With the broader markets near a potential inflection point—the point at which the Fed’ll admit defeat in its battle against inflation and turn its attention to what may evolve into another financial crisis—we could see some wild swings over the balance of 22.

Where the precious metals are concerned, we’re at the U.S. dollar’s mercy.

The recent strength in the Greenback has thwarted any notion of positive trajectory, but the trading action over the past few sessions hints at a potential reversal. The USD Index appears to be breaking down. Several closes below the 50 SMA (blue line, chart below) would go a long way toward confirming a top (we stand to watch).

The Gold price has firmed up in recent sessions in response to the Greenback’s weakness, but the real standout is Silver, printing a weighty gain of nearly 6% at the conclusion of Monday’s New York session.

Note the potential bullish MACD crossover (above chart). I know what you’re thinking… another head fake? That’s what I’m thinking too, but one of these days…

Digging deeper, Silver’s COT numbers are looking bullish.

The Fed’s decision on rates will come later this month on the heels of a two-day chin-wag (on September 21).

Expect exaggerated moves in Gold and Silver in the immediate aftermath of this upcoming FOMC event.

The FOMC meeting (and minutes) schedule for the remainder of 2022 can be found here.

The U.S. CPI schedule for the remainder of 2022 can be found here.

The Support for Uranium Grows

Uranium bulls were further emboldened by news out of the state of Michigan – In surprise move, Whitmer announces plan to reopen shuttered Palisades nuclear plant.

Support for uranium is now so far-reachingso universalwhy even environmentalists are supporting nuclear power today.

Even Oliver Stone—Hollywood director, producer, and screenwriter—is touting the merits of the energy-dense metal. Note his latest film (documentary) – Oliver Stone on Nuclear Energy: ‘We Need to Get Away From Mentality of Fear.’

Some of the companies we follow – A Few Choice Updates

Forum Energy Metals (FMC.V) – (FDCFF.OTC)

  • 170.82 million shares outstanding
  • $25.62M market cap based on its recent $0.15 close

Between Forum’s Wollaston Uranium Project and its Northwest Athabasca Joint Venture in the prolific Athabasca Basin of Saskatchewan, the company continues to lay a foundation for what promises to be a busy winter involving the business end of the drill bit. The summer-of-2023 is also taking shape as the company prepares for a maiden drill campaign at its 105,000-hectare Thelon Basin Uranium Project, located 100 kilometers west of the community of Baker Lake, Nunavut (within the Thelon Basin itself).

Concerning the Thelon Basin, Forum’s CEO, Rick Mazur: “The Thelon Basin is an important unconformity-type uranium district that represents the closest geological analogue in the world to the prolific Athabasca Basin. We believe that our ground hosts major high grade uranium deposits with similar potential and grades as the Athabasca. Forum is formulating plans to aggressively explore this project in 2023.”

Further…

There are many Proterozoic basins worldwide, but only two have high grade unconformity-type uranium deposits that have gone into production; the Athabasca Basin in Saskatchewan, Canada and the McArthur Basin in the Northern Territory, Australia. The third Proterozoic basin having the greatest potential for high grade economic uranium deposits is the Thelon Basin in Nunavut, Canada (map below). Three deposits have thus far been proposed for development – the Kiggavik, Andrew Lake and End deposits at the 133 million pound Orano/Denison/UEX Kiggavik Uranium Mine Development Project at an average head grade of 0.46% U. The project is currently on care and maintenance.

 The fundamentals underpinning Forum’s dominant land position in the region, and a bit of history: 

Cameco drilled 135 holes for 36,000 meters between 2008 and 2012. This drilling resulted in the discovery of the above-noted Tatiggaq deposit (located roughly five kilometers west of Orano’s Andrew Lake deposit), the Qavvik deposit, the Ayra showing, and three other targets identified via geophysics.

The Tatiggaq discovery consists of two zones—Main and West. Both average 30 meters in thickness at a relatively shallow depth between 80 and 100 meters. The Main zone has a strike length of 60 meters. The West zone has a strike length of 80 meters.

