Morning Briefing: Cerrado Publishes Feasibility Study for its Monte do Carmo Project

Welcome to Mining Stock Daily. I’m Trevor Hall. 

Today is Thursday November 2nd. 

After running up and over $2,000 per ounce overnight and early into the Comex trading session, gold was hammered lower Wednesday, down nearly $7 from Tuesday, closing at $1,987. The Mining Stock Journal pointed out that gold ran over $2,000 about 45 minutes into NYSE trading but suddenly reversed and did a $22 cliff-dive before recovering. The only explanation is that the Fed could not let the gold price rise ahead of what turned out to be a very dovish FOMC policy statement and an even more dovish post-FOMC presser with Jay Powell. The question begs as to why the FOMC policy release caused stocks to rip higher but not the precious metals sector.

Silver followed the same price path as gold, but with wider price swings. After hitting $23.14 per ounce, silver was smashed hard down to as low as $22.65 but, interestingly, managed a sharp bounce that enabled poor man's gold to settle the afternoon session above $23 at $23.05. The mining stocks were once again lower but managed to close well off the lows. The next issue of the Mining Stock Journal will be released this afternoon and will contain updates on several extraordinarily undervalued junior mining stocks as well as an opinion on Arizona Metals.

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… Western Copper and Gold. 

Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.

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

Cerrado Gold announced a Feasibility Study for its Monte do Carmo open pit and underground gold project in Tocantins, Brazil to produce just under 95,000ozpa of gold for 9 years from  cyanide leach circuit at an average AISC of US$711 per ounce. The project will yield an after-Tax NPV of US$401.4 million at a 5% discount rate and IRR of 34% with a 2.2-year payback following a US$186.6 million initial capital expenditure. Monte do Carmo hosts Proven and Probable Reserves of 16.8 Mt at 1.66 g/t Au for 895,000koz contained in the Serra Alta deposit and the Gogo Do Onca satellite deposit. The Company said it is on track to receive a construction permit by year end of this year and is progressing Project Financing with an aim to make a fully financed construction decision in Q2 2024. Cerrado Gold (TSXV:CERT) (OTCQX:CRDOF) news release

Regency Silver says that hole 21 intersected 5.34 g/t Au over 54.6m, and included a subinterval of 38m of 7.36 g/t in a 65m step-out from its original discovery hole. Other holes reported today included 13.3m of 2.23 g/t gold and 9.95m of 1.6 g/t. The 2023 campaigns consisted of over 6000m of drilling in 10 holes. Most of those holes targeted the lower Dios Padre breccia zone and interested mneralization and confirmed the breccia zone has a strike of at least 180m and a depth extend of at least 150m. It remains open along strike, up-dip and at depth. (TSXV: RSMX, OTCQB: RSMXF). News Release

Cabral Gold announced drill results from the first eight RC holes from the Central gold deposit that are part of the ongoing drill program currently being conducted at both the Central and MG gold deposits within the Cuiú Cuiú gold district in northern Brazil. Notable drill intercepts from the initial eight RC holes testing the Central gold-in oxide blanket and basement saprolite include RC357 which returned 16m @ 5.2 g/t gold from 7.0m depth in saprolite, including 3m @ 23.9 g/t gold. The current drill program is ongoing. A total of 55 RC holes and nine shallower power-auger holes have been completed to date. Assay results are pending on 12 RC holes and nine power-auger holes drilled at MG, and 29 RC holes drilled at Central. (TSXV: CBR) (OTC Pink: CBGZF) News Release

Kingfisher Metals says it has completed diamond drilling at the HWY37 Project in the Golden Triangle with over 2,000m driller over 6 holes. The drill program was focused on three target areas, the Cliff porphyry, the Mary Root Zone and the Mary southern stepout. Drill core is currently being assayed and results will be released once available. (TSXV: KFT, OTCQB: KGFMF). News Release

Gold Royalty entered into an agreement to acquire a portfolio of 22 royalties in Québec from SOQUEM (Société Québécoise d'exploration minière), a subsidiary of Investissement Québec, for C$1 million in stock. The Portfolio covers over 65,000 hectares and is primarily focused on gold, including projects operated by Osisko Mining, IAMGOLD, and Probe Gold. The company also obtains the right to receive a milestone payment of C$1 million once Probe Gold's Detour project publishes a positive PEA. SOQUEM will be entitled to 50% of any buyback proceeds received from the Portfolio in the future. Gold Royalty (NYSE American: GROY) news release

Goldshore Resources announced a non-brokered private placement to raise C$3.75 million at 10c per unit with each unit consisting of a common and a three-year warrant exercisable at 13c. The proceeds will be used to continue to advance the Moss Gold Project in Ontario through development of a new resource model and a new mineral resource estimation and continue the engineering and metallurgical studies on various leach methodologies as part of a PEA. Goldshore also engaged with a strategic natural resources private capital group to take $3 million of the private placement. Goldshore Resources (TSXV: GSHR) (OTCQB: GSHRF) news release

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