Gold Sum­mary for Nov. 13, 2017

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

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.)


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