Royal Canadian Mint reports increased gold and silver bullion demand

The Royal Canadian Mint has announced financial results for the first quarter of 2020 that provide insight into our activities, the markets influencing our businesses and our expectations for the next 12 months.

“The Mint capitalized on market opportunities in the first quarter. Demand for gold and silver bullion was up, refining volumes were above plan and storage volumes remained steady and healthy,” said Marie Lemay, President and CEO of the Royal Canadian Mint.

“In the final weeks of the quarter, the Mint responded to this unprecedented situation with COVID-19 in a proactive way that prioritizes the health and safety of our employees. We have adapted our production to be able to continue delivering critical services in support of essential sectors of the Canadian economy, while adhering to strict new protocols to ensure our work environment is a safe one,” he added.

All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Financial and Operational Highlights

In response to the COVID-19 pandemic, the Mint modified its operations and production to focus on delivering critical services in support of the essential mining and financial sectors, and international supply chains. The resulting reduction in operations and production across all of the Mint’s businesses impacted revenue and profitability in first quarter of 2020.

• Consolidated profit before income tax and other items was $6.5 million for the quarter (2019 – $10.8 million).
• Consolidated profit was $1.7 million for the quarter (2019 – $7.7 million).
• Consolidated revenue increased to $498.4 million in the first quarter of 2020 (2019 – $350.7 million). Overall, global market demand for bullion, due to the economic uncertainty surrounding COVID-19, led to higher bullion volumes.
• Gold volumes were 198.1 thousand ounces (2019 – 123.8 thousand), while silver volumes were 6.6 million ounces (2019 – 5.5 million).
• Sales of numismatic products were behind 2019, having decreased to $21.3 million (2019 – $27.3 million) due to a smaller, more resonant product portfolio in 2020.
• Foreign circulation revenue increased 31% year over year with production and shipment of 265 million foreign coins and blanks, compared to 194 million coins in 2019.
• Canadian circulation coins sold to the Department of Finance were 53 million pieces in the quarter (2019 – 32 million pieces).
• Overall operating expenses remained consistent quarter over quarter at $22 million.
• Cash and cash equivalents increased to $83.1 million at March 28, 2020 (December 31, 2019 – $65.5 million).

The Mint is expecting to return to full production in the second quarter as it implements further safety measures to allow for a higher number of employees in its production facility per shift and it increases the number of shifts to accommodate the entire workforce. As part of its business continuity plan, the Mint is actively monitoring its global supply chain and logistics networks in support of its continued operations.  Despite its best efforts, the Mint expects COVID-19 to continue to affect its performance over the balance of 2020.

Wallbridge Mining and Balmoral Resources complete merger

Wallbridge Mining Company Ltd. [WM-TSX; WC7-FSE] and Balmoral Resources Ltd. [BAR-TSX; BALMF-OTCQX; BOR-FSE] have completed the previously announced plan of arrangement between the parties. With completion of the arrangement, Wallbridge has now acquired 100% of the issued and outstanding common shares of Balmoral in exchange for consideration of 0.71 of a common share of Wallbridge for each Balmoral share.

“With the completion of the arrangement, Wallbridge now controls a district-scale land position along the Detour-Fenelon gold trend, a major structure that hosts the Detour Lake gold mine, the Fenelon gold project, and numerous other gold exploration and development projects,” said Marz Kord, President and CEO of Wallbridge. “The properties acquired from Balmoral dramatically increase our footprint in Quebec to 739 square kilometres of underexplored and highly prospective ground that is clearly complimentary to our rapidly expanding Fenelon gold project. As announced earlier this week, our exploration team has begun evaluating the newly acquired properties and drilling to identify extensions of the Fenelon gold system is planned to begin this summer.”

“The strong drilling results from both companies over the last few weeks and accompanying strong move in the share prices of Wallbridge and Balmoral into today’s completion of the arrangement simply reinforces the rationale for combining the two companies,” said Darin Wagner, former President and CEO of Balmoral. “To the Balmoral shareholders, our team again thanks you for your tremendous support over the last decade and we are excited by what lays ahead for the combined entity.”

