Palm Beach, FL – April 27, 2021- Experts who follow the metals markets saw last year that when the pandemic first reared its head News of mine closures and restrictive measures throughout the mining supply chain, not to mention a disastrous fall in travel, had adversely affected mining operations. Falling asset prices, which had also spread into the precious metals sector, did not help margins for the miners who could still operate in the constrained economy. However, the rising precious metals prices since then have buoyed the mining sector, which have begun to see sharp upward ticks across many popular mining funds. Silver is the more volatile of the precious metals from a price perspective. While gold tends to move in comparatively gentle movements, silver’s chart often exhibits more violent price movement tendencies. This is largely in part to silver’s industrial usages, where price movements reflect the futures market expectations of oncoming supply and demand. An article in FXEmpire added: “… many investors still see silver as a monetary metal, and when gold moves steadily to the upside like it has since Q4 of 2018, silver tends to follow in the same direction. Given the gold silver ratio being near all-time highs, many precious metals investors feel as though silver has much more room to run to the upside to bring that ratio back down to historic norms.” Active mining stocks mentioned in today’s commentary include: Ridgestone Mining Inc. (OTCQB: RIGMF) (TSX-V: RMI), Roxgold Inc. (OTCQX: ROGFF) (TSX: ROXG), Kirkland Lake Gold Ltd. (NYSE: KL) (TSX: KL), Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL), New Gold Inc. (NYSE: NGD) (TSX: NGD).
The FXEmpire article continued: “Gold and silver prices heading higher are not to be unexpected given the deflation in the world economy due to COVID concerns, and the shutdowns in various local economies. Both precious metals are living up to their reputations as stores of value and safety valves as the global economy lets off some of its steam. I believe the charts are following the confidence of the markets in the COVID economy. The drop in mining equities was likely due to liquidations and fear from an unknown adversary in the virus. The gains in the indexes, resultant from increased investment into physical precious metals and their associated funds, has pushed the miners higher as more of the supply chain begins to reopen. Conflicting US economic data will continue to support the bullish precious metals equity charts… The damage being done to the economy now is weakening the structure available for a recovery. Despite the encouraging jobs numbers, it is a drop in the bucket compared to the losses. Given all time highs in sovereign and corporate debt, it does not appear we are anywhere near out of the woods as we battle the effects of a virus-ravaged economy.”
Ridgestone Mining Inc. (TSX-V: RMI) (OTCQB: RIGMF) (FSE: 4U5) BREAKING NEWS – RIDGESTONE TO DELIVER NI 43-101 RESOURCE ESTIMATE FOR GUADALUPE & CALVO – Ridgestone Mining (“Ridgestone”) is pleased to announce the engagement of Marc Jutras of Ginto Consulting Inc. to prepare an independent National Instrument (NI) 43-101 mineral resource estimate for the Guadalupe y Calvo (GyC) gold-silver project in Mexico. The resource estimate is being prepared based on an extensive review of historical exploration results, including detailed sectional interpretation, and is anticipated to be completed in the coming weeks.
Marc Jutras, P.Eng. M.A.Sc. is a highly experienced geostatistician with over 35 years of experience in mineral resource modelling and estimation including holding senior roles with Barrick Gold Corp. and Placer Dome Inc. Mr. Jutras founded Ginto Consulting Inc. in 2015, a firm specializing in the estimation of mineral resources and reserves for mining projects at various stages of development. Previously, Mr. Jutras was Director of Mineral Resources of Alamos Gold for six years (2009 – 2015) where he was responsible for mineral resource and reserve estimation of the Mulatos mine in Mexico, the Agi Dagi / Kirazli / Camyurt project in Turkey, the Esperanza project in Mexico, and other projects within Alamos’ portfolio. Mr. Jutras holds a Master’s degree in Applied Sciences (M.A.Sc.) from Ecole Polytechnique of Montreal and Bachelor’s degree in Geological Engineering (B.Eng) from University of Quebec in Chicoutimi. Mr Jutras is a registered professional engineer in the provinces of British Columbia, Quebec and Newfoundland.
Jonathan George, CEO, commented: “We are delighted to be forging ahead with our projects in Mexico and to retain the services of Mr. Jutras and Ginto Consulting to work on a resource estimate for our GyC project. Our technical team has been extensively reviewing the database of past exploration and are highly encouraged about the opportunity for the property to host a significant resource. Marc brings a wealth of experience in resource estimation and having specifically having worked on a number of significant projects in Mexico.” CONTINUED…. Read this full release more news for Ridgestone Mining by visiting: https://www.financialnewsmedia.com/news-rmi/
In other mining news of note:
Roxgold Inc. (OTCQX: ROGFF) (TSX: ROXG) and Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) recently announced that they have entered into a definitive agreement (the whereby Fortuna will acquire all the issued and outstanding securities of Roxgold pursuant to a plan of arrangement (the “Transaction”). Under the terms of the Transaction, Roxgold shareholders will receive 0.283 common shares of Fortuna and C$0.001 for each Roxgold common share held. Upon completion of the Transaction, existing Fortuna and Roxgold shareholders will own approximately 64.3% and 35.7% of the pro forma company, respectively.
