Gold Sum­mary for Jan. 11, 2019

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

NEW YORK spot gold rose $1.20 to $1,287.20 on Fri­day. The TSX Ven­ture Ex­change added 4.84 points to 601.77 and the TSX Gold In­dex gained 0.84 point to 179.26. Bar­rick Gold Corp. (ABX) was stronger to­day. It gained 15 cents to $16.52 on 8.16 mil­lion shares. The stock got as high as $19 in De­cem­ber, up from $12.50 in mid-Septem­ber when the com­pany re­vealed its plan to merge with Rand­gold Re­sources Ltd., but it has not done as well since the merger closed at the start of 2019.

Jim Greig and John Wil­liamson’s Bench­mark Met­als Inc. (BNCH), down two cents to 18 cents on 337,000 shares, has re­ceived as­says of up to 10.99 grams of gold and 819 grams of sil­ver per tonne over 3.95 me­tres from drilling at the Phoenix zone at its Lawyers project in the Golden Tri­an­gle dis­trict of north­west­ern Bri­tish Columbia. The as­says, from an­other four holes

of the com­pany’s fall drilling pro­gram, pro­duced other high-grade hits, in­clud­ing 6.39 grams of gold and 469.76 grams of sil­ver per tonne over 6.95 me­tres. (In Novem­ber, a pleased Mr. Wil­liamson, chair­man and chief ex­ec­u­tive of­fi­cer, cheered the as­says from the first hole of Bench­mark’s in­au­gu­ral drill pro­gram, which re­turned 6.15 grams of gold and 124.37 grams of sil­ver per tonne over 4.36 me­tres.)

Mr. Wil­liamson had called that re­sult “out­stand­ing,” but he of­fered no opin­ion of the lat­est re­sults, other than to note that the com­pany’s work “has de­lin­eated new tar­gets and ex­panded gold and sil­ver min­er­al­iza­tion” within the three-kilo­me­tre-long Lawyers trend, which in­cludes the Phoenix, Phoenix East, Cliffs Creek and Dukes Ridge zones. (In­vestors were freer to ex­press their opin­ions and emo­tions: Bench­mark dipped to a low of 16 cents in in­tra­day trad­ing.) “Re­dis­cov­er­ing gold and sil­ver” is the fo­cus of Bench­mark’s pro­mo­tion, and it is an apt de­scrip­tion of Lawyers, which pro­duced 171,000 ounces of gold and 3.7 mil­lion ounces of sil­ver many years ago. The com­pany de­clared a maiden — for it — re­source es­ti­mate for the Cliffs Creek por­tion of the project last year, list­ing 550,000 tonnes in­ferred at 4.51 grams of gold and 209.15 grams of sil­ver per tonne; about 80,000 ounces of gold and 3.7 mil­lion ounces of sil­ver.

The Ed­mon­ton-based Mr. Wil liam son has be en CEO since last March, when the Van­cou­ver-based Mr. Greig gave up one of his ti­tles. Mr. Greig had been get­ting $144,000 as pres­i­dent and CEO and he prob­a­bly still is, as salaries rarely drop when a man­age­ment team expands. In­deed, Bench­mark is now spend­ing nearly three times as much on man­age­ment ex­penses as it did be­fore Mr. Wil­liamson ar­rived. Peter Miles and Buddy Doyle’s Sanatana Re­sources Inc. (STA), un­changed at 4.5 cents on 370,000 shares, says that a new sur­face ac­cess agree­ment with lo­cal landown­ers will al­low the com­pany to re­ceive a prospect­ing li­cence for its 26,400-hectare Tirua project in the Solomon Is­lands. Sanatana is chas­ing the East Kolo ep­ither­mal gold tar­get at Tirua and Mr. Miles, pres­i­dent and CEO, is pre­dictably en­thused about the project. He says that he and his crew re­cently paid a field visit to Tirua — the dark days of early win­ter are a won­der­ful time for a South Seas get­away — and the visit “re­in­forced our opin­ion” of the ge­o­log­i­cal po­ten­tial of the project and high­lighted Sanatana’s abil­ity to work in the re­gion.

Mr. Doyle, vice-pres­i­dent of ex­plo­ration, was more tech­ni­cal in his en­thu­si­asm. He says that pre­vi­ous work at Tirua fo­cused on its por­phyry cop­per and gold po­ten­tial, but Sanatana will fo­cus on the ep­ither­mal tar­get, which is nine kilo­me­tres long and 1.5 kilo­me­tres wide. Mr. Doyle of­fers plenty of ge­o­log­i­cal jar­gon to sup­port his case - and finds a way to toot his own horn as a pub­lished au­thor on such mat­ters — but he does not yet of­fer any specifics of what Sanatana will do once it gets its li­cence.

Mr. Miles, a Van­cou­ver res­i­dent, has been col­lect­ing $120,000 per year as pres­i­dent and CEO for the past few years. Mr. Doyle was not col­lect ing any sal ary from Sanatana at last re­port. Alex Klen­man’s Nexus Gold Corp. (NXS), up 2.5 cents to 13.5 cents on 1.66 mil­lion shares, has ac­quired the 509-hectare New Pi­lot gold project in south-cen­tral Bri­tish Columbia. (To do so, it paid 3.5 mil­lion shares to the ven­dor, who just hap­pens to be War­ren Robb, a Nexus direc­tor and its se­nior vice-pres­i­dent of ex­plo­ration.) Nei­ther Mr. Klen­man, pres­i­dent and CEO, nor Mr. Robb have yet said what Nexus has planned for the project.

New Pi­lot, which has seen spo­radic ex­plo­ration since the 1940s, was worked in the 1990s by Co­gema Canada Ltd., which col­lected about 100 grab sam­ples that as­sayed as high as 111 grams of gold per tonne. (In all, five of the sam­ples as­sayed higher than 10 grams per tonne.) In ad­di­tion to other work, Co­gema com­pleted chip sam­pling that pro­duced 4.03 grams of gold per tonne over 10 me­tres, and a 100-me tre d rill pro gram that yielded one gram of gold per tonne over 10.5 me­tres.


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