TSX rises, Nov. 25-29: Endeavour Mining, Torex, Kirkland Lake

The S&P/TSX Composite Index rose 0.5% to close at 17,040.20. The S&P/TSX Global Mining Index gained 0.46% to 77, and the S&P/TSX Global Base Metals Index rose 0.34% to 102.58. The S&P/TSX Global Gold Index increased 1.12% to 243.66 and spot gold moved 0.2% higher, or US$2.90 per oz., to US$1,464 per ounce.

Shares of Endeavour Mining jumped $1.42, or 5.93%, to $25.37 apiece. The company announced indicated resource estimates for its Kari West and Kari Center discoveries near the company’s Houndé gold mine in Burkina Faso. Kari West and Kari Center’s combined 1 million oz. gold in the indicated category lifts Houndé’s total measured and indicated resources 32% to 4.1 million oz. gold, excluding mine depletion this year. The resource estimate follows a maiden resource estimate the company released a year ago of 1 million indicated oz. at its Kari Pump discovery. The Kari anomaly, 7 km from the Houndé processing plant, extends over a 3 to 6 km area. The Kari area has been the company’s exploration focus for the past two years, with more than 350,000 metres drilled. A 145,000-metre drilling program to extend mineralization at the Kari deposits and explore targets within 10 km of the Houndé processing plant will begin soon.

Torex Gold Resources climbed 97¢ per share, or 5.1%, to $19.99. The 2019 drill program at the Sub-Sill deposit at its El Limon–Guajes complex in Mexico has extended mineralization 300 metres below existing reserves. The complex, which includes three open pits and the Sub-Sill underground mine, reached commercial production in April 2016. Highlights from the latest drill results include 6 metres grading 35.1 grams gold per tonne from 282 metres in hole 156, 4 metres grading 21.6 grams gold from 606 metres in hole 135, 6 metres grading 19.5 grams gold from 443 metres in hole 139, 5 metres grading 15.7 grams gold from 578 metres in hole 132, and 13 metres grading 13.8 grams gold from 494 metres in hole 47. Mineralization at Sub-Sill remains open at depth and along strike. Company president and CEO Fred Stanford says Sub-Sill has contributed more than 60,000 oz. gold production in the first three quarters of this year.

News of Kirkland Lake Gold’s proposed $4.9-billion, all-share acquisition of Detour Gold sent the gold miner’s shares down $7.53, or 11.9%, to $55.79. Kirkland Lake owns the Macassa mine in northern Ontario and the Fosterville mine in Australia — two of the highest-grade gold mines in the world. Detour Gold owns the low-grade Detour open-pit mine in northeastern Ontario. Detour has a 23-year mine life. Kirkland Lake says the transaction will boost free cash flow, mineral reserves and production.


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