Highlights from historical drilling include:

  • TUR-026 – 1.0% U3O8 over 14.9 meters from 177.6 to 192.5 meters;
  • TUR-040 – 0.92% U3O8 over 11.3 meters from 159.1 to 170.4 meters;
  • TUR-042 – 2.69% U3O8 over 7.9 meters from 200.2 to 208.1 meters (including 24.8% U3O8 over 0.4 meters from 202.9 to 203.3 meters);
  • TUR-052B – 0.43% U3O8 over 54.2 meters from 115.4 to 169.6 meters;
  • TUR-056 – 0.93% U3O8 over 9 meters from 126 to 135 meters;
  • TUR-058 – 1.17% U3O8 over 6.1 meters from 88.2 to 94.3 meters.

Tatiggaq occurs within a large gravity anomaly measuring 800 meters in width by 1.5 kilometers in length. (Image below).

The Tatiggaq deposit is within a large gravity anomaly that remains open at depth and along strike for 1.5 kilometres. Drill fences to the northeast of the West and Main deposits are proposed for 2023.

Potential exists to significantly increase the size of this deposit which will be the focus of Forum’s proposed drill program in 2023, in addition to following up on Qavvik, Ayra and other targets on the property.

Last week’s headline…

Forum Provides Nunavut Uranium Project Update

Here, the Company announced the commencement of a ground gravity survey and the completion of a baseline archaeological study on its Nunavut ground.

2022 Exploration Activities include:

  • Review the 135 drill holes drilled by Cameco from 2008 to 2012, resulting in the discovery of the Tatiggaq deposit, the Qavvik deposit, and the Ayra showing (Editors note: this review of historical data is an important and potentially cost-saving step as the company prepares to move things forward).
  • Conduct reconnaissance for a camp location for the proposed 2023 drill program.
  • Conduct community engagement with the Hamlet of Baker Lake.

Forum received a Screening Decision Report from the Nunavut Impact Review Board and its Land Use Permit from Crown Indigenous Relations and Northern Affairs Canada in August.

MWH Geo-Surveys has a three-person team conducting ground gravity surveys over four grids in the project area (image below). Approximately 1200 gravity stations will be collected at a station spacing of 100 meters along lines 400 meters apart. Survey results will be available later in the fall to help delineate additional targets for drilling. 

WSP Golder has completed a baseline archaeological study on the property. A two-person team visited the new camp location and numerous high-priority drill target areas to document any (potential) archaeological sites. WSP Golder is preparing its final report (no significant sites have been documented).

Location of the Kiggavik, End and Andrew Lake uranium deposits on the Orano/Denison/UEX mineral lease, the Tattigaq, Qavvik and Ayra uranium showings, Forum’s camp location and gravity surveys on Forum’s mineral claims.

Forum is methodically checking all the boxes as it moves its Thelon Basin project closer to the drilling stage—review of historical data, state-of-the-art geophysics, community engagement and consultation.

Aside from Wollaston, the Northwest Athabasca Joint Venture, and Thelon Basin, the Company boasts an extensive energy metal project pipeline in Saskatchewan and Idaho.

Defense Metals (DEFN.V) – (DFMTF.OTC)

  • 183.37 million shares outstanding
  • $41.26M market cap[ based on its recent $0.225 close

Defense Metals is our exploration and development play in the REE arena. The Company’s total rare-earth oxide (TREO) resource at its mothership Wicheeda Project in the infrastructure-rich region of Prince George BC currently stands at 5.0 million tonnes averaging 2.95% TREO (Indicated) and 29.5 million tonnes averaging 1.83% TREO (Inferred).

In continuing its aggressive push along the development curve, and in the spirit of cooperation with the local McLeod Lake Indian Band, the Company just dropped the following headline:

Defense Metals Signs Mineral Exploration Agreement with McLeod Lake Indian Band

In my way of thinking, the company just de-risked its flagship project Big Time with this development.

