Josemaria Receives Environmental Social Impact Assessment Approval
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Tuesday, April 12th
On Monday gold shot up from US$1,940 per ounce to as high as $1,971 between 2 a.m. and 8:30 a.m. NY time. There was an absence of attributable news or events to explain the move other than a mysterious sell-off in the U.S. dollar. Then just as suddenly gold was slammed back to down $1,942 over the next four hours. While the dollar traded back up enough to more than recapture the overnight sell-off, 75% of the dollar's rally was complete before gold was slammed. The Mining Stock Journal said that the more probable explanation for the price ambush on gold is a likely worse than expected inflation number today when the CPI for March is released.
The newsletter said that, as sure as the sun rises in the east, gold is ritualistically manipulated lower ahead of the CPI. That said, gold managed to bounce after the Comex closed and ended the day at $1,956, up $8 from Friday. Silver followed a similar price path as gold, although the early a.m. rocket launch, as well as the price ambush, occurred an hour later than for gold. Silver closed up 35 cents per ounce from Friday at $25.25. A real battle at $25 is occurring in silver. The mining stocks were slightly lower on the day, likely more affected by the sharp sell-off in the stock market than by the gyrations in gold and silver.
We will get to the news from the miners and explorers in a moment, but first a word about 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 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….
Josemaria Resources received approval from the Mining Authority of San Juan, Argentina for the Environmental Social Impact Assessment (ESIA) for its Josemaria copper-gold-silver project, allowing the company to start the early works programme for the future mine development. This crucial approval comes a couple of weeks before the company’s shareholders are due to vote on whether to accept a C$625 million takeover offer from Lundin Mining on a fully diluted basis. Independent proxy advisory firms Institutional Shareholder Services and Glass, Lewis & Co firms both recommended that Josemaria shareholders vote for the takeover. Josemaria hosts proven and probable mineral reserves of 6.7 billion pounds copper, 7 million ounces of gold and 30.7Moz of silver and is on track to be the next mine development in San Juan. We spoke to president and CEO Adam Lundin last night and that interview will be on the podcast later today. Josemaria Resources trades on the TSX under JOSE and on the OTCQB under JOSMF. New release
Calibre Mining announced assay results from ongoing resource conversion and expansion drilling at its Pan gold mine in Nevada which continues to demonstrate resource expansion and bolster confidence in known zones, boding well for future resource updates as it infills and steps-out along strike between past and active mining areas. Highlights included 18.3m grading 1.29 grams per tonne in hole 53 at the Dynamite target, 15.2m grading 0.95g/t in hole 58 drilled between known resource areas at the Dune target, and 25.9m grading 0.75g/t in hole 40 confirming the presence of new mineralized breccia bodies at the Black Stallion Target. The 50,000m 2022 Pan drill program is the largest in over five years on the project. Calibre Mining trades on the TSX under CXB and on the OTCQX under CXBMF. News release
MegumaGold provided results from its 2021 diamond drill program at the Caribou Gold Project located approximately 10km north of Atlantic Gold’s Touquoy Mine and Moose River Consolidated mill site and surrounded by Atlantic Gold claim holdings in Nova Scotia, Canada. Hole MG21-01, intersected six gold-bearing intervals ranging up to 37.10 g/t gold over 1.10m at a depth of 200m. Although planned as a twin, hole MG21-02 was actually collared on a site 18m along strike that intersected 10.86g/t gold over 11.22m. Hole MG21-02 intersected four gold zones ranging up to 6.90g/t gold over 4.83m. MegumaGold trades on the CSE with NSAU. News Release
Liberty Gold has further defined and expanded the higher-grade core zone within the Rangefront area of its Black Pine gold oxide project in Idaho to an area of about 500m by 1km with high-grade drill intercepts ranging from 20 to 115m in length. It said the mineralization trends shallower as drilling expands the footprint east toward the current Rangefront resource pits and to the north towards the historical heap leach pad. The lower-grade mineralized envelope surrounding the high-grade core is also closer to surface which it said should have a positive impact on strip ratio in a future mining scenario. An additional 23 reverse circulation holes from the winter program are pending. Highlights included 54.9m grading 1.49 grams per tonnes in hole 554 and 115.8m grading 0.34g/t in hole 565. Liberty recently completed a C$30 million financing to support its exploration and development efforts. Liberty Gold trades on the TSX under LGD and on the OTCQX under LGDTF. News release
Prime Mining announced results from 26 drill holes into Guadalupe East, one of eight deposits at its Los Reyes gold-silver project in Sinaloa, Mexico. The company said drilling hit a second high-grade ore shoot at Guadalupe East with bonanza-grades encountered in a 550, step-out from the 2020 inferred open pit boundary. Highlights included 4.3m grading 52 grams per tonne gold and 1,007.6g/t silver in hole 32 at the Estaca Vein. 236 drill holes have been completed across the project with 69 pending receipt of assay data. Prime has nine drills operating as part of a 50,000m Phase 2 program. Prime Mining trades on the TSXV under PRYM and on the OTCQB under PRMNF. News release
Novo Resources has agreed to sell its stake of 15 million shares in New Found Gold to a company controlled by Eric Sprott for gross proceeds of C$125.9 million pursuant to arm’s length negotiations, representing an aggregate 9.3% premium to market. Completion of the transaction will leave Novo debt-free and with a pro-forma cash balance of almost C$97 million, providing Novo with the flexibility to advance exploration efforts across the Pilbara and Victoria, while expediting a feasibility study on the Fresh component of the company’s Beatons Creek project in Nullagine, Western Australia. Novo Resources trades on the TSX with NVO and on the OTCQX with NSRPF. News Release
Marathon Gold provided an update on development planning for the Valentine Gold project in Newfoundland and Labrador, Canada with guidance on the remaining regulatory approvals and permitting as well as its execution strategy and schedule. It said that following the recent provincial Cabinet approval of the project and the closing of a US$185 million term loan credit facility, early works will start in the third quarter upon the receipt of final regulatory approvals and site permits, which will support a schedule for first gold production in late 2024. A new technical report and production schedule is being drafted for release later this year which will incorporate a new project-wide mineral resource estimate, which is expected to show a larger and better constrained open-pit measured and indicated resource. Marathon Gold trades on the TSX under MOZ. News release
And finally, FPX Nickel has appointed Anne Currie to its board of directors effective immediately. Currie is a recognized leader in the permitting of major Canadian mining projects, with over 30 years of experience in the private and public sector, including as a former senior partner with the leading global consultancy Environmental Resources Management, and in her prior role as British Columbia’s Chief Gold Commissioner, the chief regulatory authority for the Mineral Tenure Act.
That concludes today’s morning briefing.
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