Gold Sum­mary for Sept. 14, 2017

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

NEW YORK spot gold gained $6.50 to $1,329.00 on Thurs­day. The TSX Ven­ture Ex­change gained 5.08 points to 776.24 while the TSX Gold In­dex added 1.40 points to 202.15. Klon­dex Mines Ltd. (KDX) had a good day, gain­ing 18 cents to $4.19 on 1.21 mil­lion shares, and El­do­rado Gold Corp. (ELD), just $2.31 ear­lier this week, added an­other 11 cents to­day, clos­ing at $2.90 on 6.91 mil­lion shares.

Mark O’Dea and Darin Labrenz’s Pure Gold Min­ing Inc. (PGM), up three cents to 65 cents on 1.07 mil­lion shares, has com­pleted a pre­lim­i­nary eco­nomic as­sess­ment of its Mad­sen project in the Red Lake district of On­tario. The study comes on the heels of a re­vised re­source es­ti­mate for the project, which now holds 5.79 mil­lion tonnes in­di­cated at 8.9 grams of gold per tonne and an­other 587,000 tonnes in­ferred at 9.4 grams per tonne, for a to­tal of over 1.8 mil­lion ounces of gold. The study, based on a min­ing rate of just 600 tonnes per day us­ing ex­ist­ing sur­face in­fra­struc­ture, puts the cap­i­tal cost at just $50.9-mil­lion and derives a dis­counted net present value of $258-mil­lion af­ter taxes.

Mr. Labrenz, pres­i­dent and chief ex­ec­u­tive of­fi­cer, says that Mad­sen is “one of the out­stand­ing gold de­posits in Canada” given its sig­nif­i­cantly ex­panded re­source, in­fra­struc­ture and growth po­ten­tial. He says the new study “pro­vides a mea­sure” of those at­tributes but it will not be the fi­nal an­swer, as Pure Gold con­tin­ues to drill for gold be­yond the cur­rent re­source es­ti­mate. Mr. Labrenz is al­ready promis­ing a new re­source es­ti­mate later this year, which will in­clude satel­lite de­posits at Rus­set South and Fork. As well, Pure Gold is still pon­der­ing an ex­pan­sion of its mine plan to at least 1,000 tonnes per day. As a re­sult, the com­pany is likely to keep ex­plor­ing and op­ti­miz­ing its project, rather than im­me­di­ately pur­su­ing the plan laid out in the cur­rent study.

A 51-year-old Squamish res­i­dent, Mr. Labrenz has been pres­i­dent and CEO of the com­pany for the past six years. He hired on at a com­fort­able $170,000 per year and got a raise in 2014 to $200,000 per year. Mr. Labrenz got a big­ger bump to start 2017, thanks to the steady flow of good news from Mad­sen: He now earns $275,000 per year. West Van­cou­ver-based Graeme Cur­rie, now 58, earns $75,000 in base fees as chair­man. (He did bet­ter as an an­a­lyst and bro­ker at Canac­cord Ge­nu­ity Ltd. un­til he re­tired in 2012.)

Wil­liam Sher­iff and Janet Lee-Sher­iff’s Golden Preda­tor Min­ing Corp. (GPY), up three cents to 93 cents on 377,000 shares, has be­gun drilling at some new gold finds on its 3 Aces project in sout h ea st ern Yukon. Th e com­pany is now t es­t­ing at King of Hearts, a newly dis­cov­ered zone that has pro­duced vis­i­ble gold in a quartz vein, about 300 me­tres on trend north­west of the Ace of Hearts zone. From there, the drilling will progress to the new Jack of Clubs zone, where sam­pling this sum­mer has just pro­duced as­says of up to 103.7 grams of gold per tonne. Jack of Clubs is north­west of Ace and King of Hearts, and Golden Preda­tor now cred­its the com­bined zones with a

strike length of 1,600 me­tres. (Ms. Sher­iff, pres­i­dent and CEO, and her crew do not ap­pear to be sea­soned card play­ers: while Golden Preda­tor has ar­ranged its gold finds roughly by suits, their ranks ap­pear hap­haz­ardly in the com­pany’s hand of dis­cov­er­ies.)

The Van­cou­ver-based Mr. Sher­iff, a ma­jor share­holder and ex­ec­u­tive chair­man of Golden Preda­tor, mar­ried Ms. Lee-Sher­iff, then a White­horse-based bu­reau­crat and busi­ness­woman, in the fall of 2009 and she quickly be­gan work­ing for com­pa­nies con­trolled by Mr. Sher­iff, a pro­lific Howe Streeter. She be­came pres­i­dent and CEO of Golden Preda­tor Min­ing in the fall of 2014. The com­pany said it paid Ms. Lee-Sher­iff noth­ing dur­ing 2015, but last year it recorded ex­penses of over $230,000 paid as salary, man­age­ment and con­sult­ing fees to key per­son­nel. Through the first six months of 2017 it has al­ready shelled out $315,000 in salary.

Chris Lod­der’s Bark­erville Gold Mines Ltd. (BGM), up two cents to 89 cents on 519,000 shares, has re­ceived as­says of up to 17.45 grams of gold per tonne over 8.6 me­tres from drilling in the Shaft zone at Is­land Moun­tain on its Cari­boo gold project in cen­tral Bri­tish Columbia. The com­pany has nine drills prob­ing the Shaft and Val­ley zones, while a 10th is work­ing on the B.C. vein. The lat­est as­says yielded nu­mer­ous high-grade as­says, in­clud­ing a four-me­tre in­ter­val that av­er­aged 16.79 grams per tonne, prompt­ing the com­pany’s vice-pres­i­dent of ex­plo­ration, Paul Ged­des, to say that the size­able, high-tenor vein cor­ri­dors are po­ten­tially amenable to bulk un­der­ground min­ing meth­ods.

Mr. Lod­der, pres­i­dent and CEO, gets $400,000 per year in salary; Mr. Ged­des pulls in a re­spectable $240,000 per year.


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