Canada’s benchmark index rose 1.31% to 16,224.13 during an improved trading week. The S&P/TSX Global Mining Index rose 5.4% to 66.73 and the S&P/TSX Global Gold Index rose 2.7% to 156.11. The gold price rose 0.4% to US$1,198.70.
Royal Nickel shares rose 100% to 56¢, and by press time had risen even further to 85¢, after the company produced 24,000 oz. gold worth $38 million from the Father’s Day vein at its Beta Hunt gold-nickel mine.
In early September, the company uncovered 9,250 oz. gold from a 130-tonne cut at Beta Hunt’s 15 level. It included a 95-kilogram stone containing 2,440 oz. gold and a 63-kilogram stone containing another 1,620 oz. gold. It expected the original discovery to produce $15 million, but more than doubled that number when it expanded development along the vein.
Royal Nickel later extended the Father’s Day vein 200 metres from the original discovery. It says its team at Beta Hunt is applying its new geological model to historical drill and map data, and could extend the vein further.
Continental Gold shares fell 36¢ to $2.78 after an unknown group attacked a residence housing Continental geologists and contractors working at its Berlin gold project in Colombia in the middle of the night and killed three staff members. The company speculated former members of the guerilla organization FARC were responsible for the attack.
It was the second act of violence the company faced in a month. Early in September, two Continental engineers were attacked by two armed individuals in the town of Buritica in Antioquia, Colombia. One died while the other was injured and remains in stable condition. The company says it does not believe the two attacks were related, because they took place more than eight hours apart by road.
The company is developing its Buritica gold project, and expects first pour in the first half of 2020.
Shares of Wallbridge Mining rose 77% to 24¢, and by press time had risen to 31¢, on continued positive results from the company’s underground exploration program at its Fenelon gold property in northwestern Quebec.
The company cut 122.35 grams gold per tonne over 2.2 metres from 132 metres downhole and 109.79 grams gold over 1.46 metres from 112 metres downhole at the project’s new Habanero zone. The company observed visible gold in 41 of the 63 holes drilled so far.
It has shipped more than 8,000 tonnes to Quebec’s Camflo mill — part of an ongoing 35,000-tonne bulk sample program. It expects the bulk sample will produce between 19,000 and 26,000 oz. gold.
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