Gold Summary for Dec. 6, 2018
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).