Prismo Metals Inc. (CSE: PRIZ) ("Prismo" or the "Company") is pleased to announce that it has completed its previously announced financing for gross proceeds of $682,125 through the exercise of warrants by certain warrantholders, including a number of insiders.
"The proceeds received by Prismo will be primarily used to drill a minimum of 2,000 meters of HQ core at the Company's Verdes property in several holes to test mineralization at depth under the high-grade intercepts from previous drilling campaigns," said Dr. Craig Gibson, President and CEO of Prismo. He added: "Two of these holes intersected high-grade mineralization similar in grade and width to the results of Vizsla Silver Corp. (TSXV: VZLA and NYSE: VZLA) in the Panuco district, whose property is contiguous to Palos Verdes. The best intercepts of these previous drilling campaigns were 2,336 g/t Ag and 8.42 g.t Au over a true width estimated at 0.8 meters within a larger mineralized interval with 1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters (see Prismo's news release dated September 30, 2020). The Company believes these intercepts indicate the presence of a potentially large Ag-Au shoot of the type being defined by Vizsla Silver."
Dr. Gibson concluded: "We are currently in the process of selecting a drilling contractor and we expect drilling to begin in late-July pending reception of our environmental permit."
The Company also expects to use some of the proceeds to finalize surface exploration work on the Los Pavitos property to advance to the drill ready stage, with expected drilling in the fall. Management of Prismo recently held an investor update call. The video of such investor update can be viewed on the Company's website at https://player.vimeo.com/video/721614600
Prismo also announced that Mr. Louis Doyle has been appointed to its Board of Directors. Mr. Doyle has over 30 years of experience focused primarily on capital markets and public companies. Since 2016, he has also provided consulting services to private companies seeking listing on Canadian exchanges. Since January 2016, Mr. Doyle is the Executive Director of Québec Bourse. Between October 1999 and December 2015, he was the Vice-President, Montréal of the TSX Venture Exchange. As such, he was responsible for business development and listing activities in the Province of Québec and Atlantic Canada. During his tenure, he acted as chairman of TSX Venture Listing Committee and was a member of the Policy committee. Mr. Doyle also led the nationwide TSX Venture Mentorship program and further acted regularly as a speaker and advisor at conferences and workshops. He also holds directorship roles with two other publicly traded companies. Mr. Doyle was granted 150,000 incentive stock options exercisable at $0.165 per share before June 26, 2027. Also, three other directors were granted 50,000 incentive stock option each exercisable at $0.165 per share before June 26, 2027.
About Prismo
Prismo (CSE: PRIZ) is junior mining company focused on precious metal exploration in Mexico.
Contact: Craig Gibson, Chief Executive Officer and Director 1100 - 1111 Melville St., Vancouver, British Columbia V6E 3V6 craig.gibson@prismometals.com
This news release includes certain forward-looking statements concerning the warrants exercise financing, the proceeds received from such warrant exercise financing, the use of proceeds of the warrant exercise financing, the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks, the availability of financing, the potential impact of COVID-19 on the Company's exploration program and on the Company's general business, operations and financial condition, and other risks and uncertainties described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
Mexico’s Sinaloa state hosts a number of prolific silver and gold mines, including McEwen Mining’s (TSX:MUX) El Gallo Complex, Americas Gold and Silver’s (TSX:USA) Cosalá operations and Kootenay Silver’s (TSXV:KTN) Copalito silver-gold project. Between 2012 and 2019, gold production at the El Gallo mine alone totaled 295,000 ounces (oz) and silver production peaked at 142,000 oz.
Prismo Metals (CSE:PRIZ, OTCQB:PMOMF) has made a strategic move to join the list of successful explorers in this region. The company’s leadership team has decades of experience in the Mexican precious metals industry. Director, president and CEO Dr. Craig Gibson has been an exploration consultant since 1998 and a director of Garibaldi Resources (TSXV:GGI).
Additionally, advisor Dr. Peter Megaw sits on the board of directors and is co-founder of MAG Silver Corp. (TSX:MAG) and Minaurum Gold (TSXV:MGG). Megaw and his team are credited with MAG Silver’s Juanicipio discovery in the famous Fresnillo District as well as Excellon Resources’ (TSX:EXN) Platosa mine.
Prismo Metals has three current exploration projects: Palos Verdes, Los Pavitos and Hot Breccia. The Palos Verdes property covers 22.77 hectares within the historic Panuco-Copala silver-gold district in Sinaloa. The district is well-known for its numerous veins with historical production. While much of the district has been consolidated by Vizsla Resources (TSXV:VZLA), the Palos Verdes project is located near the district’s under-explored northeastern limit.
On January 9, 2023, Vizsla Resources acquired a right of first refusal to purchase the Palos Verdes project through a strategic investment agreement with Prismo Metals. Vizsla's strategic investment consists of a cash payment of $500,000 and the issuance of one million common shares of Vizsla to Prismo. Pursuant to the strategic investment, the two companies have agreed to form a technical committee to pursue district-scale exploration of the Panuco silver-gold district.
Prismo Metals’ Palos Verdes property includes 700 meters of strike length along the Palos Verdes vein, which has been explored for 250 meters with findings yielding as much as 6.7 grams per ton (g/t) gold and 544 g/t silver from surface and underground sampling. A second vein system may be reflected in a northwest striking alteration zone, offering an additional high-grade exploration target on the property. In 2018, ProDeMin completed a diamond drilling program on the property, with notable drill results including 3.75 g/t gold and 1,098 g/t silver for 2.3 meters, as well as 8.42 g/t gold and 2,336 g/t silver for 0.8 meters.
In May 2019, the company and ProDeMin entered an option agreement in which Prismo may acquire a 75-percent interest in the Palos Verdes property. A second agreement with the owner of the remaining 25 percent will allow Prismo to obtain 100 percent ownership of the Palos Verdes concession. The company conducted a 2,000-meter drill program at Palos Verdes in 2022, designed to test the Palos Verdes vein and a structural intersection with a second vein at depths where it is believed that potential for a large ore shoot is present, similar to the drilling accomplished by Vizsla Silver on their adjacent land package.
Prismo’s 2,500-meter 2023 drilling programat Palos Verdes is currently underway. A rock chip sample from mapped veins returned an assay of 840.5 silver equivalent (700 g/t silver and 1.68 g/t gold) over a sample width of one meter. Five holes are now completed for a total of 727 meters and samples from the first three holes have been submitted to the lab for analysis.
The company’s Los Pavitos project is located in the Alamos region of southern Sonora, a well-mineralized area that hosts several active exploration and mining projects. The project consists of one concession covering 5,289 hectares. Early sampling and reconnaissance work has been carried out by previous companies, including Minera Cascabel.
Prismo Metals has signed a formal access agreement with Francisco Villa Ejido, the surface owner of the Los Pavitos Project to allow for exploration work and drilling. The agreement paved the way for a drill program that commenced in 2023 and completed a trenching program generating 347 samples from trenches submitted to the lab for assay.
An airborne Z‐tipper axis electromagnetic (ZTEM) geophysical survey was completed at Hot Breccia. Prismo received assay results for the first batch of samples taken at the project indicating the presence of not only copper mineralization but also gold mineralization associated with gossanous veins and shear zones.
Company Highlights
Prismo Metals is an exploration company targeting high-grade silver and gold projects in Mexico, one of the world’s top producers of precious metals.
The company’s Palos Verdes property is located in the historic Panuco-Copala silver-gold district in Sinaloa, Mexico.
The Palos Verdes property includes 700 meters of strike length along the Palos Verdes vein, which has yielded 6.7 grams per ton (g/t) gold and 544 g/t silver.
The company’s Los Pavitos project is located in the well-mineralized Alamos region of southern Sonora. The project consists of one concession covering 5,289 hectares.
Prismo’s management and advisory team offer decades of experience in the Mexican precious metals industry, including all aspects of exploration and resource development.
Prismo acquired 100 percent of the Palos Verdes and commenced a drill program on the property. The drill results revealed four vein holes showing multiple discrete quartz vein stages lacing between breccia fragments showing distinctly differing mineralogy.
The company also filed on SEDAR a NI 43-101 Technical Report for its Los Pavitos Gold-Silver Project in southern Sonora, Mexico.
Key Projects
Palos Verdes
The company’s Palos Verdes property is located in Southern Sinaloa, roughly 65 kilometers northeast of Mazatlán. The Palos Verdes concession covers 22.77 hectares and is situated within the historic Panuco-Copala mining district, the largest silver producer in Sinaloa.
History
Limited sampling has been performed on the property. According to a sample database compiled by ProDeMin, findings have yielded as much as 4.15 g/t gold and 732.7 g/t silver. Prior to the turn of the century, a 70-meter tunnel was driven along the Palos Verdes vein near the bottom of the Palos Verdes arroyo. In 2018, ProDeMin completed a diamond drilling program on the property. Notable drill results included 3.75 g/t gold and 1,098 g/t silver for 2.3 meters and 8.42 g/t gold and 2,336 g/t silver for 0.8 meters.
2023 Drill Program
The 2023 drill program at Palos Verdes is underway covering 2,500 meters. Prismo has drilled five holes spanning 727 meters. A rock chip sample from mapped veins returned an assay of 840.5 silver equivalent (700 g/t silver and 1.68 g/t gold) over a sample width of one meter. Hole PV-23-25 also intersected 11,520 g/t silver equivalent over 0.5 meters (3,100 g/t silver, 102 g/t gold and 0.26 percent zinc)
Los Pavitos
The company’s Los Pavitos project is located in the Alamos region of Southern Sonora, a well-mineralized area that hosts multiple active exploration and mining projects. Los Pavitos consists of one concession covering 5,289 hectares. Early sampling and reconnaissance work has been carried out by previous companies, including Minera Cascabel. The property’s numerous mines and prospect pits indicate historical interest.
A 2,500-meter drill program at Los Pavitos commenced in June 2023. About 295 meters of trenches have been constructed and sampled with assay results received for 96.7 meters. High-grade silver assays were discovered in surface sampling in the northeast Santa Cruz area.
