Gold Seeker Issue #85 ~ This Week In Mining: Have Gold Stocks Bottomed?, Q3 Production..

The mining stocks look like they may have bottomed this week, but they will need to continue their upward trajectory for a fair while longer. Gold traded sideways most of the week, and it was notable that the mining stocks [as measured by the XAU, HUI, and GDX] moved higher on several down days this week. Granted, they were in deeply oversold territory, but as we've mentioned, this is a period of seasonal strength in addition to a horrible jobs report. 194k jobs were created in September, greatly missing the consensus estimates of 490k jobs. The FED is talking and acting like we are still in the midst of robust recovery; however, the economic data is such that for every good piece of economic news, there is an equally bad piece of economic data released, aka stagnation.

$ABRA, $AYA, $CXB, $DPM, $EXK, $EXN, $GATO, $GBR, $GPL, $HIGH, $IPT, $MGM, $MUX, $MAI, $OR, $ODV, $OSK, $SAND, $TXG

AbraSilver Resource Corp: Reported drill results from the latest diamond drill holes of the Company’s ongoing Phase II drill program on its Diablillos property in Salta Province, Argentina. Drill results highlights:

• 9.0m @ 126 g/t AgEq
• 0.68m @ 230 g/t
• 3m @ 1,157 g/t [Sulphides]
• 21m @ 215 g/t
• 64.5m @ 171 g/t

Aya Gold & Silver: Reported additional underground assay results from its 2021 drill exploration program, at the Zgounder silver mine in Morocco. The emerging mid-tier silver producer has been very impressive regarding the potential size and scale at Zgounder. Highlights from this release include:

• 12m @ 2,417 g/t Ag [continuation of eastern trend at depth].
• 13.2m @ 480 g/t [validation of the vertical continuity].
• 7.2m @ 3,272 g/t and 7.2m @ 3,101 g/t [extension of high-grade underground mineralization in an untested area below current operation].
• 4.5m @ 1,030 g/t and 5.0m @ 537 g/t [definition drilling].

Calibre Mining: The Company announced Q3 operating results and cash balance as of September 30, 2021. Gold production totaled 44.58k oz., bringing year-to-date (YTD) gold production to 133.53k oz., which is on track to deliver full-year results at the high-end of guidance as Q4 is anticipated to be the strongest quarter of 2021. At the end of Q3, Calibre increased its cash position to $72.9m or a $6.6m increase at the end of Q2. The Company continues to fire on all cylinders, though it's not reflected in the stock price. In Q3, 843tpd of ore was delivered from the Pavon Norte mine to the Libertad mill, a 53% increase over Q2 and averaged 1,077tpd in September. More importantly, in Q3, the Company continued to advance its next major "spoke," the Eastern Borosi Project. Calibre reported the highest-grade intercepts to date, completing infill drilling and resource expansion/discovery drilling. PFS study level technical studies are underway, and Calibre is on target to submit permit applications in early Q1 2022 for open-pit and underground operations.

Dundee Precious Metals:  Announced preliminary production results from its mining and smelting operations. During Q3, Dundee sold 66.5k oz. Au and 7.8m lbs. Cu (from mining operations) and smelted 55,100 tons of complex contrate. The Company remains on track to achieve full-year 2021 guidance for gold and copper production of 243-285k oz and 31-36m lbs. and 200-220kt of smelted complex concentrate.  

Endeavour Silver: Reported Q3 production numbers. Endeavour reported production of 1.305m oz. Ag and 10.54k oz Au (or 2.1m AgEq oz using an 80:1 GSR). Management has increased 2021 consolidated production guidance to 7.7 – 8.0 million oz silver equivalents to reflect continued strong performance at Guanacevi due to higher-than-expected grades and tonnage milled. Endeavour held in inventory 1.03m oz Ag and 1,211 oz Au of bullion and 37.1k oz Ag and 2,028 oz Au in concentrate.

Excellon Resources: Announced drill results from underground drilling at its Platosa mine in Durango, Mexico. Highlights include:

• 7.5m @ 1,570 g/t Ag, 10.40% Pb and 29.6% Zn.
• 2.5m @ 479 g/t Ag, 4.60% Pb and 2% Zn.
• 3.1m @ 1,214 g/t Ag, 8.30% Pb and 16.9% Zn.
• 0.8m @ 5,052 g/t Ag, 18.40% Pb and 1.3% Zn.
• 4.8m @ 391 g/t Ag, 6.6% Pb and 5.3% Zn
• 0.6m @ 5,012 g/t Ag, 15.8% Pb and 0.40% Zn.

Gatos Silver: The newest mid-tier silver producer reported record plant throughput and mined tonnage at its CLG mine in Q3 2021. Gatos mined a record 242,899 tons of ore, exceeding Q2 tonnage by 1.20%. Throughput also set a record, 1.50% above that in Q2 at 234,054 tons. Silver production was 20% lower at 1.7m oz due to mine sequencing. Mechanized cut & fill mining is deployed in CLG’s Central zone, a highly selective mining method resulting in better grade control, but requires significantly more development than the lower cost and more productive long-hole stoping used in the mine’s Northwest zone. Lower than expected Q3 development rates due to higher water management requirements in the Central zone impeded access to higher grade areas, with the tonnage shortfall offset by mining lower-grade material in the Northwest zone. Access to these higher silver-grade production areas has been established, and CLG expects to return to higher grades in Q4. Cost performance has been better than planned, and despite higher sustaining capital costs [$65-$75m], the Company has reduced full-year all-in sustaining cost (AISC) guidance to $16-$17/oz.  

