WRLG, WGX x 2
West Red Lake Gold aka WRLG brought us an update on the restart of the Madsen gold mine in Ontario, which it purchased on the cheap after Pure Gold went bankrupt. They are advancing on multiple fronts toward a restart of production in Q2.
First, they toot their own horn by announcing the raising the height of the tailing dams has been completed ahead of schedule and under budget, which they say will be sufficient for five years of mining at expected rates..
Next we hear that the PFBS for the restart will be released 'within a month'. (No word is given on whether they will do an FBS.)
Then we hear about the ongoing infill drilling progrsmme which is designed increase confidence in the continuity of mineralization, the lack of which is the primary factor that sank Pure Gold. WRLG also mentions that drill will in due course be moved to test deeper mineralization which was not exploited in previous mining.
Next we hear that WRLG has so far completed 2106m of underground development as part of a programme which will continue into next year.
Next we hear about the restart of the mill, which has been shut down for almost two years. Pre-commissioning is underway and the mill is expected to be ready to go in Q1.
Finally, we hear about test mining, which will shortly be ready to start extracting and stockpiling ore in the advance of restarting the mill.
So far things seem to be going well, but it won't be until production actually begins that we will see the results of WRLG's efforts.
Message 34887936
West Australian gold/nickel miner Westgold Resources aka WGX released its Q3 results. Note that WGX is one o those companies who annoyingly don't align their fiscal year with the calendar year, so they call it Q1 results even though they cover July through September. Note also that due to the recently completed merger with KRR, comparisons with previous years' results are not meaningful. Be that as it may, announced Q1 (Jul-Sept) production totalled 77369 oz Au from their six operating mines at a cash cost of $A1305/oz Au, which includes only two months production from the former KRR assets.
In spite of the costs of the KRR transaction, WGX was able to end the quarter with a cash stash of $103M while their credit line remains undrawn. The coming quarter will see the completion of the integration of KRR's assets into WGX's operations which they hope will lead to increasing profits over the coming year as costs are expected to substantially decrease. Note that WGX remains hedge free heading into a year in which gold is expected to continue to set ATHs.
Message 34887983
WGX also announced they had filed 4 new 43-101 Technical Reports on their assets with SEDAR, so you can fill your boots with as much detail as you can manage to take in.
ca.finance.yahoo.com
Saville issued his annual reminder that in his opinion gold mining stocks should always be viewed as short-term or intermediate-term trades, never as long-term investments. If you want to make a long-term investment in gold, then buy gold bullion That said, he remains very bullish on gold stocks over the next 12 months, now mentioning 600 as a potential target for HUI.
I do have certain gold stocks as long term holds, but I trade around a core as the cycleic tops and bottoms come and go. |