Hot Breccia
The Hot Breccia project is Prismo’s latest acquisition located in the heart of the great Arizona Copper Belt, USA and is adjacent to Christmas Mine and Hayden Smelter. The Hot Breccia property has the same productive geologic units that host high-grade copper skarn mineralization at the adjacent, past-producing Christmas Mine. Prismo has the option to earn from Infinitum Copper (TSXV: INFI) a 75-percent interest in the Hot Breccia project.
The company completed an airborne Z‐tipper axis electromagnetic (ZTEM) geophysical survey at Hot Breccia and received assay results for the first batch of samples taken at the project. The results indicate the presence of not only copper mineralization but also gold mineralization associated with gossanous veins and shear zones.
Management Team
Craig Gibson - Director, President and CEO
Dr. Craig Gibson has extensive experience in the minerals industry. He received his BS (1984) in earth sciences from the University of Arizona and MS (1987) and PhD (1992) in economic geology and geochemistry from the Mackay School of Mines, University of Nevada, Reno. He co-founded Prospeccion y Desarrollo Minero del Norte, S.A. de CV (ProDeMin) based in Guadalajara, Mexico, in 2009. ProDeMin is a consulting firm providing a broad spectrum of exploration-related services to the mining industry and has been involved in several major precious metal discoveries in Mexico. Dr. Gibson is also a director of Garibaldi Resources Inc., a Vancouver-based junior exploration company; a certified professional geologist of the American Association of Professional Geologists; and a qualified person under NI 43-101.
Carmelo Marelli - CFO and Secretary
Carmelo Marrelli is the principal of the Marrelli Group, comprising Marrelli Support Services Inc., DSA Corporate Services Inc., DSA Filing Services Limited, Marrelli Press Release Services Limited, Marrelli Escrow Services Inc. and Marrelli Trust Company Limited. The Marrelli Group has delivered accounting, corporate secretarial and regulatory compliance services to listed companies on various exchanges for over twenty years. Marrelli is a chartered professional accountant (CPA, CA, CGA), and a member of the Institute of Chartered Secretaries and Administrators, a professional body that certifies corporate secretaries. He received a bachelor of commerce degree from the University of Toronto. Marrelli acts as the chief financial officer to several issuers on the TSX, TSX Venture Exchange and CSE, as well as non-listed companies, and as a director of select issuers.
Alain Lambert - Executive Chairman
Alain Lambert, who co-founded Prismo in 2018, is a lawyer by training and has over 35 years of experience in financing and advising small and medium-sized companies operating in various industries including technology, manufacturing and the natural resources sector. He has been involved in private and public financings totaling more than $1 billion. He has an extensive network of investors, investment bankers, analysts and investor relations professionals. Lambert acts as an advisor to public and private companies regarding financings, mergers and acquisitions plans, debt structuring as well as going-public transactions. Throughout his career, Lambert has served as a director and member of the audit committee and governance committee of small and medium-sized private and public companies. He holds a Bachelor of Laws degree (LL.B.) from the University of Montréal and a diploma of collegial studies, specializing in administration from the College Jean-de-Brébeuf in Montréal, Québec.
Martin Dupuis - Director
Martin Dupuis has over 25 years of experience covering all stages of a project’s life, from exploration through feasibility and engineering studies, construction, mine expansion and operations. Dupuis serves as Vizsla Silver’s chief operating officer. He was instrumental in the oversight and delivery of the company’s maiden resource estimate. Prior to joining Vizsla Silver, Dupuis was director of geology for Pan American Silver, technical services manager for Aurico Gold, and chief geologist at several other operations.
Jorge Rafael Gallardo-Romero - Director
Jorge Rafael Gallardo-Romero has been a consultant geologist of Cascabel since March 1992. He also acts as Mexico exploration manager of Gainey Capital Inc. (since January 2015) and of Minera Goldzone SA de CV (since March 2011). Gallardo-Romero graduated from the University of Sonora with a degree in Geology in 1984.
Jean-François Meilleur - Director
Jean-François Meilleur has been active in the capital market since 2006 as a managing partner of Paradox Public Relations and PE Partners providing strategic advisory, investor relations services and being a supportive shareholder providing development capital to different ventures. In May 2017, Meilleur was appointed president and CEO of Canada Strategic Metals. From 2012 to 2018, Meilleur was VP at Critical Elements Corp. Meilleur holds a bachelor’s degree from the HEC business school (Hautes Études Commerciales) in Montreal, with a specialization in marketing and finance. He is also a managing partner and co-owner of Paradox Public Relations.
Maria Guadalupe Yeomans Otero - Director
Maria Yeomans Otero is a geologist who graduated from Universidad de Sonora, Mexico, in 1986, with master's studies in business administration at the same university. She has been a part of the team at Cascabel since 1992 and is now the office manager. She speaks English fluently and has extensive experience in the administration, legal and commercial relations related to mining.
Louis Doyle - Director
Louis Doyle has over 30 years of experience focused primarily on capital markets and public companies. Since 2016, he has also provided consulting services to private companies seeking listing on Canadian exchanges. Since January 2016, Doyle has been the executive director of Québec Bourse. Between October 1999 and December 2015, he was the vice-president, Montréal of the TSX Venture Exchange. As such, he was responsible for business development and listing activities in the provinces of Québec and Atlantic Canada. During his tenure, he acted as chairman of the TSX Venture listing committee and was a member of the policy committee. Doyle also led the nationwide TSX Venture mentorship program and further acted regularly as a speaker and advisor at conferences and workshops. He also holds directorship roles with two other publicly traded companies. Doyle was granted 150,000 incentive stock options exercisable at $0.165 per share before June 26, 2027. Also, three other directors were each granted 50,000 incentive stock options, exercisable at $0.165 per share before June 26, 2027.
Peter Megaw - Advisor
Dr. Peter Megaw is best known as co-founder of MAG Silver Corp. and Minaurum Gold Inc. He and his team are credited with MAG Silver’s Juanicipio discovery in the famous Fresnillo District and Excellon Resources’ Platosa mine. He received his doctorate from the University of Arizona and has more than 35 years of experience exploring for silver and gold in Mexico. Megaw is a certified professional geologist by the American Institute of Professional Geologists and an Arizona Registered Professional Geologist. He is the author of numerous scientific publications on ore deposits and is a frequent speaker at academic and international exploration conferences. He was awarded the 2017 Thayer Lindsley Award for the 2003 discovery of the Juanicipio silver deposit in the Fresnillo District, ultimately leading to a further 600 million ounces being identified in the immediate area. Megaw also received the Society of Mining Engineers 2012 Robert M. Dreyer Award for excellence in applied economic geology.
Allan Frame - Director of Business Development
Allan Frame recently retired from the investment business. During his successful forty-seven-year career, Frame focused primarily on working with mining companies, helping them raise over $100 million and having had the benefit of being associated with multiple major discoveries, including the Snip Deposit now owned by Skeena Resources Ltd.
Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) ("Prismo" or the "Company") is pleased to announce that high-grade gold mineralization has been cut in four of the first eight holes ever drilled at the 5300 ha Los Pavitos Project in the well mineralized Alamos region of southern Sonora State, Mexico.
The holes targeted the Hedionda mine zone along the Santa Cruz structure (Figures 1 and 2) and were designed to determine the overall nature, geometry and lateral and vertical continuity of mineralization around this small historic working. Mineralization consisting of foliation-parallel sulphides surrounded by silicification was cut in several holes (Figure 3). The best hole, LP-SC-23-02, intersected 6.65 meters (core length) reporting 10.2 g/t gold and 47.0 g/t silver, within a wider interval of 11.93 meters (core length) averaging 5.77 g/t gold and 28.7 g/t silver. Drilling to date represents about 850 m out of a 2000-2500 m budget and drilling has already shifted to the parallel Santa Cruz Southeast structure roughly 300 m southeast. Assays are pending for the first holes there.
"We are very pleased to see such excellent high-grade results in the first holes ever into just one of several multi-kilometer structural trends we've identified cutting across the property. These structures have seen extensive prospecting and very small-scale mining, but the system has never been explored with a large-scale perspective and we are excited to see what the other structures reveal", Dr. Craig Gibson, President and CEO commented.
He continued "It's early days, but the style of mineralization we're encountering does not look like the epithermal veins typical of the region, but more resembles the "orogenic" or shear-hosted gold that supports some of Sonora's largest gold mines, possibly with an intrusion related sulfide-rich replacement component. We are eager to continue exploring this target style longoverlooked in this part of Sonora."
Table 1. Selected drill intercepts from the Los Pavitos project
Hole
From (m)
To (m)
Interval (m)
True Width (m)
Au g/t
Ag g/t
Cu %
Pb %
Zn %
LP-SC-23-01
20.30
27.70
7.40
5.2
2.34
14.7
0.08
0.18
0.74
includes
21.80
23.84
2.04
1.4
7.04
43.1
0.19
0.57
2.33
LP-SC-23-02
21.75
24.07
2.32
1.2
0.27
0.5
0.01
0.00
0.01
52.27
64.20
11.93
6.0
5.77
*28.7
0.15
0.16
0.38
includes
54.88
61.53
6.65
3.3
10.22
*47.0
0.17
0.29
0.65
LP-SC-23-03
No
Values
LP-SC-23-04
No
Values
LP-SC-23-05
62.24
66.74
4.50
3.6
0.50
2.1
0.01
0.00
0.01
LP-SC-23-06
No
Values
LP-SC-23-07
49.00
59.40
10.40
8.3
1.52
18.9
0.11
0.09
0.06
49.00
55.00
6.00
4.8
2.52
28.7
0.15
0.14
0.10
LP-SC-23-08
74.30
82.10
7.80
7.0
3.78
19.2
0.19
0.08
0.22
includes
77.15
82.10
4.95
4.5
5.33
27.5
0.27
0.13
0.33
Au by fire assay for holes 1, 2, 7, & 8 others by ICP. *One overlimit Ag assay >100g/t taken at 100 g/t for the calculation of the average.
