by Stockwatch Business Reporter
New York spot gold bounced higher Wednesday after dropping nearly $120 on Tuesday, reclaiming $3.90 to end the day at $1,913.90. The TSX-V added 8.26 points to 725.71 while the TSX gold index lost 0.38 point to 359.02. Most Canadian golds moved little today. Victoria Gold Corp. (VGCX) fell another 30 cents to $16.35 on 186,000 shares while Oceanagold Corp. (OGC) added five cents to $3.21 on 3.68 million shares.
Nana Sangmuah's Roscan Gold Corp. (ROS), up 1.5 cents to 48 cents on 1.9 million shares, has received assays of up to 6.15 grams of gold per tonne over 46.5 metres at Mankouke South, on its Kandiole project in Mali. The assays, from another 20 holes, delivered a few other noteworthy hits, including 4.89 grams per tonne over 22 metres, 3.99 grams per tonne over 68 metres and 5.2 grams per tonne over 41 metres, although once again, it was an encounter with fresh rock that got the company's enthusiasm bubbling.
That hit -- 2.76 grams per tonne over six metres with 9.55 grams per tonne across one metre -- follows an encounter with fresh rock in June that returned 1.79 grams of gold per tonne over 14 metres, a hit that had Mr. Sangmuah, president and chief executive officer, feeling very encouraged that Roscan was tracking the deeper feeder source for the weathered ore nearer the surface. With the latest hit, Mr. Sangmuah escalated his enthusiasm, noting that he and his crew were "very excited" to extend the depth of mineralization and hit more of the fresh rock.
Roscan also received assays from about two dozen air core holes drilled in a regional program across the Kandiole project. There were a few near-surface hits that generated enthusiasm, including 11.3 grams per tonne over four metres and 5.51 grams per tonne over two metres, enough for Mr. Sangmuah to remind investors that Roscan remains focused on testing the full potential of the Kandiole project. Indeed, he promises more drilling this year to "unlock the potential" of the land package, which will lead to "more news flow in the coming weeks."
Mankouke South has progressed well since Roscan first identified it as a target early this year on the Kandiole property, which it acquired two years ago from Touba Mining. While the company's exploration -- and certainly its promotion -- is eagerly pursuing the fresh rock for its tonnage potential, the presumably stale rock -- near-surface material weathered to saprolite over the aeons -- currently accounts for nearly all the tonnage potential and most of the noteworthy grades.
Collin Kettell and Craig Roberts's New Found Gold Corp. (NFG) jumped 14 cents to $1.54 on 3.94 million shares on word that it plans a two-phase, 100,000-metre drill program at its Queensway gold project in central Newfoundland. The drilling, which will churn away until the end of 2021, has a variety of goals, including a closely-spaced follow-up to a rich hit in the Keats zone last year, which produced 92.9 grams of gold per tonne over 19 metres, helped by a six-metre zone averaging 285.2 grams of gold per tonne.
The big drill plan prompted a two-alarm promotional response. Mr. Kettell, executive chairman, was first on the scene. He says that the drilling will be supported by the company's $72-million in working capital, a far cry from its days as a private company in which it managed to spend just $10-million over five years. Mr. Kettell excitedly reminded investors that the company was embarking on this major drill program to follow up on last year's rich hit at Keats.
Mr. Roberts, CEO, was subdued with his excitement. He thanked investors for their support and promised to "work hard to execute our programs with effectiveness and efficiency." He promised a steady stream of drill results over the coming year or two, then got back to giving thanks -- this time to local stakeholders and bureaucrats -- and pledged to work with them through "this next exciting phase of exploration."
New Found Gold is a newfound listing on the TSX-V, first appearing on Tuesday with considerable fanfare: The stock added 10 cents to $1.40 on 5.05 million shares on its first day, undoubtedly pleasing investors who paid $1.30 per share in the company's $27.3-million initial public offering. New Found's shareholders include Eric Sprott, who owns 18 per cent of its stock, and Rob McEwen, who holds 7 per cent. (Palisades Goldcorp is the largest shareholder, with a 33-per-cent interest.)
Mr. Sprott is hedging his bets in the area. He is also a significant investor in Michael England's Sky Gold Corp. (SKYG), which fell three cents to 15.5 cents on 2.24 million shares today on word that it has started work on the nearby Mustang and Virginia properties. The work now under way -- prospecting, mapping, sampling and trenching -- is expected to lead to a drill program this fall. With luck, Sky Gold will have some promotable drill results of its own to tout, but in the meantime, Mr. England is making hay with the rich hit at Queensway.