Can’t-miss headlines: Gold pulls back, BC area play drilling & more

The latest morning headlines, top junior developments and metal price movements. Today the gold price pulls back after strong gains yesterday and Revolver area-play drilling produces first hole.


After a mid-day surge yesterday that took the spot price of gold to just over $1,254 an ounce, it lost ground this morning falling to a little under $1,250. Spot was $1,247.70 at presstime. Spot silver was $20.25 an ounce. Meantime in base metals, the spot price of  copper climbed from $3.30 a pound to about $3.33 a pound yesterday and held just below that mark this morning.


Mineweb’s Dorothy Kosich reports a broad view of reaction to Goldcorp’s C$2.6 billion bid for Osisko. Scotiabank analysts lay out the case for a uranium bull market over the next couple years. Moly production jumps for Thompson Creek. And from Reuters we get perspectives on the mining industry and some stock picks from fund managers.

In Junior PR


In area plays, Revolver Resources (TSX: RV) said it finished its first drillhole on the Summit B property in BC, which abuts Colorado Resources’ North Rok claims. Last year Colorado hit significant copper-gold at North Rok last year and subseqently Revolver optioned the neighbouring Summit B project, with up to 60 percent earn-in from Pistol Bay Mining (TSX-V: PST). Revolver said assay results from the first drillhole would be out in the coming weeks.

Trenching in Colombia, Red Eagle Mining (TSX-V: RD) reported as much as 6.1 metres @ 9 g/t gold, including a metre @ 22.2 g/t Au, on its Pavo real gold project in a vein-breccia. It continues to trench the vein-breccia along strike, it said. Map here, with aforementioned sampling at bottom right.

Drilling its Gruyere prospect recently, Gold Road (ASX: GOR) said the strike length of mineralization had reached 1,600 metres. It hit as much as 50 metres @ 1.31 g/t gold starting 58 metres downhole as part of a 27 hole expansion/infill drilling program. Press release with maps and sections.

And from a 21-hole drill program in Tanzania, Kibo Mining (AIM: KIBO, JSE AltX: KBO) reported a series of resource infill and expansion intercepts with a handful of high grades for the most part within broader gold-mineralized hits. There was as much as 2 metres @ 11.37 g/t gold, 2 metres @ 8.2 g/t Au and 1 metre @ 211 g/t Au.


Luna Gold (TSX:LGC; LMA:LGC; OTCQX:LGCUF) reported that due to nearby protests it shut down its Aurizona gold mine in Brazil for the time being.

Reporting Q2 gold production from Uruguay (to the end of November) Orosur Mining (TSX: OMI) said output was up six percent from a year ago to 14,829 ounces gold. Meantime it said net income was $3.5 million, after tax – about triple net income a year ago – and that cash operating costs were down 37 percent to $761 an ounce. In 2014 Orosur estimated production would hit 55,000 to 60,000 ounces gold, about 5,000 ounces more than it had last projected.

And Timmins Gold (TSX: TMM) outlined its final quarter of production for 2013 with 34,563 ounces gold-equivalent and 120,900 ounces gold on the year, a record it noted. In 2014 Timmins projected gold output between 115,000 to 125,000 ounces at cash costs around $800 an ounce.


Update 1

Without debt relief to keep its Serra Pelada gold project ramping up to production, Colossus Minerals said it was filing for bankruptcy and would pursue $4 million in initial senior debt funding to keep it afloat during a liquidation process. Assuming the crisis debt goes ahead and existing note holders debt is converted into shares pending approval under bankruptcy proceedings, Colossus said existing shareholders would end up with 1.7 percent of the company’s shares, royalty company Sandstorm Gold would end up with about 39 percent, and noteholders about 52 percent, according to Colossus figures.

Update 2

McEwen Mining reported year-end production of 138,455 ounces gold-equivalent (AuEq), about 33 percent increase over 2012, the junior-miner noted. In 2014 it aims to do about the same in production, with El Gallo 1 output in Mexico picking up in the latter half of the year after an ongoing 1,500 tonne-per-day (tpd) expansion to 4,500 tpd. Next year McEwen forecast operating cash costs between $750-$850 an ounce AuEq and all-in sustaining betewen $1,100-$1,200 an ounce AuEq.


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