Gold Summary for Nov. 13, 2017
NEW YORK spot gold gained $3.00 to $1,277.90 on Monday. The TSX Venture Exchange rose 6.27 points to 802.75 while the TSX Gold Index added 0.36 point to 192.86. Klondex Mines Ltd. (KDX), down 49 cents Friday on a disappointing third quarter, fell 26 cents to $2.90 on 4.43 million shares today.
Dylan Wallinger’s Trifecta Gold Ltd. (TG), down 2.5 cents to 10.5 cents on 209,000 shares, has received assays of up to 2.1 grams of gold and 325 grams of silver per tonne across 1.19 metres at its Trident property in the White Gold district of the Yukon. (Trifecta can earn a 75-per-cent interest from Alexander Stares’s Metals Creek Resources Corp. (MEK: $0.055).) Trifecta drilled five holes, just under 550 metres, to test the extent of a 2013 hit that returned 1.55 grams of gold and 114 grams of silver across 21 metres. All five holes hit mineralization, but the results were well short of the earlier result.
Mr. Wallinger, president and chief executive officer, acknowledged that the company’s drilling failed to replicate the historical intersection, but he said the mineralized zones were intersected where anticipated and the target remains open down dip and along strike. He points to gold, silver and base metal soil anomalies across an area measuring two kilometres long and one kilometre wide that “could potentially suggest” volcanogenic massive sulphide mineralization. Follow-up work is warranted, he says, to determine the source of the anomalous soils and placer gold that turns up in the nearby creeks.
Trifecta was a new listing in June, a spin-out from Douglas Eaton’s Strategic Metals Ltd. (SMD: $0.43). The 30-year-old Mr. Wallinger, who currently earns $72,000 per year as Trifecta’s president and CEO, was the company’s only paid insider at its launch. The Gander-based Mr. Stares, Metals Creek’s president and CEO, has been pulling in $160,000 per year in salary for the past three years.
Ellen Clements’s surging New Nadina Explorations Ltd. (NNA), an eight-center just a month ago, surged to a new high of $4.43 before closing the day up 38 cents to $3.88 on 1.17 million shares. The surge began late last month when Ms. Clements, president and CEO, said that a hole at its Silver Queen project in Southern British Columbia had “confirmed that the target is consisting of high-grade sulphides.” The regulators objected and forced Ms. Clements to retract her high-grade claim ahead of the assays.
Nevertheless, Ms. Clements launched a promotional attack from the flank, saying that New Nadina’s drill had hit sulphides in a target that had been drilled just once before, nearly 50 years ago. That historical test yielded a 1.7-metre zone averaging 840 grams of silver per tonne, plus high grades of lead and zinc. She added further fuel to the frenzy, pointing out that the old intersection “most likely represents a thin southern sliver of the target” that New Nadina is now chasing.
The assays are still pending, bit Ms. Clements nevertheless concluded last week with the claim: “Mission accomplished!” After a 10-year search, she believes that New Nadina has “found the Silver Queen’s treasure box,” crediting the use of modern tools and software, a great team effort, not to mention — although she does — “a lot of guts on my part.” (Presumably she is referring to her sticking with Silver Queen despite years of disappointment, but it also takes some guts to keep touting her unassayed promotion under the steady gaze of the regulators.)
George Ogilvie and Julian Kemp’s Rubicon Minerals Corp. (RMX) down two cents to $1.44 on 10,000 shares, intends to “commence development” of its F2 gold deposit before the end of the year, ahead of trial mining that would begin next year. F2 is the deposit that prompted Rubicon to build its $400-million Phoenix mine in 2015, only to have it fail as all but 413,000 ounces of the 3.35 million ounces delineated in 2013 had unfortunately disappeared in a 2016 update. That forced Rubicon into a restructuring late last year that included a portfolio-crushing 162:1 rollback.
Mr. Ogilvie arrived a year ago as president and CEO, as part of Rubicon’s latest attempt to rise from the ashes of the Phoenix debacle. He did
not come cheaply, as he is earning an annual salary of $450,000 per year. He replaced Mr. Kemp, who held the positions on an interim basis from the spring of 2016. Mr. Kemp had replaced another interim head, Michael Winship, who had abruptly replaced the company’s previous full-time president and CEO, Michael Lalonde two years ago, in what was perhaps the first sign that something was amiss with Phoenix. (Mr. Lalonde, who was getting $510,000 in salary and a $600,000 cash bonus in cheerier times, was in charge when Rubicon decided to build Phoenix without completing a feasibility study.)