Mapping and surface sampling over the last year have delineated several kilometer-long mineralized structures with initial drilling at the Santa Cruz Southeast target to be followed by drilling of the Las Auras, Oromuri and Española targets (Figs. 1 and 2). At Las Auras surface sampling has encountered high grade gold values in several areas, and the latter two targets have characteristics indicating that similar high-grade mineralization may exist beneath cover. The abundance of sulphides at very shallow depths in the initial high-grade holes has led to consideration of geophysical surveys to trace such structures through cover. Exploration work is also advancing to develop additional new areas for drilling in several areas identified during reconnaissance work.
Table of drill hole data for the Phase I program at the Los Pavitos project
Hole
Target
Easting
Northing
Elev
Azim
Incl
Depth (m)
LPSC-23-01
Hedionda mine
677,103
3,002,113
215
310
-45
27.70
LPSC-23-02
Hedionda mine
677,109
3,002,109
207
310
-55
87.00
LPSC-23-03
Hedionda mine
677,082
3,002,157
201
130
-45
60.00
LPSC-23-04
Hedionda mine
677,082
3,002,157
201
130
-60
75.00
LPSC-23-05
Hedionda mine
677,109
3,002,109
207
270
-45
75.00
LPSC-23-06
Hedionda mine
677,060
3,002,060
210
325
-45
72.00
LPSC-23-07
Hedionda mine
677,048
3,002,147
202
130
-45
81.00
LPSC-23-08
Hedionda mine
677,055
3,002,147
205
160
45
109.50
Coordinates in UTM WGS84 using handheld Garmin GPS.
Figure 1. Geologic maps of Los Pavitos Project area showing major recognized mineralized trends and surface sampling results for gold. Inset shows silver results clustered in the SE Santa Cruz area.
Figure 3. Photographs of sulphide-rich, high-grade core from hole LP-SC-02, including the 6.65 meter core run from 54.88 to 61.53m reported 10.2 g/t Gold and 47.0 g/t Silver.
The Los Pavitos project consists of a 5,289-hectare property position located in southern Sonora State, Mexico (Figure 4). Pavitos lies 25 km west of the well-mineralized Alamos District, which encompasses several active exploration and mining projects, including the past producing Alamo Dorado mine of Pan American Silver, the Piedras Verdes copper mine of Cobre de Mayo and the Alamos and Aurifero vein projects being explored by Minaurum Gold Inc. Infrastructure is excellent with paved highway access, electricity and water. The project, which was generated by geologist and Prismo Metals Board Member Rafael Gallardo, is believed to have potential for both the typical epithermal veins of the Alamos district and "orogenic" or shear-hosted gold hosted in the highly metamorphosed basement rocks that crop out sparingly below the region's extensive blanket of mid-Tertiary volcanic rocks. Los Pavitos lies along the projection of the Caborca Orogenic Gold Belt (Fig. 4) and the fabric and style of metamorphic deformation of the basement rocks is similar to that elsewhere in the belt.
Pavitos was acquired from Minera Cascabel S.A. de C.V., a Mexican exploration and services company founded by Dr. Peter Megaw, an advisor to the Company (for terms see the Company's prospectus filed on SEDAR). The company completed a NI 43-101 Technical Report on the project in March 2021 available on SEDAR. Assays have been received for 1,384 surface rock samples taken by the company (excluding control samples); a further 347 samples were taken in 25 trenches cut across the main mineralized trends.
Figure 4. Location of the Los Pavitos project in southern Sonora State in relation to the Caborca Orogenic Gold Belt.
Mapping and surface sampling over the last year have delineated several kilometer-long mineralized structures with initial drilling at the Santa Cruz Southeast target to be followed by drilling of the Las Auras, Oromuri and Española targets. At Las Auras surface sampling has encountered high grade gold values in several areas, and the latter two targets have characteristics indicating that similar high-grade mineralization may exist beneath cover. The abundance of sulphides at very shallow depths in the initial high-grade holes has led to consideration of geophysical surveys to trace such structures through cover. Exploration work is also advancing to develop additional new areas for drilling in several areas identified during reconnaissance work.
The trenching program across the main mineralized trends on the Los Pavitos property consisted of a cumulative length of 698 meters in 25 trenches. The best assays for individual samples are 20.4 g/t Au and 207 g/t Ag over 2 meters at Las Auras and 16.7 g/t Au and 48,2 g/t Ag over 1 meter at Santa Cruz. The main objective of the trenching program was to define the orientation and full width of the mineralized structures prior to starting the drill campaign.
QA/QC
Rock samples taken by Prismo are analyzed by multielement ICP-AES and MS methods and by fire assay by ALS Group and Bureau Veritas, both internationally recognized analytical service providers. Gold is analyzed as part of an ICP package using a 15 or 25-gram aqua regia digestion, and is also analyzed by Fire Assay with an AA finish. Au overlimits >10 g/t are analyzed by fire assay with a gravimetric finish. Ag over 100g/t and Cu, Pb and Zn over 1% re-analyzed by the by overrange ICP methods. Certified Reference Materials including standard pulps and coarse blank material were inserted in the sample stream at regular intervals.
Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 regulations and President, CEO and a director of the Company, has reviewed and approved the technical disclosures in this news release.
About Prismo
Prismo (CSE: PRIZ) is mining exploration company focused on two precious metal projects in Mexico (Palos Verdes and Los Pavitos) and a copper project in Arizona (Hot Breccia).
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, including without limitation, statements regarding the anticipated content, commencement and exploration program results, the ability to complete future financings, required permitting, exploration programs and drilling, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, the analytical results from surface trenching and sampling program, including diamond drilling programs, the results of IP surveying, the results of soil and till sampling program. the quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including CSE acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, the potential impact of COVID-19 (coronavirus) on the Company's exploration program and on the Company's general business, operations and financial condition, and other risks and uncertainties. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) ("Prismo" or the "Company") is pleased to provide an update for its ongoing drill program at the Palos Verdes property located in the Panuco district in Mexico. The Company has drilled 2,620 meters in the current program and completed thirteen holes with one hole in progress, PV-23-32. One additional hole is contemplated after completing hole PV-23-32 as part of the original drill program which began in May (see news release dated May 11, 2023).
This will be followed by the previously announced (see news release dated August 3, 2023) expansion of the drill program, with holes to be drilled from Vizsla Silver Corp. (TSXV: VZLA) concessions adjacent to the Palos Verdes concession. These holes will target the Palos Verdes vein at depth. This follows a recommendation presented by the Panuco Joint Technical Committee to drill approximately 3,600 meters in ten holes to be completed in two phases. The Joint Technical Committee is comprised of Prismo's CEO Dr. Craig Gibson, Vizsla Silver's VP Exploration Dr. Jesus Velador and Dr. Peter Megaw.
"The drilling at Palos Verdes this year has been focussed on drilling areas that have not been drilled previously because they were not accessible under our previous environmental permit," said Craig Gibson, President and CEO of the Company. "We recently intersected bonanza grade intervals at the Palos Verdes project, with the best interval being a 0.5-meter sample assaying 11,520 grams per tonne silver equivalent (102 g/t gold and 3,100 g/t silver) (see Prismo's news release dated July 27, 2023). The drilling is directed toward expanding the mineralized footprint of the vein system."
Figure 1. Geologic and drill hole map of the Palos Verdes and adjacent concessions.
The Company has already reported assays from the first seven holes in the program through hole PV-23-25 (see News Release of July 27, 2023). Five additional holes are at the laboratory, and hole PV-23-31 will be sent to the lab shortly. Results will be announced after receiving assay data for all of these holes.
Photo of core from hole PV-23-32 showing intervals with multistage vein mineralization with brecciation and locally abundant sulfide minerals. Assay results pending.
Photo of core from hole PV-23-32 showing intervals with multistage vein mineralization with brecciation and locally abundant sulfide minerals. Assay results pending.
Details of core from hole PV-23-32 showing multistage mineralization. On the left, a vein with massive pyrite and chalcopyrite in gray quartz, cut by white quartz with a sphalerite margin. The right photo is a view looking at the end of the broken core. Assay results pending.
Details of core from hole PV-23-32 showing multistage mineralization. On the left, a vein with massive pyrite and chalcopyrite in gray quartz, cut by white quartz with a sphalerite margin. The right photo is a view looking at the end of the broken core. Assay results pending.
Details of core from hole PV-23-32 showing multistage mineralization. On the left, a vein with massive sphalerite and other sulfide minerals cut and brecciated by gray quartz and by later white quartz with some amethyst. On the right, a large fragment rich in sphalerite and pyrite plus other sulfides in younger quartz.
Details of core from hole PV-23-32 showing multistage mineralization. On the left, a vein with massive sphalerite and other sulfide minerals cut and brecciated by gray quartz and by later white quartz with some amethyst. On the right, a large fragment rich in sphalerite and pyrite plus other sulfides in younger quartz.
Samples taken by Prismo are analyzed by multielement ICP-AES and MS methods internationally recognized analytical service providers. Certified Reference Materials including standard pulps and coarse blank material are inserted in the sample stream at regular intervals.
Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 regulations and President, CEO and a director of the Company, has reviewed and approved the technical disclosures in this news release.
About Palos Verdes
The Palos Verdes project is located in the historic Pánuco-Copala silver-gold district in southern Sinaloa, Mexico, approximately 65 kilometers NE of Mazatlán, Sinaloa, in the Municipality of Concordia. The Palos Verdes concession (claim) covers 700 meters of strike length of the Palos Verdes vein, a member of the north-easterly trending vein family located in the eastern part of the district outside of the area of modern exploration. Shallow drilling (www.prismometals.com). This mineralization is open in all directions and the currently planned drilling program is designed to follow it along strike and to depth.
About the Vizsla Silver Panuco Project
The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 7,189.5-hectare, past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits.
The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.
The Panuco Project hosts an estimated in-situ indicated mineral resource of 104.8 Moz AgEq and an in-situ inferred resource of 114.1 Moz AgEq. An updated NI 43-101 technical report titled "Technical Report on the Mineral Resource Estimate Update for the Panuco Ag-Au-Pb-Zn Project, Sinaloa State, Mexico" was filed on SEDAR on March 10, 2023 by Vizsla Silver Corp., with an effective date of January 19, 2023 was prepared by Allan Armitage, Ph.D., P.Geo., Ben Eggers, MAIG, P.Geo. and Yann Camus, P.Eng. of SGS Geological Services.
