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Best Drill Interceptions In The Metals Mining Sector For The Week Ended May 3, 2020



  • The Red Chris project of Imperial and Newcrest is looking similar to Cadia.
  • Balmoral announces bonanza gold grades at Fenelon.
  • Roxgold's Seguela gold project in the Ivory Coast continues to grow.

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(Source: Exploration Insights)


If you're into investing in the mining sector, you should know the above chart very well. This series covers the three projects with the most significant drill interceptions over the past week as well as the prospects of the companies which own these projects. I will use data from the weekly bulletin of opaxe, which can be found on its website. Note that the drill interceptions are converted into grades of gold equivalents using the following formula:

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(Source: opaxe)

Opaxe has chosen gold as the metal equivalent for all conversions, as it considers gold to be the most widely used and best-understood benchmark to determine or appreciate the grade tenor of a drilling intercept.

1) Red Chris copper-gold mine in Canada

On April 29, Imperial Metals (OTCPK:IPMLF) released the Q1 2020 production and exploration update for the Red Chris mine and the best drill result for the period was 628m @ 1.7g/t Au and 0.91% Cu from 542m in hole RC611. This is equal to 1,606(AuEq.)m and the hole has confirmed the presence of a discrete high-grade zone averaging more than 5g/t Au.

(Source: Imperial Metals)

Partial results for this hole were reported on March 10 with 276m @ 3.3g/t Au and 1.7% Cu from 684m.

Imperial Metals owns 30% of Red Chris and the other 70% is held by Newcrest (OTCPK:NCMGF). Red Chris a copper-gold porphyry with an operating open-pit mine in the red-hot Golden Triangle in British Columbia:

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(Source: Newcrest)

In Q1 2020, the mine produced 22.5 million pounds copper and 17,427 ounces gold. Red Chris's mine life runs out in 2043, and the project, currently, has a mineral resource of 14 million ounces of gold and 4.1 million tonnes of copper.

In February 2020, the JV company between Newcrest and Imperial agreed to

This article was written by

Gold Panda profile picture

I have been investing in stocks since 2007. I have no preference for sectors or countries - I'm as comfortable owning a part of a cement miner in Peru as holding shares in a wheat farming firm in Bulgaria. If it's a value stock - great. If the dividend or share buyback yield is high - even better.

- Disclosure: I am not a financial adviser. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a financial adviser. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading.

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Comments (4)

Chancer profile picture
@ Gold Panda;

Thanks for article.

I own BALMF. Good for entry into Wallbridge.
New BALMF drill results may mean that WLBMF did not overpay.
"Roxgold looks somewhat expensive at the moment as its market cap has almost doubled since March 2020"

A bit unfair. It's Mkt cap is still below what it was in Autumn/fall of 2019 and there's not many miners whose share price has not doubled since the March lows. On an EV/production ozs basis it's valuation is amongst the lowest:

Hi Gold Panda,
I always look forward to your weekly update of the best drill intercepts. It is great oversight! And a possibility to look for promissing compagnies!

I noticed that Monarch Gold is on the list for this week. Though it dit nog make it to the best three of the bunch. I regret this. I'm following this company for a while. For now, I'm not invested in it.
The intercept looks very promessing though.
Fayolle is not their flaggship project. It is rather a small deposit. Nevertheless the PEA does point to profittability.
What is your idea about the intercept? Do you concinder Monarch as a potential good investment?
Keep up the good work!
Glad I own Wallbridge Mining. I hope mgt knows what they are doing because the price they were willing to pay for Balmoral was quite high compared to other take-overs
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