Gold Summary For July 29th, 2019

New York spot gold added $7.80 to $1,426.10 on Monday. The TSX Venture Exchange fell 1.77 points to 591.12 while the TSX Gold Index rose 2.92 point to 237.07. Most Canadian gold miners moved higher today, led by Detour Gold Corp. (DGC) which added 59 cents to $19.99 on 2.14 million shares. Premier Gold Mines Ltd. (PG) was a laggard. It lost five cents to $2.28 on 554,000 shares.

James Henderson and Larry Phillips’s Compass Gold Corp. (CVB) got off to a quick start, trading to 33.5 cents in the first few minutes of trading Monday, but investors who came later were motivated more by new assay results than by the geological knowledge the company is touting. As a result, Compass ended the day down two cents to 27 cents on 664,000 shares. The assays from 23 reverse circulation (RC) holes drilled in the Farabakoura area of its Ouassada permit, at Sikasso in southern Mali were ho-hum for the most part and the company will have to wait a month for results from a seven-hole diamond drilling program at Farabakoura.

Only nine of the RC holes encountered gold and there was but one particularly promising hit. It averaged 15.39 grams of gold per tonne over seven metres, thanks to a two-metre zone that averaged 31.88 grams per tonne and another one-metre interval that averaged 42.15 grams per tonne. Two other holes produced encouraging results: One returned 5.04 grams per tonne over five metres and another managed 3.39 grams per tonne over seven metres.

Mr. Phillips, chief executive officer since late 2017, says that the drilling at Farabakoura successfully extended Compass’s primary target zone, defining gold mineralization over 770 metres from the pit structure to the Creek zone. He said the mineralized system was “somewhat complex” — geologese for “we do not know what to make of this” — but he assured investors that the company’s understanding “increases with each hole drilled.”

Mr. Phillips says that the assays from the core holes will allow the company to “develop a more complete understanding” of the geology and the system, which will help guide the next drill program. Investors will have to be understanding — or at least patient — as the next drilling must wait until November, when the rainy season in Mali ends.

Mr. Phillips, a Toronto resident, was earning $180,000 per year as CEO at last report. He also collects $9,000 per year in director’s fees from Gowest Gold Ltd. (GWA: $0.365) and $20,000 in fees from California Gold Mining Inc. (CGM: $0.53). Australia-based Mr. Henderson, collected $50,000 last year in fees as Compass’s chairman.

Hugh Agro’s Revival Gold Inc. (RVG), down one cent to 64 cents on 135,000 shares, is cheering new assays form its Beartrack project in Idaho. The results, from the first three holes of a planned 5,000-metre drill program, ranged as high as 2.35 grams of gold per tonne over a true width of 34 metres, aided by a 10-metre zone that averaged 4.55 grams per tonne. A second hole yielded 3.44 grams per tonne over a true width of six metres and the third produced 1.7 grams per tonne over a true width of 26 metres.

Mr. Agro, Revival’s $150,000-a-year president and CEO, says that the results from the Joss area at Beartrack “verifies the presence and expands the scale” of higher-grade mineralization in this location. He says that Revival’s focus to date has been on near-surface mineralization, but the presence of higher-grade intercepts over 600 metres of strike at Joss “suggests underground potential as well.”

Mr. Agro says that this year’s drilling is intended to “build on the scale of the known gold system” at Beartrack, and to “advance toward a preliminary resource estimate of leachable gold material at Arnett.” (He concludes — one his weasels has scurried off — that Revival expects a resource update early next year.) The current estimate, covering Beartrack, shows 33.3 million tonnes indicated at 1.13 grams per tonne and 16.9 million tonnes inferred at 1.41 grams per tonne, nearly two million ounces of gold.

Gareth Thomas’s Westhaven Ventures Inc. (WHN), up four cents to 90 cents on 678,000 shares, has received assays of up to 5.13 grams of gold and 17.32 grams of silver per tonne over 52.22 metres at its Shovelnose project, near Merritt in south-central British Columbia. The hit was bolstered by a 7.5-metre zone that averaged 17.28 grams of gold and 49.9 grams of silver per tonne. Mr. Thomas, president and CEO, says that the intercepts recorded in the three latest holes “extend the scope of expanding the South zone.” Twelve holes have already been drilled in the current program, which seeks to extend the goldzones and their strike length.

Westhaven was a 15-cent stock a year ago, but high-grade hits at Shovelnose, including 24.5 grams per tonne over 17.77 metres, sent the stock as high as $1.43 late last year. It has since stabilized near the 90-cent mark, as investors have become accustomed to glittering assays from Shovelnose.

by Stockwatch Business Reporter

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