Gold Sum­mary for Dec. 7, 2018

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

NEW YORK spot gold gained $10.60 to $1,247.80 on Fri­day. The TSX Ven­ture Ex­change rose 6.30 points to 572.38 while the TSX Gold In­dex rose 3.56 point to 175.12. Ag­nico Ea­gle Mines Ltd. (AEM) had an­other good day, adding $1.84 to $53.13 on 2.1 mil­lion shares. Gold­corp Inc. (G) did not. It lost 10 cents to $12.52 on 8.38 mil­lion shares.

David D’Onofrio and David Schmidt’s White Gold Corp. (WGO), un­changed at $1.28 on 102,000 shares, has added an­other six me­tres to the Ver­tigo dis­cov­ery that turned up in early Oc­to­ber on its JP Ross pro­ject in Yukon. That ini­tial test, which re­turned 23.44 grams of gold and 144.75 grams of sil­ver per tonne over 24.38 me­tres from a shal­low core hole, had bot­tomed in min­er­al­iza­tion. The com­pany has now ex­tended the hole and con­firmed that the sur­face-based zone av­er­aged 22.47 grams of gold and 154 grams of sil­ver per tonne over 30.46 me­tres. A sec­ond

zone was en­coun­tered at a depth of 44 me­tres. It re­turned 6.82 grams of gold and 6.8 grams of sil­ver per tonne over 4.57 me­tres.

Rob Car­pen­ter, a White Gold di­rec­tor, says that Ver­tigo is con­sis­tently de­liv­er­ing “spec­tac­u­larly high-grade gold val­ues,” with trench­ing con­firm­ing a model of strong struc­tural control. (A five-me­tre run in one of three trenches av­er­aged 66.39 grams of gold per tonne, while sim­i­lar lengths in two other trenches pro­duced 32.28 and 23.29 grams per tonne re­spec­tively.) Mr. Car­pen­ter says that the trench­ing has pro­vided key in­sights into the di­rec­tion and ori­en­ta­tion — a sub­tle dif­fer­ence per­haps — of the high-grade min­er­al­iza­tion, al­low­ing the com­pany to ven­ture fur­ther afield in its pur­suit. He says that next year, White Gold will be aim­ing to ex­tend the ge­om­e­try of these shal­low gold zones and hope­fully show the con­ti­nu­ity of grade and trend. In the in­terim, he is ramp­ing up his pitch, stat­ing that Ver­tigo “may rep­re­sent the most ro­bust gold sys­tem” found so far in the White Gold dis­trict.

The Toronto-based Mr. D’Onofrio, pres­i­dent and chief ex­ec­u­tive of­fi­cer, earned just $84,000 in salary last year, while Mr. Schmidt, of Van­cou­ver, pulled in $60,000. Mr. Car­pen­ter, who lives in Lon­don, Ont., re­ceived just $15,000 in di­rec­tor’s fees last year. Daw­son City-based prospec­tor, Shawn Ryan, the com­pany’s ma­jor share­holder and a di­rec­tor, did not re­ceive any cash re­mu­ner­a­tion for his ser­vices.

Ja­son Ri­ley’s ExGen Re­sources Inc. (EXG), down one-half cent to 1.5 cents on 1.16 mil­lion shares, is cheer­ing as­says just re­ceived by Lon­don-based Phoenix Global Min­ing Ltd., its ma­jor­ity co-ven­turer on the Em­pire cop­per pro­ject in Idaho. (ExGen holds a 20-per-cent-car­ried in­ter­est.) The lat­est as­says, from three holes drilled in Oc­to­ber into the Reds­tar zone, con­tained up to 159 grams of sil­ver per tonne and 2.83 per cent lead over 15.2 me­tres, aided by a 1.5-me­tre in­ter­val that av­er­aged 1,111 grams of sil­ver per tonne and 20 per cent lead. A sec­ond hole pro­duced 360 grams of sil­ver per tonne and 9.92 per cent lead over 9.1 me­tres.

Mr. Ri­ley, ExGen’s pres­i­dent and CEO, says that he and his crew are very pleased with the lat­est as­says from Reds­tar, which “con­tinue to in­di­cate the pos­si­bil­ity of a larger-scale area play at Em­pire. He was also pleased with the as­says from the core Em­pire deposit, which con­tinue to show ”im­pres­sive grades of cop­per." (He is re­fer­ring to the lat­est batch of re­sults, which show up to 3.33 per cent cop­per, plus 0.31 gram of gold and 148 grams of sil­ver per tonne, over a true width of 4.5 me­tres.)

Mr. Ri­ley, of Van­cou­ver, has been run­ning the com­pany since 2013. He does not draw any cash pay for his ser­vices. He is also a non-ex­ec­u­tive — a qual­i­fier that of­ten trans­lates to “un­paid” — di­rec­tor of Phoenix Global Min­ing.

Jonathan Awde and Brian Skan­der­beg’s GFG Re­sources Inc. (GFG), up two cents to 21 cents on 97,000 shares, is of­fer­ing 5.2 mil­lion flow-through shares at 29 cents in what the com­pany is call­ing tranche A, and two mil­lion flow-through tranche B shares at 25 cents. Mr. Skan­der­beg, pres­i­dent and CEO, does not re­veal the dif­fer­ence be­tween the two tranches of stock. He does say that the fi­nanc­ing will al­low GFG to carry out its ex­plo­ration pro­grams at Pen through the first half of 2019, work that will in­clude an “ag­gres­sive first quar­ter drill pro­gram” test­ing some of the com­pany’s best tar­gets on the Pen gold pro­ject in North­ern On­tario.

Mr. Skan­der­beg, of Saska­toon, had been pulling in $250,000 per year in salary since he ar­rived in mid-2016. Ear­lier this year he agreed to “re­struc­ture his ex­ec­u­tive com­pen­sa­tion” — take a pay cut, in other words. He now gets $200,000 in cash and the other $50,000 in stock op­tions. He is hardly hurt­ing: Mr. Skan­der­beg had been pres­i­dent and CEO of Claude Re­sources Inc. un­til it was ac­quired in 2016 by Sil­ver Stan­dard Re­sources Inc. He got a $1-mil­lion ter­mi­na­tion pay­ment as a re­sult of the takeover.


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