Morning Briefing: Arizona Sonoran Publishes Maiden Resource Estimate for Parks/Salyer
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Wednesday, September 28th
On Tuesday Gold rallied overnight to as high as $1650 per ounce, up $28 from Monday's low but then was predictably price managed lower once the paper derivative Comex opened for business. Silver likewise rallied 45 cents to $18.78 per ounce but had every penny of that rally removed by intense paper contract dumping on the Comex. The Mining Stock Journal said that the overnight move in gold and silver was in part attributable to Indian buying as reflected in the ex-duty import premium and in part attributable to the overnight rally in stock futures, which likely triggered some hedge fund short covering in the paper metal. The newsletter added that the data from the Shanghai Gold Exchange showed heavy delivery volume, indicating that the Chinese were gobbling up gold on Tuesday.
The mining stocks were green Tuesday, as the GDX closed up 0.64%, outperforming the broad stock indices. That said, the Hulbert Gold Newsletter Sentiment Index fell 12 points to negative 42.4%. This is lower than 99.3% of all readings since 2000. The Mining Stock Journal said that, at some point, the mining stocks are going to rip higher. But if the stock market goes into crash mode, all bets are off on all stocks in any sector.
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…Arizona Sonoran Copper
ASCU is an early-stage copper developer and explorer of the Cactus Mine and its satellite project, Parks/Salyer, both situated on a 4km mine trend on private land in Arizona’s porphyry copper district. Opportunity for significant growth and scale exist along the mine trend, while future capex requirements outlined in the Cactus PEA benefit from significant onsite and nearby access to infrastructure. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America. For more information, please visit www.arizonasonoran.com.
And here’s what you need to know this morning….
Arizona Sonoran Copper Company announced a maiden resource estimate for the Parks-Salyer porphyry copper deposit near its Cactus project in Arizona, USA with an Inferred resource of 143.6 million tons grading 1.015% copper for 1.46Mt of contained copper, or 2.92 billion pounds. The company said some 2.46 Billion pounds is leachable soluble copper with 450 million pounds of primary sulphide. A revised technical study including Cactus and Parks-Salyer is expected within the next 12-18 months. Arizona Sonoran Copper Company trades on the TSX under ASCU and on the OTCQX under ASCUF. News release
Copper Mountain Mining announced updated reserves and resources and a revised life of mine plan for the Copper Mountain mine in British Columbia, Canada. The new life of mine plan supports an updated mill expansion scenario to 65,000 tonnes per day to produce 114 million pounds of copper, 54,000 ounces of gold and 367,000oz of silver, or 138.4Mlb a year of copper equivalent over a mine life of 32 years. The expansion would commence in 2028. The project yields an after-tax net present value of US$1.24 billion at an 8% discount rate following an initial capital cost for the expansion of $237 million. The company said higher-grade exploration upside remains, particularly at depth. Copper Mountain Mining trades on the TSX under CMMC and on the ASX under C6C. News release
HighGold Mining announced assay results from six additional drill holes testing the new Ellis Zone at the Difficult Creek Prospect near its JT Deposit in Southcentral Alaska. Step-out drilling on 25m centres at the Ellis Zone expanded its footprint by nearly 50% with highlights of 14.8m grading 10.14 g/t Au, 13.8 g/t Ag, 0.28% Cu and 5.97% Zn for a 14.3 g/t AuEq in hole 46. The company said it plans to keep stepping out in all directions to continue to expand the known extents of the zone. To date, 36 drill holes for 4,935m have been completed at the Ellis Zone since the start of the season. Drilling has defined it over a strike length of about 125m and from surface to a depth of 100m with an average true thickness of 10 to 15m. Drilling is expected to wrap up in mid to late-October with a total of 10,000 to 11,000m completed. HighGold Mining trades on the TSXV under HIGH and on the OTCQX under HGGOF. News release
Summa Silver resumed exploration drilling at its Mogollon silver project near Silver City, New Mexico. Exploration drilling resumed around the historic Consolidated Mine, where mining was halted prematurely in 1942 by order of the federal government at the onset of World War II. The Consolidated Mine target represents only 1% of the total vein and structure strike length present on the project, which features numerous poorly explored to completely unexplored targets. A minimum of 11 holes and maximum of 25 holes will be drilled to test an area of 500m along strike by 350m up- and down-dip at a spacing between holes projected to support a potential mineral resource. Summa Silver trades on the TSXV with SSVR and on the OTCQX with SSVRF. News Release
Sandstorm Gold entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Scotiabank for an US$80 million bought deal raise of 15.7 million shares priced at US$5.10. Sandstorm plans to use the proceeds for future acquisitions of streams and royalties and repayment of its revolving credit facility. Sandstorm Gold trades on the NYSE under SAND and on the TSX under SSL. News release
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