Under the arrangement, Balmoral shareholders have received 0.71 of a common share of Wallbridge in exchange for each Balmoral share held immediately prior to completion of the arrangement. In the aggregate, 130,556,944 Wallbridge shares were issued under the arrangement to Balmoral shareholders as consideration for their Balmoral shares. The existing Wallbridge and former Balmoral shareholders now own approximately 82% and 18% of the issued and outstanding Wallbridge shares, respectively.

As a result of the arrangement, Balmoral has become a wholly owned subsidiary of Wallbridge and the Balmoral shares are anticipated to be delisted from the Toronto Stock Exchange following the close of trading on May 25, 2020.

Wallbridge is establishing a pipeline of projects that will support sustainable 100,000-ounce-plus annual gold production, as well as organic growth through exploration and scalability.

Balmoral has a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt.

LATIN AMERICA: Guyana, Suriname, French Guiana

Resource World continues its project profiles of exploration and mining companies in South America.

GUYANA

Guyana has a long history of gold production. The country currently produces over 600,000 ounces of gold annually. All gold production occurs within the Guiana Shield which is the geological continuity of West Africa. In comparison to West Africa, the Guiana Shield is under-explored.

Guyana Goldfields Inc. [GUY-TSX] and Silvercorp Metals Inc. [SVM-TSX, NYSE American] have entered into an amending agreement to the arrangement agreement entered into previously and announced April 27, 2020, under which Silvercorp agreed to acquire all of the issued and outstanding shares of Guyana Goldfields by way of a court-approved plan of arrangement.

The primary operation of Guyana Goldfields is the 100%-owned Aurora Gold Mine in northwest Guyana which reached commercial production January 2016. Total Proven and Probable Mineral Resources stand at 25,852,000 tonnes grading 2.70 g/t gold, for 2,240,000 ounces.

Production was 28,300 ounces of gold in the fourth quarter of 2019 and 124,200 ounces in full-year 2019.

Guyana Goldfields is also evaluating the Sulphur Rose deposit located approximately 23 km from the Aurora Mine. Discovered in late 2010, the deposit has a total resource of 566,830 ounces (277,580 oz Indicated and 289,250 oz Inferred).

Guyana Goldstrike Inc. [GYA-TSXV; GYNAF-OTC] is exploring and developing the advanced-stage Marudi Gold Project in Guyana. Marudi hosts a January 2018 mineral resource estimate of 259,100 ounces grading 1.8 g/t gold Indicated and 86,200 ounces of 1.6 g/t gold Inferred.

The property remains 85% unexplored. The company has a mining license.

Gold X Mining Corp. [GLDX-TSXV], formerly Sandspring Resources Ltd., reports that following management changes and acquisition of 100% of its flagship Toroparu asset, the company is focused on bringing the project to a production decision. The Toroparu Project is at an advanced stage with a 7.35 million-ounces Measured and Indicated Resource based on 675 diamond drill holes totaling 202,250 metres with several feasibility level engineering studies completed. To date, the company has invested more than US$150 million to discover, develop and classify its gold resources and complete engineering studies required to develop an open pit mining operation producing gold doré and gold-bearing copper concentrates.

Gran Colombia Gold Corp. [GCM-TSX; TPRFF-OTCFF-OTCQX] has signed a definitive agreement to merge with Gold X Mining Corp. In late trading on May 22, shares of Gold X Mining gained $0.09 to $2.73 on a volume of 109,700 shares traded.

Goldsource Mines Inc. [GXS-TSXV GXSFF-OTCQB; G5M-FSE] has released additional drill results from the Friendly prospect located immediately north of the 100%-owned Eagle Mountain gold project 230 km southwest of Georgetown, central Guyana. Results represent 10 core holes over 2,065 metres. Combined with previous drilling by Goldsource and historic drilling totalling 17 core holes (1,670 metres) at the Friendy prospect, this suggests potential for an initial strike of 250 metres long by 500 metres wide which includes numerous near-vertical, closely-spaced, and parallel gold mineralized structures. The prospect remains open along strike, to depth, and appears be connected to the Bottle Bank area, located 500 metres to the south, which is part of Eagle Mountain.

