WGX, ZNC.H, WRLG
Recently, West Australian gold miner Westgold Resources aka WGX announced that after extensive drilling they had greatly increased Resources at its Bliebird-South Junction mining complex to 5Mt at 2.9g/t for 1.4M oz Au. Now we hear that the ongoing drilling has also more than doubled Ore Reserves -- P&P in 43-101 terms -- to 7.2Mt at 2.5g/t for 573k oz Au. This amounts to a fourfold increase in Reserves in one year, net of mining depletion, and underlines why WGX is committing so many funds to drilling at Bluebird-South Junction.
Importantly, the mineralization is wide enough to allow the use of cheaper mining methods, and remains open at depth and in multiple directions. There are also multiple unexplored nearby targets which will be followed up next year.
Message 34936233
When I first started investing in junior resource stocks, I made a number of mistakes, particularly in holding on to long to some of the positions. This resulted in me holding a number of 'zombie stocks' in my tax-shelered portfolios, meaning it wasn't worse selling for a loss, so I held on to the now very underwater shares. Every now and then one of them wakes up as it is turned into something new, and every now and then one of them doesn't get so diluted by refinancing that the shares are worth something. I hope this happens with Zincore aka ZNC.H
I bought ZNC for what looked like some promising Peruvian zinc prospects, but then the bottom fell out of zinc prices. In the following years ZNC made a few efforts to buy new properties, but they never worked out. Now it looks like they have finally hooked a live one with the announcement that they have picked up the Reedy Creek and Providence tenements, which together cover 445 sq km prospective for gold in Victoria, Australia.
The transaction, which is a purchase from GPAC.V, comes at a surprisingly cheap price and includes a 2.5 for 1 share rollback, not the 10 for 1 I was fearing. Now we wait to see how much dilution it will take to pay for exploration. I also expect a name and symbol change as they lose H and join the main TSX board as a result of this transaction.
The new tenements come with both past-producing mines and untested or barely tested prospects. As well, they are located a few kilometres from Southern Cross' recent exciting discovery of high grade mineralization at Sunday Creek. At present ZNC are carrying out a programme of mapping and sampling at the main prospect, Reedy Creek, as they prepare for drilling next year.
Message 34936254
West Red Lake Gold aka WRLG released an update on the Madsen Mine in Ontario, which they are bringing back into production after purchasing it when Pure Gold went bankrupt. They are advancing on a number of fronts preparatory to resuming production next year.
The Connection Drift, a 1.2km tunnel which is vital to reducing costs, in now 50% complete and is expected to be done in March. As well, a new Primary Crusher has been installed and commissioned, and will be used when WRLG begins processing the bulk sample which is currently being extracted. Meanwhile, drilling continues to prove up more ore.
Message 34936302 |
