RIO, WGX, AUX, TECT
We had an interesting PR from Rio2 aka RIO, who are about to pour the first gold from the Fenix mine in Chile. They have invested about $4.6M to acquire 15% ownership of RYR.V, which is exploring copper prospects in Colombia, Saudi Arabia, and Mexico. The transaction was part of a larger block trade involving other institutional investors picking up the 18% of RYR's shares that were sold by AEM.
In the discussion, RIO Executive Charman Alex Black stressed two things -- his long friendship and respect for his counterpart at RYR, and that the purchase was for investment purposes only.
As to the latter point, we shall see...
ca.finance.yahoo.com
On Wednesday, West Australian gold miner Westgold Resources aka WGX is hosting a webinar on their 3-year outlook. You can get details on how to sign up at this link.
westgold.com.au
It is instructive to look at the trading upon the release by Golden Cross Resources aka AUX of the first drill results from their Ready Creek gold prospect in Victoria, Australia. AUX shares opened up about 10%, sold off until they were down about 10%, and ended the day down about 2%. I attribute this to momentum traders who had jumped on board during the share price's meteoric rise this year taking profits, while longer term investors liked the news and took advantage of the buying opportunity. It is good for the stock to see those weak hands depart.
So what do we learn from the assays for the first three holes of the Phase I drill programme? (Assays for 7 holes are still pending, and a Phase 2 drill programme is already underway.)
They did pull some nice assays, such as 10.8m @ 2.08g/t Au from 28m Including 0.5m @ 24.4 g/t Au, but more importantly they found mineralization similar to that from the famous Victorian goldfields like Fosterville and Costerfield, and at the nearby discovery at Sunday Creek which kicked off this new Victorian gold rush, e.g. ladder-style veins and pathfinder halos.
Based on the research I have done, I expect AUX to pull some attention-getting assays in the drilling they are now doing as a result of using the results from Phase 1 to zero in on their targets.
Message 35277316
Tectonic Metals aka TECT seems to be at it again, today announcing the start of the Phase II drilling programme on their Flat gold prospect in Alaska, even though they have only released one hole from the Phase I drilling earlier in the summer. Given how attempted rallies in the stock price has fizzled out several times in the last few years due to long delays in getting assays, it is inexplicable to me why they are not paying for expedited assays.
In any case, three rigs will be drilling through October on several targets, including at Chicken Mountain where the results will feed into an initial Resource, as well as step out drilling at Alpha Bowl and exploration drilling at other targets.
TECT also announced they have taken steps to allow an earlier start to exploration next spring. Let us hope we have read about more assays from this year's drill programmes by the time that drilling starts.
Message 35273159
Saville is now unequivocal. He thinks that gold and gold stocks will set 3-6 month highs within the next six weeks, perhaps as soon as within the next two weeks. |
