Incomprehensibly, however, central banks, especially Uzbekistan and Turkey, also acted as gold sellers. The jewelry industry is also anticipating slightly fewer gold sales than in the same quarter of the previous year.
According to market observers, this will change very soon, and due to inflation gold will live up to its nimbus of the safe haven again! And then these companies are in full swing!
Commercial production start brings around 35,000 ounces of gold and high grade drill holes hit!
The youngest Canadian gold producer reported at the end of the 3rd quarter of 2020 Victoria Gold Corp. (ISIN: CA92625W5072 / TSX: VGCX) the first production and sales since the Eagle Gold Mine began commercial gold production on July 1st this year.
Accordingly, in the period 01.07. Produced a total of 35,312 ounces of gold by September 30th, 2020, based on the production of around 2.1 million tons of ore from the mine in the Yukon Territory in the far west of Canada. 1.9 million tons of ore were stacked on the heap leach plates with an average gold grade of 0.85 grams per ton.
Production in numbers
The joy of the start of commercial production is “framed” by sober figures that Victoria Gold has published for the 3rd quarter of 2020. A total of 32,029 ounces of gold were sold at an average price of CAD 2,512 (US $ 1,886) generating sales of CAD 80.5 million. Operating profit was CAD 31.6 million.
The operating costs per ounce of gold in the third quarter of this year were 1,071 CAD (804 USD), while the total cost of production (‘All-In Sustaining Costs’ / ‘AISC’) per ounce of gold sold was 1,752. CAD (1,315 USD). The company had cash and cash equivalents at the end of the quarter of $ 40 million.
The operational figures at a glance
Steep learning curve and perspective opening balance
John McConnell, President and CEO of Victoria Gold, sees the company on the right path to outgrow the ‘start-up’ shoes with big strides:
“The results of the start of production show that the years of hard work, our conviction and the investments made so far are bearing their first fruits. The effort and effort put into this transformation process enables Victoria Gold and its stakeholders to gradually reap great benefits from past and ongoing efforts. In addition to the initial difficulties and learning curves that are typical for ‘start-ups’, we are confident that the direction we have chosen with regard to commercial production will continue to pave the way to sustainable success over a very long life and useful life of the mine. “
The exploration programs are also peppered with successes!
The most recent drill results from the Raven project increase confidence in the high quality mineral potential of the Dublin Gulch gold camp, which is 100% owned by Victoria Gold.
With the latest drill sample analysis evaluations, the mineralized strike length of the ‘Raven’ target increased by over 750 meters, tripling the previously known strike length.
The gold intercepts that Victoria Gold identified as part of the 2020 exploration campaign and which are typical of the ‘Raven style’ in their mineralization can be found in the following drill holes, among others:
However, MEGA high-grade gold mineralization was also encountered in other drill holes:
Underline borehole analyzes ‚Dublin Gulchs ‘ high mineralization potential
The near surface high grade gold intercepts that have now been repeatedly encountered are further evidence of the high mineralization potential of the Dublin Gulch Gold Camp for John McConnell, President and CEO of Victoria Gold:
“Raven was also identified as one of several targets using the Potato Hills trend mineralization model. With the intersection of anomalous gold mineralization in each of the drill holes from which these promising samples were taken, ‘Raven’ remains the focus of exploration for the next season. ”
In addition, recent results strongly suggest that mineralization remains open in all directions.
Foreign ore processing ensures cash flow at MAG Silver while mine construction continues to go according to plan!
The budding Canadian primary silver producer MAG Silver Corp. (ISIN: CA55903Q1046 / TSX / NYSE: MAG), which is currently building a mine in Mexico, also released its financial results for the third quarter of 2020 ending September 30th, 2020. The company also announced the first third-party production figures from its ‘Juanicipio’ joint venture project.
Despite the COVID-19-related restrictions, the operators Fresnillo and MAG Silver have so far been able to stick to the schedule of the ‘Juanicipo’ mine construction through high security measures. The processing plant is therefore expected to go into operation in mid-2021 and should reach around 85% of the total capacity of 4,000 tonnes per day by the end of 2021.