This Agreement addresses the immediate interests of both parties with respect to mineral exploration activities related to the project, and puts into place a framework for communication and cooperation going forward. In addition to providing the McLeod Lake Indian Band with meaningful input into how these activities are to proceed, the Agreement provides current economic opportunities for the community and establishes a roadmap for potential future commercial involvement as the exploration activities advance.

Defense CEO, Craig Taylor: “We are delighted to have the McLeod Lake Indian Band engaged with Defense Metals and the opportunities presented by the Wicheeda exploration project. We look forward to building a long-term and mutually beneficial relationship with the McLeod Lake Indian Band through the implementation of this initial agreement.”

Chief Harley Chingee: “McLeod Lake Indian Band has always been open to working with companies that respect our rights, laws and interests in the protection of our lands, and that provide meaningful economic and commercial opportunities for our community. We are therefore pleased to have completed this initial agreement with Defense Metals, and look forward to its successful implementation.”

On deck for Defense shareholders: assays from a 3,500-meter program of infill and stepout drilling that wrapped up early last month.

Patriot Battery Metals (PMET.V) – (PMETF.OTC) – (R9GA.FRA)

  • 88.58 million shares outstanding
  • $602.35M market cap based on its recent $6.80 close

On August 31, Patriot management saw fit to halt trading before trotting out its latest round of drill results from its flagship Corvette Project in the James Bay Region of Quebec:

Patriot Announces Best Drill Intercept to Date – 1.65% Li2O over 159.7 m, including 4.12% Li2O over 9.0 m – at the Corvette Property, Quebec

The trading halt was warranted. The assay values in the headline’s text represent an extraordinary hit highlighting a commodity with truly compelling supply/demand dynamics.

Significant Intercepts:

  • Best lithium intercept returned to date in drilling at Corvette, located at the east-end of the current drill area
    • 1.65% Li2and 193 ppm Ta2O5 over 159.7 meters (from 131.8 m downhole), including 4.12% Li2and 162 ppm Ta2O5 over 9.0 meters (CV22-042)
    • 2.13% Li2and 163 ppm Ta2O5 over 86.2 meters (from 244.4 m downhole), including 3.07% Li2and 265 ppm Ta2O5 over 18.0 meters (CV22-044)
  • Continued strong lithium grades over wide intervals returned over western portion of drill area, between the CV5 and CV6 spodumene pegmatite outcrops
    • 1.42% Li2and 106 ppm Ta2O5 over 59.3 meters (from 214.0 m downhole), including 2.06% Li2O and 141 ppm Ta2O5 over 7.2 meters (CV22-038)
    • 1.68% Li2and 91 ppm Ta2O5 over 22.7 meters (from 319.4 m downhole), including 3.13% Li2O and 75 ppm Ta2O5 over 7.0 meters (CV22-043)

Drill Program Update:

  • Drill holes CV22-063 and 066, with 39.9 meters and 113.4 meters core length intercepts of spodumene-bearing pegmatite, respectively, have extended the strike length of the principal lithium pegmatite to at least 2,000 meters, as tested by drilling, spanning laterally from drill hole CF21-004 through CV22-063/066
  • As of August 24th, 2022, a total of 15,497 meters over fifty-three (53) holes have now been completed over the 2022 drill campaign – 4,345 meters over 20 holes in the winter program, and 11,152 meters over thirty-three (33) holes in the summer program.
    • Nineteen (19) drill holes currently en route to or in process at the analytical lab.

The Company notes that the drill data received from CV22-037 and 039 provide a strong indication that the CV1 Pegmatite outcrop represents the surface expression of a separate pegmatite body trending sub-parallel and in close proximity to the main pegmatite body (image below).

Drill hole collar locations for holes completed through August 24, 2022, as part of the 2021-2022 drill campaigns – CF21-001 through 004, and CV22-015 through 067

More recently, on September 8, the Company announced a new acquisition—the Pontois West Lithium Property—increasing its land position along the La Grande Greenstone Belt by some 1,587.2 hectares.

