TSX posts gains, Oct. 29-Nov. 2

After falling as low as 14,639.70 in October 2018, Canada’s benchmark index rebounded to end the trading week up 1.55% to 15,119.28. The S&P/TSX Global Mining Index rose 5.9% to 65.73 and the S&P/TSX Global Gold Index rose 3.1% to 166.28. The gold price fell 0.04% to US$1,232.20.

Shares of Mason Resources rose 146% to 40¢ on news that Hudbay Minerals would acquire the other 86% of its shares. At 40¢ per share, the deal values Mason at $31 million.

Hudbay will focus on developing Mason’s Ann Mason copper project in Nevada’s Yerington district. As of a March 2017 preliminary economic assessment, Ann Mason has 1.4 billion measured and indicated tonnes grading 0.32% copper, 0.006% molybdenum, 0.03 gram gold and 0.65 gram silver for 9.89 billion lb. copper, 186.6 million lb. molybdenum, 1.33 million oz. gold and 29.46 million oz. silver. It also has 623 million inferred tonnes grading 0.29% copper, 0.007% molybdenum, 0.03 gram gold and 0.66 gram silver for 3.98 billion lb. copper, 96.2 million lb. molybdenum, 580,000 oz. gold and 13.16 million oz. silver.

In September, the company agreed to a seven-year option to buy up to 33 sq. km per year of primary groundwater rights, 6 km southwest of Ann Mason. The land is allocated for agricultural use. Mason needs mining-use approval from the Nevada Division of Water Resources.

Shares of Platinum Group Metals rose 32% to 25¢. The company recently increased measured and indicated resources at its Waterberg platinum group elements project in South Africa by 1.46 million oz. 4E platinum group metals. The project now has 242.5 million measured and indicated tonnes grading 0.98 gram platinum, 2.13 grams palladium, 0.05 gram rhodium and 0.22 gram gold, or 3.38 grams 4E, for 26.3 million oz. 4E. The company also boosted the grade at the project’s T-zone from 3.88 grams 4E to 4.51 grams 4E.

The company says it will include its latest resource in the forthcoming definitive feasibility study. The study will consider two underground bulk-mining options: one at 600,000 tonnes per month, and another at 250,000 to 350,000 tonnes per month.

Shares of Guyana Goldfields fell 43% to $1.76, after the company lowered the 2018 production guidance for its Aurora gold mine in northern Guyana from 175,000 to 185,000 oz. gold to 150,000 to 155,000 oz. gold. It was the second time the company lowered its production guidance this year. In July it dropped its guidance from 190,000 to 210,000 oz. gold.

The company also increased its cost of sales and all-in sustaining costs from US$850 to US$900 and US$830 to US$880 per oz. gold to US$1,030 to US$1,055 and US$1,025 to US$1,050 per oz. gold. The company blamed lower-than-anticipated head grades for its issues. It is reviewing its underlying resource model, and expects to incorporate the results of the review into its 2019 guidance and annual reserve and resource update.


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