Burkina Faso coup, MAI, RRI, MIRL
There has been a military coup in Burkina Faso, and a number of gold miners, include Iamgold and West African Ming, have rushed out brief PRs saying operations in BF have been unaffected. Here's the one from Endeavour Mining aka EDV.
ca.finance.yahoo.com
Minera Alamos aka MAI released the PEA for their Cerro de Oro heap leach gold project in Zacatecas, Mexico. The headline was very restrained, merely saying the results were 'positive', quite the understatement given the subheading -- 'After-Tax IRR of 111% and sub-$30 million CAPEX'. The PEA forecasts the production of ~60k oz Au per year for 8 years, with a payback period of less than a year. Given that MAi is at the top of its game, having just built the nearby Santana heap leach gold mine, plus the low capex and ample exploration upside, this projects looks like it will be a real money spinner (BTW, they already have a paid for mill on hand.)
We should hear about both the declaration of commerciality at Santana and the construction decision for Cerro de Oro in the next few months.
Message 34022239
Normally when you read a PR that a larger company has dropped its option on a property owned by a smaller company, it is bad news for the latter. But when the smaller company is an adept prospect generator like Riverside Resources aka RRI, it can be neutral or even positive news.
In the this case, the news is that Hochschild has dropped its option on RRI's La Union gold/silver/zinc prospect in Sonora, Mexico. Hochschild had optioned it in May and spent over $500k defining four new drill targets, but now has apparently decided that La Union no longer fits into their corporate strategy. RRI is now on the hunt for a new partner with the lure of those four targets, and if they find one, which is likely thanks to the Sonora CDB belt becoming hot of late, this PR was indeed good news.
Message 34022224
The IKN newsletter brings us news abour Minera IRL aka MIRL that, of course, the company has told us nothing about. Apparently their Corihuarmi mine has been shut down for almost two weeks due to protests by locals regarding water pollution and land grabs. The two sides are supposed to meet for negotiations on Wednesday. I wonder when MIRL will tell us about this important development?
Saville notes that gold and gold mining indices have reversed upwards from new multi-year lows set last week, indicating that at least an intermediate term low in both has been set. If this is conformed, the trend of both reversing up or down in August/September has continued for the 6th year in in a row. This in turn means that once the $US reverses downwards, it's up, up, and away for both gold and gold miners. If the PoG ends the week above $1700, this will go a long way toward the aforementioned confirmation. |