Great Bear Resources: Reported results from its ongoing 2021 exploration program at its flagship Dixie Project in the Red Lake, Ontario. Deep drilling of the LP Fault along 1.4km of strike length successfully intersected the target geology with gold mineralization in all areas. This established high-grade and bulk-tonnage style gold over a broad area at depth, which remains open in all directions. The geology isn't similar to other deposits in Red Lake, with the closest being the Hemlo gold deposit, which was once a tier-I operation. Highlights include [Note: the following are not from infill drilling, rather they significantly extend gold mineralization to depth, which again is characteristic of a Hemlo type deposit]:

• 5.15m @ 41.76 g/t Au [from 696m downhole]
  • Including 1.20m @ 157 g/t
• 36.95m @ 6.90 g/t [from 673m]
• 22.85m @ 11.01 g/t [from 678m]
• 4.90m @ 16.92 g/t [from 525m]
• 3.15m @ 13.84 g/t [from 459m]
• 1m @ 50.50 g/t [from 587m]
• 6.30m @ 6.71 g/t [from 687m]
• 28m @ 1.84 g/t [shallow]
• 80.55m @ 1.09 g/t [shallow]
• 30.25m @ 1.08 g/t [shallow]

2022 should prove to be a catalyst year as the Company will report a maiden mineral resource estimate [MRE] that is expected to be 6-10m oz, a PEA of the LP Fault, and maiden MRE’s for Dixie Limb and Hinge zones.

Great Panther: Announced Q3 2021 production results and an operational update. During Q3, the Company produced 22.44 AuEq oz (18.42k oz Au and 280.25k oz Ag). Gold production from Tucano, its largest asset was 16.33k oz. Au, which is a bit disappointing. The Tucano mine contractor experienced maintenance issues, which led to poor fleet availability, resulting in lower mined tonnage and a delay in completing the UCS pushback activities. However, with the pushback now complete, operations should improve as heavy rainfall (+25% above historical averages) subsides and again when equipment availability issues are resolved.

HighGold Mining: The Company announced excellent high-grade drill results from the Difficult Creek Prospect, 4km northeast of the Company's JT deposit [0.75m oz. Au Indicated resources]. Difficult Creek is one of several regional prospects being explored on the Johnson Tract project in Alaska. The Company announced the results of what could be a game-changer for the project and Company: 6.40m @ 578 g/t Au, 2,023 g/t Ag, 2.15% Zn, and 0.30% Cu. The mineralized zone at Middle DC is open to expansion at depth and along strike and will be a major area of focus for the Company.

Three diamond drill rigs are currently operating on the project in concert with a regional geological mapping and geochemical sampling program, air and ground-based geophysical surveying, and a Phase I metallurgical sampling program. Drilling is divided between the JT Deposit area and regional targets, including the DC Prospect. By September 30, 13,200 meters had been completed in 34 holes (17 in the JT Deposit area and 17 on regional targets). Assays results will be released on an ongoing basis pending review and meeting Company quality assurance-quality control protocols. An updated MRE is planned for the JT Deposit in early 2022, following the completion and receipt of all assays from the 2021 drill program.

Impact Silver: Announced high-grade silver results from underground development drilling in the Lipton area of its Guadalupe mine. Drill holes covered the vein system over a strike length of 430m and a vertical distance of 200m. Highlights of recent drilling include:

• 2.50m @ 327 g/t Ag
• 1.29m @ 691 g/t
• 2.85m @ 257 g/t
• 3m @ 226 g/t
• 1.90m @ 443 g/t
• 1.69m @ 472 g/t
• 2.81m @ 238 g/t
• 2.57m @ 187 g/t
• 1.20m 2 423 g/t

The Lipton and Liptonia Veins have been significant production veins in the Guadalupe Mine since the 1970s, long before IMPACT acquired the project in 2006. Before then, historical records describe mining at Guadalupe going back almost 500 years to 1529. Lipton / Liptonia has been mined and traced over a strike length of 1.5km’s to a depth of over 200m and remains open for extension. IMPACT continues mining at Guadalupe, which currently provides almost 50% of mill feed to the 550tpd Guadalupe processing plant located 40m from the mine entrance.

Maple Gold Mines: Reported results from the final nine holes completed during the 10,217m winter drill campaign at the Douay Gold Project. Highlights include: 1.0m @ 334 g/t Au (once of the highest-grade intercepts ever encountered at Douay), 0.7m @ 72.7 g/t, 15m @ 1.5 g/t.

