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Victoria Gold collapse leads to pain for entire region

The collapse of Victoria Gold’s (TSX: VGCX) heap leach pad at its Eagle Mine in the Yukon is having spillover effects on the rest of the industry within the region. Cantex Mine Development (TSXV: CD) has indicated that it was forced to halt exploration activity at its North Rackla project, which is located 120 kilometres away, as a result of the mine’s failure.

The First Nation of Na-Cho Nyak Dun, or FNNND, whoms treaty territory contains both Cantex’s North Rackla project as well as Victoria Gold’s Eagle Mine, has requested a pause to all mining and exploration on their traditional territory.

You can read more on the matter here.

What’s going on?

• Unseen Threat: China’s Commodities Stockpile Could Shake the World (theDeepDive)

• ‘Significant loss’ in Jasper as wildfires close in, burning buildings and forcing fire crews to retreat (Globe)

• Cyber Attack Targets One Of The Pentagon’s Largest IT Service Providers (theDeepDive)

• Australian judge dismisses lawsuit claiming Bayer weedkiller causes blood cancer (Reuters)

• Biden Delegates Key Economic Powers to Support Ukraine (theDeepDive)

• Ford shares tumble 13% after massive earnings miss (CNBC)

• Elon Musk Denies $45 Million Monthly Donation to Trump Super PAC (theDeepDive)

• US economy regains momentum in second quarter; price pressures ebbing (Reuters)

• Prominent Russian Economist Dies in Fall from Moscow Apartment (theDeepDive)

• Jeep, Dodge maker Stellantis reports 48% drop in first-half net profit on weak U.S. sales (CNBC)

• Paris 2024 Olympics: Canadian Soccer Staff Member Detained for Using Drone Where New Zealand Team Was Practicing (theDeepDive)

What’s the latest?

• Jasper Fire: One of the two wildfires threatening the historic resort town of Jasper raged into the area on Wednesday, consuming homes and businesses in a wall of flame driven by intense winds. Firefighters faced a firestorm with 300 to 400-foot flames spreading at a rate of approximately 15 meters per minute, making containment impossible. Numerous buildings have been lost, including homes and businesses.

• Loblaw Class Action: Loblaw Cos. Ltd. and its parent company George Weston Ltd. have agreed to pay $500 million to settle a class-action lawsuit related to their involvement in a bread price-fixing scheme. The lawsuit accused Loblaw, George Weston, and other companies, including Metro, Walmart Canada, Giant Tiger, and Sobeys, of participating in a 14-year conspiracy from 2001 to 2015 to artificially inflate the prices of packaged bread.

• Small Business: A recent survey from the Canadian Federation of Independent Business reveals that only 13 per cent of Canadian small businesses plan to increase their head count in the next few months, the lowest since January 2021. This is a significant drop from about a year ago when over 20 per cent planned to hire more employees.

• US Unemployment: The number of Americans filing new unemployment claims fell by 10,000 to 235,000 for the week ended July 20, surpassing expectations. The decrease follows a previous surge due to Hurricane Beryl and temporary auto plant closures. Layoffs remain low, with the labor market slowdown largely driven by reduced hiring amid Federal Reserve rate hikes.

• Stellantis Problems: Stellantis CEO Carlos Tavares has announced plans to address weak margins and high inventory in its U.S. operations, warning that underperforming brands may be shut down. This marks a shift from his earlier stance that all 14 brands in Stellantis' portfolio, including Maserati, Fiat, Peugeot, and Jeep, have a future. The announcement follows worse-than-expected first-half results, leading to a significant drop in Stellantis shares.

Gold’s perfect storm

The stock market and stuff

• Musk Floats Idea of Tesla Funding xAI Amid Earnings Decline (theDeepDive)

• Berkshire Hathaway dumps $2.3 billion of Bank of America shares in a 6-day sale (CNBC)

• Shorts Bet Big Against Canada’s Banks as Lending Looks Dicey (Bloomberg)

• dYdX v3 Exchange Website Compromised Amid Sale Announcement (theDeepDive)

• Trump raises more than $4 million in bitcoin, other digital coins as crypto support pays off (CNBC)

• Copper Project: Once In a Lifetime Geologist Dream – Giant Mining’s Majuba with Buster Hunsaker (theDeepDive)

In the juniors

• Aurora Cannabis Permitted To Expand German Operations (theDeepDive)

• Vizsla Silver PEA Outlines US$1.14 Billion NPV For Panuco Project (theDeepDive)

• Rua Gold To Uplist To TSX Venture Next Week, Closes $8 Million Financing (theDeepDive)

FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.