The most significant results for this release are holes EME19-023 which intersected 27.0 metres grading 1.72 g/t gold and EME19-025 which intersected 73.5 metres grading 0.50 g/t gold.

Goldsource is focused on expanding gold resources and delivering subsequent studies for decision-making on a large-scale gold production at Eagle Mountain.

G2 Goldfields Inc. [GTWO-TSXV] has provided assays from high-grade drill intercepts at the Oko-Aremu Project, Guyana.

The property hosts multiple zones of mineralization; however, drilling to date has focused exclusively on the Oko deformation zone (ODZ). To date, 44 drill holes have outlined gold mineralization in excess of 1 km.

Holes OKD-30, 31 and 33 were drilled to further explore gold mineralization encountered in recently reported OKD-27 (1 metre at 8 g/t gold and 4 metres at 19.5 g/t gold). Visible gold (VG) was logged in all three holes and the results are highlighted below (true widths of mineralization are estimated between 85% and 58% of reported width).

Hole OKD-30

• 3.1 g/t gold over 2.0 metres (52 to 54);
• 14.9 g/t gold over 1.8 metres (97.9 to 99.7) VG;
• 10.8 g/t gold over 4.0 metres (188 to 192).

Hole OKD-31

• 12.7 g/t gold over 1.4 metres (132.8 to 134.2) VG;
• 3.0 g/t gold over 1.7 metres (207.1 to 208.8) VG.

Hole OKD- 33

• 10.5 g/t gold over 2.0 metres (180.8 to 182.8) VG;
• 10.8 g/t gold over 0.8 metre (185 to 185.8) VG.
Additionally, hole OKD-32 explored approximately 140 metres south of hole OKD-5 (8.2 metres at 9.1 g/t gold) and hole OKD-24 (2.4 metres at 116 g/t gold).

Hole OKD-32

• 20.1 g/t gold over 1.0 metre (81.5 to 82.5) VG;
• 1.7 g/t gold over 2.0 metres (91 to 93).

Dan Noone, CEO, stated: “I am very pleased to see that step out holes OKD to 30, 31 and 33 fill out the 250-metre zone between shafts 2 and 3 on the Oko trend and highlight the continuous, linear nature of vein corridors 1 and 2.  Hole OKD to 32 which was collared to the west of vein corridor 1, and 140 metres south of OKD to 24 (2.4 metres at 116.6 g/t gold) suggests that high-grade mineralization encountered in vein corridor 2 continues to the south.”

A second rig has been mobilized. This added drilling capacity will enable G2 to greatly expedite its exploration program.

The company owns a 100% interest in two past gold producing mines, as well as a regional portfolio of highly prospective projects.

SURINAME

Newmont Corp. [NGT-TSX] owns and operates the Merian gold mine is located approximately 60 km south of Moengo, Suriname. Newmont Suriname (previously known as Suriname Gold Company) is a fully-owned subsidiary of Newmont that is operated on behalf of Suriname Gold Project CV, a Suriname limited partnership. Construction of Merian began in August 2014 and commercial production was achieved on October 1, 2016, on schedule and US$150 million under budget.

IAMGOLD Corp. [IMG-TSX; IAG-NYSE] has a 95% interest in the Rosebel gold mine (Suriname government 5%) located in the mineral-rich Brokopondo district of northeastern Suriname. Suriname is a former Dutch colony bordering the Atlantic Ocean between French Guiana and Guyana. The road-accessible 170 km2 Rosebel property lies approximately 85 km south of the capital city of Paramaribo.

For Q1 2020, the Rosebel Mine produced 64,000 ounces of gold at an All-in sustaining cost (AISC) of $1,248/oz. As of December 31, 2018, Measured Resources were 35,645,000 tonnes averaging 0.6 g/t gold, for 7,683,000 ounces of gold with Inferred Resources at 64,770,000 tonnes of 0.9 g/t gold, for 1,793,000 ounces.

