RSG, WGX, AUX. RIO, IAU
Rocky Shore Gold aka RSG has been on a tear the last few weeks, more than doubling in that short span. A correction was bound to come as we await initial drill results from their large Gold Anchor property in Newfoundland, along strike from and adjoining NFG's Queensway gold deposits.
So it is no surprise that their announcement that they have completed the purchase of one property with a historical resource and make the initial option payment on another, both adjoining Gold Anchor, was greeted by the first price decline in a while for the stock.
But of course the real action will come when we get those first drill results.
Message 35360074
There was an interesting development from West Australian gold producer Westgold Resources aka WGX. They plan to package some assets not included in their 3-year plan via what they are calling a Demerger, and then IPO those assets onto the ASK as a standalone company to be called Valiant Gold. The Demerger is expected to be completed by next March.
They plan to raise $65-70M as part of the IPO so Valiant will be well funded, plus they plan to enter into an Ore Purchase Agreement whereby they will buy ore from Valiant and process it at WGX's processing hubs. The most important assets to be moved into Valiant are the Ready's and Comet gold projects, which offer both near term production and exploration upside.
Be warned that Valiant will be a typical ASX stock, in that it is expected that it will already have at least 500M shares out when it starts trading. However, another potential problem for North American investors appears to have been avoided, because there is no mention of distributing the shares to WGX shareholders, who if they are in North America would have to pay ruinous fees to trade them. Rather, WGX expects to themselves hold 48% of Valiant's shares upon the start of trading. Presumably these will be held for investment purposes or sold when cash is needed by WGX.
As long as we don't get stuck with ASX shares, I think this Demerger will prove to be a good idea.
Message 35360095
It's been quite the few months for Golden Cross Resources aka AUX as they start exploration on their Ready Creek gold prospects in Victoria, Australia. The shares more than doubled between May and September as anticipation built, but then a selloff began as drilling results tarted to slowly dribble out. The decline appears to have climaxed with today's selloff after the release of more assays and updates.
I took advantage of the selloff to add a substantial number of shares near the bottom this morning, because I think the selloff was unwarranted, most likely the result of momentum players and people who don't really understand junior mining.
No, AUX did not find gold on the scale of the nearby Sunday Creek discovery which has created excitement in the area, but they did find plenty of indications they are on the right track. So far they have drilled 15 holes totalling 4km, and every hole has found goal. But most important, the geochemical signs they are finding indicate they have located vertically oriented structures which are likely to have stronger mineralization at depth.
So what did they find? The best assays reported across the 8 holes reported in this PR include 2.70m @ 1.13 g/t Au and 4.00m @ 0.86 g/t Au Including 1.00m @ 1.88 g/t Au, but this was just preliminary drilling designed to assist with designing more extensive drilling, something clearly not understood by some investors.
As well, AUX, announced the start of drilling at Aurora, a past high grade producer which has not been explored for more than a century.
Assays remain pending for several holes even as they begin preparations for follow-up drilling based on what they have found so far.
Message 35360201
Rio2 aka RIO continues its amazing run as it approaches the first gold pour at its Fenix gold mine in Chile. Today, as the announced the closing of their upsized bought deal for $191M, with the units priced well below the current share price as a result of the run in the share price, the pps surged upwards and set another new ATH.
Rio's share price has now almost quintupled since the beginning of the year, smashing my original target of $2. I had mused about setting a new target at $3, but forget that. I am planning, at least for now to retain both my large batches of shares even though one is approaching a triple and the other a 5-bagger.
I think once the implications of them buying a producing copper mine sink in, there is plenty more upside to the shares. $5 anyone?
ca.finance.yahoo.com
I paid for part of the AUX transaction mentioned above with the proceeds from selling my i-80 Gold aka IAU regular warrants on the double this morning. I still have plenty of, maybe too much, exposure to IAU through the U warrants and lots of common shares.
Meanwhile, IAU's share price continues to rocket upward, setting another 52-week high today in spite of impending corporate recapitalization. |