Patriot Acquires the Pontois West Lithium Property, Expanding its Land Position in the La Grande Greenstone Belt, James Bay, Quebec

This new block of contiguous claims is located roughly 10.5 kilometers west of the Company’s mothership Corvette Property adding 8.3 kilometers of highly prospective lithium pegmatite trend.

Next, just yesterday (Sep. 12), Patriot updated the status of its highly anticipated listing in the land down under…

Patriot Battery Metals ASX Listing Update

Patriot has been in consultation with the ASX to obtain in-principle approval to undertake a dual listing on the ASX and TSX-V. Following the successful relisting of Patriot on the TSX-V on 14 July 2022, the Company now anticipates it will receive in-principle approval along with the standard ASX Listing Rule waivers for a TSX-V company to dual list on the ASX shortly. The Company now expects to lodge its listing prospectus in October 2022.

To say Patriot’s newsflow is robust might be an understatement.

The Company’s shares are currently testing recent (all-time) highs…

Concerning the assay values reported on August 31, Ken Brinsden, Non-Executive Chairman and Director: “The scope of lithium mineralization at Corvette is incredible, with further strong intercepts from the summer program continuing to demonstrate the scale and grade of the mineralized envelope. Remaining open to the east, west, and to depth, in addition to the numerous other lithium pegmatite targets on the Property, the Corvette Project remains highly prospective beyond what we have found to date. Corvette is one of the world’s great lithium raw materials discoveries with full credit to the team as we continue to realize its potential.”

This just in…

Patriot Battery Metals Welcomes Brett Grosvenor to the Newly Formed Project Steering Group to Expedite Advancement of the Corvette Lithium Property

This isn’t just a new hire. It’s an interesting development.

The Company has formed a Project Steering Group (PSG) for the Corvette Project—a group that will report directly to the Company’s Board of Directors.

The PSG will be comprised of Blair Way (CEO, President, and Director), Ken Brinsden (Non-Executive Chairman), Darren L. Smith (Vice President of Exploration), and Lithium Industry Development Specialist Brett Grosvenor.

The purpose of the PSG is to assist the Board of Directors in ensuring the Company implements a well-structured, practical, and efficient exploration and development approach for the lithium pegmatite on the Corvette Property.

Specifically, the PSG will assist the Board of Directors in fulfilling its oversight responsibilities with respect to:

  • ensuring implementation of best-in-class exploration, development, and operating practices
  • ensuring the most appropriate consultants are engaged throughout the Project’s advancement and development
  • any technical matters relating to exploration, development, permitting, construction, and operation of the Company’s activities

This is a well-thought-out, novel approach. You gotta like the way this company operates.

And very briefly…

The remaining updates involve companies deserving far more attention and detail than I can give them right now (so many writing deadlines, so little time). My apologies.

Prime Mining (PRYM.V) – (PRMNF.OTC) – (04V3.FRA)

  • 112.7 million shares outstanding
  • $206.24M market cap based on its recent $1.83 close

Last week Prime dropped the latest round of assays from its flagship Los Reyes Project in the mining-friendly district of Sinaloa, Mexico.

Prime Extends Guadalupe at Depth and Along Strike with Multiple Thick High-Grade Gold-Silver Intercepts

Results presented in this press release spring from 42 in-fill and step-out drill holes at Guadalupe, one of the three major mineralized corridors currently receiving the business end of the drill bit (map below).

