Gold may still be a golden opportunity. After running to $2,000 earlier this year, Goldman Sachs still believes the metal could see $2,500 by the end of the year—especially with fears of a potential recession. According to Jeff Currie, Goldman Sachs global head of commodities research, as quoted by Bloomberg, “It’s a perfect storm for gold right now.” In addition, “There’s three legs to this story. One, you have strong investor demand for gold over concerns about inflation, recessions, and downturn in places like Europe. The second leg is central bank buying … and with the situation in Russia, they’re likely to accumulate dollars in reserves they can’t do anything with. What can they do with it? Buy gold. Then you have central banks in places like China and Turkey diversifying for de-dollarization reasons. Then you have diversification reasons in places like Brazil and India.” That’s all positive news for companies such as Reyna Silver Corp. (TSXV: RSLV) (OTCQX: RSNVF), Hecla Mining Company (NYSE: HL), SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM), First Majestic Silver Corp. (NYSE: AG) (TSX:FR), and Enduro Metals Corp. (TSXV: ENDR) (OTCQB: ENDMF).
Look at Reyna Silver Corp. (TSXV: RSLV) (OTCQX: RSNVF), For Example
Reyna Silver Corp. reported results from 19 holes totaling 7964.50 m meters of its 10,000-meter Stage 1 drilling program, on its 100% owned Batopilas Project in southwestern Chihuahua, Mexico.
This drilling program follows up on high-grade gold values discovered during a 2021 trenching program (See press release of February 4, 2021), and subsequent high-silver and gold zones intersected by Hole BA21-30 (See press release of September 8, 2021).
Highlights
- A high-grade gold zone is emerging in the northeastern (NE) portion of the claim package showcased by Hole BA21-42A (See Table 1).
- The NE gold zone overlaps the southwestern (SW) native silver zone, indicating two overlapping mineralization sources (Figure 1).
- Building on the new exploration potential presented by these recent discoveries, the company is undertaking a selective sampling survey (first stage results available in Section 3) to be followed by a detailed structural study and additional geophysics to refine drill targeting.
“As silver explorers, we came to Batopilas - historically the highest-grade Native Silver District in Mexico - to look for silver, and now we’re unexpectedly finding minable widths of high-grade gold. This new zone of parallel gold-bearing veins in the NE opens up exciting new exploration opportunities for both the gold and the silver,” said Jorge Ramiro Monroy, CEO of Reyna Silver.
“Finding visible gold in core was thrilling, but to confirm the conventional assay results we had many intercepts reanalyzed by Metallic Screen Assay, which gives a more accurate result for visible gold. As expected, this showed significantly higher grades than standard methods both for key drill holes reported previously and the intercepts reported here. A good example of this is the 0.25m high-grade intercept in Hole 34, which increased from 28.7 g/t Au to 36.1 g/t Au.”
“Multiple mineralization centers showing different styles of mineralization are hallmarks of important precious-metals districts, so finding high-grade gold in addition to the historic high-grade silver is a very positive reason to take a new look at our district-scale vision,” said Dr. Peter Megaw, Chief Exploration Advisor to Reyna Silver. “We need to try to link the gold and silver centers by improving our understanding of the plumbing through a new structural study followed by some geophysics-hopefully this should open a number of new potential target areas.”
Building on the high-grade gold intercept found in BA21-34 in the Teodoro and Orochi vein area, additional drilling in the area focused on identifying and refining the characteristics of the gold mineralization. Holes BA21-40 to BA21-42A intersected zones of visible gold surrounded by more dispersed gold mineralization associated with pyrite and amphiboles.
This is a marked divergence from the calcite-dominant veins which contained the historic district’s native silver ore.
Based on the high-grade gold and silver mineralization cut by Hole BA21-30, the program then moved south to the Cobriza area to drill six holes (BA21-43 to BA21-49). While gold grades decreased relative to the NE zone, this area contained both silver and gold mineralization styles in proximity to one another. This leads us to believe that there are probably two mineralization centers generating different styles of mineralization.
These newly revealed features necessitate a re-evaluation of existing data as well as additional ground, structural and geophysical surveys. Understanding the relationship between the two styles of mineralization could be a critical tool for exploration in this district.
Other related developments from around the markets include:
Hecla Mining Company announced fourth quarter and full-year 2021 financial and operating results. "2021 was an outstanding year for Hecla as we generated record revenues and adjusted EBITDA resulting in the second highest free cash flow in our 130-year history,” said Phillips S. Baker Jr., President and CEO. “The year also positions Hecla for future success with our exploration program delivering our highest silver reserves in more than 20 years and the Lucky Friday’s establishment of a new, innovative mining method that should be both safer and more productive. This method, which we call the Underhand Closed Bench method will allow the Lucky Friday to increase projected production in 2022 by almost a million silver ounces over 2021, which was a million and half more than 2020.”
SSR Mining Inc. reported consolidated financial results in accordance with U.S. GAAP for the full year ended December 31, 2021. In addition, the Board of Directors declared a quarterly cash dividend of US$0.07 per common share, an increase of 40% over the third quarter dividend, payable on April 4, 2022 to holders of record at the close of business on March 7, 2022. This dividend qualifies as an 'eligible dividend' for Canadian tax purposes. Rod Antal, President and CEO said, "SSR Mining ended 2021 with another strong quarter, rounding out a year of operational outperformance, strong free cash flow generation and peer-leading capital returns. We delivered full-year gold equivalent production at the top-end of our 2021 guidance range and full-year AISC * below our previously lowered guidance range despite pervasive inflationary pressures across the industry. Subsequently, last month we announced our inaugural three-year operating outlook and increased our base dividend by 40%.
First Majestic Silver Corp. announced its 2021 Mineral Reserve and Resource estimates for its material mineral property assets with an effective date of December 31, 2021. The Company completed a record exploration program totalling 227,845 metres of drilling at its operating mine properties in 2021, representing a 46% increase in metres drilled compared to the prior year. Approximately 80% of this drilling was focused on near mine or brownfield targets while the remainder was focused on greenfield targets looking for new discoveries. During 2021, the Company added more ounces into Reserves than were depleted following a record 26.9 million silver equivalent ounces in annual production.
Enduro Metals Corp. reported a large chargeable geophysical anomaly has been identified using induced polarization (IP) geophysics at Burgundy Ridge Zone on its 100%-owned Newmont Lake Project, located in NW British Columbia’s Golden Triangle. Where intersected, the chargeable anomaly correlates with copper and gold mineralization intersected at Burgundy Ridge to date. The results of this survey provide further strong evidence of a large copper-gold porphyry system underlying current drilling at Burgundy.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Reyna Silver Corp. by Reyna Silver Corp. We own ZERO shares of Reyna Silver Corp. Please click here for full disclaimer.
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