Gold Sum­mary for Oct. 12, 2017

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

NEW YORK spot gold gained $2.00 to $1,293.10 on Thurs­day. The TSX Ven­ture Ex­change lost 0.68 point to 790.64 while the TSX Gold In dex lost 0.50 point to 202.13. Gain­ers were in the mi­nor­ity to­day and the moves were mod­est. Kin­ross Gold Corp. (K), one of the more ac­tive stocks to­day, added eight cents to $5.54 on 3.72 mil­lion shares. Torex Gold Re­sources Inc. (TXG) dropped 46 cents to $19.80 on 375,000 shares, and Guyana Gold­fields Inc. (GUY) slipped 13 cents to $4.79 on 608,000 shares.

John Byrne and Peter Ak­er­ley’s Er­dene Re­source De­vel­op­ment Corp. (ERD), up two cents to 75 cents on 471,000 shares, has re­ceived as­says of up to 10.3 grams of gold and 37.5 grams of sil­ver per tonne over 20 me­tres from the Dis­cov­ery zone at its Al­tan Nar project in south­west­ern Mon­go­lia. (The zone also re­turned mod­est amounts of base met­als.) Mr. Ak­er­ley, pres­i­dent and chief ex­ec­u­tive of­fi­cer, says that the lat­est re­sults, from an­other 22 holes drilled at Al­tan Nar, “are a tes­ta­ment to the ex­cep­tional fer­til­ity” of this emerg­ing gold district, adding that they demon­strate sig­nif­i­cant ex­pan­sion po­ten­tial for the ex­ist­ing de­posit ar­eas and pro­vide “ex­cit­ing new dis­cov­ery op­por­tu­ni­ties” within the 5.6-kilo­me­tre Al­tan Nar trend.

He sounds just as thrilled as he was late last year, when a hole at Dis­cov­ery pro­duced 9.3 grams of gold and 32 grams of sil­ver across an impressive 110 me­tres, in­clud­ing a hit bol­stered by a 14-me­tre in­ter­val that av­er­aged 55.6 grams of gold and 131 grams of sil­ver per tonne. At the time, he cooed that those re­sults were “a tes­ta­ment to what de­tailed ex­plo­ration can un­cover.” In­vestors ap­pear to have bought into Mr. Ak­er­ley’s tes­ti­fy­ing; the stock has dou­bled over the past year. There will be plenty more chances for Mr. Ak­er­ley to laud Al­tan Nar. Er­dene has ex­panded its drill pro­gram to 33,000 me­tres, up from the 24,000 ini­tially planned for the year, so there will be a steady stream of as­says in the com­ing weeks.

The Hal­i­fax-based Mr. Ak­er­ley, who has been with the com­pany since the early 2000s, has also seen his an­nual salary dou­ble. He pulled in just $121,000 in 2015 but last year he earned just over $216,000 in salary. He also got a cash bonus of just over $28,000 last year, fur­ther tes­ta­ment to his good work.

Jack Bal’s Cache Ex­plo­ration Inc. (CAY), down 1.5 cents to 8.5 cents on 1.32 mil­lion shares, has re­ceived as­says of up to 1.12 grams of gold per tonne over 38 me­tres, helped by an eight-me­tre in­ter­val that av­er­aged 3.98 grams per tonne. The as­says are from the sec­ond hole at Cache’s Kiyuk Lake gold project in Nu­navut. This hole tar­geted the pos­si­ble east­ward ex­ten­sion of min­er­al­iza­tion from the Rusty zone, which yielded 4.18 grams of gold across 37.8 me­tres when it was dis­cov­ered six years ago.

In­vestors, who ap­pear unim­pressed with the lat­est as­says, must now wait for the fi­nal re­sults of the pro­gram for a shot at good news. In mid-Septem­ber, Mr. Bal, said that the com­pany’s crew had ob­served vis­i­ble gold in the core from the fifth hole of the pro­gram, which may keep in­vestors in­ter­ested a while longer. (That hole tested a tar­get about 700 me­tres east of the East Gold Point zone.) A month ago, Cache got as­says of 26.4 grams of gold per tonne across eight me­tres in the first of the five holes it drilled this year at Kiyuk Lake. That hole had also pro­duced a vis­i­ble gold sight­ing, which not co­in­ci­den­tally had ap­peared in the zone that sub­se­quently yielded the high-grade gold.

Mr. Bal, a vet­eran Howe Streeter who lives in Delta, B.C., has been chair­man and CEO of Cache since he re­placed Sonny Janda last year. His cur­rent re­mu­ner­a­tion is un­known, but he does pull in sig­nif­i­cant sums from his work else­where. He is pres­i­dent and CEO of Equito­rial Ex­plo­ration Corp. (EXX: $0.06), which paid him nearly $100,000 last year, and at last re­port he was do­ing nearly as well as pres­i­dent and CEO of Chee­tah Canyon Re­sources Corp. (CHTA: $0.05). Mr. Bal is also a di­rec­tor of sev­eral other ex­plo­ration ju­niors.

David Ea­ton’s Jay­den Re­sources Inc. (JDN) slipped 6.5 cents to 29 cents on 703,000 shares on news from

the first two holes drilled at its Sil­ver Coin project in north­west­ern Bri­tish Columbia. One hole yielded 22.95 grams of gold and 13.5 grams of sil­ver per tonne over 2.5 me­tres. The other man­aged 31.02 grams of gold and 28.5 grams of sil­ver across 1.5 me­tres. The stock traded as low as 27 cents to­day. It is un­clear what the mar­ket had been ex­pect­ing — other than the usual In­ter­net chat­ter about a “mon­ster de­posit” — as the ex­ist­ing re­source holds just 967,000 tonnes in­ferred at 4.39 grams of gold and 18.98 grams of sil­ver per tonne, for an equiv­a­lent 144,000 ounces of gold.

Mr. Ea­ton, who served as pres­i­dent and CEO in the late 2000s, took the job again in mid-2016 at a rea­son­able $60,000 per year.


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