Los Reyes Drill Program Progress – Sept 2022

Drill Intercept Highlights

        Guadalupe

  • 5.01 gpt Au and 328.1 gpt Ag” over 3.7 m (1.9 m estimated true width (“etw”)) (22GE-73);
  • 1.65 gpt Au and 235.9 gpt Ag over 13.8 m (13.5 m etw), plus 0.95 gpt Au and 124.5 gpt Ag over 6.1 m (6.0 m etw), plus 2.52 gpt Au and 365.0 gpt Ag over 1.5 m etw (22GE-72);
  • 1.46 gpt Au and 56.3 gpt Ag over 21.1 m (14.4 m etw), plus 1.01 gpt Au and 67.2 gpt Ag over 1.6 m (1.5 m etw) (22GE-105);
  • 1.38 gpt Au and 38.1 gpt Ag over 9.0 m (4.5 m etw) (22GE-70);
  • 2.77 gpt Au and 440.0 gpt Ag over 1.3 m (1.1 m etw) (22GE-59);
  • 0.97 gpt Au and 267.5 gpt Ag over 3.0 m (2.5 m etw) (22GE-63)
  • 1.28 gpt Au and 45.0 gpt Ag over 6.2 m (2.6 m etw) (22GE-77);
  • 1.55 gpt Au and 43.0 gpt Ag over 10.0 m (5.7 m etw), plus 1.72 gpt Au and 43.0 gpt Ag over 5.4 m (4.8 m etw) (22GE-80);
  • 16.10 gpt Au and 391.0 gpt Ag over 0.9 m (0.5 m etw) (22GE-85); and,
  • 10.41 gpt Au and 682.7 gpt Ag over 1.0 m (0.7 m etw), plus 0.92 gpt Au and 945.0 gpt Ag over 1.5 m (1.1 m etw) (22GE-76).

To date, 67,200 meters of Phase 2 drill holes have been completed across the Los Reyes property and is expected to reach a total of 72,000 m by the end of October. Prime has drilled approximately 92,850 meters total at Los Reyes. The Company expects to release an updated mineral resource estimate in early 2023.

Prime’s CEO, Daniel Kunz: “The high-grade drill results reported today continue to expand the mineralized envelope at Guadalupe by several hundred meters along strike and down dip. In addition to this drilling, excellent geological field work, interpretation, mapping, and testing have increased our understanding of the mineral deposition processes at Los Reyes. This work allows us to find more efficiencies in Phase 2 drill targeting and helps us plan our Phase 3 drilling program – because this area remains open along strike and at depth.”

Highgold Mining (HIGH.V) – (HGGOF.OTC)

  • 73.02 million shares outstanding
  • $65.72M market cap based on its recent $0.90 close

Highgold just dropped its first assays from this season’s 13,000-meter drill campaign at its mothership Johnson Tract Project in Southcentral Alaska.

HighGold Mining Intersects 21.7 g/t Gold over 11.9 Meters at DC Prospect, Johnson Tract Project, Alaska

This first batch of assays is from the (potentially) district-scale Difficult Creek (DC) prospect located some four kilometers northeast of the Company’s 1.05 million oz Indicated resource base (9.4 g/t AuEq at a 3.0 g/t AuEq cut-off).

Drill hole highlights – Ellis Zone, DC Prospect:

  • 11.9m @ 21.68 g/t Au, 30 g/t Ag, 0.61% Cu, 4.20% Zn (25.3 g/t AuEq), in hole DC22-043, including
    • 3.9m @ 54.20 g/t Au, 71 g/t Ag, 1.26% Cu, 8.29% Zn (61.6 g/t AuEq), including
    • 1.4m @ 92.75 g/t Au, 138 g/t Ag, 2.22% Cu, 19.80% Zn (109 g/t AuEq)
  • 42.8m @ 3.4 g/t Au, 23 g/t Ag, 0.21% Cu, 2.06% Zn (5.4 g/t AuEq), in hole DC22-036, including
    • 18.4m @ 7.29 g/t Au, 50 g/t Ag, 0.44% Cu, 3.92% Zn (11.2 g/t AuEq) including
    • 3.7m @ 18.00 g/t Au, 87 g/t Ag, 0.91% Cu, 4.05% Zn (22.9 g/t AuEq)
  • 14.7m @ 4.0 g/t Au, 18 g/t Ag, 0.27% Cu, 4.18% Zn (7.3 g/t AuEq), in hole DC22-034, including
    • 5.6m @ 7.8 g/t Au, 36 g/t Ag, 0.49% Cu, 9.17% Zn (14.6 g/t AuEq)

