BTO, AXU
B2Gold aka BTO announced the latest drilling results from an ongoing 225km exploration drill programme around their producing Fekola gold mine in southern Mali, designed to find more feed for their mills. At Fekola North, drilling outside the pit shell returnd a number of positive results, with the headline being 4.28 g/t Au over 19.15M. It is important to note that this drilling extends over 500M below surface, with the idea that this ore will be accessed from an underground mine. As well, they found mineralization, both saprolite and sulphides, outside the current pit shell at Anaconda.
BTO also announced another 50km of drilling on the recently acquired Bakolobi gold prospect not far away from Fekola
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FWIW, in response TD issued a new analyst report calling the drill results slightly positive and kept them at Buy with a target of $9.50.
I have several times contemplated averaging down on my stake in Yukon silver miner Alexco aka AXU, but based on today's operation update from their Keno Hill mines and mill, it's a darn good thing I didn't, given today's 40% haircut leaving the share price at about a quarter of what it was a few months ago.
Mine startups are always risky, and this one has not gone well, for a number of reasons. They have realized that they are not yet able to mine sufficient ore to run their mill profitably, so are shutting down the mill for six months to allow mine development to catch up. They say that by next January they will be able to run the mill at the necessary 400 tpd to make the entire operation 'cash sufficent'.
For now I am not going to sell and take my lumps, just keep an eye on AXU and watch for a good entry point.
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