The company is also working on the 66.5%-owned development-stage Saramacca property located 30 km southwest of the Rosebel mill.

FRENCH GUIANA

Columbus Gold Corp. [CGT-TSX; CGTFF-OTCQX] reports that despite the current situation stemming from the COVID-19 pandemic, the company has been able to adjust and keep moving forward with its objectives for 2020.

Field work in French Guiana was suspended on March 17 and resumed on May 11. At the 44.99%-owned development-stage Montagne d’Or Gold Project 180 km west of the capital of Cayenne, northwest French Guiana, the bulk of the engineering studies for committed project improvements and modifications for mine permitting progressed remotely and are expected to be completed as scheduled by mid-year.

Montagne d’Or has NI 43-101 Proven and Probable Reserves of 2.75 million ounces gold (54.11 million tonnes of 1.58 g/t gold). A March 20, 2017 Bankable Feasibility Study demonstrate an open pit mining operation with average annual gold production of 237,000 ounces over the first 10 years of mine life averaging of 1.73 g/t gold that results in an average AISC of US$749/oz. There is considerable expansion potential on strike and at depth.

In July 2018, Columbus entered into an agreement with IAMGOLD to acquire up to a 70% interest in the Maripa Gold Project located in eastern French Guiana along a paved national road, about 60 km south of Cayenne. Prospecting in the northern half of the exploration-stage Maripa Gold Project continued during the first quarter. Resampling of an old trench returned a cut averaging 2.57 g/t gold over 25 metres. A new quartz-gold vein system exposed by artisanal mine workings was identified approximately 500 metres west of the Filon Dron gold zone. A best assay of 38.87 g/t gold was obtained from samples of the quartz vein material.

Line-cutting for ground geophysical surveying is in progress at Maripa in preparation for a diamond drilling program scheduled for the third quarter.

The priority for 2020 remains the acquisition of an additional advanced-stage gold project in South America. Several opportunities have been identified and are under evaluation.

Reunion Gold Corp. [RGD-TSXV; RGDFF-OTC], following the reporting of high-grade gold intersections at the Crique Filon discovery (within the 100%-optioned Boulanger Project) in 2019, the company has since carried out extensive outcrop sampling, mapping and geological interpretive analysis of this discovery and surrounding areas.

Based on this work, Reunion Gold has developed a new geological model for the Crique Filon discovery, which is similar in style to the orogenic gold systems found in the Abitibi belt, Canada.

Reunion has other projects in French Guiana, including the Haute Mana gold project and the Dorlin gold project, both 80%-optioned, as well as the 100%-optioned CMB properties in north-central French Guiana. The company also has the 100%-optioned Wairamu gold project in Guyana.

Reunion has a strategic alliance agreement with Barrick Gold Corp. [ABX-TSX; GOLD-NYSE] to explore Guyana, Suriname, French Guiana and northeast Brazil.

Silver to outperform gold

by Peter Kennedy

Economic concerns tied to the COVID-19 pandemic have put silver back in favour with investors who are once again seeking safety in the precious metals sector

Following the recent surge in the price of gold, silver jumped from US$12.34 an ounce on March 21, 2020 to US$18.02 on May 20, 2020, a move that was welcomed by investment newsletter writers like David Morgan, who expects prices to go much higher from here.

“In a long-term precious metals bull market, silver almost always out performs gold,” said the Spokane, Washington-based Morgan Report editor during an interview with Resource World Magazine.

Morgan believes that will prove to be the case during a new bull market for precious metals that he says is being fueled by economic fears that are related to the impact of the COVID-19 pandemic. COVID-19 has prompted miners and metal recyclers to shut down their operations in order to safeguard the health of employees.

“The pandemic has been a catalyst for an already collapsing financial system,” said Morgan. Unless a vaccine is found quickly, he expects the pandemic to accelerate the flight to precious metals and other safe havens, eventually prompting gold silver trading ratios to retest the levels reached in April 2011, when silver hit US$48.59 an ounce.

