Gold Sum­mary for July 14, 2017

Stockwatch Daily - - MINES & METALS - By Stock­watch Busi­ness Re­porter

NEW YORK spot gold jumped $11.10 to $1,228.40 on Fri­day. The TSX Ven­ture Ex­change rose 4.59 points to 757.52 while the TSX Gold In­dex added 1.81 points to 188.35. Rich­mont Mines Inc. (RIC) led Cana­dian golds higher. It added 73 cents to $9.73 on 1.12 mil­lion shares.

Dustin An­gelo’s Ana­conda Min­ing Inc. (ANX), up one-half cent to six cents on 268,000 shares, has re­ceived as­says of up to 3.63 grams of gold per tonne over 12 me­tres at its Ar­gyle dis­cov­ery, about 4.5 kilo­me­tres from its Pine

Cove mill and tail­ings fa­cil­ity at Point Rousse, in New­found­land. The as­says are from the first four of eight holes at Ar­gyle. The three other holes also pro­duced gold, with one av­er­ag­ing 3.22 grams per tonne over four me­tres. Mr. An­gelo, pres­i­dent and chief ex­ec­u­tive of­fi­cer, says that the work so far has ex­panded Ar­gyle up to 100 me­tres down-dip in the north­east and has shown con­ti­nu­ity of a higher-grade zone over a fur­ther 50 me­tres down-dip to the north.

Mr. An­gelo says that Ana­conda con­tin­ues to out­line a “strong gold-bear­ing sys­tem” at Ar­gyle that is open for fur­ther ex­pan­sion, adding that ad­di­tional drilling will fur­ther de­fine the ex­tent and dis­tri­bu­tion of higher-grade zones. This, he says, will lead to an ini­tial re­source for Ar­gyle, which he ex­pects to bring into the pro­duc­tion plan for Point Rousse in the “medium term”; this is a Howe Street mea­sure­ment of time that trans­lates to “not any time soon, but as soon as we can.” The Pine Cove mill is ca­pa­ble of pro­cess­ing 1,300 tonnes of ore per day and the com­pany has been run­ning it at full ca­pac­ity. As a re­sult, Ana­conda has been seek­ing ad­di­tional gold re­sources to keep it run­ning.

The Toronto-based Mr. An­gelo, now 42, has been run­ning Ana­conda since 2010. For the past three years he has been re­ceiv­ing an an­nual salary of $244,800. Last year he also got a $125,000 cash bonus, per­haps be­cause the peren­nial lag­gard poked its nose above the 10-cent mark for the first time since 2014. Ana­conda also pays its chief fi­nan­cial of­fi­cer, Er­rol Farr, rather well. He has been get­ting $204,000 per year and he got a $65,000 cash bonus last year.

Bradley Kitchen and Mor­gan Good’s Se­cova Met­als Corp. (SEK), down one-half cent to four cents on 632,000 shares, has be­gun a geo­phys­i­cal sur­vey over pri­or­ity tar­gets on its Du­vay-Che­nier gold project in the Abitibi re­gion of Que­bec. Se­cova can earn a 65-per-cent in­ter­est in the project from Laura Lee Duf­fett’s Tres-Or Re­sources Ltd. (TRS: $0.045) by spend­ing $3.25-mil­lion over a three-year pe­riod. (Se­cova can earn a 90-per-cent in­ter­est by de­liv­er­ing a prefea­si­bil­ity study.) Se­cova is pay­ing the bills — $750,000 must be spent by the end of Septem­ber — but Tres-Or is do­ing the work.

Ms. Duf­fett, Tres-Or’s pres­i­dent and CEO, says that the high-res­o­lu­tion mag­netic sur­vey­ing of the new pri­or­ity tar­gets will lead to a phase 1 drill pro­gram on the main Du­vay zone this sum­mer. As well, a phase 2 drill pro­gram is planned for tar­gets out­side the main Du­vay shear zone. Ms. Duf­fett and Mr. Kitchen, Se­cova’s CEO, are masters of pro­mo­tional baf­fle­gab. Last fall, Se­cova said that it was “mov­ing to­ward the ex­e­cu­tion of the ex­plo­ration plan” — drilling — rec­om­mended by its crew. In Jan­uary, around the time that Ms. Duf­fett and Tres-Or took over as op­er­a­tor, Se­cova said that drilling would be­gin shortly. In June, the part­ners said that a re­con­nais­sance site visit sig­ni­fied the com­mence­ment of the first phase of their ini­tial drilling pro­gram. In­vestors are still hope­ful for drilling later this sum­mer.

The Van­cou­ver-based Mr. Kitchen got over $176,000 in con­sult­ing fees from Se­cova last year. The Sur­rey-based Ms. Duf­fett is a com­par­a­tive bar­gain; she got less than $40,000 in con­sult­ing fees last year.

Ge­orges Co­hen’s Robex Re­sources Inc. (RBX), up 1.5 cents to 11.5 cents on 546,000 shares, plans a 16,500-me­tre drill pro­gram at its Nam­pala mine in Mali this year. The drilling is in­tended to seek ex­ten­sions of the min­er­al­ized zones at the Nam­pala pit and to con­firm and ex­tend the gold val­ues pre­vi­ously in­ter­sected in the neigh­bour­ing ar­eas. (Essen­tially, Robex is seek­ing ad­di­tional gold re­sources that can in­crease the life of the mine.) The com­pany’s guid­ance for 2017 calls for 35,000 ounces of gold pro­duc­tion from 1.46 mil­lion tonnes of ore. Nam­pala hosts a re­serve of 17.4 mil­lion tonnes av­er­ag­ing 0.7 grams of gold per tonne, or just un­der 400,000 ounces. There is an ad­di­tional 210,000 ounces in re­sources not part of the re­serve, and more still in the South and East zones.

Robex is a gen­er­ous em­ployer; its chief fi­nan­cial of­fi­cer, its di­rec­tor of le­gal af­fairs and its tech­ni­cal vice-pres­i­dent each draw nearly $350,000 in an­nual salary. Mr. Co­hen, chief fi­nan­cial of­fi­cer and the com­pany’s ma­jor­ity share­holder, does not re­ceive any salary or fees for his ser­vices.


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