New York spot gold jumped $11.10 to $1,399.00 on Friday. The TSX Venture Exchange fell 0.69 point to 592.57 while the TSX Gold Index added 1.53 points to 218.01. Most Canadian gold miners moved higher again today, but Torex Gold Resources Inc. (TXG) went the other way, dropping 73 cents to $13.48 on 2.02 million shares.
Blair Schultz and Ron Clayton’s Havilah Mining Corp. (HMC), up 3.5 cents to 27.5 cents on 60,000 shares, will change its name to 1911 Gold Corp. on Monday. Mr. Clayton, president and chief executive officer since early this year, says that the name change “rebrands the company with a name that more accurately reflects the focus and strategy of the company while still remembering the history of one of the 15 main properties and its origins.”
Investors who ponder that thumb-sucker long enough will conclude that the company’s strategy has switched to gold from mining through what its latest presentation deems “not your au.dinary business model.” Havilah, which was spun off from Klondex Mines Ltd. following the takeover of the latter company by Hecla Mining Co. last summer, is producing a few thousand ounces of gold per year by reprocessing old tailings at the True North facility in Bissett. As for the 1911 part of the new moniker — it presumably refers to the year the Rice Lake deposit, near Bissett in southeastern Manitoba, was discovered.
The Nevada-based Mr. Clayton receives a salary of $200,000 (U.S.) per year. His predecessor, Mr. Schultz, who held the jobs on an interim basis, was also amply compensated. He collected just over $160,000 through the last half of 2018. Mr. Schultz is now “part-time chairman” at a full-time $65,000 per year.
Barry Brown and George Sookochoff’s GGX Gold Corp. (GGX) jumped two cents to 26.5 cents on 20,000 shares on the promotion of its drill program along the C.O.D. vein at its Gold Drop property, near Greenwood in British Columbia. Yesterday, GGX dropped 2.5 cents to 24.5 cents on 18,000 shares on word that the company has completed 32 holes spanning just under 2,000 metres on the C.O.D. vein and has shifted the rig to C.O.D. North, a parallel vein about 700 metres northeast of the main C.O.D. vein.
Mr. Sookochoff, president, said Thursday that 14 of the 32 holes intersected the C.O.D. vein at target depths, and of those, one contained visible gold while five other intercepts were “visibly mineralized with possible gold-telluride mineralization.” He says that GGX is planning 10 holes into C.O.D. North to test the structure in the area of surface trenches that produced up to 21.7 grams of gold per tonne over 0.4 metre last year.
Today, GGX reissued its news with the help of Vancouver-based Investmentpitch Media, which, for a “fixed low-price package of less than $1,500” will have its “anchor” discuss the news release — “read” appears a more accurate description — in front of a camera, while pictures, charts and maps are displayed in a three-minute blurb.
The Vancouver-based Mr. Brown, who has been with the company since 2015, collected just $16,000 in salary as CEO last year. Mr. Sookochoff’s remuneration is not yet known, as he was appointed president just two months ago.
Darin Labrenz’s Pure Gold Mining Inc. (PGM), down one cent to 56 cents on 1.6 million shares, is selling 59.1 million shares at 55 cents through a bought-deal financing with Sprott Capital Partners LP. The offering should raise $32.5-million, and perhaps nearly $5-million more if the underwriters exercise their option to buy additional shares. The cash, says Mr. Labrenz, president and CEO, is for “exploration and development activities and general corporate purposes.”
He presumably means for the company’s Madsen gold project, near Red Lake in Northwestern Ontario, but Pure Gold does not mention Madsen once in its latest news. In fact, the only mention comes deep in the company’s end-of-release boilerplate, which is a study in obfuscation: “Our mandate is pure and simple,” it begins: “To dream big. To colour outside the lines.” Eventually, the company gets around to stating that it hopes to use science and creativity — and presumably $32.5-million in new cash — to “unlock the next major discovery at the Madsen gold project.”
At some point, Mr. Labrenz and his company will have to move from unlocking discoveries to locking up the next mine in the Red Lake district. The company completed a feasibility study of Madsen early this year, based on an indicated resource of 7.2 million tonnes at 8.9 grams of gold per tonne and 1.9 million tonnes inferred at 7.7 grams per tonne, a total of 2.5 million ounces. The study derived a discounted net present value of nearly $250-million for a $95-million, 800-tonne-per-day mine that would produce nearly one million ounces of gold over a 12-year run.