“I think we are in the early innings of the final leg up on precious metals, which means we have a long way to go over the next two or three years,” he said. “Gold will lead the way, but there will be more and more of a spill-over effect in the silver market because it does provide a safe haven.’’

Silver is one of the oldest forms of money known to man.  However, the white metal is widely viewed as a more speculative type of investment than gold. It helps to explain why silver has been locked in a bear market for roughly the past eight years. In recent years, Morgan said investors seeking quick returns have poured their money into marijuana stocks and cryptocurrencies, sucking money out of precious metals in the process.

However, silver is one of the most electrically conductive of all the metals. It is a vital ingredient in the production of electric gadgets such as cell phones, laptops and car batteries. The majority of the world’s silver supply is used for industrial fabrication, accounting for 59% of demand. Currently 26% of supply is used to make jewelry and silverware. The balance of roughly 15% is used in the production of coins and silver bars.

In recent weeks, Morgan says silver has been riding on the coat-tails of gold, which jumped from US$1,477.90 on March 18, 2020 to US$1,768.90 on April 14, 2020.

The rally has been good news for top tier producers such as Pan American Silver Corp. [PAAS-TSX, NASDAQ], and Wheaton Precious Metals Corp. [WPM-TSX, NYSE]. Both have seen a substantial increase in their share price valuations.

The junior silver stock ETF [SILJ-TSX] hit $11.91 on May 20, 2020, after rallying from $5.58 in early March, 2020.

Morgan estimates that the major miners are producing silver at an average all-in-sustaining cost of US$16.50 an ounce. He believes Pan American is slightly overvalued at current levels, but says that hardly matters if the price of silver continues to rise.

He said the upside could be potentially greater for more junior companies like Minaurum Gold Inc. [MGG-TSXV; MMRGF-OTC; 78M FSE], a Mexico-focused explorer which is currently focused on the high-grade Alamos Silver Project in southern Sonora.

Minaurum recently announced plans to raise up to $9.2 million from a marketed offering and non-brokered private placement offering of units priced at 40 cents each. On May 21, the shares were trading at 50 cents, leaving the company with a market cap of 157.2 million based on 314.3 million shares outstanding.

In 2019, total global mine production amounted to 847.8 million ounces, marking a 1% decline from the previous year. Silver produced from recycling operations in 2019 was also down 1% from the previous year to 169.4 million ounces, according to a global silver survey produced for the Silver Institute by Metals Focus, a London-based independent precious metals consultancy

Global silver demand pushed higher in 2019, with a 12% increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the metal.

If there is no resolution to the COVID-19 pandemic, Morgan says the silver supply could get “pretty tight.” He believes that key areas of demand will fall off this year due to difficulties associated with the COVID-19 pandemic, but not as much as global supply. “That will put more pressure on the industrial side as well as the safe haven side,” he said.

Some of the price optimism is based on the view that a decline in global equities will help to drive up the price of gold and silver.

“I think we could easily see silver trading at US$20 an ounce before the end of the year,” he said.

Silver to outperform gold

by Peter Kennedy

Economic concerns tied to the COVID-19 pandemic have put silver back in favour with investors who are once again seeking safety in the precious metals sector

Following the recent surge in the price of gold, silver jumped from US$12.34 an ounce on March 21, 2020 to US$18.02 on May 20, 2020, a move that was welcomed by investment newsletter writers like David Morgan, who expects prices to go much higher from here.

“In a long-term precious metals bull market, silver almost always out performs gold,” said the Spokane, Washington-based Morgan Report editor during an interview with Resource World Magazine.

Morgan believes that will prove to be the case during a new bull market for precious metals that he says is being fueled by economic fears that are related to the impact of the COVID-19 pandemic. COVID-19 has prompted miners and metal recyclers to shut down their operations in order to safeguard the health of employees.

“The pandemic has been a catalyst for an already collapsing financial system,” said Morgan. Unless a vaccine is found quickly, he expects the pandemic to accelerate the flight to precious metals and other safe havens, eventually prompting gold silver trading ratios to retest the levels reached in April 2011, when silver hit US$48.59 an ounce.

