Morning Briefing: Arizona Sonoran Reports Positive Preliminary Extraction Rates with Rio Tinto's Nuton

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Monday June 5th. 

On Friday, after drifting sideways overnight around $2000 per ounce, the gold price was given an aggressive push off the cliff as the Comex was opening and exactly when the non-farm payroll report was released as an avalanche of paper gold contracts were hurled at floor traders and into the electronic trading system. Gold was hammered down over $35 down to $1963, where it settled in the afternoon Globex session. The response by the equity market, with the Dow up over 2% and the Nasdaq up over 1% is the expected response to the employment report by gold and silver. Similar to gold, silver was ripped lower when the Comex opened, plunging from $24.05 down to $23.68 per ounce, where it settled for the weekend. 

The Mining Stock Journal noted that $24 seems to be the line in the sand, for now, for the silver price management squad. The GDX rallied 5.4% last week Monday thru Thursday then was swatted 1.9% lower. The Mining Stock Journal noted that sentiment toward the sector per the Hulbert Gold Newsletter Sentiment Index surprisingly has bounced sharply the last three days last week from negative, indicating that a meaningful percentage of investors are starting to move capital into the precious metals 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…Fireweed Metals.

Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.

And here’s what you need to know this morning….

Arizona Sonoran Copper Company reported positive preliminary column leach metallurgical extraction rates using the Rio Tinto Nuton technologies as part of a Phase 1 testing program. Primary sulphide extraction ranges from 61% to 82% based on five columns, including two early cycle columns returning 83% and 61%, two mid-cycle columns above 70% and one with lower extraction based on biotite content. Nuton is reassessing the additives for this low extraction column to address future biotite exposure, which accounts for 1-2% of the Cactus West deposit in the primary zone. A total of 13 ongoing columns are 75-150 days through their 300-day leach cycle. The company said initial testing with Nuton demonstrates optionality to continue scaling the asset beyond the base case Pre-feasibility Study parameters. Primary sulphides, currently excluded from the PEA and pending PFS, comprise 25% of total mineral resource. Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) News Release

Benchmark Metals and Thesis Gold entered into an agreement for Benchmark to acquire Thesis. Thesis shareholders will receive 2.6 of a Benchmark share for each Thesis Share, implying consideration of C$0.96 per Thesis Share and a 26.2% premium over Friday’s close. Existing shareholders of Benchmark and Thesis will own about 60% and 40%, respectively, of the outstanding shares of the combined company. This transaction creates one of the largest precious metals development and exploration companies in the Toodoggone Mining District of British Columbia and consolidates two significant exploration projects. Benchmark's Lawyers project is adjacent to exploration targets on Thesis' Ranch Project with the potential to enhance Benchmark's current 3.14Moz of gold equivalent measured and indicated resources. A new combined Lawyers & Ranch resource estimate including 50,000m of drilling in 2023 will be released in the first half of 2024, with an updated PEA to follow. Benchmark Metals (TSXV: BNCH) (OTCQX: BNCHF) and Thesis Gold (TSXV: TAU) (OTCQX: THSGF) News Release

MAG Silver announced it has achieved commercial production at the Juanicipio Project in Mexico in which it owns 44%. Following a successful commissioning period, the Juanicipio mine, processing facility and other vital systems are operating in line with, or rapidly approaching design capacity. The Juanicipio mill is operating at approximately 85% of its design capacity of 4,000 tonnes per day with silver recovery consistently above 88%. On a 100% basis, 3.2 million ounces of silver have been produced from the Juanicipio processing facility from March 2023 to the end of May 2023, and production is expected to continue to increase steadily through Q3 where it is envisioned the plant will be running at design capacity. All major construction activities have now been completed. MAG Silver (TSX / NYSE American: MAG) News Release

ATEX Resources announced assay results for drill holes 22A and 23 from its Phase III drill campaign at the Valeriano Copper-Gold Project in the Atacama Region of Chile. Hole 23 extended the high-grade trend with an intersect of 964m of 0.48% Cu, 0.24 g/t Au and 78 ppm Mo for 0.70% Copper Equivalent, starting at 782m. The newly discovered Western Porphyry Trend now has a strike length of approximately 700m. The Phase IV program will include holes testing further extensions of this discovery. Hole 22A targeting the Eastern Porphyry Trend, intersected 546m of 0.45% CuEq. ATEX Resources (TSXV: ATX) News Release

Gladiator Metals announced initial results from its maiden drilling campaign at the Cowley Park prospect at the Whitehorse Copper Project. Highlights from the first 7 of 14 holes included 16m of 2.36% Cu within a 92m interval of .71% Cu, and 20m of 1.43% Cu within 71m of .72%. The company says these shallow results confirm the continuity of copper skarn mineralization at Cowley Park as well as highlighting the potential for a larger mineralized envelope, not previously considered, or tested by previous operators. (TSXV: GLAD) (OTC Pink: GDTRF) News Release

Western Alaska Minerals commenced operations and exploration activities at the Illinois Creek mining district. In fact, drilling began late last week. The company’s first objective is to in-fill  the Waterpump Creek Prospect to support estimating an inferred mineral resource. The company will also conduct step-out dilling to expand from last season’s work and also test new promising targets. The camp is fully operational, with technical staff and local hires in full swing. Western Alaska Minerals trades on the TSXV with WAM. News Release

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