About Prismo
Prismo (CSE: PRIZ) is mining exploration company focused on two precious metal projects in Mexico (Palos Verdes and Los Pavitos) and a copper project in Arizona (Hot Breccia).
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, including without limitation, statements regarding the anticipated content, commencement and exploration program results, the ability to complete future financings, required permitting, exploration programs and drilling, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, the analytical results from surface trenching and sampling program, including diamond drilling programs, the results of IP surveying, the results of soil and till sampling program. the quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including CSE acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, the potential impact of COVID-19 (coronavirus) on the Company's exploration program and on the Company's general business, operations and financial condition, and other risks and uncertainties. All of the Company's Canadian public disclosure filings may be accessed via www.sedarplus.ca and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Further Exploration Program Recommended by Joint Technical Committee
Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) ("Prismo" or the "Company") is pleased to announce that given the success of the current drill program, it plans to expand the program at the Palos Verdes property located in the Panuco district in Mexico. The new holes will be drilled from Vizsla Silver Corp. (TSXV: VZLA) concessions adjacent to the Palos Verdes concession and will target the Palos Verdes vein at depth. A recommendation presented the Panuco Joint Technical Committee calls for drilling of approximately 3,600 meters in ten holes to be completed in two phases. The Joint Technical Committee is comprised of Prismo's CEO Dr. Craig Gibson, Vizsla Silver's VP Exploration Dr. Jesus Velador and Dr. Peter Megaw.
"The Panuco Joint Technical Committee has recommended this drill program to test the Palos Verdes vein underneath the current level of drilling. Our strategic partner, Vizsla Silver, has submitted a permit application for the drill sites as part of this expanded exploration program in the Northeast portion of the Panuco district," said Alain Lambert, Executive Chairman of the Company. "We recently received several bonanza grade intercepts and the highest-grade intercept ever recorded from the Palos Verdes project, with a 0.5-meter sample assaying 102 g/t gold and 3,100 g/t silver (see Prismo's news release dated July 27, 2023). This expanded drilling will test under this intercept as well as at depth in the northeastern portion of the concession where we think the mineralization has been offset downward."
The planned drilling from Vizsla's concessions will be from approximately eight sites in two phases. The first phase will include seven holes with an average depth of about 300 meters, while the second phase will consist of three holes with an average depth of about 500 meters. The holes are designed to test the Palos Verdes vein at depth on Prismo's Palos Verdes concession and also test for the vein extension and splits on the adjacent Vizsla ground.
"The relatively shallow bonanza-type grades reported at Palos Verdes to date, suggest potential for additional high-grade mineralization at depth in veins of the northeast part of Panuco district. We are excited to proceed with the recommendation presented by the Panuco Joint Technical Committee to expand the drilling program, because of the opportunity it gives us to increase our knowledge of the veins in this part of the district through Prismo's expanded drill program," said Michael Konnert, President and CEO of Vizsla Silver. "Vizsla Silver owns a right-of-first refusal on the Palos Verdes project. We look forward to the deeper drilling-results at Palos Verdes."
Figure 1. Geologic and drill hole map of the Palos Verdes and adjacent concessions.
Figure 2. View of Palos Verdes project from below the surface and looking northerly, showing the Palos Verdes vein in red, mineralized shoot in magenta and drill holes mentioned in this news release, Phase 1 in blue, and Phase 2 deep holes in green.
The Company is in the process of completing a 2,500-meter drill program on the Palos Verdes project. The drill program is designed to test the areas of the Palos Verdes vein system in areas where there previously was no drill access, mainly along the northeastern extension of the vein system and certain areas in the southwestern portion where previous drilling occurred. Ten holes have been completed for a total of about 2,035 meters of HQ core drilled for the current program, with an eleventh hole in progress. Assays for seven holes, PV-23-19 to PV-23-25 have been reported, and the last three completed holes have been sent to the lab. About three holes remain in the program, after which the drill crew is expected to take a two-week break.
Photo of core from hole PV-23-29 showing intervals with multistage vein mineralization with brecciation and locally abundant sulfide minerals. Assay results pending.
Samples taken by Prismo are analyzed by multielement ICP-AES and MS methods internationally recognized analytical service providers. Certified Reference Materials including standard pulps and coarse blank material are inserted in the sample stream at regular intervals.
Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 regulations and President, CEO and a director of the Company, has reviewed and approved the technical disclosures in this news release.
About Palos Verdes
The Palos Verdes project is located in the historic Pánuco-Copala silver-gold district in southern Sinaloa, Mexico, approximately 65 kilometers NE of Mazatlán, Sinaloa, in the Municipality of Concordia. The Palos Verdes concession (claim) covers 700 meters of strike length of the Palos Verdes vein, a member of the north-easterly trending vein family located in the eastern part of the district outside of the area of modern exploration. Shallow drilling (
About the Vizsla Silver Panuco Project
The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 7,189.5-hectare, past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits.
The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.
The Panuco Project hosts an estimated in-situ indicated mineral resource of 104.8 Moz AgEq and an in-situ inferred resource of 114.1 Moz AgEq. An updated NI 43-101 technical report titled "Technical Report on the Mineral Resource Estimate Update for the Panuco Ag-Au-Pb-Zn Project, Sinaloa State, Mexico" was filed on SEDAR on March 10, 2023 by Vizsla Silver Corp., with an effective date of January 19, 2023 was prepared by Allan Armitage, Ph.D., P.Geo., Ben Eggers, MAIG, P.Geo. and Yann Camus, P.Eng. of SGS Geological Services.
About Prismo
Prismo (CSE: PRIZ) is mining exploration company focused on two precious metal projects in Mexico (Palos Verdes and Los Pavitos) and a copper project in Arizona (Hot Breccia).
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, including without limitation, statements regarding the anticipated content, commencement and exploration program results, the ability to complete future financings, required permitting, exploration programs and drilling, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, the analytical results from surface trenching and sampling program, including diamond drilling programs, the results of IP surveying, the results of soil and till sampling program. the quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including CSE acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, the potential impact of COVID-19 (coronavirus) on the Company's exploration program and on the Company's general business, operations and financial condition, and other risks and uncertainties. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) ("Prismo" or the "Company") is pleased to announce that the drill rig for its upcoming exploration program has mobilized to its Los Pavitos project located in the well mineralized Alamos region of southern Sonora State, Mexico. The Company plans to test the main mineralized targets with a first ever drill program planned for approximately 2500 meters.
The Company also announced assay results for the last four trenches for its recently completed trenching program (Table 1, also see News Release of July 21, 2023). Two samples from the Santa Cruz area yielded 3.98 and 1.18 g/t Au over 1 and 2.7 meters respectively as shown in the table of results in Table 2.
Dr. Craig Gibson, President and CEO, commented: "Exploration over the last year and a half has identified several robust exploration targets at Los Pavitos. We are looking forward to drilling the particularly prospective Santa Cruz and Las Aurus areas as well as other mineralized zones. The first round of drilling will be comprised of shallow inclined holes of 75-100 m depths to confirm correct dip and widths of the mineralized structures."
Table 1. Final four trenches sampled at Los Pavitos
Coord start
WGS84
Coord end
WGS84
Trench
Location
Length
Azim
Easting
Northing
Easting
Northing
ZOR3
Oromuri
8.10
140
674,358
3,002,675
674,363
3,002,670
ZOR4
Oromuri
33.70
340
674,109
3,002,443
674,099
3,002,473
ZH1
Santa Cruz
24.80
305
677,097
3,002,112
677,081
3,002,124
ZH2
Santa Cruz
23.90
315
677,117
3,002,139
677,101
3,002,153
Table 2. Highlight assays from Los Pavitos trenches
Trench
Location
Length (m)
Au_g/t
Ag g/t
ZA1
Auras
6.4
0.1
-
ZA2
Auras
19.0
2.2
22.9
includes
4.0
10.3
104.3
ZSC4
Santa Cruz
18.5
0.2
-
ZSC3-1
Santa Cruz
2.1
1.7
-
ZSC9
Santa Cruz
8.0
0.5
-
ZSC10
Santa Cruz
7.8
2.3
13.0
ZSC12
Santa Cruz
2.5
0.9
69.6
ZSC1
Santa Cruz
2.00
0.95
-
2.30
0.50
-
ZSC7
Santa Cruz
17.70
0.13
-
includes
8.80
0.16
-
and
2.90
0.25
35.2
ZSC13
Santa Cruz
2.00
0.22
-
ZE3
Española
1.40
0.74
-
New Data
ZH1
Santa Cruz
1.00
3.98
5.1
ZH2
Santa Cruz
2.80
1.18
15.8
The trenching program across the main mineralized trends on the Los Pavitos property consisted of a cumulative length of 698 meters in 25 trenches. The best assays for individual samples are 20.4 g/t Au and 207 g/t Ag over 2 meters at Las Auras and 16.7 g/t Au and 48,2 g/t Ag over 1 meter at Santa Cruz. The main objective of the trenching program was to define the orientation and full width of the mineralized structures prior to starting the drill campaign.
The Company is in the process of completing a 2,500-meter drill program on the Palos Verdes project. The drill program is designed to test the areas of the Palos Verdes vein system in areas where there previously was no drill access, mainly along the northeastern extension of the vein system and certain areas in the southwestern portion where previous drilling occurred. Ten holes have been completed for a total of about 2,035 meters of HQ core drilled for the current program, with an eleventh hole in progress. Assays for seven holes, PV-23-19 to PV-23-25 have been reported. Three holes remain in the program, after which the drill crew is expected to take a two-week break.
Photos of core from holes PV-23-26 and 27 showing intervals with multistage vein mineralization with brecciation and locally abundant sulfide minerals. Assay results pending.
Rock samples taken by Prismo were analyzed by multielement ICP-AES and MS methods by ALS Group, an internationally recognized analytical service provider. Gold is analyzed as part of the ICP package using a 25-gram aqua regia digestion. Ag, Pb and Zn over 1% and Au values over 1 g/t are re-analyzed by the by an overrange ICP method. Certified Reference Materials including standard pulps and coarse blank material were inserted in the sample stream at regular intervals.
Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 regulations and President, CEO and a director of the Company, has reviewed and approved the technical disclosures in this news release.