“I think we are in the early innings of the final leg up on precious metals, which means we have a long way to go over the next two or three years,” he said. “Gold will lead the way, but there will be more and more of a spill-over effect in the silver market because it does provide a safe haven.’’

Silver is one of the oldest forms of money known to man.  However, the white metal is widely viewed as a more speculative type of investment than gold. It helps to explain why silver has been locked in a bear market for roughly the past eight years. In recent years, Morgan said investors seeking quick returns have poured their money into marijuana stocks and cryptocurrencies, sucking money out of precious metals in the process.

However, silver is one of the most electrically conductive of all the metals. It is a vital ingredient in the production of electric gadgets such as cell phones, laptops and car batteries. The majority of the world’s silver supply is used for industrial fabrication, accounting for 59% of demand. Currently 26% of supply is used to make jewelry and silverware. The balance of roughly 15% is used in the production of coins and silver bars.

In recent weeks, Morgan says silver has been riding on the coat-tails of gold, which jumped from US$1,477.90 on March 18, 2020 to US$1,768.90 on April 14, 2020.

The rally has been good news for top tier producers such as Pan American Silver Corp. [PAAS-TSX, NASDAQ], and Wheaton Precious Metals Corp. [WPM-TSX, NYSE]. Both have seen a substantial increase in their share price valuations.

The junior silver stock ETF [SILJ-TSX] hit $11.91 on May 20, 2020, after rallying from $5.58 in early March, 2020.

Morgan estimates that the major miners are producing silver at an average all-in-sustaining cost of US$16.50 an ounce. He believes Pan American is slightly overvalued at current levels, but says that hardly matters if the price of silver continues to rise.

He said the upside could be potentially greater for more junior companies like Minaurum Gold Inc. [MGG-TSXV; MMRGF-OTC; 78M FSE], a Mexico-focused explorer which is currently focused on the high-grade Alamos Silver Project in southern Sonora.

Minaurum recently announced plans to raise up to $9.2 million from a marketed offering and non-brokered private placement offering of units priced at 40 cents each. On May 21, the shares were trading at 50 cents, leaving the company with a market cap of 157.2 million based on 314.3 million shares outstanding.

In 2019, total global mine production amounted to 847.8 million ounces, marking a 1% decline from the previous year. Silver produced from recycling operations in 2019 was also down 1% from the previous year to 169.4 million ounces, according to a global silver survey produced for the Silver Institute by Metals Focus, a London-based independent precious metals consultancy

Global silver demand pushed higher in 2019, with a 12% increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the metal.

If there is no resolution to the COVID-19 pandemic, Morgan says the silver supply could get “pretty tight.” He believes that key areas of demand will fall off this year due to difficulties associated with the COVID-19 pandemic, but not as much as global supply. “That will put more pressure on the industrial side as well as the safe haven side,” he said.

Some of the price optimism is based on the view that a decline in global equities will help to drive up the price of gold and silver.

“I think we could easily see silver trading at US$20 an ounce before the end of the year,” he said.

Ximen achieves 99% gold recovery at Kenville Mine

Ximen Mining Corp. [XIM-TSXV; XXMMF-OTCQB; 1XM-FSE] has received metallurgical test results for its Kenville gold mine in the Nelson mining camp in Southern British Columbia.

The testwork started with a sample composited from the Kenville mineralization. Material was sorted on the basis of visible sulphide mineralization and separate lots were assayed. Portions of high-grade and low-grade material were then combined to give a weight average grade approaching the expected grade of material to be mined from Kenville, 0.5 Oz/ton gold (17.1 grams/tonne), when the project proceeds to a bulk sample. The resultant composite assayed 16.27 g/t gold and 35.60 g/t silver (0.475 oz/ton gold; 1.0 oz/ton silver).

