Gold Summary for Sept. 14, 2017
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.