The exchange ratio implies a consideration of approximately C$2.73 per Roxgold common share based on the closing price of the Fortuna common shares on the Toronto Stock Exchange on April 23, 2021, representing a 42.1% premium to the closing price of Roxgold on the TSX on the same date. Based on the 20-day volume weighted average price of the Fortuna shares and the Roxgold shares on the TSX for the period ending April 23, 2021, the exchange ratio implies a premium of 40.4% to Roxgold shareholders. The implied fully diluted in the-money equity value of the Transaction is estimated at approximately C$1.1 billion.
Kirkland Lake Gold Ltd. (NYSE:KL) (TSX:KL) recently announced production results for the first quarter of 2021 (“Q1 2021”) of 302,847 ounces, which exceeded guidance for the quarter of 270,000 – 290,000 ounces. The strong results versus guidance largely resulted from higher than expected production at both Fosterville Mine (“Fosterville”) and Detour Lake Mine (“Detour Lake”) in March, with Fosterville benefiting from significant grade outperformance and Detour Lake achieving higher than planned grades and tonnes processed. Also during Q1 2021, the Macassa #4 Shaft project remained ahead of schedule with shaft sinking reaching the 5,000-foot level as at March 31, 2021 and the project remaining on track for completion in late 2022. All dollar amounts are expressed in U.S. dollars, unless otherwise stated.
In a press release dated December 10, 2020, the Company indicated that production in 2021 would be weighted to the second half of the year largely reflecting mine sequencing, with lower grades expected at all three cornerstone assets early in the year, particularly in the first quarter. At that time, production guidance was provided, including 600,000 – 650,000 ounces for the first half of the year and 700,000 – 750,000 ounces for the final six months of 2021. The Company also indicated that all-in sustaining costs per ounce sold (“AISC/ounce”)1 were expected to average over $900 in the first six months of 2021, and be highest in Q1 2021, improving to approximately $700 during the second half of the year. In a press release dated February 25, 2021, the Company reiterated this guidance and provided additional information on expected production in the first half of 2021, indicating that production was expected to total 270,000 – 290,000 ounces in Q1 2021 and 330,000 – 360,000 ounces in the second quarter of the year (“Q2 2021”).
Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) recently announced that the Company sold approximately 17,400 attributable gold equivalent ounces and realized preliminary revenue of $31.0 million during the three months ended March 31, 2021, both representing a record for the Company. Preliminary cost of sales, excluding depletion for the three month period was $5.4 million resulting in cash operating margins1 of approximately $1,470 per attributable gold equivalent ounce.
The Company’s normal course issuer bid (“NCIB”) is being renewed after the existing NCIB expires on April 5, 2021. The current NCIB provides Sandstorm with the option to purchase up to 17.2 million of the Company’s common shares (“Common Shares”) from time to time when Sandstorm’s management believes that the Common Shares are undervalued by the market. Under the renewed NCIB, Sandstorm may purchase up to 19.1 million of its Common Shares, representing approximately 10% of the Company’s issued and outstanding Common Shares of 194,500,210 as of March 31, 2021, less those Common Shares held by the Company’s directors and senior officers. The Toronto Stock Exchange (“TSX”) has accepted the Company’s notice that it intends to proceed with a NCIB in accordance with TSX rules. Purchases under the renewed NCIB may commence on April 7, 2021 and will terminate on the earlier of April 6, 2022, the date that Sandstorm completes its purchases pursuant to the NCIB as filed with the TSX, or the date of notice by Sandstorm of termination of the NCIB.
New Gold Inc. (TSX: NGD) (NYSE American: NGD) recently announced that three employees at the Rainy River Mine in northwestern Ontario received positive COVID-19 test results. An additional seven employees have tested non-negative with the in-house PCR device and the mine is awaiting confirmation from the Northwestern Health Unit (“NWHU”). All affected individuals have been isolated and are no longer on site.
“The Company has a comprehensive COVID-19 response plan in place and the health and safety of our workforce, and our communities remain our number one concern. We will support all initiatives that align with that objective,” stated Renaud Adams, President and CEO.
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