Gold and silver continue to trade in a relatively tight range while the mining stocks look like they may have bottomed, but we could very well see increased volatility in the near future. Trading activity and volumes generally pick up after Labor Day. Today, Friday, the Fed didn’t sound any more “hawkish” at Jackson Hole, which caused the metals to close higher. Mining news has picked up relative to last week, which isn't uncommon the week following the end of earnings season.
$ABRA, $AYA, $BBB, $CBR, $DSV, $F, $FTCO, $GTCH, $GBR, $GRSL, $KNT, $MUX, $NSR, $OCG, $ODV, $PRU, $SBB, $SVM, $AGX, $VZLA
AbraSilver Resources: report significant drill results from the latest four diamond drill holes of the Company's ongoing Phase II drill program on its Diablillos project in Argentina. Drill highlights include:
- 6m @ 70 g/t Ag and 2.32 g/t Au (Oxides)
- 15m @ 55 g/t Ag and 1.26 g/t Au (Oxides)
- 3m @ 40 g/t Ag, 2.49 g/t Au and 0.50% Cu (Sulphides)
- 7.5m @ 40.6 g/t Ag, 4.65 g/t Au and 2.18% Cu (Sulphides)
- 9m @ 44.5 g/t Ag and 1.77 g/t Au (Oxides)
- 13m @ 55.5 g/t Ag and 1.86 g/t Au (Oxides)
Drill results from the Phase II drill program illustrate the extension of substantial gold mineralization for several hundred meters beyond the Whittle Pit boundary in the Oculto northeast zone. The underlying copper-gold mineralization will be systematically tested with follow-up drilling to develop an initial sulfide resource in the future. The high-grade copper-gold sulfide mineralization is associated with a feeder structure. It will help in the interpretation of overlying oxide mineralization and represent part of a sulfide resource that will be explored. We should see a significant increase in total resources at Diablillos as the last resource estimate was almost four years ago, and considerable exploration has taken place between then and now.
Aya Gold & Silver: The emerging mid-tier silver producer announced a C$70m bought deal public offering. The underwriters have agreed to purchase a total of 6.83m shares @ C$10.25/share for aggregate proceeds of approx. $70m. Aya has granted the underwriters (Desjardins Capital Markets and Sprott Capital Partners) an option, exercisable at any time and including 30-days following the closing of the Offering, to purchase up to an additional 15% of the shares being issued to cover over-allotments. Should the over-allotment be exercised in full, the total gross proceeds of the Offering will be approx. C$80.5m. The proceeds from the equity raise will be used to expand its Zgounder mine and advance its other projects.
Brixton Metals: Announced the discovery of 12 visible gold intercepts in 6 of its first eight drill holes during its maiden Trapper Gold drilling campaign. The visible gold is present along a 550m strike length and for 200m down dip. Mineralization remains open and includes numerous near-surface gold intercepts. The Trapper Gold Target is one of fourteen prospective zones at Brixton's Thorn Project, located in B.C., Canada.
Cabral Gold: Announced it doubled the area of PDM gold in oxide blanket and provided a drilling update at Cuiu Cuiu district. An additional ten reconnaissance RC drill holes at the Pau de Merenda target, located 2.5km NW of the Central gold deposit, has expanded the recently identified gold-in-oxide blanket to 800 x 300m in size. The blanket remains open in three of four directions. Assay results are pending on six follow-up RC holes completed within the Machichie SW vein array where a series of NE-trending vein structures have been mapped and previously returned high-grade drill results, including 3.4m @ 36.9 g/t gold and 3m @ 13.2 g/t gold. The assay results are currently pending at the MG gold deposit from 8 diamond drill holes and 38 RC drill holes. Assay results are also pending on a number of holes at the Mira Boa target. Limited historic diamond drilling (nine holes totaling 2,593m) at PDM previously returned encouraging drill results within the underlying bedrock, including 30m @ 1.1 g/t Au, 47.1m @ 1.8 g/t Au and 8.5m @ 5.1 g/t Au.
Discovery Silver: Released the results from the final drill holes included in the updated MRE at its Cordero silver project. The updated MRE is scheduled to be completed before the end of September and followed by an updated PEA in Q4 2021. Highlights from this release include:
- 217m @ 75 g/t Ag, 0.45 g/t Au, 1% Pb and Zn.
