AU, KTN
Nevada gold miner i-80 Gold aka IAU released its Q1 results. As to be expected with a company at this stage of development, the numbers themselves are mixed, but the story here is all about the future.
Gold sales, some from residual leaching but mostly from Granite Creek Underground, increased to 4952 oz, but even with the higher PoG IAU doubled it loss to over $41M, not unexpectedly. Cash on hand decreased to $13.5M, but this will change shortly as management plans to complete IAU's recapitalization by the end of Q2.
Operationally, production continued to increase at Granite Creek Underground as dewatering proceeds, and they expect to reach steady state production in H2. They are finding more easier to process oxide ore than expected, even as they stockpile sulfide ore for future processing. The underground drift to the South Pacific Zone will be completed shortly.
At Ruby Hill, development continues for Archimedes Underground, next in line to begin production. The final permits are expected Q2, after which construction is expected to take 14 months. Drilling and permitting are underway at the other three mines scheduled to be built, and the feasibility study for the renovation of the Lone Tree autoclave to process sulfide ore is scheduled for completion by the end of the year.
I expect the permitting and development to continue running smoothly, so the real key for IAU will be the type of financing package they can put together.
Message 35125364
Kootenay Resources aka KTN released the final set of drill results from a large drill programme on their Columba silver project in Chihuahua, Mexico, which will contribute to the upcoming initial Resource Report.
There were several important developments in the assays. First, one of the holes extended the depth of the D Vein from 350m to 540m, opening up the potential deep mineralization across the vein. And the vein is generally thickening with depth even while pulling some of the highest grades recorded at Colimba, e.g. 1,775 g/t Ag, 0.62 g/t Au, 2.34% Pb and 9.26% Zn over 5.50m core length (1.93m est true width), and 123 g/t Ag, 0.09% Pb and 0.25% Zn over 84m core length (63m etw), both with some extremely high grade subintervals.
Message 35125407
Saville points out that HUI just tested its breakout. He expects the gold sector to remain strong through the year even as most other market sectors decline. |