The underground mine development is already 32 km. The company was also able to announce initial mine production when the first ore was processed by the joint venture partner Fresnillo at the nearby mine. Until the in-house production starts, the partners have agreed that around 16,000 tons of ore will be processed by MAG Silver at Fresnillo every month.
In the past quarter, 42,476 tons of ore were processed by Fresnillo for MAG Silver. From this high grade ore, 394,000 ounces of silver, 610 ounces of gold, 138 tons of lead and 174 tons of zinc were recovered and sold. Last month again, 15,400 tons of ore were processed by MAG Silver.
In addition to mine construction, there is still a lot to explore on the huge ‘Juanicipio’ project, although a break had to be taken due to the pandemic restrictions. In the third quarter, drilling on the area was resumed with currently five drilling rigs.
The drilling is currently concentrating on ‘step-out’ and ‘infill’ drilling in order to obtain further information about the ‘Valdecañas Deep’ zone and to delimit it more precisely. In addition, further targets are to be brought into the exploration focus.
“We are very pleased with the progress on ‘Juanicipio’. The mineralization correlates well with our expectations, which is why we will start optimizing the flotation parameters in the next two quarters, which will significantly reduce the risk for the commissioning of our plant “, clarified George Paspalas, President and CEO.
With more than USD 136 million in cash on hand, the debt-free company is superbly financed and can easily do the work it needs to do. This also applies to the newly consolidated ‘Silver-Rich Deer Trail’ project in Utah, USA. Here the drilling sites were approved and the first 6,500 m drilling program began.
These two companies continue to be exemplary on all fronts! The exploration work is in full swing and the mining operations are also being continuously advanced and optimized, which is why these companies should continue to be among the ‘top picks’ in a positive market environment.
According to §34 WpHG I point out that Jörg Schulte, JS Research UG (limited liability) or employees of the company can buy or sell their own business in the shares of the companies presented at any time (e.g. long or short positions). This also applies to options and derivatives based on these securities. Any resulting transactions may, under certain circumstances, affect the company’s share price. The information, recommendations, interviews and company presentations published on the “websites”, the newsletter or the research reports are paid for by the respective companies or third parties (so-called “third parties”). The “third parties” include e.g. Investor relations and public relations companies, brokers or investors. JS Research UG (limited liability) or its employees can partly be rewarded directly or indirectly for the preparation, electronic distribution and other services by the discussed companies or so-called “third parties” with an expense allowance. Even if we prepare each report to the best of our knowledge, we advise you to use other external sources with regard to your investment decisions, such as Contact your house bank or a trusted advisor. For this reason, liability for financial losses that may result from using the information discussed here for one’s own investment decisions is categorically excluded. Particularly in the case of raw material and exploration stocks and low capitalized stocks, the depot proportions of individual stocks should only be so much that even in the event of a total loss, the total depot can only lose marginal value. In particular, stocks with low market capitalization (so-called “small caps”) and especially exploration stocks, as well as all listed securities in general, are subject to considerable fluctuations. The liquidity in the securities can be correspondingly low. When investing in the raw materials sector (exploration companies, raw material producers, companies developing raw material projects), additional risks must be taken into account. Below are some examples of specific risks in the raw materials sector: Country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. export and import bans, punitive tariffs, prohibition of raw material extraction or raw material exploration, nationalization of projects), environmental requirements (e.g. higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks.
Disclaimer: All information published in the report is based on careful research. The information does not represent an offer to sell the shares discussed, nor an invitation to buy or sell securities. This report only reflects the personal opinion of Jörg Schulte and is in no way to be equated with a financial analysis. Before making any investments, professional advice from your bank is essential. The statements are based on sources that the publisher and his staff consider to be trustworthy. Nevertheless, no liability can be assumed for the correctness of the content. No guarantee is given for the accuracy of the charts and data on the commodity, currency and stock markets shown. The source language (usually English) in which the original text is published is the official, authorized and legally valid version. This translation is included for better understanding. The German version can be shortened or summarized. No responsibility or liability is assumed for the content, correctness, appropriateness or accuracy of this translation. From the perspective of the translator, the message does not constitute a buy or sell recommendation! Read here – https://www.js-research.de/disclaimer-agb/ -. Please also note the original English message, if available.
Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizably posted by third parties in the “News” area of this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” label below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.