Gold Summary for Oct. 12, 2017
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.