US markets rise, Sept. 3-6: Teck, Seabridge, Newmont Goldcorp

The Dow Jones Industrial Average rose 1.49% to 26,797.46, and the S&P 500 Index gained 1.79% to 2,978.71. Spot gold fell US$13.10 per oz. to finish at US$1,506.50 per oz. gold.

Teck Resources announced that Dominic Barton is stepping down as chairman of the board to assume the role of Canada’s Ambassador to China. Barton joined Teck’s board in September 2018 and was appointed chairman the next month. Sheila Murray, chair of the company’s Corporate Governance and Nominating Committee, will become acting chair. The company’s shares ended at US$17.51 apiece, up US48¢.

Seabridge Gold closed its all-share purchase of the Goldstorm gold project in Nevada from Mountain View Gold on Aug. 29. Goldstorm is 3 km east of Seabridge’s Snowstorm property in northern Nevada’s Getchell gold belt. Goldstorm has seen limited exploration. Previous operators found northwest-trending veins that showed pathfinder geochemistry and anomalous gold results, including a surface trench on one vein that yielded 3 metres of 9 grams gold per tonne, and 44 grams silver per tonne. Mountain View undertook limited drill testing on the vein, with results including an intercept of 2 metres assaying 5.50 grams gold, including 1 metre of 9.29 grams gold. Seabridge also started a $2.5-million drill campaign (4,000 metres in 16 holes) within the proposed pit of the Sulphurets deposit at its KSM project in B.C. The company’s shares were down US$1.46, or 9%, to US$14.32.

Shares of Newmont Goldcorp fell US$1.23 to US$38.66 per share. The company reported that its Ahafo mill-expansion project in Ghana processed its first ore and is on track to reach commercial production in the fourth quarter of 2019. The mill expansion will boost average annual gold production at the Ahafo mine by between 75,000 and 100,000 oz. gold for the first five years, starting in 2020, with mill capacity expanding more than 50%, due to the addition of a crusher, grinding mill and leach tanks. The project could deliver a more than 20% internal rate of return, and along with other projects at Ahafo, will extend production at the mine through at least 2029, management says. When combined with the company’s Subika underground operation, the mill expansion will raise Ahafo’s production to between 550,000 and 650,000 oz. gold a year through 2024. Last year the mine sold 436,000 oz. gold at all-in sustaining costs of US$864 per ounce.