Gold Summary for July 17, 2017
NEW YORK spot gold jumped $5.30 to $1,233.70 on Monday. The TSX Venture Exchange rose 4.80 points to 762.32 while the TSX Gold Index added 3.80 points to 190.63. Yamana Gold Inc. (YRI) helped carry Canadian golds higher today. It added 11 cents to $3.11 on 3.55 million shares. Alacer Gold
Corp. (ASR) was a laggard again. It slipped two cents to $2.03 on 916,000 shares. Greg Smith’s Calibre Mining Corp. (CXB), up one-half cent to 15 cents on 232,000 shares, has started its 2017 drill program at the Primavera gold and copper porphyry project in Nicaragua. The new drilling will test a series of high-priority targets in two areas: the NE trend, a two-hectare area extending northeast of the currently defined deposit, and San Francisco, a four-hectare area that is three kilometres to the southeast. Calibre plans 45 reverse-circulation holes spanning a total of 8,200 metres. Recent sampling along the NE trend has produced assays of up to 4.09
grams of gold and 18.9 grams of silver per tonne, plus 1.71 per cent copper.
The area has not seen any drilling before; in fact, Calibre has not done any drilling on Primavera in the past five years. The project nevertheless hosts an inferred resource of 45 million tonnes averaging 0.54 gram of gold and 1.15 grams of silver per tonne, plus 0.22 per cent copper for a total of 1.2 million equivalent ounces of gold. (The modest grades suggest why Calibre was slow to resume drilling on the project.) Despite the slow progress, Mr. Smith, president and chief executive officer, says he is extremely excited to get back drilling on the “flagship” Primavera project.
The Vancouver-based Mr. Smith has been under contract at an annual salary of $250,000 per year since 2012, but in the summer of 2014 he agreed to accept just $120,000 per year. That lasted just six weeks and since then, his pay has been inching upward, first to $144,000 per year, and to $180,000 at the start of 2015. Last year, he got $216,000 per year.
Matthew Hornor’s Aurvista Gold Corp. (AVA), unchanged at 26.5 cents on 470,000 shares, has received assays of up to 4.53 grams of gold per tonne over 4.5 metres at its Douay project in Quebec. The assays, from 13 holes in the Central, Porphyry and 20 zones, and 11 holes testing the NW Porphyry zone, are the final results from the company’s 59-hole spring and summer program that spanned nearly 24,000 metres. (Aurvista received the assays from 25 holes this spring.)
Mr. Hornor, president and CEO, says he and his crew are “very encouraged” with the latest assay results from the central core segment of the Douay porphyry system. He says there is “great potential to add ounces” by linking zones of mineralization, adding that the company will update its models and focus on the best targets in subsequent drilling programs.
The next round of drilling is not imminent. Mr. Hornor says that Aurvista plans to have a technical committee of experts visit the property in early August, as the company “refines its go-forward exploration and drilling plans.” Douay currently hosts 83.3 million tonnes inferred at 1.05 grams per tonne, about 2.8 million ounces, with the bulk of the gold residing in the Porphyry zone, which averages 0.96 gram per tonne across 72.1 million tonnes.
Mr. Hornor, a Vancouver lawyer, arrived as president and CEO in May, replacing Jean Lafleur, who “transitioned into the vice-president, exploration role.” Mr. Lafleur had been getting just $90,000 per year for his previous roles, so he may not have taken a pay cut. It is unclear what Mr. Hornor is being paid, but he spent 10 years with Ivanhoe Mines Ltd. (IVN: $4.79) and is probably accustomed to getting healthy paycheques.
Ivan Bebek and Shawn Wallace’s Auryn Resources Inc. (AUG), up two cents to $3.09 on 91,000 shares, has started a new round of drilling at Homestake Ridge, its gold project in the Golden Triangle region of northwestern British Columbia. Mr. Wallace, CEO, says the company now has two discovery drill programs running simultaneously. (The other one began in mid-June at Committee Bay in central Nunavut.) A total of 15,000 metres of new drilling is planned at Homestake Ridge, where the company currently lists 604,000 tonnes indicated at 6.4 grams of gold and 48.3 grams of silver per tonne, plus 0.18 per cent copper, and another 6.77 million tonnes inferred at 4.2 grams of gold and 93.6 grams of silver per tonne, accompanied by 0.11 per cent copper. (In all, the project contains 1.03 million ounces of gold, 21.3 million ounces of silver and 19 million pounds of copper.)
Mr. Wallace received $240,000 in salary last year and he pulled in another $120,000 as a cash bonus. Mr. Bebek got $215,000 in salary as executive chairman and he got a $120,000 cash bonus as well.