WGX, RRI, OGC, WEX, IAU
Last week, West Australian gold miner Westgold Resources aka WGX put out a nothingburger of PR regarding press speculation about asset sales. Well, there was fire under that smoke, as we see with today's announcement that WGX has sold its Lakewood Mill, deemed to be small for its purposes, for $85M. Reading the PR, I assume they will be using the funds to enlarge the Higginsville mill to increase output from the Beta Hunt mine in the wake of recent discoveries. A Higginsville expansion study will be released next month.
WGX also retain the right to have a certain amount of ore processed by the Lakewood Mill for the next two years.
Message 35042126
Prospect generator Riverside Resources aka RRI released an update on the coming spin-out of its Ontario gold properties into Blue Jay Gold, which in due course will be listed separately on the CSE. RRI will retain NSRs on each of the properties. I hope this works out as well as their last spinout, Capitan Silver, which is currently trading at more than double their value at the time of the spinout.
I recently bought more RRI shares in odder to get more Blue Jay Gold shares.
Message 35040513
After hitting a few hiccups of late, OceanaGold aka OGC needed some good news to restore the momentum, and they appear to have achieved that with a new discovery at their Halle gold mine in South Carolina, USA. They have drilled five holes into a newly discovered deposit they are calling Pisces, yielding intersections like 44.2m @ 10.9 g/t Au, 9.4m @ 44.1 g/t Au, and 42.7m @ 6.1 g/t Au, OGC has defined an 'exploration target area' of approximately 300 x 250 x 25 metres. Pisces is located between and is similar to the Horseshoe and Palomino deposits, close enough to offer easy access from existing and planned workings.
Pisces remains open in multiple directions, and OGC has increased their drill budget in response, In addition, OGC reported the results of 18 more resource definition holes at Horseshoe, which came in as expected, with drilling ongoing.
Message 35040543
In response Scotia issued a new analyst report on OGC. Noting that this discovery really firms up the prospects for underground mining at Halle, they call the impact Positive but kept OGC at Sector Outperform with a target of $6. Scotia also notes that OGC trades at a significant discount to peers in terms of P/NAV and P/CF ratios.
Western Exploration aka WEX has been -- too slowly for my liking -- exploring its Aura property in Nevada, which already hosts several deposits with Au/Ag Resources. Last year they found a potential new deposit by looking on the other side of a fault from one of those resources, and now they say they have found another they are calling the Tomasina Fault Zone, which also contains an extremely high grade past-producing open pit mine.
Both these new targets will be drilled in the coming months.
Message 35040663
In response to last week's release of a PEA for Mineral Point -- its third PEA release in 9 days! -- by Nevada gold miner i-80 Gold aka IAU, Scotia released a new analyst report. They call it a Mild Positive, noting the relatively low IRR but also noting how much NPV it adds, making getting financing easier. They kept IAU at Sector Outperform with a $1.50 target. |
