TSX rises slightly, Oct. 2-6

Canada’s benchmark index rose $93.38 to 15,728.32, a 0.60% change, while the S&P/TSX Global Mining Index rose 3.38% to 68.45 and the S&P/TSX Global Gold index rose 2.87% to 201.87. West Texas Intermediate crude closed at US$49.29 per barrel and the price of gold fell 0.26% to US$1,276.10 per ounce.

Golden Queen Mining shares fell 35% to 38¢. The company announced second quarter revenues of US$16.9 million, up from US$3.5 million a year earlier, from its 50% owned Soledad Mountain gold-silver mine, located 8 km south of the town of Mojave in Kern County, California.

Soledad Mountain entered production in 2016 and is projected to produce an average 74,000 oz. gold and 781,000 oz. silver per year over 11 years.  In the second quarter of 2017, however, the company produced 12,632 oz. gold and 51,920 oz. silver and sold 12,653 oz. and 53,514 oz. at average prices of US$1,262 and US$17.10. In the second quarter of the previous year, Golden Queen sold 2,362 oz. gold and 26,500 oz. silver.

The company’s cash position is down to US$6.3 million from US$9.5 million in the first quarter and US$13.3 million a year ago, while total assets are valued at US$159.7 million, only a slight change from the first quarter.

Corvus Gold shares rose 32.5% to $1.10. On Sept. 6 the company started the first phase of drilling at its 100% owned Mother Lode property, located 150 km northwest of Las Vegas, Nevada. The company plans to drill 13,000 metres in the initial phase to further expand its existing 172-hole database. The program is designed to confirm its current 433,000 oz., 1.6 gram gold per tonne historical estimate as well as acquire material for metallurgical testing. Corvus has not yet confirmed these estimates with a qualified person, per National Instrument 43-101.

In July, the company added Coeur Mining as an investor through a $4.65 million private placement. Coeur bought 6.2 million common shares at 75¢ per share for 6.23% of issued and outstanding shares. Coeur has an option to complete a second private placement financing for an additional $4.65 million before Jan. 15, 2018. Corvus currently has a market cap of $116 million.

Shares of TMAC Resources fell 92¢ to $9.22. TMAC has a 100% interest in the Hope Bay gold mine in Nunavut. The site contains 14.5 million tonnes proven and probable reserves grading 7.7 grams gold per tonne or 3.6 million oz. contained gold. The company poured first gold on Feb. 9 and reached commercial production on May 15. The company had a second quarter net profit of $500,000 with cash costs and all in sustaining costs of US$1,054 and US$1,801 per oz. of gold sold in June. In the quarter the company sold 11,630 oz. gold for $19.6 million in proceeds that went largely to development costs. TMAC has $6.9 million in unrestricted cash and $52 million in restricted cash.


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