Gold junior Jayden graduates to the TSX
miningweekly.com
By: Matthew Hill
10th December 2010
TORONTO (miningweekly.com) – Vancouver-based gold junior Jayden Resources, which has strong connections to China, moved up to the TSX on Thursday, becoming the latest in a line of gold graduations this year.
One of the Asian country’s biggest miners, Zijin Mining Group, is a significant shareholder, and in May 2010 Jayden entered into a financial services advisory agreement with Hong Kong-based merchant bank Baron Capital.
“It gives the company a bit more credibility,” corporate affairs official Mike Thast said of the move.
Jayden received a chilly welcome from the main board, with its stock slipping 14% to C$0,28 a share by late afternoon in Toronto.
Still, the company’s shares have more than tripled in value over the past year, as gold prices soared and investor interest in gold juniors followed.
Jayden owns the Silver Coin property in the Stewart Camp of north-western British Columbia, for which it published a resource estimate at a 0,3g/t cutoff showing 835 627 oz gold and 5,2-million ounces silver in the measured and indicated category with a further 655 000 oz gold in the inferred category.
It aims to publish an updated resource estimate and preliminary economic assessment of Silver Coin by February next year, followed by a definitive feasibility study later in the year or early 2012, Thast said in an interview.
The mine would likely produce some 100 000 oz/y of gold, with first metal coming in three to four year’s time, he added.
“We’ll be the first in the Stewart area up and running. We’re light years ahead of the approximate 20 other exploration
companies working the area” said Thast.
Beijing-based Minarco MineConsult concluded in a September technical report on Silver Coin that it “represents a promising gold project”.
THE HONG KONG CONNECTION
Baron Group, the holding company of Baron Capital, opened its office in Vancouver in 2008, the same year it bought into what was then called Pinnacle.
The financial services company said it targets Asia-based companies seeking to expand to overseas markets.
“We’ve always been positioned not to bring western capital into Asia, it’s always been about when China looks outward and so that’s really been our model,” Bill Majcher, head of Baron’s international arm told Candian paper The Province in 2008.
However, a source said that Jayden’s move to the main board may be a precursor to Jayden partnering Chinese companies on projects in that country.
Gold was trading at $1 390/oz on Thursday afternoon. |
