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Silver Seeker Issue #66 ~ This Week In Mining: Gold Holds Strong as do the Mining Stocks

Gold had another solid week, trading up in the mid-$1890's relative to $1,875/oz, as the close of last week. It has become apparent the summer is upon us as news flow has lessened. Both precious metals will likely need another catalyst to move materially higher, which could include another hot inflation number for May. Visit and sign up for our free email list or try our free 30-day risk-free trial (premium service).  


Alexco Resource Corp: Announced the filing of an updated technical report for its Keno Hill operations in Yukon, Canada, expanding the Mineral Reserve by 22% to 1.44 million tons, grading an average 804 g/t silver Ag, 3.84% Zn, 2.64% Pb, and 0.31 g/t Au, or approximately 1,035 g/t AgEq. The updated reserve mine plan will produce over 35.5 million ounces of Ag over the next eight years. Average annual production will increase to 4.4m oz. Ag at AISC of $11.59/oz. After Alexco ramps up operations in 2021, the report envisions a mill expansion in year three of operations from 400tpd to 550tpd, which will help grow payable silver production to over 5m oz. in 2024. We do think there is further expansion potential, but this is dependent on exploration success.

Discovery Silver: Released some excellent results from 12 diamond drill holes targeting the Josefina and Todos Santos high-grade vein trends at its Cordero project in Mexico. Highlights from this release include:

  • 4.1m @ 520 g/t Ag, 0.11 g/t Au, 3.0% Pb and 9.80% Zn within in a larger interval.
  • 1.30m @ 495 g/t Ay, 0.17 g/t Au, 5.6% Pb and 8.0% Zn.
  • 1.20m @ 997 g/t Ag, 0.25 g/t Au, 8.90% Pb and 9.70% Zn within 22.4m @ 156 g/t Ag, 0.10 g/t Au, 1.70% Pb and 2.30% Zn.
  • 2.2m @ 163 g/t Ag, 0.17% g/t Au, 2.80% Pb and 3.10% Zn.
  • 2.1m @ 160 g/t Ag, 0.27 g/t Au, 3.30% Pb and 6.30% Zn.
  • 3.60m @ 343 g/t Ag, 0.11 g/t Au, 1.70% Pb and 2.70% Zn.

Fury Gold Mines: announce results from its ongoing resource expansion and exploration drill program at the Eau Claire deposit located in the Eeyou Istchee Territory of the James Bay region, Quebec. Drill hole 21EC-022 intersected 7.09m @ 23.27 g/t Au in the defined resource's southeast margin, further demonstrating the potential to significantly expand the resource down plunge to the east. This is the fifth-best result drilled (grade x width) from over 900 holes drilled at the project.

GR Silver: Reported near surface drill results from the Plomosas Mine area. Highlights include:

  • 1.2m @ 817 g/t AgEq
  • 12.1m @ 273 g/t
  • 7.3m @ 320 g/t
  • 4.3m @ 355 g/t
  • 3.0m @ 409 g/t
  • 3.7m @ 393 g/t
  • 3.3m @ 365 g/t

The results will be incorporated in the database and 3D resource model, with the potential for delineating shallow resources in unmined zones close to existing underground developments in the historic Plomosas Mine Area at the Plomosas Silver Project.

Jaguar Mining: Announced updated, in-mine diamond drilling results completed at its Turmalina Gold Mine and Pilar Gold Mine, located in Minas Gerais. Results are after the most recently published Mineral Resources and Mineral Reserves (31 December 2019 and 30 May 2020 for Turmalina and Pilar). Drilling results reported in this release and ongoing and planned 2021 exploration programs will be included in Jaguar's next National Instrument 43-101 Technical Report MRMR update planned for early 2022. Select highlight intercepts include:

  • 5.35m @ 19.65 g/t Au (Turmalina).
  • 9.62m @ 9.03 g/t Au (Turmalina).
  • 8.81m @ 22.05 g/t Au (Turmalina).
  • 4.0m @ 16.60 g/t Au (Pilar).
  • 3.50m @ 17.90 g/t Au (Pilar).
  • 8.43m @ 7.54 g/t Au (Pilar).

Kootenay Silver: Announce additional high-grade silver results from the Company's 5,000-meter core drill program currently underway at its Columba silver project in Mexico. Drill highlights from this news release include:

  • 39.9m @ 159 g/t Ag
  • 15.65m @ 166 g/t
  • 1.55m @ 189 g/t
  • 2.44m @ 217 g/t
  • 2.94m @ 321 g/t
  • 9m @ 354 g/t
  • 2.37m @ 230 g/t

Lion One Metals: It has been a while since Lion One has published drill results, and drilling is temporarily paused to a CV-19 related lockdown in Fiji. Restrictions are expected to be lifted soon, at which time drilling will resume. Highlights from this release include:

  • 1.20m @ 13.74 g/t Au (from 13.55m)
  • 6.0m @ 9.11 g/t Au (from 444m)
  • 1.27m @ 11.58 g/t Au (from 27m)
  • 6.47m @ 17.90 g/t Au (from 263m)

Six company-owned and operated diamond drill rigs are focusing on depth extensions of mineralization intersected in several holes from 570-750m downhole in 2020. It also focuses on regional Tuvatu look-a-likes and potentially high-grade zones that could be targeted in the first two years of production. Lion One's strategy is to develop mines near-surface (underground), which will provide more than adequate cash flow for deep drilling to delineate the alkaline deposit. Lion One is attractively valued solely based on the smaller epithermal systems closer to surface, with investors essentially getting a potentially large alkaline deposit for free.

