Morning Briefing: Heliostar's Cerro de Gallo PFS Highlights an NPV of $424M, an IRR of 33.1%
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m your host, Trevor Hall
It's Thursday, December 11th.
Yesterday, Jerome Powell and company, well, most of his company, decided to lower their Fed Funds rate by another 25 basis points. This was no surprise as it was already baked into the market. What was somewhat of a surprise was the news that the Fed would step in a purchase $40B worth of short term treasury bonds, in what is a re-emergence of Not-QE according to the powers that be. The Fed stepping in as a buyer here highlights the fuel on the fire of what is higher deficits, lower demand from foreign buyers and an increase in refinancing needs. So this move by the Fed is aimed at preventing dysfunction in the bill market. Gold, silver and equities moved higher yesterday on the news. The market is seeing a modest pullback this morning as everything is being digested. Gold currently is trading at $4,233/oz. Silver is north of $62/oz.
We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Revival Gold.
Revival Gold is one of the largest pure gold mine developer operating in the United States. The Company is advancing the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho. Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. Learn more about the company at revival-gold.com
And here’s what you need to know this morning…..
Heliostar Metals released the prefeasibility study for the Cerro del Gallo project in Guanajuato, Mexico. The study is based on the current reserve base of 2.27M GEOs of Probable Mineral Reserves as shown in the Mineral Reserves Update from this past July. The study outlines a 15.3 year mine life, producing 85,700 koz gold equivalent ounces per year at an average total cash cost of $1,252/GEO and an all-in sustaining cost of $1,390 GEO, and costing $195.3M in initial capex to bring into production. At the base case gold price of $2,300 per ounce, this results in an after-tax NPV of $424M, an IRR of 33.1% and a payback period of 2.3 years. The next steps by Heliostar at Cerro del Gallo will focus on conversion of resources to reserves and additional resource growth. This plan includes additional resource and reserve drilling, updating geological interpretations, metallurgical testing and trade off studies. (TSXV: HSTR) (OTCQX: HSTXF) News Release
Sanu Gold released drill results from its continued exploration program at its three exploration permits located in the prolific gold producing Siguiri Basin of Guinea, West Africa. At the Daina 2 target, Air Core drilling o the south along the identified geophysics trend has expanded the trend to over 4km. Intercepts there included 16m of 1.81 g/t Au and 12m of 1.71 g/t. At the Salat East Target, drilling returned 21m of 1.02 g/t Au. At Daina 1 South, drilling intercepts included 24m of .72 g/t Au. Daina is the Company's most advanced property, with ongoing drilling continuing to outline a large, multi-kilometre gold system across several closely spaced targets. Gold mineralization consistently intercepted at shallow depths and within deeper structural zones that remain wide open for expansion. (CSE: SANU) (OTCQB: SNGCF) News Release
Talon Metals reported multiple successful step-out drill holes from the previously reported discovery intercepts in the Vault Zone of the Tamarack Nickel-Copper-Cobalt Project in Minnesota. Hole 565 returned 19.1m of 11.67% CuEq. The company also showed core photos from holes 563B and 566 in this morning’s press release, mentioning that both holes presented intervals of massive sulphide mineralization. Assays are pending. (TSX: TLO) (OTCID: TLOFF) News Release
Scottie Resources reported new assay results from the P-Zone within the Scottie Gold Mine Project. Highlights included 8.43 g/t Au over 11.4m, 8.37 g/t over 4m and 9.7 g/t over 1.25m. Drilling in 2025 was designed to expand the existing resource while increasing geological confidence in the known zones, supporting the planned conversion of resources from the inferred to indicated category. The program also included follow-up drilling at the Wolf Zone - discovered in 2024 with results to be reported as they become available. The Scottie Gold Mine zones remain open in multiple directions, representing meaningful opportunity to continue growing the Project's overall resource base. (TSXV: SCOT) (OTCQB: SCTSF) News Release
Founders Metals released drill assay results from its ongoing program at the Antino Gold Project in Suriname. The results include the first phase of drilling at the Parbo target and follow-up drilling at the Da Vinci and Maria Geralda targets. At Parbo, inaugural drilling has outlined broad, intrusion-hosted gold mineralization with internal high-grade shear zones, highlighted by 72.0 metres (m) of 1.01 grams per tonne (g/t) gold (Au) including 4.0 m of 11.97 g/t Au in hole PB003, and 101.0 m of 0.62 g/t Au from surface in hole PB013. At Da Vinci, step-outs continue to extend the shear-hosted gold mineralization, including 19.5 m of 2.31 g/t Au and 22.5 m of 1.38 g/t Au in hole DV016. At Maria Geralda, drilling has now expanded mineralization 400 m southeast of the initial discovery, returning broad intrusion-hosted gold with discrete high-grade zones, including 53.0 m of 0.41 g/t Au in MG006 and 12.0 m of 1.12 g/t Au in MG010. The Company is currently preparing its 2026 exploration plan to incorporate drill-ready targets from the newly acquired expanded concession area and incoming high-resolution airborne geophysics and expanded regional geochemical surveys. (TSXV: FDR) (OTCQX: FDMIF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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