IAU x 3, TUD, ODV, RIO
Nevada gold miner i-80 Gold aka IAU delivered no fewer than 3 NRs in two days, The first was good news, the second was mixed, and the third not good at all.
In the wake of crashing to an all-time low last week. the stock of IAU really needed some help. Yesterday, the stock was up big thanks to help from the PoG plus new drill results from the McCoy Cove development project.
The Cove set of deposits continues to deliver remarkably high drill results. This time we hear that extension drilling in the Helen zones has yielded new intercepts like 8.3 g/t Au over 3.0m and 15.8 g/t Au over 15.8m, further extending mineralizion in what is expected to become one of IAU's primary production areas.
Okay, it was probably the rebound in the PoG plus IAU being so oversold that caused today's bounce in the share price, but last week could have set the bottom. Time will tell.
Message 34778546
Next up, we hear about IAU's Q2 results. As a development company with minimal residual production, they continue to lose bucketloads of money. Even the residual production was down this quarter, with sales amounting to only 1636 oz Au, with no costs given. They did also sell 0361t of mineralized material for total revenues of $5.9 million. This amount almost completely fulfills a pre-paid sales contract signed last year, so these sales will become a source of revenue shortly.
Among the positive developments during Q2 were more good drilling results at Cove, Granite Creek, and Ruby Hill, and underground development at Granite Creek reaching the ore source at the South Pacific Zone in June.
Alas, the only update on the potential JV at Ruby Creek is that negotiations are still underway.
Message 34780303
IAU management really blew their credibility this year by destroying the own company's stock price with ill-considered PPs, so it is with trepidation that I viewed the third NR, in which the company announced they have established what is known as an at-the-market equity program. This allows them to sell up to %50M worth of shares at market prices whenever they want without going through the PP process.
Cue ominous music....
ca.finance.yahoo.com
The most recent development in the Treaty Creek property in BC's Golden Triangle, a JV owned by Teuton Resources aka TUO along with TUD and AMK, has been the discovery of a high grade gold system within the Goldsotrm deposit. Now, with the release of assays from the first four holes from this year's drilling, we learn that drilling has revealed the presence of not just one but three stacked high grade gold areas within Goldstorm, which are being called Sipercells. (FWIW, there are similar lenses within both the nearby Valley of the Kings and Brucejack deposits.)
Three of the holes hit all three Supercells and the other just one, generating assays like 9.02 g/t AuEq over 2.00m (8.97 g/t Au, 3.73 g/t Ag, 0.01% Cu) in SC-1A, 11.05 g/t AuEq over 3.00m (8.28 g/t Au, 126.50 g/t Ag, 1.21% Cu) in SC-1B, and 5.31 g/t AuEq over 6.00 m (5.02 g/t Au, 3.32 g/t Ag, 0.21% Cu) in SC-1C.
The JV partners have announced a target of finding 2-3M of these high grade Au ounces, which would be a significant contribution to the overall economics, essentially offsetting the initial capex. To that end, the focus of this year's drilling has become following these Supercells, which may extend outisde the Goldstorm deposit, and reanalyzing older drill holes to find evidence of others where high grade gold values were found.
The more of these Supercells they can find, the more marketable Treaty Creek becomes.
Message 34780028
Osisko Development aka ODV released tis Q2 results. As a company developing two mines with only minimal residual production, they continue to lose money, but still have $33.7M in their cash stash in spite of producing only 805 oz Au.
For the next while the focus will be on the Cariboo gold project in BC, for which ODV expects to receive the final set of permits shortly. They are in the process of extracting a 10kt bulk sample by the end of the year, even as they begin other construction activities.
Message 34780353
Northern Shield Resources aka NRN released a short NR regarding its Root & Cellar Au/Ag/Te prospect in Newfoundland that goes on and on about some visible gold found in the Conquest Zone. As experienced junior mining investors, you all know that visible gold is not a reliable indicator, so the only important sentence in this NR contains 3 words.
'Assays are pending.'
Message 34780457
The IKN newsletter brings us an update after it talked with the CEO of Rio2 aka RIO, who are developing the Fenix gold project in northern Chile. According to IKN, RIO will get the final build permits by early September -- note these are pretty well automatic compared to the EIA that caused so much trouble -- and that shortly after RIO will announce the financing package, mostly debt. He expects construction to begin almost immediately after that, as RIO has already assembled almost the entire workforce.
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