into the “Gap Zone” between P17S and P17. This area had not been previously subject to any drilling and represented a 600 m gap between the P17S NE extension and P17 to the north. Assays returned 50 meters of 1.4 g/t gold from a 246 meter depth, 21 meters of 1.56 g/t starting a 88 meters and a further 16.45 meters of 2.35 g/t starting at 124 meters. The company says these new results have extended the strike of P17S to over 600 meters outside of the existing reserve pit and remains open at depth and to the north. Orezone trades on the TSX Venture with ORE and on the OTCQX with ORZCF. News Release
Meridian Mining reported they have initiated drilling on the Cabaçal West target recently defined by its Fixed-Loop Transient Electro-Magnetic ("FLTEM") surface surveys at its Cabaçal Copper-Gold Project ("Cabaçal") in Mato Grosso, Brazil. Cabaçal West is 1.5km west of the Cabaçal mine and coincident with a significant soil anomaly while the FLTEM response is open and strengthens to the northwest. An associated strong copper in soil anomaly also remains open to the west approaching the conductor. The initiation of the near mine drill program marks the first phase in a long-term program to test the numerous prospects defined by the recent VTEM airborne survey, and the historical surface exploration programs. Meridian trades on the TSX Venture with MNO and on the OTCQB with MRRDF. News Release
Scorpio Gold provided assay results from its surface RC drilling program at the Manhattan West and East pits of the newly acquired Kinross Manhattan Property in Manhattan, Nevada. Hole 1 targeted the down dip extension of mineralization below the current mined-out pit shell of the West Pit as well as a lower zone of mineralization delineated by historic drilling. The lower zone of mineralization was intersected from 450-500 ft in mineralized Gold Hill Formation schist + quartzite returning 20.04 g/t gold over 15.3 m, including a high-grade intersection of 173.51 g/t over 1.5 m. Eleven holes of the planned 31 holes have been completed to date, including 6 holes in the East Pit area and 5 holes in the West Pit area. Scorpio trades on the TSX Venture with SGN. News Release
Aurelius Minerals announced the completion of two exploration program son their properties in Nova Scotia. The first program is a HeliGT magnetic airborne geophysical survey across the entire Aurelius properties to identify new gold trends and essential structural controls on the gold mineralization. The second study is a high precision borehole Optical Televiewer program at the Aureus East and West projects. The Televiewer survey is designed to map out key structures and contacts at the deposit scale and assist in expanding and defining gold zones. These programs are in addition to the ongoing exploration drilling at the Aureus East project. Aurelius Minerals trades on the TSX Venture with AUL and on the OTCQB with AURQF.
Paramount Gold announced today that the Malheur County Planning Commision has granted a two year extension through to May 2023 on the Conditional Use Permit for the proposed Grassy Mountain underground mine located in eastern Oregon. The CUP from the county is required to start building the Grassy Mountain mine, and along with the Federal permit from the Bureau of Land Management and the state level permit from the Oregon Department of Geology and Mineral Industries , represent the three principal permits required to build the Grassy Mountain Mine. Paramount Gold trades on the NYSE American with PZG. News Release
That’s it for the news briefing this morning. We have a couple of great interviews coming your way later today.
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