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Argonaut Gold Acquires Primero Project For $15 Million

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Argonaut Gold Inc. (TSX: AR) has agreed to acquire the Cerro del Gallo project in central Mexico from Primero Mining Corp. ( TSX: P) through the purchase of all shares of Primero subsidiary San Anton Resource Corp. for $15 million. Argonaut says it expects to recover approximately $1.7 million of value-added tax, thereby reducing the price to $13.3 million. The company says it expects the transaction to close on or before Nov. 30. “We view the acquisition of the CDG as a low-risk, high-reward investment for Argonaut shareholders,” says Pete Dougherty, president and chief executive officer of Argonaut. “CDG is a project in our own backyard where we have the ability to leverage our existing operations and project’s team’s skill sets….This acquisition is an opportunity to acquire a project within a well-known jurisdiction with known mineral reserves, upside resource potential, excellent infrastructure and at a reasonable investment.” Primero says it expects to use proceeds from the transaction to reduce debt.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Primero Reports 3Q Adjusted Profit; Output Down From Year Ago  

Tuesday November 14, 2017 08:54

Primero Mining Corp. (TSX: P) announces an adjusted profit – excluding special items – of  $1.8 million, or a penny per share, in the third quarter, compared to an adjusted net loss of $7.9 million, or 4 cents, in the same period of 2016. The company lists a net loss of $7.6 million in the third quarter, compared to a net loss of $11.7 million in the year-ago period. July-September production of 36,602 gold-equivalent ounces was down from 44,684 a year ago. All-in sustaining costs were $1,235 per gold ounce. During the third quarter, San Dimas continued to ramp up following a strike by unionized employees that ended in the second quarter. Primero says the ramp-up ran into “significant” delays due to issues with underground equipment reliability, plus July output was limited due to periods of inactivity during the negotiation of the 2016 annual workers' bonus. Black Fox – which was sold in early October -- produced 16,065 ounces of gold in the third quarter, comparable to 16,230 in the same period a year ago.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Trek Mining Receives Key Permit For Brazilian Mine

Tuesday November 14, 2017 08:40

Trek Mining Inc. ( TSXV: TREK) announces receipt of the last key permit needed to construct the Aurizona Gold Mine in Brazil. The “license to install” permit was issued by the Maranhão State Environmental Agency, Trek says.  “We now have the permits and the funding, after completion of the Equinox Gold merger, to construct the Aurizona Gold Mine and are on track to achieve production by the end of 2018,” says Christian Milau, chief executive officer. The company says a July feasibility study for Aurizona outlined an open-pit mine producing an average of some 136,000 gold ounces per year, with an initial 6.5-year mine life but potential exploration upside, based on recent drill results.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Gran Colombia Ups 2017 Output Guidance

Tuesday November 14, 2017 08:40

Gran Colombia Gold Corp. (TSX: GCM) upped production guidance for 2017 now that output at Segovia is back to normal. The company made the announcement while reporting a net loss for the third quarter of $1 million, or 5 cents per share, compared with net income of $8.1 million, or 52 cents, in the third quarter of last year. Adjusted net income for the third quarter was $3.8 million, or 19 cents. Gold production in the July-September quarter was down 5% year-on-year due to the impact of a six-week civil disruption on Segovia operations, although year-to-date gold production of 122,122 ounces was up 12% over the first nine months of 2016, the company says. Third-quarter all-in sustaining costs were $970 an ounce. “In the third quarter we faced some adversity as we dealt with the challenges of the 42-day civil disruption in Segovia,” says Lombardo Paredes Arenas, chief executive officer. “While our third-quarter results were adversely impacted by the work slowdown, we demonstrated our resiliency once operations returned to normal in early September, rebounding with two of our best production months this year. We have since signed some new contracts with small mining cooperatives in Segovia, and negotiations are continuing with the rest. We now believe our 2017 gold production will total between 165,000 to 170,000 ounces.” Previous guidance was 150,000 to 160,000 ounces.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Eldorado: Exploration Results Extend Mine Lives, Strengthen Pipeline

Tuesday November 14, 2017 08:40

Eldorado Gold Corp. (TSX: ELD; NYSE: EGO) officials are upbeat about results from 2017 exploration activities so far. Among the highlights, drilling at Lamaque included intercepts of 25.44 grams per tonne of gold over 3.5 meters and 7.47 g/t over 4.4 meters. A drilling program at Bolcana porphyry project include a drillhole with an intercept of 1,246.0 meters from surface grading 0.94 g/t gold and 0.27% copper, Eldorado says. The company is also upbeat about drilling at Efemcukuru and Stratoni.The results “bode well for extending the life of our current operations while strengthening our internal growth pipeline,” says Peter Lewis, vice president for exploration.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Leagold Mining Lists 3Q Adjusted Profit

Tuesday November 14, 2017 08:40

Leagold Mining (TSX: LMC) reports an adjusted profit of $5.2 million, or 3 cents per share, in the third quarter. Gold output improved to 47,766 ounces from 43,980 in the second quarter, with all-in sustaining costs of $993 not far from $989 in the second quarter. Neil Woodyer, the company’s chief executive, says operational improvements implemented during the last two quarters are starting to “bear fruit.” He adds, “We anticipate continued improvements in Q4 and into 2018 as two key projects are completed and become operational -- the re-installation of the agglomerator and extension of the overland conveyors.” The company, which operates the Los Filos Mine in Mexico, is “focused and working diligently on continuing our acquisition strategy to grow our gold business in Latin America,” the CEO adds.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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