WRLG, TECT, WM, RSG, NTH, RIO, MAI, IAU
West Red Lake Gold aka WRLG released a PR discussing further 'learnings' from the extraction and processing of a bulk sample excavated before their Madsen gold mine in Ontario was recently officially declared in production.
What dogged the previous unsuccessful operator was primarily grade inconsistency, so it was a good result that the grades found in the bulk sample closely matched those expected. As well, what they found on switching to a mine model using a gold price of $2350/oz -- the 'consensus long term price' -- is that this opens up new areas for mining and also drives down costs by allowing larger stopes.
So the 'learnings' were positive. Let's hope the earnings are also positive.
I increased the ask price for the WRLG A warrants I have on sale to double my purchase price, and am open to moving it higher depending on how the common shares trade in the coming months.
Message 35154604
Alaskan gold explorer Tectonic Resources aka TECT has announced the start of this year's drilling on their Flat prospect, concentrating on the Alpha Bowl. Two rigs are currently on site with another to arrive shortly.
Normally I would average down on a stock like this at this point, but with the involvement of the Toxic Twins, Quinton Hennigh and Crescat Capital, whose presence normally means a the stock price is managed carefully to benefit insiders, I am just hoping they find enough to allow me to get out for break even later in the summer.
Message 35154448
Wallbridge Mining aka WM released assays from the first 11 holes on its Martiniere gold project in Quebec, near its flagship Fenelon deposits in the Detour Lake Corridor in Quebec. The focus was on stepout drilling along the Bug Lake corridor. Based on intercepts like 40.99 g/t Au over 2.3m including 59.60 g/t Au over 1.5m, 6.71 g/t Au over 14.4m including 9.81 g/t Au over 3.0m and 11.41 g/t Au over 5.0m, and 16.79 g/t Au over 10.1m including 17.62 g/t Au over 3.0m and 32.87 g/t Au over 3.0m;, it is fair to say that so far has been a success.
The Bug Lake corridor has now been delineated over an approximate 2,000m by 800m area and to an average vertical depth of 350-400m below surface. With more assays pending and another set of drilling scheduled to begin next month, I expect a substantial increase in Resources at Matiniere.
Message 35154556
I have held at least a few shares in this company, now Rocky Soaore Gold aka RSG, through three changes of name and focus. The latest refocus, to a large gold prospect in Newfoundland adjoining NFG's Queensway deposit, proceeds apace. First RSG relinquished its iron ore prospect in the Arctic (acquired three symbols ago), and now they have sold their Hemlo area gold and PGM prospects in Ontario to ABX for $975k and an NSR.
Clearly, they are all in on their Gold Anchor prospect in Newfoundland, which is where the proceeds from the sale will be used. They are currently carrying out geophysics and mapping and sampling preparatory to an initial drilling campaign in a few months.
Message 35153369
Nord Precious Metals aka NTH announced they have been enrolled in Ontario's new fast track permitting programme and expect to receive permits for their Castle Mine project in Ontario shortly. The permits will allow them to reprocess existing tailing stockpiles looking for silver and other metals, to retrieve remnant broken ore left in the mine, and then use the reprocessed tailings to backfill the mine.
If this works out, NTH might actually become cash flow positive before long, much to my surprise.
Message 35153443
Permit me to talk up Rio2 aka RIO without any news, just on the basis of the way it has been trading, making ATH after ATH. (Some sites mask this by wrongly grouping the original RIO in with the current one even though there was a multi-year hiatus between the sale of the former and listing of the latter.)
If Saville is right about what the PoG and gold stocks are going to do through the rest the year (see Below), RIO starting production at its Fenix gold mine in Chile next January could be perfectly times.
I have had $2 as my target for RIO for some time, but didn't expect that target to be reached for a few years after which they will have increased production at Fenix out of cash flow, or perhaps a bit sooner if they are bought out. Now I am thinking it might happen this year. I can't yet make the call on what I will do if $2 is breached, but I will likely sell enough shares to get down to riding the remainder as freebies.
Turning to Minera Alamos aka MAI, the IKN newsletter did a major update on the gold miner this last weekend. MAI has been a Top Pick at IKN for some time, but was on probation depending on how it dealt with the permit problems for expanding the heap leach at the Santana gold mine in Mexico. IKN was satisfied that 'Plan B' has been able to get Santana to break even/small profit without the permits, allowing MAI to move forward with other projects like the Copperstone mine in Arizona and Cerro de Oro in Mexico.
With the Cerro de Oro permits also hung up, Copperstone is now the focus. With low capex and a quick 14-month build, all that's left now is to raise the modest capex, I hope primarily via debt.
IKN has kept MAI as a Top Pick.
I was lucky enough to get a fill on a stink bid for the new warrants released by i-80 Gold aka IAU last week under the symbol IAU.WT.U. (Tthe U means that they are denominated in $US.) They are already almost at a double and could become a multi-bagger if IAU's plans work out and the PoG cooperates. It's been a few years since I hit a 10-bagger, but since I got my warrants for 8 cents apiece, if the IAU common shares can make it to $2, IAU.WT.U cou;ld easily make it to 80 cents depending on timing. (These warrants have a strike price of 70 cents US and expire on Nov. 11, 2027.)
Saville reiterates that although gold is correcting at present, he expects it to break out to new highs within months. He also see silver as primed for a big move, and gold and silver stocks as in a very favourable position, e.g. he expects HUI to breach 500 later this year. |
