Senior Gold Producers Shine in Q2
A number of senior gold producers beat estimates for the second quarter Thursday. Probably the biggest decrease in all-in sustaining costs came from Goldcorp. The company reported,
“Gold production of 635,000 ounces at all-in sustaining costs (“AISC”) of $800 per ounce, compared to 613,000 ounces at AISC of $1,067 for the second quarter of 2016(1).”
Furthermore, Goldcorp projected aggressive growth for the coming 5 years,
“Portfolio optimization continues to drive increasing net asset value (“NAV”) per share. The Company’s plan to deliver a 20% increase in gold production, a 20% increase in gold reserves and a 20% reduction in AISC over the next five years advanced with the formation of a 50/50 joint venture with Barrick Gold Corporation in the Maricunga district in Chile, the divestiture of $500 million of non-core assets in Mexico and Guatemala and solid execution on the Company’s key growth projects.”
TSX Venture Liquidity Low in July
The TSX Venture swayed lower to 768, before recovering to close at 769.23 Thursday. Total daily volume on Canada’s junior exchange has remained deathly quiet this year. Only about 25 million total shares had exchanged hands 3 hours into the trading day Thursday. This would have been unfathomable just a few years ago.
In fact, the TSX Venture has only traded more than 50 million total shares twice in the past 13 trading days.
Garibaldi Rises 31% in July Stock Challenge
Garibaldi Resources (TSXV: GGI) reported “an important new surface discovery following up on the first of four major VTEM conductor targets” in the. heart of the Eskay Camp. Crews at the company’s 100%-owned E&L Project at Nickel Mountain have been working on the project for weeks. With copper hitting a 2-year high this week, the timing could hardly be better. Garibaldi ripped 27% higher on the news Thursday.
The company reported,
“Geologists have not yet sampled the “hot zone” of the conductor, where it is strongest, but initial field examinations covering ground on the periphery of the conductor are extremely encouraging:
Gabbro outcrops extend at least 300 meters east-west and 700 meters north-south and contain disseminated, vein-style and breccia sulphides intruding Hazelton Group sediments;
A boulder field featuring strong sulphide mineralization (up to 30% in many instances) was traced for approximately 1.3 km downslope from outcrop;
The abundance, size and shape of the boulders suggests they did not travel far and the source is “Anomaly A”;
50 rock samples (approximately 30 chip and grab samples from outcrop and 20 grab samples from the boulder field) have been submitted for rush assaying and lithochemistry;
The mineralized gabbros at “Anomaly A” are visually identical to the mineralized gabbros at the E&L.”
Click here to read the entire press release.
‘heyjude’ and ‘firefly’ Rise after Garibaldi Resources Selection
Pinnacle members ‘heyjude’ and ‘firefly’ both selected Garibaldi Resources for July’s Stock Challenge. heyjude topped all members with a 17.07%. ‘MrPhilly2’ extended his lead Thursday after GT Gold errupted 27% to close at an all-time high of $1.15. Amazingly, the rally occurred after GT Gold announced early this morning that it has entered into an agreement with a syndicate of agents to market a private placement of common shares at a price of C$0.85 per Common Share. We wrote about GT Gold and the power of discovery in GT Gold Discovery Awakens Sleepy TSX Venture Investors.
GT Gold’s news release headline from earlier this week read,
GT Gold Drills a New High-Grade Gold Discovery at Saddle South; Strong Intercepts in Multiple Holes Including 13.03g/t Au Over 10.67m; Drilling Continuing, More Assays Pending
MrPhilly2 has entered triple digit territory with a 110.41% combined average return.
The price of commodities are firming up or moving higher as the U.S. dollar index flounders. Finally, a weak U.S. dollar is bullish for gold and junior mining stocks on the TSX Venture. So, if this trend continues we expect the broad junior exchange to finally catch a bid.
U.S. Dollar Index – 3-Month Chart