The material was then subjected to gravity gold recovery and flotation testing aimed at approximating the process at the target processing plant. The test process involved the following steps: Grind to P80 of 150 microns. Conduct PSA; concentrate panned to extinction for gold. Pan tails returned to gravity tailings; rougher scavenger flotation test on gravity tailings to recover gold. Assay for gold, silver and multi-element inductively coupled plasma; and three stages of cleaner flotation. Assay for gold, silver and multi-element ICP.

Test results indicate the material responded exceptionally well to both gravity and flotation. The GRG (gravity gold recovery) test achieved an overall gold recovery of 51% in a mass yield of just 0.06% at a gravity concentrate grade of 11,225 g/t gold. Flotation was able to recover 98% of the remaining gold, resulting in a combined overall gold recovery of 99% at a final grind P80 of 147 micrometres.

Ximen has an option to acquire the Kenville Mine. The previous Kenville workings have an estimated 360,000+ troy ounces of gold based upon a historical NI 43-­‐101 report. Past drill programs give evidence the extension of the high‐grade vein structures to substantially higher quantities of Gold on the adjacent claims.

Ximen is confident with over half the property unexplored, that the current trend likely extends throughout the area. The company’s mission is to exploit the high-grade vein structures with current technology, and become a high-grade producing gold mine while concurrently exploring the limits of the reserve. The estimated life expectancy of the mine is 20+ years.

Ximen Mining will begin the 2020 exploration season with exploration work on its Providence property in the Greenwood mining camp in Southern British Columbia. Exploration is scheduled to start next week and will include rock sampling, trenching and diamond drilling.

Ximen Mining owns 100% interest in three of its precious metal projects located in Southern British Columbia. Ximen has two gold projects, the Amelia gold mine and the Brett epithermal gold project. Ximen also owns the Treasure Mountain silver project adjacent to the past producing Huldra silver mine. Currently, the Treasure Mountain silver project is under an option agreement.

Ximen achieves 99% gold recovery at Kenville Mine

Ximen Mining Corp. [XIM-TSXV; XXMMF-OTCQB; 1XM-FSE] has received metallurgical test results for its Kenville gold mine in the Nelson mining camp in Southern British Columbia.

The testwork started with a sample composited from the Kenville mineralization. Material was sorted on the basis of visible sulphide mineralization and separate lots were assayed. Portions of high-grade and low-grade material were then combined to give a weight average grade approaching the expected grade of material to be mined from Kenville, 0.5 Oz/ton gold (17.1 grams/tonne), when the project proceeds to a bulk sample. The resultant composite assayed 16.27 g/t gold and 35.60 g/t silver (0.475 oz/ton gold; 1.0 oz/ton silver).

The material was then subjected to gravity gold recovery and flotation testing aimed at approximating the process at the target processing plant. The test process involved the following steps: Grind to P80 of 150 microns. Conduct PSA; concentrate panned to extinction for gold. Pan tails returned to gravity tailings; rougher scavenger flotation test on gravity tailings to recover gold. Assay for gold, silver and multi-element inductively coupled plasma; and three stages of cleaner flotation. Assay for gold, silver and multi-element ICP.

Test results indicate the material responded exceptionally well to both gravity and flotation. The GRG (gravity gold recovery) test achieved an overall gold recovery of 51% in a mass yield of just 0.06% at a gravity concentrate grade of 11,225 g/t gold. Flotation was able to recover 98% of the remaining gold, resulting in a combined overall gold recovery of 99% at a final grind P80 of 147 micrometres.

Ximen has an option to acquire the Kenville Mine. The previous Kenville workings have an estimated 360,000+ troy ounces of gold based upon a historical NI 43-­‐101 report. Past drill programs give evidence the extension of the high‐grade vein structures to substantially higher quantities of Gold on the adjacent claims.

Ximen is confident with over half the property unexplored, that the current trend likely extends throughout the area. The company’s mission is to exploit the high-grade vein structures with current technology, and become a high-grade producing gold mine while concurrently exploring the limits of the reserve. The estimated life expectancy of the mine is 20+ years.

Ximen Mining will begin the 2020 exploration season with exploration work on its Providence property in the Greenwood mining camp in Southern British Columbia. Exploration is scheduled to start next week and will include rock sampling, trenching and diamond drilling.

