Morning Briefing: McEwen Publishes New PEA for Los Azules
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Tuesday June 20th.
Last week the gold price oscillated between $1955 and $1975 for the most part, with a brief trip to $1937. But the price never closed below $1955, which fits the thesis that eastern hemisphere physical demand, particularly India and China, is supporting the price of gold right now. Silver last week traded between $24.40 and $23.70, with a brief intra-day visit to $23.30. It closed out the week and $24.13 and seems to have found support at $24. Several reports note that physical silver demand in China is particularly robust. In addition poor man's gold appears to be in an uptrend that began in late May. The Mining Stock Journal noted that the technical indicators for both gold and silver have bottomed and are pointing north. Moreover, sentiment indicators in the sector are so low they appear to be digging for China. The mining stocks grinded sideways last week, though GDX finished the week above the level where it closed the previous week. The Mining Stock Journal is starting to turn bullish on the precious metals sector, especially given the number of subscribers emailing about possibly throwing in the towel of the sector. The newsletter's editor plans to put more capital to work in the sector and will identify specific names in the next issue, including an undervalued, high dividend yield play.
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….
Magna Mining released additional assay results from a series of short, near surface drillholes immediately beneath the surface exposure of the 109 Footwall ("FW") Zone. The surface expression of this high grade PGM zone has been identified as a potential site for an exploration bulk sample in late 2023, which could be processed through a third-party mill in Sudbury. Highlights from the drill results released this morning included 0.2% Ni, 0.1 % Cu, 5.4 g/t Pt + Pd + Au over 27.0 metres and 0.2% Ni, 0.5 % Cu, 7.3 g/t Pt + Pd + Au over 16.9 metres. The company also noted that its Preliminary Economic Assessment for Crean Hill is expected to be released late next month. Magna Mining trades on the TSXV with NICU. News Release
McEwen Copper publishes results of the updated Preliminary Economic Assessment on the Los Azules Copper Project in San Juan Argentina. The base case development strategy selected in the 2023 PEA is distinctly different from that presented in the prior PEA published in 2017. In 2017, the strategy was to construct a mine with a conventional mill and flotation concentrator producing a concentrate for export to international smelters. The 2023 PEA proposes a heap leach (leach) project using solvent extraction-electrowinning (SX/EW) to produce copper cathodes. This PEA reports an After-tax net present value (NPV8%) of $2.659 billion(1), internal rate of return (IRR) of 21.2%, and a payback period of 3.2 years – at $3.75 per lb. Cu. Average annual copper (Cu) cathode production looks to be 401 million lbs. (182,100 tonnes) during the first 5 years of operation, and 322 million lbs. (145,850 tonnes) over the 27-year life of the mine. (NYSE: MUX) (TSX: MUX) News Release
Blackwolf Copper and Gold has appointed Rob McLeod as Executive Chairman and Morgan Lekstrom as CEO and Director. The company is has also entered into a non-binding letter of intent to acquire all the issued and outstanding shares of Optimum Ventures, a Canadian exploration company which has an option agreement with Teuton Resources Corp. pursuant to which Teuton has agreed to grant to Optimum the option to acquire an up to 80-per-cent interest in the Harry and Outland Silver Bar properties, located near Stewart, B.C. (TSXV:BWCG)(OTC:BWCGF) News Release
O3 Mining shared results of the maiden mineral resource estimate for the Malartic H gold deposit at Marban in Val-d'Or Quebec. The despots currently sits at 342,000 oz Au grading 1.04 g/t. And is based on approximately 29,000 metres of drilling in 103 holes. The Malartic H deposit remains partially open laterally and completely open at depth. The Malartic H deposit is a separate asset from our Marban Engineering Project. To that end, the Corporation does not consider Malartic H to be a material project of O3 Mining for purposes of NI 43-101. (TSXV: OIII) (OTCQX: OIIIF) News Release
Labrador Gold announced results from recent drilling targeting the highly prospective Appleton Fault Zone. The drilling is part of the Company’s ongoing 100,000 metre diamond drilling program at its 100% owned Kingsway Project. Highlights of the initial drilling at Dropkick include an intersection of 1.97g/t Au over 9.45 metres from 198.55 metres including 3.13g/t over 5.45 metres and 31.86g/t over 0.45 metres that contained visible gold in Hole K-22-228B. Almost 72,000 metres have been drilled to date out of the planned 100,000 metre program. Assays are pending for samples from approximately 4,730 metres of core. (TSX.V:LAB | OTCQX:NKOSF) News Release
Collective Mining has commenced exploration diamond drilling on the first of six well mineralized and outcropping targets located within a 400-metre radius of the Apollo porphyry system. Surface exposure in the Apollo area is very limited and all six targets have similar outcropping dimensions and gold-silver-copper grades to the original discovery outcrop at the Apollo porphyry system. Drill holes APC-54 and APC-57 were recently completed from Pad 9 on Target 1, which is located up to 200 metres to the west of the Apollo porphyry system. Visual logging of APC-54's drill core indicates potentially interesting porphyry style mineralization was encountered over two intervals along the hole. Assay results for both holes are anticipated in July. (TSXV: CNL) (OTCQX: CNLMF) News Release
Vizsla Copper has acquired the Copperview project in the Aspen Grove area of south-central British Columbia. The Copperview Project is located less than 4 kilometres north (and along trend) of Kodiak Copper's Gate Zone discovery. A block of seven claims comprising 9,043 contiguous hectares is considered the highest priority and will likely see significant exploration effort in the near term. (TSXV: VCU) (OTCQB: VCUFF) News Release
Newmont said it will defer the full-funds investment decision for the Yanacocha Sulfides project in Peru (the Project) for at least two years to advance its portfolio optimization strategy designed to maximize returns for shareholders and create long-term value for other stakeholders. The deferral of the full-funds investment decision results in a reduction of development capital expenditures, including an estimated $300 million included in Newmont’s outlook for 2024. (NYSE: NEM, TSX: NGT) News Release
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