IAU, RRI, WRLG
Nevada gold miner i-80 Gold aka IAU released their Q4 and yearend results. They remain in a transitional phase, with new management reinvigorating their focus on mine-building and recapitalization.It was quite the quarter in terms of accomplishments, with the release of 5 new PEAs and laying out a detailed plan for the development of those five mines.
IAU does have residual production from two heap leaches, which are expected to produce about 10k oz Au in 2025, and production at Granite Creek Underground, which is expected to yield 20-30k oz Au in the rest of the year.
The did sell 9053 oz Au on Q4, and although they are still operating at a loss, thanks to the sales and an ATM programme IAU ended the year with a increased cash stash of $19M. But those are small peanuts compared to the recapitalization efforts currently underway to make the finances for all this activity work. We got the first update on these efforts with the announcement of a new gold and silver prepay agreement and a $12M working capital loan under negotiation. But expect plenty more, which could include asset sales, royalty sales, a senior lending facility, etc.
The trick will lie in the amount of dilution that comes along with these arrangements.
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As part of a report in their AGM, prospect developer Riverside Resources aka RRI, announced they had received approval to spin out their Ontario assets into a separate company called Blue Jay Gold, which is expected to to be listed on the TSXV in Q2/
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West Red Lake Gold aka WRLG released the results of drilling aimed at the Austin Zone of its Madsen Mine in Ontario, which they are bringing back into production after the previous owner went into bankruptcy. WRLG are counting on Austin which already has a high grade Resource of over 1M oz Au, to be a money spinner, and are doing more closely spaced drilling to ensure they don't have the same problems Pure Gold did/ Assays like 23.81 g/t Au over 5.4m, 30.16 g/t Au over 4.3m, and 12.43 g/t Au over 10.5m certainly won't hurt.
Drilling continues.
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