TSX mixed, March 18-22: Barrick, INV and Seabridge

Canada’s benchmark index fell 0.31% to 16,089.22. The S&P/TSX Global Mining Index rose 1.4% to 75.07 and the S&P/TSX Global Gold Index rose 2.8% to 199. The gold price rose 0.85% to US$1,313.40.

Shares of Barrick Gold rose 93¢ to $18.36. In March 2019 the company agreed to form a joint venture with Newmont Mining in Nevada, combining operations that in 2018 produced a total 4.1 million oz. gold. Barrick will be operator, with a 61.5% interest in the joint venture.

Shortly after, Barrick stopped all further underground development at its Golden Sunlight gold mine in Montana, with mining continuing in existing areas. The company says a final gold run to process mill ore is scheduled for May 2019, although it may also reprocess historic tailings. Barrick will continue underground and surface exploration drilling at the operation, focused on the southern extension of the Sunlight vein. It will also complete metallurgical and geological studies for the project’s Apex target.

Shares of INV Metals fell 15.4% to 55¢. The company recently closed a $3-million private placement to continue progressing its Loma Larga gold-copper-silver project in Ecuador. In March 2019, the Ecuadorian Constitutional Court ruled in favour of two referendums in Giron and San Fernando, jurisdictions that sit next to the project’s mineral resources and reserves. One referendum is against allowing mining activities and the other is in favour of mining activities.

The company says it will continue developing its project, as its reserves and resources are not located in either jurisdiction. It had planned to build processing and tailings facilities in Giron, however, and says it will relocate if required. It will also seek legal clarification on the government’s decision.

The company tabled a feasibility study at Loma Larga in November 2018 that assigned the project a US$356-million after tax net present value at a 5% discount rate, and a 24.7% after-tax internal rate of return at US$1,250 per oz. gold, US$18 per oz. silver and US$3 per lb. copper.

Shares of Seabridge Gold rose 58¢ to $18.61. The company recently tabled an updated resource estimate for its Iron Cap gold-copper porphyry project in British Columbia. The estimate increases Iron Cap’s indicated resource by 460,000 oz. gold and 177 million lb. copper, as well as its inferred resource by 7.45 million oz. gold and 4 billion lb. copper. It includes more than 20,300 metres the company diamond drilled at Iron Cap across 18 holes in 2018.

The project now contains 423 million indicated tonnes grading 0.41 gram gold per tonne, 0.22% copper, 4.6 grams silver and 41 parts per million molybdenum for 5.57 million oz. gold, 2.05 billion lb. copper, 62.5 million oz. silver and 38 million lb. molybdenum.

It also contains 1.89 billion inferred tonnes at 0.45 gram gold, 0.3% copper, 2.6 grams silver and 30 ppm molybdenum for 27.4 million oz. gold, 12.5 billion lb. copper, 158 million oz. silver and 126 million lb. molybdenum.


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