WGX, IAU, ODV
West Australian gold producer Westgold aka WGX released an updated Resource Estimate for its Starlight mine, which supplies most of the ore processed at its Fortnum properties. This time the approach was different from that used in previous Resource Estimates, splitting it into underground and open pit components.
Reminding you that ASX-listed companies are allowed to combine Inferred Resources with M&I, the underground Resource is now 8.7Mt @ 3.0 g/t for 840k oz Au, a 43% increase since the last one released only in June, while the new open pit Resource is 4.2Mt @ 2.2 g/t for 290k oz Au.
As you will have gathered from the new way these Resources were reported, WGX envisions increasing production at Starlight by running both open pit and underground operations. To that end, they have initiated a scoping study aka PEA which is scheduled to be released Q2 next year.
Message 34906541
I recently commented that i-80 Gold aka IAU had been suspiciously quiet in the wake of a new CEO taking over a few months ago. Today they broke that silence with a bang, cutting the share price in half.
To get the unimportant stuff out of the way, in Q3 IAU sold only 3063 oz Au with increased costs, and sales of ore were down to $4.1M, while meant IAU's cash stash declined to $21.8M at the end of Q3 in spite of all those recent PPs.
Then we get to the important stuff. In many ways IAU is now a new company. They have abandoned the JV on the CRD mineralization at Ruby Hill as too expensive; indeed it sounds like they will not be expending any more money on these deposits. And indeed, money is the big issue; IAU has revamped its management structure and is now working in recapitalization.
Recapitalization for what? The original plans were to bring into production four mines, or maybe three, within the next few years. Now they are aiming for five new mines, all gold, by the year 2130.. As well, although they are going to complete the FBS for the refurbishment of the autoclave at Lone Tree, now they are mentioning the possibility of instead using toll mining for processing refractory ore.
It will take a while to come to terms with all this, but I am resigned to my IAU warrants having become essentially worthless, as I doubt the share price will recover to $2.15 before they expire in 2028 unless I get a LOT of help from the PoG. However, I did add more IAU shares to my stash this morning. These may become trading shares or long term hold depending how things develop.
Message 34906659
Osisko Development aka ODV released its Q3 results.
Operations have largely shut down at the Tintina project in Utah, though they are planning two more drill holes in search of deep porphyry targets 'in the coming months'.
As a result Q3 production was a measly 47 oz Au from third party processing of stockpiled ore from its Cariboo project in BC. Meanwhile they have completed 90% of a decline to the Cariboo ore body, from which ODV plans to extract a 10kt bulk sample, to completed in Q1. They are also working on an optimized FBS for Cariboo scheduled to be released Q2.
ODV has been busy running PPs to raise the necessary funds. As of Sept. 30 their cash stash was 40.8M, but have since completed several more PPs. Given the way they have been bloating the share count, that bulk sample had better pay off.
Message 34906685 |
