WGX x 2, DV, GQC, RRI
West Australian gold miner Westgold Resources aka WGX released two PRs.
The first reported their quarterly results (Q4 according to them, Q2 according to their fiscal year, Q2 according to the calendar). However you label them, the results were good, as you would expect with the current PoG. Across all their mines and mills, WGX processed more than 1.4Mt of ore at an average grade of 2.11 g/t Au producing 88022 oz Au.
This resulting cash flow enabled WGX to increase their cash stash by $132M to a total of $364M. They do still have $50M drawn on a line of credit, which I wish they would pay off immediately while the getting is good. In the meantime, with Great Fingall coming on line, they should continue to produce plenty of cash flow and cash as long as gold prices remain elevated.
Message 35202991
Just be glad you don't need to read the entirety of WGX's second PR, concerning their exploration results from last quarter. Most of it consists of page after page of drill results, followed by even than the usual number of pages of ASX-required legalese.
As a matter of fact, I won't even go into detail on the individual assays, because I have already discussed most of them as they came out in earlier PRs. Suffice to say that they spent over $9M on 82 km of drilling during the quarter and found promising results at a number of deposits.
Message 35202995
Dolly Varden Silver aka DV, which ha already completed 17 km into this year's drilling programme investigating various Ag, Au, and Cu prospects on their newly consolidated Kitsault Valley properties in BC's Golden Triangle, has announced that they are increased the programme to 41 km, partly by using direction drilling from already drilled holes. As well, DV is conducting extensive mapping and sampling on the hitherto unexplored portions of its landholdings.
Now we await assays...
Message 35204236
Goldquest Mining aka GQC released an update on exploration at its extensive landholdings in the Dominican Republic. GQC is preparing for their first drill programme since 2016, scheduled for 5km to begin in Q3. To that end, they have been carrying out mapping and sampling and trenching as well as reinterpreting existing geophysics and developing a new geological model.
I do find it interesting there is no mention of any work to be carried out on their feature project, Romero, as all the efforts mentioned above will be on regional explorations targets. I assume we will get an update on Romero in due course.
Message 35204260
Questcorp Mining released an update of the La Union prospect in Sonora, Mexico, from which they are earning a 100% interest over a number of years and stages from Riverside Resources aka RRI.
So why am I still covering this PR, as RRI is essentially selling the project. First, RRI is carrying out the exploration, but also, in my experience the companies that such properties are farmed out to sometimes fail to earn that 100% for any of a variety of reasons, leaving RRI with part or even complete ownership with the benefit of the exploration the failed optionee paid for providing a nice bonus.f
So far this summer RRI has been able to identify both stacked faults and several intrusions which are both prospective for mineralization, which will be followed up by a 1500m drill programme in August.
Message 35204321
Saville says the signal he is waiting for to signify that the gold bull has turned into a commodities bull is when the the GNX/gold ratio (the GSCI Spot Commodity Index divided by the US$ gold price) manages to rise above its 200-day MA. |
