Morning Briefing: Sierra Madre Begins Underground Development at Nazareno
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall.
It's Tuesday September 30th
Gold began the week with another strong move higher yesterday, with gold futures closing the day at $3,855 an ounce. Silver also had a strong start to the day, closing just over $47 an ounce on the front month contract. We saw some exhaustion signals throughout the day. The gold miners on the GDX and GDXJ charts opened with a gap higher but slowly were sold down throughout the trading hours. This morning, the precious metals are showing a bit of red in morning trading. It’s been a great move for the metals and the miners, so a calming pause would be a healthy one for this market. Copper had a nice day yesterday, as traders continue to wrestle with supply concerns following the shutdown of Grasberg. It closed just below $5 a pound yesterday.
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…Vizsla Silver.
Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 375,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at https://vizslasilvercorp.com/
And here’s what you need to know this morning…..
Sierra Madre Gold and Silver says that underground development has started at the Nazareno silver and gold mine within the La Guitarra silver-gold complex in Estado de Mexico, Mexico. To date, over 700 tonnes of mineralized material have been delivered to the Guitarra processing plant from Nazareno. This material was not included in the Mineral Resource Estimate. Nazareno hosts more than 8 and a half million silver equivalent ounces in both indicated and inferred based on their last mineral resource estimate in 2023. (TSXV: SM) (OTCQX: SMDRF) News Release
NGEx Minerals says it will sell 4 million common shares of the company in a non-brokered private placement for a total of C$100 million. Net proceeds of the Private Placement will be used towards furthering exploration programs at the Lunahuasi project in San Juan Province, Argentina, including, if permits are approved, construction of an exploration adit including any supporting infrastructure, and work in support of an application for inclusion of the Lunahuasi project under Argentina's RIGI. The Lundin Family Trusts have indicated their intention to subscribe for the whole book. The Trust is currently NGEx’s largest shareholder. (TSX: NGEX) (OTCQX: NGXXF) News Release
Cornish Metals reported results of their preliminary economic assessment for its South Crofty project in Cornwall, United Kingdom. The PEA shows an after-tax Net Present Value (“NPV6%”) of £180 million (US$235 million) and Internal Rate of Return (“IRR”) of 20%. All-In Sustaining Cost (“AISC”) is estimated at approximately US$14,500 /tonne of tin over the Life of Mine (“LOM”), compared to a tin price recently trading at approximately US$35,000 /tonne - positioning South Crofty in the lowest quartile of the industry cost curve and among the lowest cost producers. Pre-production capital is estimated at £198 million, with pay back in 3.3 years. (AIM/TSX-V: CUSN) News Release
AbraSilver published new drill results from the Diablillos project in Argentina. The holes continue to expand oxide-hosted gold mineralization to the east of the Oculto deposit and oxide silver mineralization within the JAC zone, highlighting the continued strong exploration upside potential across the Diablillos system. At Oculto East, drilling returned 1m of 108.9 g/t gold from 288m downhole. At JAC, results included 29m of 65 g/t Ag and 32m of 100 g/t silver. Silver mineralization at JAC remains open to the south and west with potential to extend both the tank and heap leach Mineral Resources in these directions. (TSX: ABRA) (OTCQX: ABBRF) News Release
Gold Hart Copper shared its plans for the third phase of drilling at its flagship Tolita gold-copper-molybdenum asset in the Vicuña District of Chile. the Company has secured a Boart Longyear LF 90D diamond drill rig, rated to a depth capacity maximum of 1,193 meters. It is anticipated that the drill will be mobilized within the next week, with drilling to officially recommence a week thereafter. Gold Hart geologists hope to drill at a rate of approximately 700-900m per month. (TSXV: HART) News Release
Cartier Resources has begun working with Soutex, a firm specializing in mineral processing and metallurgy, to carry out the first advanced and comprehensive metallurgical sampling and testwork program for the Main Sector of its Cadillac Project. The program is aimed at defining expected gold recovery rates and establish first-time met recovery data for the East Chimo and West Nordeau satellite deposits. To achieve the program objectives, the testwork will be conducted on NQ-size half-drill core intervals spatially selected to be representative of both the type of mineralization and the average head grade of the resource. (TSXV: ECR) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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