About Prismo
Prismo (CSE: PRIZ) is mining exploration company focused on two precious metal projects in Mexico (Palos Verdes and Los Pavitos) and a copper project in Arizona (Hot Breccia).
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, including without limitation, statements regarding the anticipated content, commencement and exploration program results, the ability to complete future financings, required permitting, exploration programs and drilling, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, the analytical results from surface trenching and sampling program, including diamond drilling programs, the results of IP surveying, the results of soil and till sampling program. the quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including CSE acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, the potential impact of COVID-19 (coronavirus) on the Company's exploration program and on the Company's general business, operations and financial condition, and other risks and uncertainties. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) ("Prismo" or the "Company") is pleased to report results from seven drill holes targeting the Palos Verdes vein on the property of the same name located in the Panuco district in Mexico.
Highlights
PV-23-25:
This hole intersected 11,520 g/t Ag equivalent over 0.5 meters (3,100 g/t Ag, 102 g/t Au and 0.26% Zn)
This intercept is part of a wider mineralized interval with 4,311 g/t Ag equivalent over 1.35 meters (1157 g/t Ag, 38 g/t Au and 0.1% Zn)
A second interval higher in the hole yielded 512 g/t Ag equivalent over 0.3 meter (384 g/t Ag, 1.36 g/t Au and 0.27% Zn).
Hole PV-23-24:
This hole intercepted 1,234 g/t g/t Ag equivalent over 0.7 meter (60 g/t Ag, 11.9 g/t Au and 3.9% Zn)
This interval is within a wider 2.6-meter interval with 384 g/t Ag equivalent (32 g/t Ag, 3.3 g/t Au and 1.57% Zn)
A second interval higher in the hole yielded 302 g/t Ag equivalent over 1.2. meters (95 g/t Ag, 1.84 g/t Au and 1.2% Zn).
Hole PV-23-20:
This hole intercepted 189 g/t g/t Ag equivalent over 0.9 meters (58 g/t Ag and 1.58 g/t Au) and is the first mineralized intercept in the northeastern portion of the concession.
The Company is conducting a 2,500-meter drill program at the property, which is contiguous to the Panuco silver-gold project of Vizsla Silver Corp. ("Vizsla") (TSXV: VZLA). The Palos Verdes vein originates on Vizsla's concession to the south-west of the Palos Verdes concession and has 750 meter of strike length on Prismo's ground (Fig. 1).
"We are excited to report these high-grade mineralization intercepts at Palos Verdes. What makes these results even more significant is that they come from drill sites that were not previously accessible for drilling," said Dr. Craig Gibson, President and CEO of the Company. "Previous drilling in the southwest portion of the vein had intersected high grade mineralization with the best intercept of 2,336 g/t Ag and 8.42 g.t Au over a true width estimated at 0.8 meters within a larger mineralized interval with 1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters (see Prismo's news release dated September 30, 2020)."
Dr. Gibson added: "Holes 24 and 25 were drilled underneath the body of mineralized vein defined by our previous drill campaigns and have further extended the zone of high-grade mineralization. Holes drilled near the northeastern limit of the concession and vein outcrop seem to confirm the interpretation that this area has been down-dropped along the northwesterly striking fault zone that crosses the center of the Palos Verdes concession, and provides information that will allow targeting by deeper drilling."
"Given the encouraging results announced today, Prismo will shortly be finalizing plans to at least double the number of meters of drilling at Palos Verdes," said Alain Lambert, Executive Chairman of Prismo. "Any decision we make will include the advice and recommendations of the Joint Technical Committee formed as part of the strategic investment completed by Vizsla in January. The Joint Technical Committee is comprised of our CEO, Vizsla's VP Exploration Jesus Velador and Dr. Peter Megaw."
"The results announced today by Prismo clearly reaffirm the great potential of the Panuco district. Of particular interest is that the multiple high-grade mineralized intercepts announced are from the northeast part of the district where little exploration has been conducted by Vizsla to date, paving the way to potential discoveries," said Micheal Konnert, President and CEO of Vizsla Silver. "Vizsla owns a right-of-first-refusal on the Palos Verdes project. We look forward to the recommendations of the Joint Technical Committee and seeing Prismo expand its exploration footprint in this promising part of the Panuco district."
Figure 1. Geologic and drill hole map of the Palos Verdes and adjacent concessions.
Table 1. Assays for drill holes in the current program.
Hole
From (m)
To (m)
Width (m)
Est True width (m)
Au (g/t)
Ag (g/t)
Cu (%)
Pb (%)
Zn (%)
Ag eq (g/t)
New from this release
PV-19
Anomalous Ag
PV-20
2.99
3.90
0.91
0.90
1.58
58
-
0.01
0.01
189
36.80
37.00
0.20
0.20
0.21
53
-
-
0.01
71
PV-21
Anomalous Au & Ag
PV-22
No significant values
Pv-23
No significant values
PV-24
120.05
123.90
2.85
2.00
0.87
43
0.07
0.04
1.46
178
Incl.
121.40
122.60
1.20
0.84
1.84
95
0.05
0.05
1.26
302
150.22
152.85
2.63
1.83
3.30
32
0.14
0.40
1.57
384
Incl.
150.22
150.92
0.70
0.49
11.9
60
0.20
0.75
3.93
1,234
PV-25
78.70
79.00
0.30
-
1.36
384
0.11
0.15
0.27
512
134.10
135.45
1.35
-
38.2
1,157
0.08
0.06
0.10
4,311
Incl.
134.60
135.10
0.50
-
102
3,100
0.20
0.17
0.26
11,520
Silver equivalent values are calculated using the following metals prices: Au, US$1,750/oz, Ag, $21.24/oz, Pb, $0.97/lb and Zn, $1.34/lb. Cu was not used in the calculation, and metallurgical recoveries were not considered as there is no data available for the Palos Verdes vein. True width estimated from hole inclination and estimated vein dip, where known.
Table 2. Drill hole data for holes from the current program.
Hole
Target
Easting
Northing
Elev
Azim
Incl
Depth (m)
PV-23-19
NE block
414,023
2,593,310
1,313
326
-44
93.00
PV-23-20
NE block
414,049
2,593,296
1,296
324
-59
201.00
PV-23-21
NE block
414,004
2,593,260
1,294
330
-45
160.00
PV-23-22
NE block
414,008
2,593,262
1,294
330
-60
129.00
PV-23-23
NE block
413,963
2,593,219
1,261
300
-45
144.00
PV-23-24
PV vein
413,806
2,593,118
1,226
315
-70
201.00
PV-23-25
PV vein
413806
2593083
1236
320
-68
258.00
Coordinates in UTM WGS84 using handheld Garmin GPS.
The Company started the current drill program at the northeastern portion of the surface exposure of the Palos Verdes vein where it is believed that the mineralization has been offset downward. The first holes also target hangingwall splits off of the main vein. In general, precious metal values are low but anomalous in this area, probably due to the high structural level of the drill intercepts. However, hole PV-23-20 intersected 189 g/t over 0.91 meters in one of the hangingwall splits. This drilling provides important information on the vein orientations that will aid drilling at a deeper level where metals values are expected to be higher.
The veining with the high-grade intercept in hole PV-25 was cut at a shallower depth than programmed, and the vein may have been affected by the northwest trending fault or may be part of a separate shallowly dipping vein. Further drilling is planned to offset this intercept and determine the orientation of the vein. Several additional holes are planned to explore the gap in drilling along the southwester portion of the Palos Verdes vein between 13 and 15.
Figure 2. Cross section showing interpreted Palos Verdes vein and drill holes mentioned in this news release.
Figure 3. Longitudinal vein projection showing Ag equivalent intervals in drill holes and interpreted mineralized shoot.
The Company has granted 815,000 incentive stock options (the "Options"), 525,000 stock appreciation rights (the "SARs"), and 525,000 restricted share units (the "RSUs") to certain directors, officers, and consultants of the Company subject to certain vesting requirements. Each Option is exercisable upon vesting into one common share of the Company (a "Common Share") at a price equal to the greater of (i) $0.285 and (ii) the closing market price of the Company's shares on the CSE on July 28, 2023 (the "Grant Pricing"), for a period of five years from July 27, 2023. Upon vesting, each SAR entitles the holder to receive Common Shares in an amount equal to the difference between the Grant Pricing and the closing market price of the Common Shares on the settlement date, for a period of five years from July 27, 2023. Each vested RSU entitles the holder to receive one Common Share. All grants of Options, SARs, and RSUs are subject to the Company's long-term performance incentive plan (the "Incentive Plan"), which was approved by shareholders at the Company's annual general and special meeting of shareholders held on September 29, 2022 (the "Meeting"). A copy of the Incentive Plan is included in the Company's management information circular in respect of the Meeting dated August 31, 2022 available via the Company's profile on SEDAR at www.sedar.com.
QA/QC
Samples taken by Prismo are analyzed by multielement ICP-AES and MS methods internationally recognized analytical service providers. Certified Reference Materials including standard pulps and coarse blank material are inserted in the sample stream at regular intervals.
Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 regulations and President, CEO and a director of the Company, has reviewed and approved the technical disclosures in this news release.
About Palos Verdes
The Palos Verdes project is located in the historic Pánuco-Copala silver-gold district in southern Sinaloa, Mexico, approximately 65 kilometers NE of Mazatlán, Sinaloa, in the Municipality of Concordia. The Palos Verdes concession (claim) covers 700 meters of strike length of the Palos Verdes vein, a member of the north-easterly trending vein family located in the eastern part of the district outside of the area of modern exploration. Shallow drilling (www.prismometals.com). This mineralization is open in all directions and the currently planned drilling program is designed to follow it along strike and to depth.
About Prismo
Prismo (CSE: PRIZ) is mining exploration company focused on two precious metal projects in Mexico (Palos Verdes and Los Pavitos) and a copper project in Arizona (Hot Breccia).
