Gold Sum­mary for July 17, 2017

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

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.


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