Boul­der filled with gold dou­bles ju­nior miner’s stock

Calgary Herald - - FINANCIAL POST - GABRIEL FRIED­MAN gfried­[email protected]

TORONTO Rare is the story of a modern min­ing com­pany that un­ex­pect­edly strikes a moth­er­lode of gold.

But Toronto-based ju­nior min­ing com­pany Royal Nickel Corp. an­nounced Sun­day night that its em­ploy­ees in Aus­tralia at the Beta Hunt mine — which the com­pany has been try­ing to sell since April — re­moved a golden boul­der like few oth­ers in the world: Within a sin­gle cube of earth that mea­sured roughly three me­tres wide, three me­tres long, and three me­tres deep, they found 9,000 ounces of gold, in­clud­ing two large lumps — all told worth around $14 mil­lion or $15 mil­lion at cur­rent prices.

That’s equiv­a­lent to roughly 40 per cent of RNC’s $35-mil­lion mar­ket cap­i­tal­iza­tion as of last week.

“It was a nickel mine for years and years,” said Mark Selby, chief ex­ec­u­tive of RNC. “But we bought it be­cause there were a bunch of gold de­posits sit­ting be­neath it.”

Selby, who lives in Toronto, said he heard the news when he woke up in the mid­dle of the night last Mon­day to use the bath­room.

“I flip my phone on and find out,” he said. “I didn’t go back to bed. You don’t find 2,000-ounce hunks of gold very of­ten, so it’s good to be lucky.”

Royal Nickel stock dou­bled from nine cents to 18 cents Mon­day on the Toronto Stock Ex­change.

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