STOCKS TELEGRAPH

Tag: drilling

  • Americas Gold and Silver Corp. (USAS) Stock Experiences Minor Volatility Following Galena Milestone

    Americas Gold and Silver Corp. (USAS) stock prices were up by 1.25% at the end of market trading on July 12th, 2021, bringing the price per share up to USD$1.62. Subsequent premarket fluctuations saw the stock fall by 6.79%, bringing it down to USD$1.51.

    Galena Milestone

    The company announced on July 12th 2012 that it had reached a significant milestone in its Galena Complex Recapitalization Plan, having completed its Phase 1 drilling program. The most recent mineral resource update was released in September 2020, having successfully demonstrated the significant exploration potential at the property. This is shown by the significant increase in Measured and Indicated Resource of 36%, while Inferred Resource was up by 100%.

    Mineral Resource Forecast

    An updated Mineral Resource estimate is forecasted to be provided by the company by the end of August 2021. USAS is confident that the resource estimates will increase by the company’s target for over 50 million ounces of silver when considering Galena on a 100% basis. This forecast is based on the success of continued exploration from drilling completed during July 2020 through to June 2021.

    Production Growth

    2021 is expected to be a transitional year at the Galena Complex with production volumes in mind, as exploration drilling continues to facilitate ongoing success. The company’s operations will support production growth towards a 2 million silver ounce per year plan by the end of 2022. Contingent on the ongoing success of the exploration drilling, the company is confident in the long run that production will hit its historical annual production levels of roughly 5 million ounces per year.

    Galena Phase 2

    The Phase 2 drill program has an anticipated commencement date of the third quarter of 2021, with several targets already identified. Drilling will be centered around a newly developed drill station east on the 5500-Level, in the interest of continuing to test the extension of the Silver Vein at depth. This comes after the success of the initial 21-hole drill program, with subsequent drill stations being planned further east on the 5500-Level in order to continue targeting the Silver Vein and 360 Complex.

    Future Outlook for USAS

    Armed with the promising development of their exploration drilling program, USAS is poised to capitalize on the opportunities afforded to it by its continued and effective allocation of resources. Current and potential investors are hopeful that management will continue to facilitate organic and long term growth as the company continues to extrapolate its trajectory of success.

  • Borr Drilling, Ltd. (BORR) Stock Exhibits Minor Volatility as Mexican Operations Continue to Develop

    Borr Drilling, Ltd. (BORR) stock prices were up by a marginal 0.22% as of the market closing on July 6th, 2021, bringing the price per share up to USD$0.81 at the end of the trading day. Subsequent premarket fluctuations have seen the stock dip by 0.83%, bringing it down to USD$0.8050.

    ATM Program

    July 6th, 2021 saw the company announce its at-the-market program and Equity Distribution Agreement with Clarksons Platou Securities, Inc. as their sales agent. Dated for July 6th, 2021, this move will see the company offer for sale from time to time a cumulative total of USD$40 million of BORR’s common shares to be listed on the New York Stock Exchange. Capital generated from the program will be allocated towards general corporate purposes, including, but not limited to, repaying debt obligations.

    Existing Partnership

    June 15th, 2021 saw the company announced the success of the review of the performance and cost efficiency of its five rigs that it operates as a part of a joint venture with its Mexican partner facilitating the provision of integrated well services for Pemex. The services started in May 2019 and have resulted in incremental production of roughly 125,000 barrels of oil per day from the 21 wells drilled as of mid-June 2021. The program has seen a request for an extension, with the five Borr Drilling rigs expected to be employed until the end of 2022.

    Memorandum of Understanding

    In accordance with the extension, BORR and its Mexican partner have entered into a Memorandum of Understanding that will see the implementation of certain changes in the structures of existing joint ventures. The move will see the Mexican partner buying BORR’s 49% stake of the integrated services JVs Opex and Akal. BORR expects gaining access to a gross amount of USD$28 million as a result of the move.

    Scope of Collaboration

    Concurrently, the company will also acquire an incremental 2% stake of the joint ventures performing drilling services from its Mexican partner, resulting in a 51% majority ownership position. The drilling joint ventures will continue earning day rates from regular drilling contracts with its main customers Opex and Akal. The company hopes to streamline its Mexican operation while reducing risk, leading to a more stable cash flow over time. The closing of the transaction is expected for Q3 2021.

    Future Outlook for BORR

    Armed with the flexibility afforded by the ATM program and the extension of its existing collaboration, BORR is poised to capitalize on the expanded scope of upcoming opportunities presented to it. Investors are hopeful that the company will be able to leverage the resources at their disposal to drive further gains.

  • Almaden Minerals Ltd. (AAU) Stock Continues Downward Trend Following Culmination of Ixtaca IP Program

    Almaden Minerals Ltd. (AAU) Stock Continues Downward Trend Following Culmination of Ixtaca IP Program

    Almaden Minerals Ltd. (AAU) stock prices were down a marginal 2.03% as of the market closing on June 17th, 2021, bringing the price per share down to USD$0.5058 at the end of the trading day. Subsequent premarket trading has seen the stock remain stable as of the time of writing.

    Completion of Ixtaca IP Program

    The company announced on June 14th, 2021 that it had successfully completed a surface-induced polarization geophysical (IP) program at its Ixtaca deposit in Mexico. The work being conducted was designed to help isolate drill targets under the area of hydrothermal alteration called the Southeast Alteration zone, as well as at depth beneath the Ixtaca deposit.

    Results of IP Program

    The data collected will continue to be processed and combined with historic geologic, geochemical, and geophysical data. AAU hopes that these results will facilitate the identification of additional discrete targets for a future diamond drill program. This program will serve to test for potential blind zones of veining under the Southeast Alteration zone, which is mostly covered with overlying clay alteration similar to that in the SE alteration zone. The discovery drill hole in the original Ixtaca deposit area was planned partly due to high resistivity and chargeability results obtained in an earlier IP geophysical survey.

    SE Alteration Zone

    The SE Alteration zone is made up of white argillic volcanics and clusters of anomalies that were identified from a hyperspectral survey. This survey included spectral signatures of important epithermal alteration minerals such as kaolinite, alunite, and buddingtonite. November 2020 saw the company announce the discovery of a network of veining cropping out within the SE Alteration zone. Seventeen samples of the veining were collected and submitted to ALS Global in Mexico for analysis.

    Analysis of Samples

    Sixteen of the samples returned below detection gold and silver, with the odd one out returning a value of 62 ppb gold. Despite the outcrops being leached and weathered, however, many of the samples exhibited higher values for epithermal pathfinder elements, which are commonly found in the higher parts of epithermal alteration zones. These findings are highly promising in their support of the company’s claim that the SE Alteration zone has the potential to represent higher levels of a potential underlying epithermal system.

    Future Outlook for AAU

    Equipped with the recent development of the potential of its digsites, AAU is poised to capitalize on the opportunities presented to it to return to its trajectory of growth. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.