Gold Sum­mary for Nov. 8, 2018

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

NEW YORK spot gold fell $2.60 to $1,223.50 on Thurs­day. The TSX Ven­ture Ex­change fell 4.94 points to 667.06 while the TSX Gold In­dex added 0.56 point to 164.05. Most Cana­dian gold min­ers moved lit­tle to­day, although Bar­rick Gold Corp. (ABX) did add 29 cents to $17.29 on 5.12 mil­lion shares. El­do­rado Gold Corp. (ELD) dropped four cents to 91 cents on 1.24 mil­lion shares.

Stephen de Jong and Ge­orge Salamis’s In­te­gra Re­sources Corp. (ITR), up one cent to 81 cents on 572,000 shares, has re­ceived as­says of up to 1.9 grams of gold and 283.36 grams of sil­ver per tonne over 221.33 me­tres from the rest of its nine-hole drill pro­gram at the Florida Moun­tain gold and sil­ver project in south­west­ern Idaho. These as­says are the last to come from the pro­gram: In Septem­ber, In­te­gra re­ceived as­says of up to 1.21 grams of gold and 173.5 grams of sil­ver per tonne over 19.51 me­tres, a hit that in­cluded a 3.05-me­tre in­ter­val that av­er­aged 4.3 grams of gold and 819.2 grams of sil­ver per tonne.

Mr. Salamis, pres­i­dent and chief ex­ec­u­tive of­fi­cer, says that the lat­est as­says “high­light some of the im­mense po­ten­tial” of the de­posit to host high-grade gold and sil­ver min­er­al­iza­tion, well be­neath the cur­rently in­ferred re­source. He adds that In­te­gra’s ex­plo­ration team — ap­par­ently as eas­ily ex­cited as him­self — is look­ing for­ward to re­turn­ing with drill rigs next year. Dur­ing the win­ter, the rig­less team will pore over the data and drill core to put to­gether a 2019 drill pro­gram and “drive fur­ther re­source ex­pan­sion po­ten­tial.” The cur­rent re­source, last taken for a drive in Fe­bru­ary, lists 36.6 mil­lion tonnes at 0.57 gram of gold and 14.12 grams of sil­ver per tonne, or 675,000 ounces of gold and 16.6 mil­lion ounces of sil­ver.

The Van­cou­ver-based Mr. Salamis, now in his early 50s, has been with the com­pany since the sum­mer of 2017. He re­ceives $300,000 per year in salary. Last year, he earned a $125,000 cash bonus. He had been the $227,000-per-year ex­ec­u­tive chair­man of In­te­gra Gold Corp., which was ac­quired by El­do­rado Gold last year. The Van­cou­ver-based Mr. de Jong, 35, is In­te­gra’s $120,000-per-year chair­man. He had been the $257,000per-year pres­i­dent and CEO of In­te­gra Gold. Both fel­lows did well in the El­do­rado ac­qui­si­tion: They were in line for $1.82-mil­lion cash pay­ments.

Ash­wath Mehra and Steve Burleton’s GT Gold Corp. (GTT) slumped to a low of $1.70 fol­low­ing word that the com­pany had com­pleted nearly 25,000 me­tres of drilling at its Tatogga prop­erty in north­west­ern British Columbia. The crash tripped a reg­u­la­tory cir­cuit breaker and the stock re­cov­ered af­ter the brief halt, clos­ing the day off 18 cents to $1.86 on 3.34 mil­lion shares. The com­pany’s vice-pres­i­dent of ex­plo­ration, Charles Greig, says that the com­pany was “very proud” of the dis­cov­er­ies this year at Tatogga, adding that GT Gold was for­tu­nate that mild weather al­lowed the com­pany to drill into Novem­ber. (What was to have been an 18,000-me­tre drill pro­gram be­gan in June, so the com­pany man­aged con­sid­er­ably more drilling than had been planned.)

It is un­clear what trig­gered to­day’s slump. While Mr. Burleton, pres­i­dent and CEO, and Mr. Mehra, chair­man, said noth­ing about the as­says from the sev­eral holes out­stand­ing, they should ar­rive in the com­ing weeks. (They should pro­vide a wel­come in­ter­rup­tion to the long win­ter break be­fore drilling re­sumes next year.) GT Gold has pro­duced some promis­ing as­says from the drilling so far. In mid-Oc­to­ber, the com­pany re­ported a 904-me­tre hit at the Sad­dle North tar­get, av­er­ag­ing 0.51 gram of gold and 0.93 gram of sil­ver per tonne ac­com­pa­nied by 0.3 per cent cop­per, for a gold equiv­a­lent grade of 0.98 gram per tonne. In Septem­ber, the com­pany re­ceived as­says of up to 9.55 grams of gold and 59.51 grams of sil­ver per tonne over 40.89 me­tres at Sad­dle South.

The Toronto-based Mr. Burleton has been pres­i­dent and CEO since June, when he re­placed Kevin Keough, who had been get­ting $157,000 per year. Mr. Mehra, a ma­jor share­holder who lives in Switzer­land, got $50,000 last year as ex­ec­u­tive chair­man.

Loren Kom­perdo’s Ze­phyr Min­er­als Ltd. (ZFR), un­changed at 19.5 cents on 13,000 shares, has re­ceived as­says of up to 4.8 grams of gold per tonne over 4.8 me­tre at its Daw­son project in Col­orado. This is the end of the com­pany’s 2018 drill pro­gram, which Mr. Kom­perdo, pres­i­dent and CEO, de­scribed as “suc­cess­ful de­spite dis­ap­point­ments in a few of the drill holes.” Cu­ri­ously, he touted those dis­ap­point­ments at length be­fore re­mem­ber­ing to point out that there were some suc­cesses as well, in­clud­ing a 3.4-me­tre hit that

av­er­aged 17.6 grams of gold per tonne. Mr. Kom­perdo says that a sec­ond phase of drilling is planned for next year, adding that 2019 could be an im­por­tant year for re­source growth, although he damp­ened the en­thu­si­asm by re­mind­ing the mar­ket that he will first have to find the cash.


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