Stockwatch gold today-CXB
Gold Summary for Jan. 14, 2022
2022-01-14 18:42 ET - Market Summary
by Stockwatch Business Reporter
New York spot gold fell $5.10 to $1,817.10 on Friday. The TSX-V moved lower, dropping 4.23 points to 902.81, while the TSX gold index fell 1.73 points to 280.10. Brazilian gold and copper miner, Ero Copper Corp. (ERO) managed a 10-cent gain to $16.30 on 822,000 shares. The company said this week that it produced 45,500 tonnes of copper and 38,000 ounces of gold last year, enough to prod analysts into reaffirming their recommendations while gently sliding their "share target" prices lower. It is a hard-to-lose saw-off in a difficult-to-win business -- which is why analyst opinions abound.
Fiore Gold Ltd. (F) is no more. The stock, which rose eight cents to $1.40 on 406,000 shares Tuesday and went untraded the next two days, has been delisted thanks to its acquisition by Blayne Johnson and Darren Hall's Calibre Mining Corp. (CXB). Fiore's shareholders got 0.994 of a Calibre share for each of their 101.2 million Fiore shares, as well as a cash sweetener of 10 cents per share. Calibre, up six cents to $1.41 on 1.81 million shares today, wanted Fiore for its Pan mine in Nevada and its nearby Gold Rock project.
Brad Rourke's Scottie Resources Corp. (SCOT) fell one cent to 17.5 cents on 303,000 shares. Scottie nabbed one of those seldom-seen birds today -- a promotable Friday assay -- but had a predictable result. The company hit a 6.57-metre near-surface interval averaging 11.8 grams of gold and 12.6 grams of silver per tonne in the P zone at its Scottie Gold Mine target, on its Scottie project in northwestern British Columbia. A second, slightly deeper interval in that hole produced 20.2 grams of gold and 19 grams of silver per tonne over 3.76 metres.
The assays are from three holes drilled at the target, which was one of four primary targets in the company's 14,500-metre drill program last year. A second of the latest holes, drilled into the O zone, delivered 20.6 grams of gold and 11 grams of silver per tonne over 2.22 metres, while the third, which encountered the M zone, produced a 3.71-metre hit averaging 37.2 grams of gold and 8.6 grams of silver per tonne.
Mr. Rourke, president and chief executive officer, says that the results "illustrate the potential for the expansion of the historic resource at Scottie" -- not yet to be confused with "expanding the resource" -- through the extension of known ore shoots and through "revealing the potential of previously untested targets," especially the P zone, which had not been drilled before the company arrived.
Mr. Rourke is particularly enthused with this new P zone, as his drillers are now "hitting intercepts comparable to the mined stopes of the past-producing mine." (Scottie, the mine, ran from 1981 to 1985, producing just over 95,000 ounces of gold at an average of 16.2 grams of gold per tonne.) Therefore, Mr. Rourke concludes, the Scottie Gold Mine target is a cornerstone to the company's goal of delivering a one-million-plus-ounce, high-grade gold resource across the larger Scottie project.
Scottie -- the company -- drilled the Scottie Gold Mine target in 2019, producing enough encouragement to show that the old mine was "neither mined out nor drilled off." Indeed, a quick trip through musty old records shows that the miner, Don McLeod's Scottie Gold Mines Ltd., complained that weak precious metals prices were "extremely onerous" on his company, and while its drilling continued to add ounces -- the mine was shuttered long before those ounces were harvested.
Assays from new Scottie's 2019 program supported Mr. Rourke's optimism, with hits of up to 7.17 grams of gold and 3.83 grams of silver per tonne over 25.02 metres, a lengthy hit bolstered by a 10.95-metre interval averaging 11.72 grams of gold and 5.83 grams of silver per tonne.
Mr. Rourke had plenty more to cheer in the fall of 2020, when one of the company's new holes drilled in the O zone encountered a 2.53-metre intersection averaging 109.4 grams of gold and 32.4 grams of silver per tonne. The good cheer helped prod Scottie Resources to a 53-cent high in the summer of 2020, but since then it has been a downhill run.
Hugh Agro's Revival Gold Inc. (RVG) closed unchanged at 64 cents on 99,000 shares on word that it is offering 15 million 65-cent shares, seeking $9.75-million -- and perhaps $11.7-million if the full overallotment option is exercised. At least some of the stock is going to Donald Smith Value Fund LP, an entity that Mr. Agro, president and CEO, applauds as a "deep-value institutional investor" and one about to become a "new cornerstone shareholder" that will "position Revival Gold for the company's next phase of growth."
In Revival's last phase of growth its stock ran from 60 cents at the start of 2020 to a high of $1.45 that summer -- a trek that the stock will have to begin anew. Revival's promotion centres on the Beartrack-Arnett project in Idaho, where a dream sheet proposed a seven-year operation that would produce 72,000 ounces of gold per year.
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