Highgold’s CEO, Darwin Green: “A priority of our 2022 drill program was to follow up on last year’s late season discovery at the DC Prospect to determine if the mineralization continued to depth and laterally along strike. This has been confirmed in our initial step-outs which have returned multiple intersections of high-grade mineralization, including subintervals of multi-ounce grade. This emerging new zone of high-grade mineralization has been named the Ellis Zone in honor of the late Bill T. Ellis, who played a key role in the initial discovery and advancement of the Johnson Tract project and was a major force in the Alaska exploration community. We look forward to receiving the balance of the assays from the initial 25-hole detailed grid drilling program and completing additional larger step-outs along strike and to depth. We anticipate drilling through to the end of October as we continue to grow, what is shaping up to be, a potentially significant new zone at the Johnson Tract project.”

Skeena Resources (SKE.TO) – (SKE.NYSE)

  • 69.79 million shares outstanding
  • $523.44M market cap based on its recent $7.50 close

On September 8, Skeena tabled a highly anticipated economic study via the following headline:

Skeena Completes Robust Feasibility Study for Eskay Creek: After-Tax NPV (5%) of C$1.4B, 50% IRR and 1 Year Payback

The values in the text of the headline speak for themselves.

Eskay Creek 2022 FS highlights:

  • After-tax net present value (“NPV”) (5%) of C$1.41 billion at a base case of US$1,700 gold and US$19 silver;
  • Robust economics with an after-tax internal rate of return (“IRR”) of 50.2% and an industry leading after-tax payback on pre-production capital expenditures of 1 year;
  • High-grade open-pit averaging 3.87 g/t gold equivalent (“AuEq”) (2.99 g/t gold, 79 g/t silver) (diluted) with a strip ratio of 7.5:1;Years 1 – 5 average annual production of 431,000 AuEq ounces, places Eskay Creek as a tier one operation;
  • Life of mine (“LOM”) production of 3.2 million AuEq ounces from 2.4 million ounces of gold and 66.7 million ounces of silver;
  • Estimated pre-production capital expenditures (“CAPEX”) of C$592 million, yielding a compelling after-tax NPV:CAPEX ratio of 2.4:1;
  • LOM all-in sustaining cost (“AISC”) of US$652/oz AuEq recovered in concentrate;
  • Proven and Probable open-pit mineral Reserves of 29.9 million tonnes containing 2.87 million ounces gold and 75.5 million ounces silver (combined 3.85 million AuEq oz);
  • A carbon intensity of 0.20 t CO2e/oz AuEq produced, positioning Eskay Creek to be one of the lowest carbon intensity mines worldwide.

If pressed, if I were to nitpick, I’d say that their gold and silver price inputs are a tad aggressive, but if you’re exposed to this sector in any meaningful way—if you’re one of the party faithful— those values are right in line.

Skeena’s President, Randy Reichert: “The Feasibility Study confirms the robust economics of the world-class Eskay Creek Project originally shown in the Prefeasibility Study but with improved definition. The open-pit mineable, high-grade ore combined with the existing infrastructure at the Eskay Creek site and nearby hydropower provides for an extraordinary project that can be developed by Skeena. While the team continues to work on optimization of the Project, my primary focus will now shift to advancement of the permitting process as we move Eskay Creek toward construction.”

Sokoman Minerals (SIC.V) – (SICNF.OTC)

  • 214.28 million shares outstanding
  • $63.21M market cap based on its recent $0.295 close

It’s been a while since we checked in on this Newfoundland exploreco. A recent assay-related headline has breathed life back into the stock.

The headline…

Sokoman Reports the Thickest High-Grade Drill Results from the Lower Eastern Trend to Date: Moosehead Gold Project, Central Newfoundland

Results from an ongoing 100,000-meter Phase 6 drilling campaign at the company’s flagship Moosehead Project included an impressive 39.6-meter (core length) intercept grading 12.50 g/t Au (including a higher-grade interval of 10.25 meters @ 41.97 g/t Au) from the Lower Eastern Trend.

