Gold Sum­mary for Dec. 6, 2018

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

NEW YORK spot gold gained $0.50 to $1,237.20 on Thurs­day. The TSX Ven­ture Ex­change rose 2.97 points to 566.08 while the TSX Gold In­dex rose 0.44 point to 171.56. Ag­nico Ea­gle Mines Ltd. (AEM) was strong to­day. It added $1.88 to $51.29 on 2.31 mil­lion shares. De­tour Gold Corp. (DGC) was not. It lost 72 cents to $9.71 on 2.13 mil­lion shares. Dun­can Mid­dle­miss’s Wes­dome Gold Mines Ltd. (WDO), up four cents to $3.64 on 1.33 mil­lion shares, has re­ceived as­says of up to 151.44 grams of gold per tonne over a true width of 1.99 me­tres. The as­says are from drilling at the No. 7 zone at its Ea­gle River project, 50 kilo­me­tres west of Wawa in North­ern On­tario. A few other holes yielded note­wor­thy grades, in­clud­ing 47.32 grams per tonne across 3.36 me­tres and 39.01 grams per tonne across 2.47 me­tres. Mean­while, ad­di­tional drift­ing in the No. 7 zone has pro­duced 30.47 grams of gold per tonne over a width of 2.61 me­tres, ex­tend­ing the strike length to nearly 150 me­tres.

Mr. Mid­dle­miss, pres­i­dent and chief ex­ec­u­tive of­fi­cer, says that he and his crew con­tinue to be en­cour­aged with the good con­ti­nu­ity and good grades from the con­tin­u­ing un­der­ground devel­op­ment at No. 7. The longer strike length, he says, will pro­vide “en­hanced min­ing flex­i­bil­ity and ul­ti­mately, aug­mented pro­duc­tion rates.” (More gold, in other words.) Mr. Mid­dle­miss was just as pro­mo­tion­ally en­thused by the drilling, which con­firms that the zone ex­tends at least an­other 100 me­tres down dip at sim­i­lar grades and strike lengths. As well, the zone re­mains open at depth and to the east. Drilling con­tin­ues: Wes­dome has four rigs op­er­at­ing un­der­ground and an­other two at sur­face.

At last re­port, Ea­gle River held a re­serve of 1.06 mil­lion tonnes at 12.2 grams of gold per tonne, or about 416,000 ounces, with about one-quar­ter of the gold re­sid­ing in the No. 7 zone. The lit­tle un­der­ground mine, which runs at a bit over 500 tonnes per day, is on track to pro­duce up to 75,000 ounces of gold this year.

The Toronto-based Mr. Mid­dle­miss, now in his mid-50s, has been with the com­pany since mid-2016. At last re­port, he was draw­ing a base salary of $428,000 per year and in March, the com­pany paid him a $425,000 cash bonus. His back­ers are prob­a­bly con­tent: A Wes­dome share cost less than $2 when he ar­rived, and the stock re­mains within hail­ing dis­tance of its 2017 high of $4.40.

Paddy Ni­col’s Evrim Re­sources Corp. (EVM) crashed 91.5 cents to 31.5 cents on 5.64 mil­lion shares on dis­ap­point­ing as­says form its Cuale gold project in Jalisco, Mex­ico. The as­says, from four of the first five holes drilled in a pro­posed 3,000-me­tre, 15-hole pro­gram, pro­duced up to 1.92 grams of gold per tonne over 14 me­tres from near sur­face, and 1.58 per cent cop­per over 10.2 me­tres at a depth of over 200 me­tres. Two other holes en­coun­tered the near-sur­face gold, re­turn­ing 0.52 gram per tonne over 17 me­tres and 0.87 gram per tonne over 29 me­tres.

Mr. Ni­col, Evrim’s $195,000-per-year pres­i­dent and CEO, lamented that the gold grades in the first few drill holes were sig­nif­i­cantly less than that en­coun­tered in the trenches at La Glo­ria. In April, Charles Funk, vi­cepres­i­dent of new op­por­tu­ni­ties and ex­plo­ration, was ec­static with as­says from that trench­ing, which pro­duced up to 13.61 grams of gold per tonne over 106.2 me­tres. (The grade dropped to 3.8 grams per tonne when the bo­nanza in­ter­vals were cut to 30 grams per tonne.) Mr. Funk had lauded the “tremen­dous po­ten­tial” at Cuale and promised to pro­ceed im­me­di­ately with drilling. Now, the Co­quit­lam-based Mr. Ni­col is say­ing that Evrim is “con­tin­u­ously eval­u­at­ing” (sec­ond guess­ing) its ex­plo­ration pro­gram as re­sults are re­ceived. The com­pany is cur­rently drilling new tar­gets in the North Dome zone.

Gary Cope’s Dolly Var­den Sil­ver Corp. (DV), up two cents to 41.5 cents on 422,000 shares, has re­ceived as­says of up to 332.8 grams of sil­ver per tonne, plus mod­est amounts of base me­tals, over a true width of 22.15 me­tres from the Kit­sol zone at its Dolly Var­den project in the Golden Tri­an­gle re­gion of north­west­ern Bri­tish Columbia. The as­says are from an­other 12 holes re­cently drilled; re­sults are pend­ing from an­other 13 tests.

Mr. Cope, pres­i­dent and CEO, says that the Kit­sol hit is 50 me­tres from a high-grade in­ter­cept re­ported three weeks ago. In that test, the com­pany hit 30.38 me­tres of rock av­er­ag­ing 302.2 grams of sil­ver per tonne, which Mr. Cope called a “promis­ing sil­ver tar­get” on the prop­erty. He adds that “it should be noted” — please re­mem­ber, in other words — that there are other sil­ver de­posits and high-grade tar­gets nearby.

Mr. Cope, of Van­cou­ver, re­ceives $240,000 per year in salary. He also got $124,500 in salary and $20,000 in bonus last year as pres­i­dent and CEO of Barsele Min­er­als Corp. (BME: $0.44), and match­ing pay­ments from Orex Min­er­als Inc. (REX: $0.11).


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