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, including without limitation, statements regarding the anticipated content, commencement and exploration program results, the ability to complete future financings, required permitting, exploration programs and drilling, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, the analytical results from surface trenching and sampling program, including diamond drilling programs, the results of IP surveying, the results of soil and till sampling program. the quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including CSE acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, the potential impact of COVID-19 (coronavirus) on the Company's exploration program and on the Company's general business, operations and financial condition, and other risks and uncertainties. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA: 29W) (the " Company ") is pleased to announce a non-brokered private placement of: (i) flow-through common shares at a price of C$0.33 per share (each a "FT Share "); and (ii) common shares in the capital of the Company at a price of C$0.30 per common share (each a " Common Share "), and for total gross proceeds of approximately C$5,116,000 (the " Offering ").
"We are very appreciative for the continued support for our exciting and impactful exploration activities to advance our significant gold deposit and other recent high-grade gold discoveries on our district scale land package in the prolific and under explored White Gold District." stated David D'Onofrio, Chief Executive Officer.
Pursuant to an investor rights agreement between the Company and Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) (" Agnico ") dated December 13, 2016, Agnico has indicated that it intends to maintain its pro rata interest in the Company at 19.85% on a post-offering basis through the acquisition of Common Shares.
The gross proceeds received from the sale of the FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) (the " Tax Act ") on the Company's properties in the White Gold District of the Yukon Territory, and renounced to subscribers in the Offering with an effective date no later than December 31, 2023. Such Canadian exploration expenses will also qualify as "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act. The net proceeds from the sale of the Common Shares will be used for working capital and other general corporate purposes.
Participation by Agnico in the Offering will be considered a "related party transaction" pursuant to Multilateral Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions (" MI 61-101 "). The Company will be exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Agnico's participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report will be filed in connection with the participation of Agnico in the Offering less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
Closing of the Offering is expected to occur on or about December 8, 2023 and is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange (the " TSXV "). The securities issued pursuant to the Offering will be subject to a statutory hold period of four months plus one day from the closing date of the Offering in accordance with applicable securities legislation.
About White Gold Corp. The Company owns a portfolio of 17,584 quartz claims across 30 properties covering approximately 350,000 hectares representing over 40% of the Yukon's emerging White Gold District. The Company's flagship White Gold project hosts four near-surface gold deposits which collectively contain an estimated 1,152,900 ounces of gold in Indicated Resources and 942,400 ounces of gold in Inferred Resources ( 1) . Regional exploration work has also produced several other new discoveries and prospective targets on the Company's claim packages which border sizable gold discoveries including the Coffee project owned by Newmont Corporation with Indicated Resources of 2.14 Moz at 1.23 g/t Au, and Inferred Resources of 0.23 Moz at 1.01 g/t Au (2) , and Western Copper and Gold Corporation's Casino project which has Measured and Indicated Resources of 7.6 Blb Cu and 14.5 Moz Au and Inferred Resources of 3.3 Blb Cu and 6.6 Moz Au (3) . For more information visit www.whitegoldcorp.ca.
(1) See White Gold Corp. technical report titled "2023 Technical Report for the White Gold Project, Dawson Range, Yukon, Canada ", Effective Date April 15, 2023, Report Date May 30, 2023, NI 43-101 Compliant Technical Report prepared by Dr. Gilles Arseneau, P.Geo., available on SEDAR+. (2) See Newmont Corporation 10-K: Annual report for the year ending December 31, 2022, in the Measured, Indicated, and Inferred Resources section, dated February 23, 2023, available on EDGAR. Reserves and resources disclosed in this Form 10-K have been prepared in accordance with the Regulation S-K 1300, and do not indicate NI43-101 compliance. (3) See Western Copper and Gold Corporation technical report titled "Casino project, Form 43-101F1 Technical Report Feasibility Study, Yukon Canada", Effective Date June 13, 2022, Issue Date August 8, 2022, NI 43-101 Compliant Technical Report prepared by Daniel Roth, PE, P.Eng., Mike Hester, F Aus IMM, John M. Marek, P.E., Laurie M. Tahija, MMSA-QP, Carl Schulze, P.Geo., Daniel Friedman, P.Eng., Scott Weston, P.Geo., available on SEDAR+.
Cautionary Note Regarding Forward Looking Information This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "proposed", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, the Offering, including all regulatory approvals; the use of proceeds from the Offering; the Company's objectives, goals and exploration activities conducted and proposed to be conducted at the Company's properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company's properties will be successful; exploration results; and future exploration plans and costs and financing availability.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the White Gold properties; the receipt of all applicable regulatory approvals for the Offering; the completion of the Offering on the terms described herein, or at all; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company's properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management's discussion and analysis of the Company. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Contact Information: David D'Onofrio Chief Executive Officer White Gold Corp. (647) 930-1880 ir@whitegoldcorp.ca
Franco-Nevada Corporation (" Franco- Nevada ") (TSX: FNV) (NYSE: FNV) notes that its partner, First Quantum Minerals Ltd. (" First Quantum "), has issued an update reporting that due to the continued illegal blockades at the Punta Rincon port and roads to the site, the Cobre Panama mine has suspended commercial production and is applying a program of preservation and safe maintenance of the plant and facilities.
For more detailed information, please refer to First Quantum's news release dated November 28, 2023 .
Franco- Nevada further notes that its revised 2023 GEO guidance issued on November 20, 2023 , remains unchanged as it assumed no further contributions from Cobre Panama from such date.
Forward- Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to the safe maintenance and preservation of facilities at Cobre Panama, and Franco-Nevada's revised guidance for 2023. The outcome of these matters could have a material adverse impact on the revenue Franco-Nevada derives from its streaming arrangements relating to Cobre Panama and on Franco-Nevada's results of operations and financial condition. There can be no assurance that such forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions relating to Franco-Nevada's business and assets, please refer to Franco-Nevada's most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov . The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
Strike Gold: A Comprehensive Guide for Savvy Investors
The Investing News Network (INN) spoke with analysts, market watchers and insiders about which trends will
impact gold in the coming months.
✓ Trends
✓ Forecasts
✓ Top Stocks
Table of Contents:
Gold Price Update: Q1 2023 in Review
Gold Price Update: Q2 2023 in Review
Gold Price Update: Q3 2023 in Review
Lobo Tiggre: Gold Stocks are My Highest-Conviction Trade for 2024
Tavi Costa: Gold Price Breakout is "Inevitable," Don't Lose Focus Now
Top 10 Gold-mining Companies
A Sneak Peek At What The Insiders Are Saying
“When gold turns, it can turn very, very dramatically, this time in particular because so many people are underinvested in gold and gold stocks.”
— Adrian Day, Adrian Day Asset Management
“I do think probably in the first half of 2023, gold and silver and miners are going to put in what I think is going to be a major bottom — a supercycle bottom that's going to lead to a multi-year rally.”
— Chris Vermeulen, TheTechnicalTraders.com
“Gold is in a bull market in every currency in the world except the US dollar.”
— Rick Rule, Rule Investment Media
Who We Are
The Investing News Network is a growing network of authoritative publications delivering independent,
unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety
of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from
the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks
of research yourself.
At the same time, not a single word of the content we choose for you is paid for by any company or
investment advisor: We choose our content based solely on its informational and educational value to you,
the investor.
So if you are looking for a way to diversify your portfolio amidst political and financial instability, this
is the place to start. Right now.
Gold has seen a thunderous start to 2023 — thanks to significant economic disruptions, it's jumped in value while continuing to play a key role as a safe haven.
The precious metal's run has created tremendous opportunities for gold bulls, especially as it appears to be stabilizing above the US$2,000 per ounce mark, with experts pointing to potentially higher points this year.
Here the Investing News Network (INN) provides a recap of what happened in the gold market in the first three months of 2023.
Narrative changing after disappointing 2022
Greg Taylor, chief investment officer at Purpose Investments, told INN that many investors were disappointed with gold last year due to its flat performance, even with high levels of inflation.
“(Investors) just got really frustrated with it and it hadn't really worked. Now it's starting to work and people are taking another look at it,” Taylor said.
The expert added that since the US dollar was up and enjoyed a strong period last year, it “offset a lot of the inflation reasons for people to own gold.”
But heading into this year, Taylor said, the gold investment cycle has seen new life.
The financial expert explained that even as central banks prepare to pause or slow the pace of their rate hikes, inflation remains higher than they would like.
“We're starting to hear more and more concerns that there's potential stagflation,” Taylor said. “When you get stagflation, that's the perfect snare for gold.”
More investors appreciating gold in 2023
Shree Kargutkar, managing partner at Sprott (TSX:SII,NYSE:SII), told INN that despite gold's success so far in 2023, he still doesn’t think most investors have exposure to the yellow metal.
“I would say the average investor today is not really invested in gold. Rather, the average investor today is a speculator as far as the bullion is concerned,” Kargutkar said.
The Sprott expert explained that holdings in precious metals bullion exchange-traded funds have declined approximately 15 percent from their peak in the second half of 2020.
“People have actually been reducing their allocation to gold. And the average investor has been spectating for admission,” Kargutkar said.
When discussing the role of gold in an investor’s portfolio, Taylor cautioned that he doesn’t think gold should take a dominant role. “But having a sleeve of real asset exposure in the 5 to 10 percent range is probably not a bad, bad percentage to look at,” he said.
For his part, Kargutkar said the recent move in gold could create a bigger spotlight for the asset class. “My guess is it will probably make people want to perhaps take a second look at the metal as an important constituent of a portfolio,” he said.
US banking crisis boosts gold's safe-haven appeal
Gold’s tremendous rise can be attributed to a variety of factors in the global economic spectrum, but a major driver has been the fallout from US banking issues.
Silicon Valley Bank and Signature Bank faced serious bank runs after losing the confidence of their users, leading to two of the biggest bank collapses in US history.
This chaos was accompanied by the emergency rescue acquisition of Credit Suisse (NYSE:CS) by UBS (NYSE:UBS), which was in part organized by Swiss authorities.
The pressure points these events created caused panic to settle into the economic landscape, allowing gold to fulfill its role as a safe haven for the investing class.
Gold first crossed the US$2,000 level in March, and has found some stability above the coveted price mark.
Gold price chart, January 1, 2023, to April 20, 2023.
Aside from banking issues, gold continues to be affected by moves from the US Federal Reserve.
