IAU, MAI, WEX, SIG. OGC
Nevada gold miner i-80 Gold aka IAU released an update on the FAD property it acquired a few years ago for $88M. New management is not interested the the CRD deposit it was acquired for, so it is up for sale.
To assist in that sale, IAU has completed an updated Resource Estimate for the FAD deposit, generating both Inferred and Indicated Resources which include high grade Au, Ag, Pb, and Zn mineralization. They also found what may be significant amounts of Ga, In, Sb, and Sn, and there is a surface deposit called Gold Hill which contains oxide gold.
Let us hope that this will help IAU get a good price for the property, thus reducing dilution from the ongoing recapitalization process.
Message 35323190
The new management at Minera Alamos aka MAI released their plans for the rapid restart of production at the Copperstone gold mine in Arizona. The current PEA has very impressive numbers, with an IRR above 100% at the current PoG and manageable capex, particularly because previous management had already stockpiled a mill which is currently being moved to and set up at Copperstone.MAI plans to release an updated Technical Report in the coming months, which together with permits expected by the end of the year will allow the board to make a quick production decision.
Geological reinterpretation has raised the possibility of increasing the existing Resources along strike and at depth, plus the potential for new open pits at deposits on surface. This will be followed up in Q1.
Once again, nary a mention of the Mexican operations. I am assuming they are up for sale, I hope not at any price they can get.
Message 35323044
Western Exploration aka WEX announced they have hired a consulting firm to help advance the permitting process for its Aura Au/Ag project in Nevada, in particular the Dolby George deposit
Given that there is little experience with mine building in either management of the BoD, I am assuming the goal is to try to sell the company to a developer, but they will need to find more ounces for that IMO. Yes, some of the deposits on Aura are high grade, but the total inventory is less than 1M oz AuEq, and they need multiples of that.
Message 35323063
Sitka Gold aka SIG released assays from another 7 holes drilled into the Rhosgobel intrusion target on its EC Gold project in the Tombstone Gold Belt in Yukon Territory. The drill programme is complete and assays are pending for another 26 holes from Rhosgobel, plus another 29 from other deposits on the property.
Based on the assays from earlier holes, it is no surprise that SIG pulled many quality intersections, including: 107.9m of 1.01 g/t Au from surface, including 37.9m of 1.41 g/t Au; 67.5m of 1.03 g/t Au from surface; and 297.0m of 0.61 g/t Au from surface, including 28.5m of 2.20 g/t Au.
These grades and widths are typical for the Tombstone Gold Belt. Drilling has now extended Rhosgobel to a strike length of over 1 km, with mineralization extending from surface to over 400m depth, and it remains open in all directions.
SIG also intersected zones of high grade tungsten, assaying 6.98m of 0.39% WO3 and 0.61m of 4.73 % WO3 within a broad zones of lower grade tungsten mineralization, 75.5m of 0.132 % WO3 and 46.19m of 0.121 % WO3. At least some tungsten has been found in every hole at Rhosgobel.
To be economic in this remote location RC Gold needs for more gold above all else, but the tungsten might help with the economics if it is widespread enough.
Message 35323084
Considering how in some ways Q3 was spent on preparation for a bang-up Q4, OceanaGold aka OGC did very well. Yes, Q3 production was down from Q2 at 103500 oz Au and 3100t Cu, but this was as planned and allowed them to reiterate 2025 guidance. During Q3, high grade open pits, one at Hailr in South Carolina, the other at Macraes in New Zealand, were prepared for production which is already underway.
And when you turn to the financial side, Q3 went very well. In spite of paying a dividend and spending $39M on share buybacks -- this programme was also allocated an extra $75M for Q4 -- revenue was a record $449M with FCF of $94M, leading to a net profit of $87M. As a result their cash stash increased to $335M, with no debt. Cash costs were up to $1420/ oz Au during the quarter as a result of all that stripping, but are expected to markedly decrease in Q4 as the new production comes on line.
Having so much cash available sets up OGC for M&A. If they are a buyer, they can use that cash and safely take on debt, while if they are being pursued by admirers that cash is like a large dowry,
Message 35322986
FWIW, in response TD issued a new analyst report on OGC. Calling it a Modest Positive, they kept OGC at Buy and raised their target to $38. |