The mineralization in MH-22-463, located approximately 100 m below the limits of the modeled Eastern Trend, has a different vein style and geometry from other drill intersections in the vicinity. The intercept is thicker than any other intercept to date and includes the “typical” very high-grade vuggy-type veining with abundant visible gold and 5% – 7% accessory boulangerite and sphalerite, as well as a brecciated style of veining with specks of visible gold with minor boulangerite and sphalerite. This could suggest a changing structural setting within the Lower Eastern Trend.

Sokoman’s CEO, Tim Froude: “The intersections reported today in hole MH-22-463 are significant in many respects and not just in average grade. We appear to be in an area where multiple gold-bearing structures are possibly converging, or we are looking at a new style of veining at Moosehead. We intend to step back and take a detailed look at the environment around hole MH-22-463 to better plan drilling moving forward while we still have significant meterage (~ 27,000 m) remaining. Compilation of the southern property area is going well, and we expect to have a series of holes planned to test our findings within three to four weeks. Drilling will continue at Moosehead with three drills including the barge-based rig. Less than 1,000 assays remain outstanding at the lab and represent parts or all of approximately 15 holes.”

This just in…

Teuton Resources (TUO.V) – (TFE.FRA)

  • 56.9 million shares outstanding
  • $68.85M market cap based on its recent $1.21 close

Teuton Resources Reports Preliminary Results from a 350 m Step-out Hole, GS-22-151-W1, with 59.53 g/t AuEq over 1.5m, and In-Fill Hole GS-22-154 with 2.02 g/t AuEq over 180.0 m including 3.18 g/t AuEq over 93 m at Treaty Creek, Golden Triangle, BC

We’re into the sixth set of drill results from Treaty Creek (TC), a project located in the heart of the Golden Triangle of northwestern British Columbia (TC adjoins and is on trend with Seabridge Gold’s KSM property and Newcrest Mining’s Brucejack property). Teuton enjoys a 20% carried interest in TC, with JV partner Tudor Gold doing all the heavy lifting.

TC’s ounce count currently stands at 19.4 million ounces at 0.74 g/t AuEq (M&I) and 7.9 million ounces at 0.79 g/t AuEq (Inferred).

2022 TC drilling is an aggressive resource expansion and delineation campaign targeting several areas, including the Goldstorm Deposit, the Eureka zone, and the Calm Before the Storm zone. With the sheer volume of holes punched into the system this season, and the consistency / continuity of the results reported thus far, TC’s resource base is destined to grow (perhaps significantly so).

Slide #14 from Tudor’s pitch deck

The assay values presented in this press release include five holes drilled into the Goldstorm Deposit (Sections 111+25 NE, 116+50 NE, and Section I). At Goldstorm, three out of five holes were drilled partially or entirely outside the 2021 NI 43-101 Mineral Resource Estimate area.

Goldstorm Deposit drill hole highlights

Section 111+25 NE

GS-22-153 was drilled to target the footwall of the Treaty Thrust Fault 1 (TTF1) where the March 2021 NI 43-101 Mineral Resource Estimate classified the area largely as Inferred Mineral Resource. The drill hole successfully intercepted TTF1, below which intercepted 180.0 meters grading 1.02 g/t AuEQ (0.96 g/t Au, 3.68 g/t Ag, 0.02 % Cu) within a broader envelope of 0.75 g/t AuEQ (0.70 g/t Au, 3.20 g/t Ag, 0.01 % Cu) over 355.3 meters.

SECTION 116+50 NE

GS-22-154 was drilled to target an area downdip of the CS600 domain, which exists outside of the March 2021 Mineral Resource area. The drill hole also intersected the 300H domain and encountered significant mineralization; 93.0 meters grading 3.18 g/t AuEQ (3.12 g/t Au, 4.59 g/t Ag, 0.01 % Cu) within a 180.0 meter envelope of 2.02 g/t AuEQ (1.97 g/t Au, 3.72 g/t Ag, 0.01 % Cu). Assays for the CS600 interval are pending and will be released in the next drill results release.

