Taking Stock: October Gold Juniors Round-Up

In the junior gold market, October saw a number of companies reporting the results of their summer exploration programs. Others acquired new properties, while a few managed to bring in financing to see them through to next year’s drilling season. Below is a summary of some of the highlights from companies that made progress this past month.

Sales and acquisitions

PJX Resources (TSXV:PJX) announced on October 17 that it acquired the Dewdney Trail, Zinger, Eddy and Vine properties in Cranbrook, British Columbia — which were initially optioned to PJX by SG Spirit Gold Inc. (TSXV:SG). Completing the acquisition required making an aggregate cash payment of $125,000, and the issuance of 500,000 shares. Later in the month PJX said it identified a large target area with massive sulfide deposit potential on its Vine property in BC.

Vancouver-based gold producer B2Gold (TSX:BTO) on October 20 acquired all the outstanding shares of Volta Resources (TSX:VTR) for about US$63 million. The acquisition will add an 81-percent interest in Volta’s Kiaka gold project in Burkina Faso and a 100-percent interest in two more exploration projects in the African country.

TomaGold (TSXV:LOT), which is exploring active gold camps in Northern Quebec, early in the month acquired the Cookie Monster and Little Monster properties, which are adjacent to the Monster Lake property. Later in October, TomaGold agreed with Murgor Resoures to acquire a 70-percent interest in Murgor’s Fancamp and Embry properties. As part of the option and joint venture deal, TomaGold will issue an additional 250,000 shares for each tranche of 250,000 ounces in an NI 43-101 estimate, up to a maximum 1 million shares. The transaction brings TomaGold’s total number of claims at Monster Lake to 275.

Financings

TomaGold was also active in the financing area in October, by closing two private placements. On October 21 the company closed a non-brokered private placement of $384,500, at a price of 10 cents per share. Three days later, TomaGold said it closed a previously announced private placement worth a total of $954,500. Proceeds will go towards exploration work, acquisitions and working capital.

Avrupa Minerals (TSXV:AVU), a prospect generator working in Europe, arranged a private placement of $350,000 from Callinan Royalties, the same company with which Avrupa signed an exploration alliance agreement. Avrupa said the funds will be used to build up its prospect generator program in Portugal and rest of Europe in order to attract new joint venture partners.

Drilling progress

Corvus Gold (TSX:KOR) announced a slew of assay results last month as well as an update to the preliminary economic assessment (PEA) for its North Bulldog project in Nevada. The revised PEA states a positive economic analysis at a $1,300 gold price for a low capex, heap leach project that generates average annual gold production of 76,500 ounces over 11 years. Early in the month, Corvus announced initial assay results from the northern extension of the Yellowjacket Zone at North Bulldog, including a high-grade intercept of 11 meters at 18 grams per tonne (g/t) gold. A few weeks later, Corvus said it extended the Yellowjacket Zone strike length to 650 meters with 125-meter-north stepout, extending the New Eastern Vein. In October, Corvus Gold also said it intersected over 250 meters of mineralization in several intervals at the Sierra Blanca deposit, also on North Bullfrog, including 41 meters averaging 0.68 g/t gold.

Northern Vertex Mining (TSXV:NEE) brought in all remaining assays for the fourth phase of its 19-hole drill program on the Moss Mine heap leach project in Mohave County, Arizona. The program verified that stockwork mineralization extends in the western section, that mineralization continues to occur at depth, and that some inferred resources may be reclassified as indicated.

Orefinders Resources (TSXV:ORX) also completed a drill program, the second phase of drilling at its Mirado project in Ontario. Highlights of the gold intersected in the four holes include 19.3 meters at 1.15 g/t, including 4.8 meters at 2.9 g/t and 28.5 meters at 0.84 g/t, including 4 meters at 2.23 g/t. Two weeks later, Orefinders said it identified 20,742 tonnes of stockpiled material with an average grade of 4.41 g/t.

Bayfield Ventures (TSXV:BYV) announced assay results from its continuing drill program at the Burns Block gold-silver project in Northwestern Ontario. Highlights included 30 meters of 4.05 g/t gold and 15.29 g/t silver, and 6 meters of 14.34 g/t gold and 61.4 g/t silver.

Continental Gold (TSX:CNL) announced the results for 28 diamond drill holes and underground sampling at its Buriticá project in Antioquia, Colombia. The drill program’s goal is to upgrade the inferred resources into measured and indicated categories.

Unigold (TSXV:UGD) on October 24 reported results from the Candelones “Extension Zone” target within its Neita Concession in the Dominican Republic. Unigold intersected 423.6 m averaging 1.07 g/t gold, including 38 m averaging 5.13 g/t.

Construction started or complete

Coronet Metals (TSXV:CRF) announced at the beginning of October it completed construction at its Liberty gold processing facility in Amargosa Valley, Nevada. Commercial gold production was expected by the end of October.

Torex Gold Resources (TSX:TXG) said permit conditions have been satisfied and that the company can start construction at its Morelos gold property in Mexico. Contractors officially began work on the mine and mill complex on Nov. 1; the buildout is expected to take 21 months.

Richmont Mines/Klondex Mines

Richmont Mines (TSX:RIC) and Klondex Mines(TSX:KDX) both had such a busy month that their news falls across a number of the categories covered above. 

October for Richmont Mines started with the achievement of commercial production at its Monique gold project, an open-pit operations located 25 kilometers west of Val d’Or, Quebec. The mine is expected to produce 4,500 ounces during the fourth quarter of 2013, and has an estimated life of mine gold production of 30,000 ounces. Also in October, Richmont declared declared commercial production at its W Zone gold project. W Zone is expected to produce an estimated 3,000 ounces during Q4 and a projected 12,000 ounces of gold in 2014. The good news for Richmont didn’t stop there, however. The company released an updated inferred mineral resource estimate of 2.3 million tonnes grading 10.53 g/t for 771,000 ounces of gold at its Island Gold Deep project in Ontario. And finally, Richmont signed a land and mining rights agreement with Argonaut Gold. The agreement enables Richmont to extend the western boundary of its Island Gold Deep project by a distance of 585 metres thus increasing the project’s exploration potential towards the west.

Klondex Mines closed a previously announced $19.4-million financing, with proceeds going towards the company’s Fire Creek gold project in Nevada. Later in the month, Klondex said it has repaid all its short-term debt, including C$2.4 million in bridge loans and $1.65 million worth of debt, using proceeds from its financing and mineralized shipments.

Klondex also had good news in October on the exploration front. Drill results from 20 holes of underground infill drilling at Fire Creek yielded gold grades ranging from 3 to 30 g/t. In the last week of October, the company said it completed secondary egress at Fire Creek, including a hoist and ventilation system, which is expected to be operational by mid-November. This week Klondex began follow-ups on previously identified exploration targets in the West Zone — which will be the first of a three-phase drill program.

Securities Disclosure: I, Andrew Topf, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: PJX Resources, TomaGold, Avrupa Minerals, Corvus Gold, Northern Vertex Mining, Orefinders Resources, Unigold, Coronet Metals, Richmont Mines and Klondex Mines are clients of the Investing News Network. This article is not paid-for content. 

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