U.S. markets fall during May 16-20 trading week

The Dow Jones Industrial Average fell 313.26 points or 0.95% to 32,899.70 and the S&P 500 fell 49.7 points or 1.20% over the week to 4,108.54.  

Shares of First Majestic Silver rose 5.5% to US$8.85 as the company reported drill results from its exploration program at the Jerritt Canyon gold mine in Elko County, Nevada.  

Highlights from the drill results included 29.7 metres grading 8.39 grams gold per tonne starting from 116.5 metres in drillhole SMI-LX-1112 and 13.7 metres grading 11.81 grams gold starting from 129.5 metres in drillhole WC-588.  

Since acquiring the mine on April 30, 2021, the company has completed over 70,000 metres in exploration drill holes consisting of step-out and greenfield targets designed to increase the confidence of the mineral resource and add new ounces. In 2022, the company plans to drill about 135,000 metres at Jerritt Canyon.  

First Majestic also reported that the United States Forest Service (USFS) has approved an exploration permit to conduct activities across 179.76 sq.km. of USFS land at Jerritt Canyon. 

“We have identified a high-grade underground mineralized pod near current mining activities, and we plan to advance the area toward ore production in the coming quarters,” said Keith Neumeyer, First Majestic’s CEO in a press release.  

Shares of Seabridge Gold rose 3.9% to US$15.05 as the company signed an agreement for its 3 Aces project in Yukon with Liard First Nation (LFN) that provides a framework for Seabridge and the First Nation to advance the project together. “The agreement will support LFN in preparing for and participating in assessment and regulatory processes and community engagement,” stated a Seabridge press release on May 24. “It will also allow LFN to ensure that Seabridge has the information it needs to design a project that protects the meaningful exercise of LFN citizens’ Kaska aboriginal rights into the future.” Acquired by Seabridge in June 2020, the early-stage project covers about 314 sq.km  

Shares of Sibanye Stillwater fell 3.5% to US$12.66 after affiliates of Appian Capital Advisory LLP filed a compensation claim against the company in the High Court of England and Wales for its “failure to close on a transaction” and other associated “material breaches,” according to Appian. Sibanye said that it terminated the share purchase agreements (SPA) with Appian for the acquisition of the Santa Rita and Serrote mines in Brazil, following a geotechnical event at Santa Rita, which it said was “reasonably expected to be material and adverse to the business, financial condition, results of operations, the properties, assets, liabilities or operations of Santa Rita.” Appian, however, said that the termination was based on the “incorrect assertion” that a geotechnical instability “constituted a material adverse effect under the terms of the SPA.” The firm added that the event, “had minimal impact on the mine.”