WRLG, IAU, ARK
West Red Lake Gold Mines aka WRLG released an update on the imminent restart of production at its Madsen Mine in Ontario, and the news was mostly good.
The Connection Drift to connect the different parts of the mine, vital for reducing cost, is now less than 100m from completion, which is only a few days away, and the on-site camp has been completed. (They were able to utilize a relatively small camp given that over 60% of the workforce is local so will be able to commute from home to work.)
As well, the mill restart, 28 months after it was shut down following the bankruptcy of previous operator Pure Gold, has gone well. They began with processing low grade stockpiles, but in an few days will begin processing the recently extracted bulk sample, which will be used not just to produce saleable gold but to confirm resource estimates for the various stopes and deposits.
They also announced they have drawn down half of their recently arranged line of credit, yielding $7.5M, and expect to draw the other half soon. It's better than the dilution that comes with ab PP, but still....
I expect the results of processing the bulk sample will mark the next inflection point for the stock. If things go well and the PoG stays over $3000, I expect the market will respond.
Message 35071168
Nevada gold miner i-80 Gold aka IAU took another step forward with the announcement that it has finalized two agreements for handling ore extracted from its Archimedes Underground and Granite Creek Underground mines through 2027, concerning the toll milling of refractory ore and the sale of oxide ore.
These ore streams and others will be switched over to IAU's autoclave at Lone tree once it is refurbished, scheduled for the end of 2027. We will get more details on the autoclave when an engineerring study is released in Q3.
I expect the refractory material is to be processed at Nevada Gold Mine's facility, but no details are given. I also expect the finalization of these agreements to help with the ongoing discussions with financiers.
Message 35072448
Last time I speculated that thanks to more than $m be added to the treasury of Kazakh explorer Arras Resources aka ARK, they would wait till higher prices to raise more cash.
I was wrong.
ARK today announced two PPS totalling over $15M @ 85 cents a share, notably with no warrant included. I expect the Agents' Overallotment to be exercised and add another $2M to the kitty.
ARK's share price has tripled in short order. I expect if they can make another discovery or two, the participants in this PP will realize they got a bargain.
finance.yahoo.com
Saville opines that although gold prices and gold inventory levels continue to climb, a near-term test of support at $2950–$2975 remains likely. Thanks in part to a favourable gold/oil ratio, gold mining stocks are positioned for further gains after a brief pullback. He also notes that the amount of physical gold held in the Comex warehouses in the US has now reached an ATH of 41.4M oz. |