SECTION I

GS-22-151 was drilled to target a 150 meter step out from GS-22-133. The hole shallowed more than expected and the drill hole was terminated, and a new wedge drill hole (GS-22-151-W1) was drilled from this drill hole. Prior to termination, the hole reached mineralization that averaged 1.20 g/t AuEQ (1.19 g/t Au, 0.66 g/t Ag, 0.01 % Cu) over 18.0 meters.

GS-22-151-W1 continued from its parent drill hole GS-22-151 to intersect the northwest extent of CS600. A high-grade interval of 59.53 g/t AuEQ (59.30 Au, 12.80 g/t Ag, 0.07 % Cu) over 1.5 meters was drilled at the hangingwall side of the CS600 domain within a broader envelope of 202.5 meters grading 1.27 g/t AuEQ, (0.93 g/t AuEQ, 1.92 g/t Ag, 0.27 % Cu). Assays for the complete CS600 interval are pending and will be released in the next drill results release.

Tudor’s CEO, Ken Konkin: “We are extremely pleased to announce the on-going success of the step-out drilling at our Goldstorm Deposit. Yet another drill hole has intersected high-grade gold within the northeastern front of this Deposit. Drill hole GS-22-151-W1 was designed to undercut values obtained from GS-22-134 which yielded 0.97 g/t AuEQ over 663.0 m with an enriched zone of 1.76 g/t AuEQ over 205.5 m additionally this intercept contained a high-grade gold-bearing pyritic quartz breccia of 20.86 g/t AuEQ over 4.5 m with multiple grains of visible gold (reported July 19, 2022). GS-22-151-W1 intersected a semi-massive pyrite-quartz breccia, hydrothermal stockwork, approximately 275 m below the GS-22-134 high-grade gold intercept. This high-grade 1.5 m intercept of 59.53 g/t AuEQ within GS-22-151-W1 represents a 350-meter step-out intercept from the 2021 drilling. Our technical team views this as a significant discovery as these high-grade intercepts may be connected but further drilling is recommended to confirm the orientation and consistency along the structural corridor which hosts these and other recently reported high-grade intercepts within the northeastern aspect of the Goldstorm Deposit. Drilling results from hole GS-22-151-W1 have been partially received to date and have been reported as such. Complete assays for incomplete holes included here will be fully reported in the subsequent drill results release.

“Additionally, we are enjoying success with our in-fill drill program. Drill hole GS-22-154 was drilled in-place of GS-22-152 which was stopped due to extreme hole deviation that could not be corrected. GS-22-154 intersected 2.02 g/t AuEQ over 180 m with an enriched core that carried 3.18 g/t AuEQ over 93 m within the 300H domain. However, much higher gold values of 4.38 g/t AuEQ over 57 m with an enriched portion of 7.84 g/t AuEQ over 15 m were intersected in the upper portion of the fore-mentioned 3.18 g/t AuEQ over 93 m.

“We have reported results from approximately 60% of the holes completed to-date. After drilling is completed, we will plan to incorporate these recent extraordinary results into an updated NI 43-101 Mineral Resource Estimate for 2023. The Goldstorm Deposit remains open in all directions and at depth.”

END

—Greg Nolan

Postscript: In case you didn’t hear, the August CPI digits rang in at +0.1%. Economists were looking for a drop of 0.1%.

The report out of the U.S. Labor Department said that annual inflation rose 8.3% last month. Economists were expecting 8.1%

Gold did this in reply (15 minute intraday chart)…

And the U.S. dollar did this…

Everything I wrote at the top of the page concerning reversals may have just been rendered moot.

Full disclosure: Of the companies featured above, Forum Energy Metals, Defense Metals, and Teuton Resources are Highballer clients. The author owns shares of Defense Metals, Forum Energy Metals, Teuton Resources, Patriot Battery Metals, and Highgold Mining.

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