- 25.5m @ 236 g/t Ag, 0.55 g/t Au, 1.2% Pb and 1.9% Zn.
- 9.1m @ 221 g/t Ag, 0.23 g/t Au, 3.6% Pb and 10.2% Zn.
Fiore Gold: Reported its FY Q3 2021 gold production of 11.75k oz. Au, an 8% increased over its FY Q2 2021 production. Quarterly cash costs and AISC were $1,073/oz. and $1,247/oz., and generated operating cash flow of $6m. Relative to the comparable period in 2020, grades were lower @ 0.462 g/t, and the strip ratio was higher at 1.8:1 vs. 1.2:1, resulting in higher cash costs (+157/oz.) and AISC (+$119/oz.). The Company exited the quarter with $18.5m in cash.
Fortitude Gold: The Company announced exploration results from its 2021 Scarlet phase II drill program, including 4.57m @ 3.19 g/t Au within 19.81m @ 1.57 g/t Au. This mineralization is associated with the northwestern structural extensions of its Isabella Pearl mine. During the second quarter of 2021, a 15-hole RC program targeted the south Scarlet area located approximately 650m northwest of the Company's operating Isabella Pearl mine. This program was designed to build on first-quarter Scarlet drill results released in April 2021. Substantial widths and gold grades intercepted oxide mineralization with the potential to be processed at the Company's Isabella Pearl heap leach pad and gold process plant. Phase II Scarlet drill highlights include:
- 6.1m @ 1.34 g/t Au
- 19.81m @ 1.57 g/t, including 4.57m @ 3.19 g/t
- 19.81m @ 1.56 g/t
- 16.76m @ 2.23 g/t
- 24.38m @ 1.60 g/t
Scarlet remains a high-priority target for additional delineation drilling. The Company plans to move an RC drill rig to Scarlet in Q4, 2021, following the completion of the ongoing delineation drilling at Golden Mile.
Getchell Gold: Reported the second drill hole of the 2021 drill program at the Company's Fondaway Canyon Gold Project, Nevada. Drill holes FCG21-08 intersected the Colorado SW Zone for over 200m with mineralized intervals that included: 27.5m 2 4.2 g/t Au, 24.5m @ 2.8 g/t Au, 30.7m @ 1.4 g/t Au and 16.8m @ 1.3 g/t Au. The high-grade Juniper zone was also intersected, returning 25.9m @ 4.7 g/t Au within 100m of the surface. The Colorado SW Zone remains open along strike and to depth.
Great Bear Resources: Reported additional results from its ongoing $45m 2021 drill program at its Dixie Project in the Historic Red Lake district. Drill holes in this press release targeted previously underexplored northwestern and southeastern areas of the 4.2Km Phase I drill grid. High-grade gold controls have been identified along the LP Fault. Drilling confirmed these controls in several areas, which will allow for targeting high-grade gold during Phase II drilling below the current 450m drill depth. Steeply-plunging high-grade gold mineralization has been successfully targeted in the northwestern Discovery and southeastern Viggo areas of the LP Fault. Bulk tonnage style gold mineralization has been confirmed as continuous along more than 3Km of strike length of the LP Fault and remains open to extension. New results from the previously under-drilled northwestern Discovery and Gap areas illustrate this continuity.
Discovery Area Results:
- 4m @ 15.04 g/t Au within 29.5m @ 3.13 g/t Au [BR-365]
- 0.80m @ 150 g/t Au within 4.80m @ 28.18 g/t Au [BR-394]
- Newly defined steeply northwest plunging high-grade gold controls were successfully confirmed in drill holes BR-365 and BR-394 and will be targeted at depth below this area during Phase 2 drilling.
- Most holes in the Discovery area contained multiple mineralized intervals i.e., Drill hole BR-393 contained four zones: 1m @ 70.90 g/t Au, 23m @ 1.26 g/t Au, 98m @ 0.60 g/t Au, and 1.15m @ 16 g/t Au.
- 1.2m @ 22.80 g/t Au
- 0.80m @ 26.60 g/t Au
- Great Bear is modeling seven high-grade gold domains within the broader bulk tonnage gold domains in the Discovery area of the LP Fault.
