TUO, IAU, SSL
Teuton Resources aka TUO released an omnibus PR covering a number of its properties in BC's Golden Triangle.
First, we hear about the latest drill results from their JVed Treaty Creek property. The Goldstorm deposit, on trend with Seabridge's KSM project and Newcrest's Brucejack deposit, is already enormous but continues to grow. The most interesting results in this batch, which focused on the north end of the deposit, further extend both the high grade gold pulses and the newly discovered copper mineralization over large distances. Drilling with continue for another few weeks before winter closes in, so we can expect another set of drill results before things shut down till spring. (And a reminder; almost all these results are from outside the existing resource envelope.
Next we hear about sample and drill assays from Harry, a JV with OPV.V. They have continued to extend multiple zones of interest for their gold and silver values, and a new zone has been discovered. The drilling was very shallow, so I will be interested in what is planned for next year's exploration.
Finally, we hear about sampling programmes from TUO's 100%-owned Big Gold and Eskay Rift properties. Most of the assays are still pending, but those that have been received might be promising, though it is still too early in the exploration to come to any conclusions.
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I-80 Gold aka IAU has released another excellent set of drill results from their Ruby Hill gold project under development in Nevada. Based on what they have been finding, they have expanded the current drill programme to 30 km, with the emphasis being on expanding the high grade Ruby Deeps zone slated for initial production, and it continues to deliver, as evidenced by intercepts like 14.8 g/t Au over 12.3 m , 11.8 g/t Au over 18.3 m, and 11.9 g/t Au over 16.8 m. Ruby Deeps remains open in multiple directions.
But that's not all, They recently discovered a new zone called Hilltop, and now they have added two new discovery zones, one dubbed 007 -- 10.5 g/t Au over 11.1 m, and it appears to be oxides -- and Blue Sky, where they have broad zone of medium grade mineralization.
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FWIW, in the wake of the closing of the latest highly dilutive finacing by Sandstorm Gold Royalties aka SSL, BMO has resumed coverage, keeping them at Outperform but reducing their target from $9 to $8, The analyst cite BMO's recent reductions in their 2023 prices for gold and silver, down 6% and 11% respectively, as well as the effects of the PP, which they are currently modeling as being used entirely, contrary to what SSL is saying, to pay down their line of credit.
The following day, SSL released its Q3 results, as usual in cursory fashion so we'll have to wait for the details. We do learn that SSL sold approximately 22,600 attributable gold equivalent ounces and realized preliminary revenue of $38.9 million. However, their cash operating margin was down about $200/oz from last year so I'll be interested to see their costs when they are released with the quarterly financials.
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FWIW, in response TD released a new analyst report on SSL calling the results Slightly Positive but maintaining them at Buy with a target of $10.50.
Saville points out that both HUI and GDX closed above their 50-day moving averages this week, signalling that an upward reversal has arrived, but also reminds us that the monetary headwinds (Aka strength in the $US) must dissipate before the PoG really gets going. |
