Morning Briefing: NGEx Makes another Major Discovery, Solaris has a Financing Deal with Royal Gold
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall.
It's Wednesday, May 21st.
After finding support on its 50 day average, gold has found another round of buying again. Yesterday, the metal rose just over 1.5% and closing at $3,284/oz on the front month contract. Silver also but in a find day, outpacing gold for a 2% gain and closing at $33.17/oz, yet it is still trading in a very tight range for almost a month now. There is a multi-front approach to gold’s renewed interest, including concerns of military escalation in the middle east and an unfunded major tax reform from the Trump administration. US bond yields are on the rise while the dollar continues to drop, hence the demand for gold once again.
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…Calibre Mining
Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and in Nicaragua. The company recently announced a deal to merge with Equinox Gold. The transaction will create an Americas-focused diversified gold producer with a portfolio of operating mines in five countries anchored by two high-quality, long-life, low-cost Canadian gold mines, Greenstone and Valentine. You can learn more at https://www.calibremining.com/
And here’s what you need to know this morning…..
NGEx Minerals says they have discovered a major new copper-gold porphyry system at its 100% owned Lunahuasi high-grade copper-gold-silver project in San Juan, Argentina. Drillhole 27 drilled across the HS zone before entering a porphyry copper-gold deposit at about 1,262m. The hole ended in mineralization at a depth of 2,005m and returned 1,619.4m of .87% CuEq. Hole 29 is the southernmost hole drilled to date at Lunahuasi. It intersected the HS zone over its entire length, with early porphyry veins occurring from 1,100m and returned 823.1m of 1.17% CuEq. The company says that the Lunahuasi system has similar size and scale potential to other deposits in the Vicuña cluster, with the added advantage of the large, very high-grade copper-gold-silver high-sulphidation epithermal structures which are unique to Lunahuasi. (TSX: NGEX) (OTCQX: NGXXF) News Release
Founders Metals announced assay results from the Antino Gold Project in Suriname. Expansion drilling has returned 33m of 3.5 g/t Au, 13m of 2 g/t and 4m of 5.92 g/t. Step-out drilling to the north returned 41.9m of 1.06 g/t and 12m of 1.52 g/t Au. Founders says they are anticipating releasing additional results form earlier-stage exploration targets in the coming weeks. (TSXV: FDR) (OTCQX: FDMIF) News Release
Radisson Mining is expanding and extending its current drill program at the O’Brien Gold Project in the Abitibi. This program expansion follows the recent completion of Radisson's successful C$12 million financing and ongoing drilling that is demonstrating significant gold mineralization below the historic mine workings and the Project's current Mineral Resources. The company is adding up to 40,000m of additional drilling with a fourth rig added to the project in June. The team will also target deep exploratory holes beneath the historic Thompson-Cadillac Mine, just west of the O’brien Mine. This will be the first drilling conducted at Thompson-Cadillac since 2020 and its first deep drilling ever. (TSXV: RDS) (OTCQB: RMRDF) News Release
It is understood that Adriatic metals is in early negotiations with Dundee Precious metals for a takeover. Yesterday, it was reported from UK press that the discussions were happening. In response, Adriatic published a news release stating the company has provided Dundee access to limited due diligence information, thus somewhat confirming the discussions between the two parties. Dundee is required to announce its offer by the 17th of June.
Solaris Resources has entered into a US$200M financing agreement comprising of a gold stream and a net smelter return royalty with Royal Gold. The Financing Agreements provide the Company with long-term liquidity required to fund all value accretive, de-risking activities through to a final investment decision (“FID”), in addition to paying off the senior secured debt facility with Orion Mine Finance. The deal is comprised of three tranches after specific development deliverables. Royal Gold will also receive gold deliveries equivalent to 20 ounces per 1 million pounds of copper produced, which is expected to represent only a small percentage of the gold over the life of mine. Royal Gold also received a .3% royalty on all metal production, which will increase annually by .0375% to a maximum of .6%. Solar says since the funding package is restricted to the Warintza cluster, the company retains exposure to significant exploration upside potential. (TSX: SLS; NYSE: SLSR) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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