Gap Area Results:
- Confirmation of bulk tonnage style gold mineralization in all areas tested. Results establish continuity between the adjacent Discovery and Central areas of the LP Fault zone, for a currently drilled total of over 3Km's of continuous bulk tonnage gold mineralization in the near-surface of the zone.
- 0.60m @ 23.80 g/t Au
- 1m @ 31.4 g/t Au
- Great Bear is currently modeling two high-grade gold domains within the bulk tonnage gold domains in the Gap area of the LP Fault zone.
Viggo Area Results:
- Gold mineralization in the Viggo area is transitional between the disseminated, bulk tonnage style gold of the central LP Fault in the west and mesothermal vein-hosted gold with significant mineralized plunges or "shoots" in the east, such as is observed at the adjacent Hinge zone on the Dixie property, and elsewhere in the Red Lake district.
- 1.25m @ 21.70 g/t Au
- 0.55m @ 64.3 g/t Au
- Other drilling in this area targeted shallow bulk-tonnage style gold mineralization immediately east of the central LP Fault zone, informing ongoing resource modeling.
GR Silver: Published the results of its maiden resource estimate at its Plomosas Project, Mexico. Indicated resources totaled 10.3m AgEq oz. (3.4m oz. Ag, 53k oz. Au, 73m lbs. Zn and 48m lbs. Pb), while Inferred resources totaled 21m AgEq oz. (8.6m oz. Ag, 85k oz. Au, 149m lbs. Zn and 48m lbs. Pb).
K92 Mining: The first Judd vein (J1 vein) 1265 development results to date has recorded significant high-grade mineralization, with a strike length of over 83m and an average vein thickness of 3.5m @ 16.48 g/t AuEq (13.56 g/t Au, 1.77% Cu and 32 g/t Ag) at this tier-I mining project. Mineralization style continues to be intrusive related, Au-Cu-Ag, and similar to Kora. The results compare favorably with reported drilling and the 1235 Level, which recorded development over 288m with an average J1 Vein thickness of 3.7m at 11.64 g/t AuEq, including 179m at 3.7m vein thickness at 15.39 g/t AuEq. Following the positive drilling, underground development, and metallurgical results at the Judd vein system, the first Judd production stoping is planned for Q4, which will open up an entirely new production front. J1 vein channel sampling results include:
- 4.8m @ 68.62 g/t AuEq.
- 4m @ 32.91 g/t AuEq.
- 3.6m @ 27.65 g/t AuEq.
- 1.9m @ 16.28 g/t AuEq.
- 3.1m @ 14.72 g/t AuEq.
McEwen Mining: Announced its subsidiary, McEwen Copper, has closed the first tranche of Series B private placement offering announced on July 6, 2021, issuing 4m shares at a price of $10/share for gross proceeds of $40m. Subscription for the remaining 4m shares is available to qualified accredited investors, subject to a $1m minimum investment and certain other conditions. The securities sold in the Offering are private and subject to transfer restrictions until after such time as shares of McEwen Copper become listed on a public exchange. The second tranche of the Offering is expected to close on or before September 30, 2021.
Rob McEwen’s investment corporation, Evanachan Limited, purchased all the shares issued pursuant to the first tranche of the Offering. Following completion of the Offering, Rob McEwen beneficially owns 18.6% of McEwen Copper, which holds a 100% interest in the Los Azules copper project in San Juan, Argentina, and a 100% interest in the Elder Creek exploration property in Nevada. It is a good time for McEwen Mining to begin the process of spinning out McEwen Copper as the latter could easily surpass the market capitalization of McEwen Mining, especially if copper prices continue to rise or stay at or above $4/lb.
Nomad Royalties: One of the newer producing junior royalty and streaming company's (>=20k AuEq oz. p.a.) announced its shares had been approved for listing on the NYSE. Nomad expects its common shares will commence trading under the ticker $NSR by late August/early September. This will increase trading liquidity and could cause a boost to the share price if added to an index or ETF.
Oceana Gold: Provided New Zealand CV-19 update. The Company confirmed that the Macraes and Waihi operations are complying with the New Zealand Government's directive to implement a country-wide Covid-19 Alert Level Four (lockdown). As a result, temporary suspension of mining and most other activities at Macraes and Waihi began at 11.59 pm Tuesday, August 16. Based on the Government's updated measures announced today, the Company expects operations to remain curtailed until at least 11.59 pm, Friday, August 27. Waihi and Macraes remain in a state of operational readiness for a safe and rapid restart following the easing of restrictions.
