Gold Summary for July 14, 2017
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.