Maple Gold Mines: Reported results from the second hole of the recently completed 10,270m winter drill campaign at the Douay Gold Project in Quebec, Canada. Douay is held by a 50/50 joint venture between the Company and Agnico Eagle Mines Limited. Highlights include:

  • 132m @ 1.58 g/t Au
  • 9.6m @ 5.49 g/t Au

Montage Gold: Announced the Preliminary Economic Assessment (PEA) results for the Koné Gold Project in Côte d'Ivoire. Highlights from the PEA include:

  • 11Mtpa operation producing 3.0m oz. Au over a 14.7-year mine life.
    • Average annual production of 249k oz. Au in the first 9-years and 205k oz. Au annually over the LOM. Peak production in year two and three of 308k oz. Au
  • After-tax NPV and IRR (at $1,600/oz. Au): $652m and 31%, increasing to $1.015b and 46% using an $1,850/oz. gold price.
  • Average AISC of the first three years and LOM: $835/oz. and $975/oz.
  • Strip ratio of 0.93:1.
  • Initial capital costs: $490m

Nexus Gold: Reported it has received initial assay results from the recently completed phase two diamond drill program at the company's 100% owned McKenzie Gold Project in Red Lake, Ontario.  Highlights from this release include:

  • 6.2m @ 1.35 g/t Au
  • 136.5m @ 1.25 g/t
  • 44.9m @ 3.0 g/t
  • 1m @ 15.50 g/t
  • 15.5m @ 5.25 g/t

Silvercorp Metals: Reported wide and high-grade intercepts from its 2021 exploration program at the LMW mine in the Ying Mining District. Extensive exploration drilling and tunnelling are ongoing at the LMW mine and all other mines at the Ying Mining District. Ten rigs are drilling at the LMW mine and a total of 116 diamond drill holes, including 100 underground holes and 16 surface holes totaling 22,890m have been completed. Assay results for 101 holes have been received with 53 holes intercepting many zones of high-grade silver-lead mineralization and gold mineralization. Highlights from this release include:

  • 19.67m @ 261 g/t Ag, 1.08% Pb, 0.04% Zn, 0.16 g/t Au, and 0.78% Cu. (Vein LM7)
  • 23.96m @ 202 g/t Ag, 1.26% Pb, 0.12% Zn, 0.15 g/t Au, and 0.37% Cu. (Vein LM7)
  • 19.32m @ 162 g/t Ag, 1.38% Pb, 0.11% Zn, 0.09 g/t Au, and 1.00% Cu. (Vein LM7)
  • 1.50m @ 1,103 g/t Ag, 1.46% Pb, 0.10% Zn, 0.05 g/t Au, and 0.65% Cu. (Vein W1)
  • 1.17m @ 1,072 g/t, 1.52% Pb, 0.09% Zn, 0.15 g/t Au, ad 0.08% Cu. (Vein W1)
  • 2.25m @ 10.53 g/t Au. (Vein LM50)
  • 1.95m @ 1,166 g/t Ag, 0.74 g/t Au, and 0.65% Cu. (Other Veins)
  • 2.67m @ 386 g/t Ag, 1.82% Pb, 0.07 g/t Au, and 0.80% Cu. (Other Veins)
  • 4.97m @ 388 g/t Ag, 1.95% Pb, 0.09% Zn, 0.04 g/t Au, and 0.08% Cu. (Other Veins)

Skeena Resources: Reported drilling results from the 2021 permitted Albino Waste Facility investigation at the Eskay Creek Project located in the Golden Triangle of British Columbia. This initial examination, totaling 190 m, was completed utilizing an air rotary drill rig from the ice surface of the AWF in March 2021. Four of eight drill results were published. The remaining holes will be released once analyses are available. Highlights include:

  • 16.01m @ 417 g/t Au and 160 g/t Ag
  • 12.16m @ 4.18 g/t Au and 190 g/t Ag
  • 22.80m @ 4.16 g/t Au and 204 g/t Ag
  • 19.76m @ 3.13 g/t Au and 127 g/t Ag

Via the initial drill-based investigation in Q1 2021, the company demonstrated that significant Au-Ag mineralization was deposited at Albino. The area of the AWF measures 128,900 m2, of which the company has only tested a small portion measuring 5,200 m2. As such, only 4% of the entire AWF has been investigated to date. This first phase of drilling was performed on staggered 50m centers from the frozen ice surface. Although more drill holes were planned, ice conditions deteriorated, and the program was terminated early for safety reasons. Analytical results for the first four drill holes indicate excellent downhole and hole-to-hole Au-Ag grade continuity.

Wesdome: The company announced the pre-feasibility study results (PFS) at its Kiena Complex in Val d'Or, Quebec. Based on the results, the board of directors have made a positive restart decision commencing immediately. Highlights of the PFS include:

  • After-tax NPV5% and IRR: C$367m (at $1,600/oz. Au), increasing to C$491m (at $1,900/oz.) with a 98% IRR.
  • Average annual gold production of 84k oz. Au annually, increasing to a run-rate of over 100k oz. Au p.a. expected in 2024.
  • Cash costs and AISC: C$502/oz. (US$380/oz.) and C$894/oz. (US$676/oz.).
  • Initial reserve life of 7-years.

Kiena is expected to see its first production in Q3 2021. This project is scalable, though dependent on exploration success, notably at the Kiena Deep A zone. Production will utilize existing mine infrastructure such as the shaft and the existing 2ktpd mill. However, production will commence at 413tpd, increasing to over 920tpd. In order to increase mill throughput, Wesdome will first have to increase hoisting capacity and extend the mine life.

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