Osisko Development: Announced additional drill results from its ongoing 200,000m 2021 exploration and category conversion drill campaign at its Cariboo Gold Project. Highlights include:
- 11.85m @ 4.16 g/t Au
- 4.95m @ 8.97 g/t Au
- 5.05m @ 26.58 g/t Au
- 10.25m @ 7.87 g/t Au
- 6.55m @ 5.39 g/t Au
Perseus Mining: Reported its fiscal 2021 results ending June 30. The Company increased after-tax earnings 48% to $139.4m and generated $303m in operating cash flow in its FY 2021. The earnings and cash flow improvement were driven by higher gold prices and higher gold production (due to increased output at Sissingue and the newly commissioned Yaoure Gold Mine, partially offset by lower output from Edikan). During the year, the Company made progress towards achieving its goal of becoming a 500k oz. Au p.a. producer. Gold production totaled 328k oz. Au and sales of 321.2k oz. Au @ AISC of $1,016/oz. Perseus should see a step up in production in FY 2022, driven by a full year of ramped-up production from Yaoure. The Company also announced its inaugural dividend of $0.015/share (approx. 1% dividend yield). The Company ended its fiscal year 2021 with cash and equivalents of $208m and a net cash position of $74.7m.
Sabina Gold & Silver: Reported progress on pre-construction activities for its Goose mine on its Back River Project. The Company is nearing a construction decision. Sabina has been advancing the underground exploration ramp at Umwelt and has completed civil works at the Goose site. It has also prepared the Sabina Port facility to receive the largest sealift to date, offloading the first ship. Lastly, the Company is working towards putting a project financing package together.
Silvercorp Metals: Announced increased reserves and resources at the GC Mine (effective March 31, 2021). Silvercorp reported 2P reserves of 12.48m oz. Ag, 135m lbs. Pb, and 293m lbs. Zn, M&I resources of 13.88m oz. Ag (exclusive of reserves) and an additional 23.56m oz. Ag (Inferred). Based solely on increased reserves, the GC Mine has a project life of 13yrs through 2034. The Company also announced an NCIB to repurchase up to 7.054m shares, approx. 4% of the shares issued and outstanding. Silvercorp has no debt, cash, and equivalents of $214m and investments (New Pacific Metals) with a market value of $243m on June 30, 2021.
Silver X Mining: Announced it had intersected material intervals of high-grade silver-polymetallic mineralization at the Tangana Mining Unit at the Company's Nueva Recuperada project in Huancavelica, Peru. Assay results have been received for 3 of the initial 4 holes, with highlights including 1.38m @ 928 AgEq g/t and 0.92m @ 631.71 AgEq g/t. The Recuperada plant has been operating on development and toll feed since 2019, has a capacity of 200Ktpa, and has sold $6.5M of polymetallic concentrate in 2021 YTD. On the back of this operating cash flow, the Company has initiated a 2k-meter drill program of which 9,700m are aimed at expanding knowledge on and upgrading the quality of the Tangana inferred resource.
Vizsla Silver: Reported new exploration drill results from its ongoing, fully-funded drill program at its 100% owned Panuco silver-gold project in Mexico. Step-out drilling targeting both the northern and southern extensions of the Napoleon Corridor has intersected high-grade silver and gold in multiple closely spaced veins located a respective 600m north and 850m south of the Napoleon resource area. In total, mineralization has now been intersected along 2.5km of the Napoleon Vein Corridor. Drill highlights from this release include:
- 11.4m @ 825 g/t Ag, 7.95 g/t Au, 0.60% Pb and 1.40% Zn. Josephine Vein, Napoleon North (Papayo zone).
- 3.3m @ 104 g/t Ag, 1.25 g/t Au, 2.20% Pb and 5.0% Zn. Napoleon Vein, Napoleon North (Papayo zone).
- 2.90m @ 33.6 g/t Ag and 3.95 g/t Au. Napoleon South (Ojo de Agua zone).
- 1.70m @ 55.1 g/t Ag and 6.87 g/t Au. Napoleon South (Ojo de Agua zone).