Gold prices are quickly regaining their shine. In fact, outside of rate hike decisions, and fears of recession, the World Gold Council (WGC) just said that about a quarter of central banks plan to increase their gold holdings over the next 12 months as the future role of the US dollar comes into question, as noted by Yahoo Finance. That follows news that central banks added 228 tons of gold to global reserves in the first quarter of 2023, which is the highest rate seen in a first quarter since 2000. In addition, as noted by Forbes.com, “Central banks are underpinning what some analysts predict may be a new bull run on gold. Economic uncertainty and a global realignment are fueling the demand for the precious metal.”
With demand showing no signs of cooling, investors may want to keep an eye on gold stocks, such as Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Royal Gold Inc. (NASDAQ: RGLD).
Look at Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF), For Example
Luca Mining Corp., (formerly Altaley Mining Corporation) is pleased to provide the following update on metallurgical test work to improve precious metals recoveries at its Campo Morado Mine, located in the state of Guerrero, Mexico.
Highlights
- Pilot-scale testing of Jameson Cell technology at Campo Morado, operating at micro-fine grind levels, demonstrates the ability to significantly improve recoveries and concentrate grades across both copper and lead streams, together with moderate improvements in the zinc stream and some reductions in operating costs.
- Historical testing demonstrated the ability of the Jameson Cell to achieve final concentrate grades of between 13% - 28% copper, at excellent unit recoveries of between 70-90%. For reference, current copper recovery is approximately 51%, with a concentrate grade of 13-16% Cu.
- The Company also successfully tested the Jameson Cell’s ability to produce a precious metal rich pyrite concentrate from micro-fine regrinding of both historic 2010-2015 tailings and fresh tailings. This will be the subject of a subsequent press release.
“Both the historical and 2022 pilot-scale Jameson Cell testing generated very encouraging results”, said Mike Struthers, CEO. “As we continue to stabilise the overall operation, the next step with the Jameson Cells is to have all the testing reviewed by third party experts, then prepare a study to define how the cells would be added into the existing circuits, the costs and schedule for doing so, and an economic evaluation. We expect to make significant progress towards this goal during the balance of 2023.”
Background
Jameson Cell Pneumatic Flotation pilot plant testing was first conducted at Campo Morado by former owner Nyrstar during 2014, investigating the potential to increase recoveries of copper and lead into a bulk copper-lead concentrate, zinc into a zinc concentrate, and to increase corresponding concentrate grades. Results were very positive but, as a result of depressed metal prices in 2015, Nyrstar placed the operation into care and maintenance and the mine was subsequently acquired by Luca.
To expand on this testing, Luca contracted Glencore Technologies to provide a second Jameson Cell pilot plant. This operated for three months during 2022, testing increased recoveries in the zinc roughers and 1st stage lead cleaning, and subsequently successfully tested the ability to make a precious metals-rich pyrite concentrate from both historic and fresh tailings. Details of the pyrite concentrate production from tailings will be included in a subsequent news release.
Both the 2014 Nyrstar and the 2022 Luca Jameson Cell pilot plant testing returned very encouraging results in all process streams tested, clearly demonstrating that the addition of Jameson Cell technology, processing at micro-fine grind levels, has the potential to significantly improve recoveries and concentrate grades of both copper and lead streams, and could provide moderate improvement to current satisfactory zinc recoveries, all of which could significantly increase revenues.
A major advantage of the Jameson Cell technology is that the cells are smaller than conventional flotation cells, and they have no moving parts so they can be easily maintained online, without shutdowns. Further information on the principles of the Jameson Cell technology can be found here: Operating principles (glencoretechnology.com)
Other related developments from around the markets include:
Barrick Gold Corporation announced the declaration of a dividend of $0.10 per share for the first quarter of 2023. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q1 2023 dividend will be paid on June 15, 2023 to shareholders of record at the close of business on May 31, 2023. “Through the maintenance of a robust balance sheet, we are able to continue to provide a strong base dividend to our shareholders, with our Performance Dividend Policy providing shareholders with the potential for additional upside going forward,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
Newmont Corporation announced that following completion of due diligence it has entered into a binding Scheme Implementation Deed under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement. “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, President and CEO of Newmont. “Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets. Leveraging our experience from the acquisition of Goldcorp four years ago, we are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimization opportunities, both part of our strategy to maximize value for shareholders and other stakeholders.”
Franco Nevada Corp. reported its first quarter results. Our diversified portfolio continues to generate strong cash flows and high margins. The first quarter was impacted by production disruptions at Cobre Panama and Antapaccay as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2 with both assets having returned to normal operations. “Cobre Panama’s CP 100 Expansion is on-track for year-end and we look forward to initial contributions from Magino, Se´gue´la and Salares Norte during the year”, commented Paul Brink, CEO. Franco-Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities.
Royal Gold Inc. reported net income of $63.9 million, or $0.97 per share, for the quarter ended March 31, 2023 on revenue of $170.4 million and operating cash flow of $108.7 million. Adjusted net income1 was $63.3 million, or $0.96 per share. Our first quarter provided a solid start to 2023,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Steady portfolio performance drove strong revenue and operating cash flow, which allowed us to repay $75 million of our outstanding revolving credit facility balance while enhancing our strong liquidity position.”
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 Luca Mining Corp. by Luca Mining Corp. We own ZERO shares of Luca Mining Corp. Please click here for disclaimer.
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