Following its meeting in March, the central bank announced a 25 basis point rate hike, saying it remains committed to its goal of curbing inflation. Investors are now watching closely to see what it will do at its next meeting in May.
Economists polled by Reuters are expecting to see another 25 basis point interest rate increase from the central bank, despite recent data points from the consumer price index and the producer price index.
Both price markers show inflationary pressures are easing — in fact, the March drop in the producer price index was the biggest decline since the start of the pandemic in early 2020. Even so, inflation is still far from the Fed's target of 2 percent.
At the same time, the Fed may not be able to hike much further. Its latest meeting minutes indicate that it expects a “mild recession” in the second half of 2023, spurred by the banking crisis outlined earlier.
“Given their assessment of the potential economic effects of the recent banking-sector developments, the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years,” the central bank states in its meeting recap.
The Fed's next meeting runs from May 2 to 3.
Investor takeaway
After what many deemed a weaker year for gold in 2022, 2023 has been incredibly bullish for the precious metal.
EY's Theo Yameogo told INN it’s important to remember the nature of the market, and how these jumps have come and gone in the past. “It's just a reminder that this is cyclical,” he said.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Gold remained at historically high levels in the second quarter, although it fell below US$2,000 per ounce.
The US Federal Reserve was in focus during Q2, with investors closely watching the American economy for hints on the central bank's next move. While the summer is often a slower time, some experts believe it's a good chance to position.
Here the Investing News Network (INN) presents a recap of the Q2 period for the gold market.
How did the gold price perform in Q2?
The gold price spent a decent amount of time above US$2,000 in Q2, but has since pulled back.
The yellow metal remained near or above that level through April and May, but in June its price strength began to decline. It finished the second quarter around US$1,920, although by mid-July it was back up around US$1,970.
Gold price chart, January 1, 2023, to July 20, 2023.
Actions from the US Federal Reserve continue to impact gold, and at its June meeting it left interest rates unchanged at 5 to 5.25 percent. The decision came after 10 consecutive increases from the central bank.
Fed officials have said the goal is to take time to review the effects of its aggressive hiking strategy.
Since the June meeting, experts have been debating what the Fed will do next. While some market watchers are surprised the Fed has been able to raise rates as far as it has and don't think it will be able to go much further, the latest "dot plot" projections from Fed officials tell another story — they show two more hikes of 25 basis points each are possible in 2023.
In the gold space, there's a broad consensus that a change in tactics from the Fed could provide a price boost.
As part of its half-year update, the World Gold Council said global economies appear to be nearing the end of their tightening cycles. “As monetary policy likely transitions from tightening to on-hold, market consensus is for a mild contraction in the US this year, and slow growth in developed markets,” the organization states in its report.
“In this context and following gold’s positive returns in H1, we expect gold to remain supported on the back of range bound bond yields and a weaker dollar,” the World Gold Council also notes.
According to the association, gold has been one of the only true positive investment assets so far in 2023, especially as the economy was hit with uncertainty in North America from several staggering bank runs.
Gold ETF inflow streak ends in June
In another report, the World Gold Council states that June brought the end of a three month streak for inflows into gold-backed exchange-traded funds (ETFs), which are often seen as a safer way to get exposure to the market.
Gold ETFs saw outflows of US$3.7 billion in June, concentrated in Europe and in North America.
“The early June strong equity market performance in key markets likely shifted focus away from risk-off assets such as gold,” the World Global Council said, noting that global gold ETF holdings fell 56 metric tons to 3,422 metric tons.
“And the majority of outflows occurred when the gold price dropped during the second half of the month amid hawkishness from major central banks in the face of obstinate inflationary pressure.”
Summer offers gold investors time to position
John Feneck, portfolio manager and consultant at Feneck Consulting, recently told INN that investors should take advantage of the summer doldrum months to better position themselves in the gold space.
"Summertime and in December as well, when people aren't doing their homework, is when we're doing most of our work, because this is when you can pick up some huge bargains. If you feel like doing something with them and disposing of them later next year or the year after, you're going to make some considerable money we think," he said.
Watch the full interview with Feneck above.
Investor takeaway
The Q2 period offered a bit of a stopping point for gold as the Fed broke off from its rate hike strategy. Now investors are looking ahead at the second half of the year for catalysts that could push it above US$2,000 once again.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
The gold price began Q3 on a relatively high note, but was approaching US$1,800 per ounce by its end.
The yellow metal was pushing back toward the US$2,000 mark at the start of the period, but wasn't able to maintain that level. The quarter culminated in a precipitous decline that saw gold break through support.
What has caused gold to retreat so quickly? Read on to learn more about what factors have affected its price over the last three months, and about significant gold-related news released during that time.
How did the gold price perform in Q3?
Gold tends to underperform in when interest rates are high, which was the case in Q3. At its July meeting, the US Federal Reserve raised rates for the 11th time since March 2022, adding 25 basis points for a range of 5.25 to 5.5 percent — the highest in 22 years. The gold price fell steadily in the two weeks after the decision, slumping to US$1,885.70 on August 17.
After seeing some support from mid-August to mid-September, gold went into a tailspin to close the quarter at US$1,848.80. The drop came as the Fed announced on September 20 that it would hold rates steady, and as Chair Jerome Powell suggested the central bank is in a good position to deliver a “soft enough” landing.
Central banks continue buying gold
While higher rates continued to put pressure on gold this past quarter, global central bank buying has helped maintain the precious metal's price level. July and August saw central banks pick up 55 metric tons (MT) and 77 MT of gold respectively, bringing the total to 219 MT for the three months ended in August.
Leading the way is China, which has purchased 155 MT of the yellow metal since the start of the year as it tries to minimize its US dollar exposure. Its central bank currently holds gold reserves of 2,165 MT, accounting for 4 percent of global reserves.
With the Russia-Ukraine war on its doorstep, Poland has also been a significant buyer of gold, adding another 18 MT in August and bringing its yearly total to 88 MT. That moves it closer to its intended buying target of 100 MT for the year.
Sanctions imposed on Russia following its invasion of Ukraine in February 2022 have renewed the BRICS nations' interest in finding an alternative to the US dollar as the global reserve currency.
Member nations Brazil, Russia, India and South Africa are keen to break from the US dollar, but it’s China in particular that has been working for several years to establish its own currency as an alternative, with increasing uptake. When the BRICS countries met from August 22 to 24, some market participants believed they might announce a new BRICS currency — perhaps one backed by gold or another commodity. But ultimately no such announcement was made at the meeting.
Many analysts believe the idea is untenable unless China and India are able to find common ground and resolve long-standing differences — and even if they did so, a BRICS currency wouldn't necessarily be backed by gold.
“The lack of information out there is extremely important in understanding what you’re looking at. There’s a lack of information because there is a lack of development,” Jeffrey Christian, managing partner at CPM Group, explained to the Investing News Network (INN) in the lead-up to the BRICS meeting.
“They do see a desire to cooperate among themselves to counter decades of hegemonic activity by the US and to a lesser extent Europe,” he continued. “But the idea of a central currency makes no sense. None of the countries really want to tie their currencies to Russia. The idea of a different currency backed by gold is a non-starter.”
M&A activity makes headlines
The massive deal between gold giants Newmont (TSX:NGT,NYSE:NEM) and Newcrest Mining (ASX:NCM,TSX:NCM) inched closer to completion through the third quarter. The deal, which will see Newmont acquire 100 percent of Newcrest, reached significant milestones as the companies received key approvals from Australia, Japan and Papua New Guinea.
Newmont shareholders met on October 11 to vote, with 96 percent of them voting in favor of the transaction. Newcrest shareholders are set to vote on October 13. Newmont has been trading lower since it announced its intention to acquire Newcrest on February 5, while Newcrest's share price has reacted more favorably.
Though this may be the biggest gold deal of the year, 2023 continues to be hot and is on track to bring in the highest level of mergers and acquisitions for the mining sector in a decade.
Other notable M&A announcements in the sector during Q3 include the completion of a merger between GCM Mining and Aris Gold on September 26 to create Aris Mining (TSX:ARIS,NYSE:ARMN). The resultant company has operations in Colombia and produced 60,193 ounces of gold in its most recent quarter.
Aside from that, Canada’s Silvercorp Metals (TSX:SVM,NYSEAMERICAN:SVM) announced on August 6 that it has entered into a binding scheme implementation deed to acquire Australia’s OreCorp (ASX:ORR). The acquisition would give Silvercorp a US$630 million market cap and access to OreCorp’s multimillion-ounce Nyanzaga gold project in Northwest Tanzania. The project is expected to produce 240,000 ounces of gold per year once complete.
David Erfle, editor and founder of Junior Miner Junky, told INN at the end of Q3 that he sees growth potential in gold stocks, but with limited interest from retail investors, more M&A activity is necessary to bring interest to the market.
“A lot of (companies) are at the feasibility stage, or the construction stage or the finance stage, and their market cap is two or three or sometimes four times less than the equity it would take to build the mine,” he said. “What I'd like to see is several of these companies merge, so you have one company with a handful of these projects — maybe $150 million, $200 million in the bank, access to capital and also tack on a big board US listing. Then you're more liquid, you're more attractive."
Biggest IPO of the year is golden
July 7 brought Indonesia’s biggest initial public offering (IPO) this year and one of the world’s best-performing IPOs so far in 2023: PT Amman Mineral Internasional (IDX:AMMN). The company raised the equivalent of over US$713 million in its IPO, and shares have since surged 250 percent in value, giving the firm a market cap of US$29 billion.
The company's most significant asset, Amman Mineral Nusa Tenggara — which includes the Batu Hijau mine, the second largest gold mine in Indonesia — was purchased from Newmont in 2016. The copper-gold mine produced 172,000 ounces of the yellow metal during the first half of the year.
So, why has gold retreated?
Even though there have been strong gold sector developments over the past three months, larger economic trends have made investments like Treasuries more attractive and have dulled gold's luster. The yellow metal's relatively flat growth over the past few years has also prompted investors to look for more immediate gains elsewhere.
With the US economy and dollar staying strong and no relief from high interest rates until at least 2024, it's not looking good for investors who hope gold will break through US$2,000 in the coming months.