McEwen Mining: The high-cost junior gold producer reported Q3 production of 32.1k oz Au and 792k oz Ag (or 42.9k AuEq oz], bringing the year-to-date nine-month total to 114.3k AuEq oz. Operations at Black Fox should improve throughout 2022 (and into 2023) as mining has transitioned to the Froome deposit, where commercial production was achieved on September 19, 2021. The underground infrastructure at Froome is expected to be fully developed by June 2022. Thus-far at Froome, there have been encouraging drill results from near-mine exploration designed to extend Froome resources and mine life, proving more time to bridge potential future production from the Grey Fox and Stock deposits. The Company will release an updated MRE at Froome and life of mine plan with the release of the Fox PEA in late Q4, 2021.

Minera Alamos: Provided an update on the ongoing pit optimization drilling program at the Nicho complex (Santana gold project) in Sonora, Mexico. In addition, the Company provided an update on various optimization initiatives and studies underway during the ongoing ramp-up of gold mining operations. Drill highlights include: 55.3m @ 1.54 g/t Au 284m @ 0.69 g/t. 152.7m @ 0.77 g/t, 48.2m @ 1.21 g/t, and 53.7m @ 0.91 g/t.

Optimization measures include:

• Blast pattern modifications to minimize the amount of drilling/explosive required to obtain optimal rock fragmentation.
• Analysis of existing open pit blast hole sample data to determine required quantities and spacing of samples required for analysis to estimate mineral quantities and grades produced from mining operations efficiently.
• Crushing and screening campaigns utilize run-of-mine material with the equipment available at the site to determine maximum throughput levels and optimal size settings for different crushing phases.
• Mining equipment cycle time analysis to different dumping points to optimize truck traffic between the mine, leach pad, and various waste dump locations.
• Analysis of leach pad extraction solution flows and concentrations to confirm profiles of gold recovery curves versus previous Santana project test plant data; and monitoring and optimization of reagent addition rates and concentrations.
• Modifications to optimize the overall mine contractor fleet to accommodate commercial production targets.

Osisko Gold Royalties: Announced third-quarter deliveries (attributable production), sales and operating cash margins, and asset updates. In Q3, Osisko earned 20,032 AuEq oz. [22,484 oz. including the Renard stream, which re-commences deliveries in 1H 2022. The Company generated revenue of C$50m with a cash operating margin of 97% [93% including Renard]. 2021 is a transition year for the Company [while also realizing material attributable production growth relate to 2020] as several assets will soon be coming online and drive attributable production growth in 2022: Santana, San Antonio, Mantos Blanco's expansion, Renard coming back on-stream, higher production from Eagle, and Ermitano.

Canadian Malartic: Yamana Gold provided an update on the district exploration program. It has discovered a deep eastern extension of the East Gouldie structure and a new zone located 400 meters south of East Gouldie and intercepted further promising mineralization below the known East Amphi deposit. These results support the continued growth of Canadian Malartic as it transitions from an open-pit mine to a large underground operation with a decades-long mine life.

Eagle: Victoria Gold announced it achieved record gold production in August and stacked more than one million tons on the leach pad for July and August. This is good news as 2022 should mark the first year of Victoria producing at or over 200k oz. Au will be followed by project 250K in 2023 [targeting annual production of 250k oz. Au].

All the other asset updates highlight successful exploration results. These include El-Dorado [Lamaque/Ormaque], SSR Mining [Seabee], Osisko Development [Cariboo], Osisko Mining [Windfall/Golden Bear]. 

Osisko Development: The Company announced additional drill results from the 2021 exploration and category conversion (infill) drill program at Cariboo. Highlights include:

• 4.65m @ 13.05 g/t Au
• 3.90m @ 10.83 g/t
• 1.05m @ 63.90 g/t
• 4.5m @ 16.63 g/t
• 1.10m @ 84.1 g/t
• 3.15m @ 13.10 g/t
• 2.90m @ 17.60 g/t
• 10.10m @ 4.44 g/t
• 2.60m @ 19.37 g/t
• 11.40m @ 13.32 g/t
• 17.90m @ 6.51 g/t
• 1.30m @ 47.4 g/t
• 3m @ 11.15 g/t
• 11.35m @ 7.38 g/t
• 0.95m @ 112.50 g/t
• 8.10m @ 7.98 g/t
• 7.30m @ 11.99 g/t

Osisko Mining: The Company provided an update regarding its ongoing drill program at its Windfall project. Select drill highlights include: 2.3m @ 3,979 g/t Au, 2m @ 79.7 g/t. 2.2m @ 82.7 g/t, 4.2m @ 25.6 g/t, and 2.9m @ 35.8 g/t.

Sandstorm Gold Royalties: The Company announced Q3 attributable production and sales. Sandstorm also announced it had increased its credit facility to $350m providing ample capacity to consummate new deals. Sandstorm sold 15.5k AuEq oz, generating revenue of C$27.4m, with a cash operating margin of $1,540/oz.

Torex Gold: Reported Q3 production of 111.22k oz. Au from its ELG mining complex in Mexico. The Company sold 118.98k oz. Au in the quarter at an average realized gold price of $1,785/oz. Through the first three quarters of the year, Torex produced 358.78k oz. Au and is on track to achieve the upper end of 2021 guidance [430-470k oz.].