However, the Fed has indicated that it's tracking the economy closely and has acknowledged that a recession hasn't been completely avoided. The central bank will meet again from October 31 to November 1 to determine whether another hike will be needed and to outline its steps for the beginning of next year.
Investor takeaway
Following a solid start to the year for gold, the third quarter brought setbacks for the metal, which is subject to both broad market forces and investor appetites. While retail and institutional investors may continue to shy away from gold for interest-bearing assets, central bank buying looks set to persist and may be a factor in price stabilization in Q4.
At the same time, Q4 has already brought a great deal of geopolitical instability. The invasion of Ukraine remains an issue for investors and, if it worsens, it could push the price of gold higher. Additionally, a burgeoning conflict in Israel has already pushed the price of the yellow metal up nearly 1 percent since hostilities began on October 7.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lobo Tiggre: Gold Stocks are My Highest-Conviction Trade for 2024
In a recent interview, Lobo Tiggre, editor and founder of IndependentSpeculator.com, shared his highest-conviction trade for 2024. While he's still a uranium bull, he sees the most opportunity in gold stocks next year.
Back in July, Tiggre's focus had narrowed to uranium and he was feeling bearish on gold in the near term. But now he sees various factors lining up for gold, including a US recession, geopolitical concerns, inflation and central bank buying.
"Maybe it means a little bit more for me to say I'm looking at (gold)," he told the Investing News Network. "I'm looking at the recession — it's here on a global level and I think it's here in disguise in the US. But I think the disguise falls."
Watch the interview above for more from Tiggre on gold, as well as uranium and silver. You can also click here for the Investing News Network's full New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Tavi Costa: Gold Price Breakout is "Inevitable," Don't Lose Focus Now
Speaking at the New Orleans Investment Conference, Tavi Costa, partner and portfolio manager at Crescat Capital, discussed sentiment in the resource sector, including where he sees opportunity today.
"Everyone is sort of waiting for this breakout in gold, otherwise there's no party," he said on the sidelines of the event. "Everyone is just waiting patiently, and in my view it's going to happen — it's inevitable that we're going to see a breakout. Then other commodities should follow, and then the valuations of companies should be rerated."
In terms of timing, Costa said that back in 2018 he started looking closely at CAPEX trends among mining companies. "You can kind of see when that bottoms out you tend to see a bull market in commodities. You just don't know on the macro side what the trigger is going to be, but the foundation of the thesis is there," he explained.
"I feel like everything is really coming together right now, (but) the sentiment is really bearish," Costa continued. "I am not that way at all. I'm extremely bullish, I'm really focused right now ... you don't want to lose focus at the wrong time."
Moving forward, he expects to see the traditional 60/40 portfolio fall by the wayside. "Those two allocations need to be redefined," he said. "I think commodities are going to play a role there. I think gold is going to be one of those assets that is going to be competing with Treasuries, just like central banks have been changing their allocation." Notably, he pointed out that recent research shows 70 percent of advisors have portfolios with less than 1 percent gold.
"I think (gold is) going to be one side. And then a basket of commodities will probably take the other side. And I would say emerging markets, especially rich resource economies like Brazil, will probably take a part of the equity market portion."
Watch the interview above for more of Costa's thoughts on gold and the resource sector. You can also click here for the Investing News Network's full New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Regardless of how the gold price is doing in any given year, the top gold-mining companies are always making moves.
Right now, the yellow metal is in the limelight — stimulated by increasing global inflation, geopolitical turmoil and recession fears, the price of gold has broken past the US$2,000 per ounce level multiple times in 2023.
Rising demand for gold alongside concerns over gold mine supply have pushed the metal to record highs in recent years, and market watchers are eyeing world's top gold-mining companies to see how they respond to current market dynamics.
According to the most recent US Geological Survey data, gold production increased by approximately 2 percent in 2021, and by a mere 0.32 percent in 2022. China, Australia and Russia were the top three countries to produce gold last year.
But what were the top gold-mining companies by production in 2022? The list below was compiled by the team at Refinitiv, a leading financial markets data provider. Read on to find out which companies produced the most gold last year.
Newmont was the largest of the top gold-mining companies in 2022. The firm holds significant operations in North and South America, as well as Asia, Australia and Africa. Newmont produced 185.3 metric tons (MT) of gold in 2022.
In early 2019, the miner acquired Goldcorp in a US$10 billion deal; it followed that up by starting a joint venture with Barrick Gold (TSX:ABX,NYSE:GOLD) called Nevada Gold Mines; is 38.5 percent owned by Newmont and 61.5 percent owned by Barrick, which is also the operator. Considered the world’s biggest gold complex, Nevada Gold Mines was the top-producing gold operation in 2022 with output of 94.2 MT.
Newmont’s gold production guidance for 2023 is set at 5.7 million to 6.3 million ounces (161.59 to 178.6 MT).
Barrick Gold lands in second place on this list of top gold producers. The company has been active on the M&A front in the last five years — in addition to merging its Nevada assets with Newmont in 2019, the company closed its acquisition of Randgold Resources the prior year.
Nevada Gold Mines is not Barrick's only asset that is a top-producing gold operation. The major gold company also holds the Pueblo Viejo mine in the Dominican Republican and the Loulo-Gounkoto mine in Mali, which produced 22.2 MT and 21.3 MT, respectively, of the yellow metal in 2022.
In its annual report for 2022, Barrick notes that its full-year gold production was slightly less than its stated guidance for the year, rising a little over 7 percent from the previous year’s level. The company has attributed this shortfall to lower production at Turquoise Ridge due to unplanned maintenance events, and at Hemlo due to the temporary water inflows that impacted mining productivity. Barrick has set its 2023 production guidance at 4.2 million to 4.6 million ounces (119.1 to 130.4 MT).
Agnico Eagle Mines produced 97.5 MT of gold in 2022 to take the third spot on this top 10 gold companies list. The company has 11 operating mines in Canada, Australia, Finland and Mexico, including 100 percent ownership of two of the world's top gold-producing mines — the Canadian Malartic mine in Quebec and the Detour Lake mine in Ontario — which it acquired from Yamana Gold (TSX:YRI,NYSE:AUY) in early 2023.
The Canadian gold miner achieved record annual production in 2022, and also increased its gold mineral reserves by 9 percent to 48.7 million ounces of gold (1.19 million MT grading 1.28 grams per MT gold). Its gold production for 2023 is expected to reach 3.24 million to 3.44 million ounces (91.8 to 97.5 MT). Based on its near-term expansion plans, Agnico Eagle is forecasting production levels of 3.4 million to 3.6 million ounces (96.4 to 102.05 MT) in 2025.
Coming in fourth on this top gold-mining companies list is AngloGold Ashanti, which produced 85.3 MT of gold in 2022. The South African company has nine gold operations in seven countries across three continents, as well as numerous exploration projects around the world. AngloGold's Kibali gold mine (a joint venture with Barrick as the operator) in the Democratic Republic of Congo is the fifth largest gold mine in the world, having produced 23.3 MT of gold in 2022.
In 2022, the company increased its gold production by 11 percent over 2021, coming in at the top end of its guidance for the year. Its production guidance for 2023 is set at 2.45 million to 2.61 million ounces (69.46 to 74 MT).
Polyus produced 79 MT of gold in 2022 to take fifth place among the top 10 gold-mining companies. It is the largest gold producer in Russia and holds the highest proven and probable gold reserves globally at more than 101 million ounces.
Polyus has six operating mines located in Eastern Siberia and the Russian Far East, including Olimpiada, which ranks as the world's third largest gold mine by production. The company expects to produce approximately 2.8 million to 2.9 million ounces (79.37 to 82.21 MT) of gold in 2023.
Gold Fields comes in at number six for 2022 with gold production for the year totaling 74.6 MT. The company is a globally diversified gold producer with nine operating mines in Australia, Chile, Peru, West Africa and South Africa.
Gold Fields and AngloGold Ashanti recently joined forces to combine their Ghana exploration holdings and create what the companies claim will be Africa's biggest gold mine. The joint venture has the potential to produce an annual average of 900,000 ounces (or 25.51 MT) of gold over the first five years.
The company’s production guidance for 2023 is in the range of 2.25 million to 2.3 million ounces (63.79 to 65.2 MT). This figure excludes production from Gold Fields' Asanko joint venture in Ghana.
Kinross Gold has six mining operations across the Americas (Brazil, Chile, Canada and the US) and East Africa (Mauritania). Its largest producing mines are the Tasiast gold mine in Mauritania and the Paracatu gold mine in Brazil.
In 2022, Kinross produced 68.4 MT of gold, which was a 35 percent year-on-year increase from its 2021 production level. The company attributed this increase to the restart and ramp-up of production at the La Coipa mine in Chile, as well as to higher production at Tasiast after the resumption of milling operations that were temporarily suspended in the prior year.
Newcrest Mining produced 67.3 MT of gold in 2022. The Australian company operates a total of five mines across Australia, Papua New Guinea and Canada. Its Lihir gold mine in Papua New Guinea is the world's seventh largest gold mine by production.
According to Newcrest, it has one of the largest group gold ore reserves in the world. With an estimated 52 million ounces of gold ore reserves, its reserve life is approximately 27 years. The number one gold-producing company on this list, Newmont, made a proposal to combine with Newcrest in February; the deal closed successfully in November.
Better known for its copper production, Freeport-McMoRan produced 56.3 MT of gold in 2022. The vast majority of that production originates from the company's Grasberg mine in Indonesia, which ranks as the world's second largest gold mine by production.
In its Q3 results for this year, Freeport-McMoRan states that long-term mine development activities are underway at Grasberg's Kucing Liar deposit. The company anticipates that the deposit will ultimately produce more than 6 billion pounds of copper and 6 million ounces of gold (or 170.1 MT) between 2028 and the end of 2041.
Zijin Mining Group rounds out this top 10 gold companies list with production of 55.9 MT of gold in 2022. The company's diverse metals portfolio includes seven gold-producing assets in China, and several others in gold-rich jurisdictions such as Papua New Guinea and Australia.
In 2023, Zijin presented its revised three year plan through 2025, as well as its 2030 development goals, one of which is to move up the ranks to become a top three to five producer of gold and copper.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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