Ximen Mining owns 100% interest in three of its precious metal projects located in Southern British Columbia. Ximen has two gold projects, the Amelia gold mine and the Brett epithermal gold project. Ximen also owns the Treasure Mountain silver project adjacent to the past producing Huldra silver mine. Currently, the Treasure Mountain silver project is under an option agreement.

Strike at Kinross Gold’s Tasiast Mine suspended

Kinross Gold Corp. [K-TSX; KGC-NYSE] reported that the strike by unionized employees at its Tasiast mine has been suspended at the request of the Government of Mauritania.

The recent shutdown, which began on May 5 and ended May 22, is not expected to materially affect 2020 production or the development of the 24k expansion.

The company has adhered to the three-year collective labour agreement finalized in Q4 2019, all applicable labour codes, and rigorously complied with all government mandates related to COVID-19 prior to the strike and will continue to do so going forward.

While Kinross Gold disagrees with the basis for the strike, it remains open to discussions with the staff delegates.

The 100%-owned Tasiast mine is an open-pit operation located in northwestern Mauritania, approximately 300 km north of the capital Nouakchott.

Tasiast processes ore via mill and dump leach. At year-end 2019, after a full year of operation since the Phase One expansion was complete, Tasiast posted record annual production and record low costs of sales per ounce.

The Tasiast 24k Project, which is expected to incrementally increase throughput capacity to 24,000 t/d by mid-2023, is proceeding on plan. The capital-efficient project is expected to further increase production, lower costs, and generate significant cash flow and attractive returns. It is expected to extend mine life by four years to 2033.

Gold equivalent production for 2019 was 391,097 ounces with cost of sales at USD$602/oz. Proven and probable (2019) reserves are pegged at 6,783,0000 ounces of gold. Life-of-mine is expected to last until 2033.

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Chile, Ghana, Mauritania, and Russia.

Strike at Kinross Gold’s Tasiast Mine suspended

Kinross Gold Corp. [K-TSX; KGC-NYSE] reported that the strike by unionized employees at its Tasiast mine has been suspended at the request of the Government of Mauritania.

The recent shutdown, which began on May 5 and ended May 22, is not expected to materially affect 2020 production or the development of the 24k expansion.

The company has adhered to the three-year collective labour agreement finalized in Q4 2019, all applicable labour codes, and rigorously complied with all government mandates related to COVID-19 prior to the strike and will continue to do so going forward.

While Kinross Gold disagrees with the basis for the strike, it remains open to discussions with the staff delegates.

The 100%-owned Tasiast mine is an open-pit operation located in northwestern Mauritania, approximately 300 km north of the capital Nouakchott.

Tasiast processes ore via mill and dump leach. At year-end 2019, after a full year of operation since the Phase One expansion was complete, Tasiast posted record annual production and record low costs of sales per ounce.

The Tasiast 24k Project, which is expected to incrementally increase throughput capacity to 24,000 t/d by mid-2023, is proceeding on plan. The capital-efficient project is expected to further increase production, lower costs, and generate significant cash flow and attractive returns. It is expected to extend mine life by four years to 2033.

Gold equivalent production for 2019 was 391,097 ounces with cost of sales at USD$602/oz. Proven and probable (2019) reserves are pegged at 6,783,0000 ounces of gold. Life-of-mine is expected to last until 2033.

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Chile, Ghana, Mauritania, and Russia.

Cartier Resources drills 4 metres of 20.8 g/t gold at Chimo

Cartier Resources Inc. [ECR-TSXV] has drilled values of 20.8 g/t gold over 4.0 metres included within 9.4 g/t gold over 11.0 metres, also included within 6.7 g/t gold over 16.0 metres, intersected at a distance of 500 metres below the new zones 5B4-5M4-5NE of the Chimo mine property, located 45 km east of Val d’Or, Quebec.

Highlights

The results of this press release, factored with those of the April 7, 2020, and February 18, 2020, press releases, increase the potential for expansion of the resource estimate to date for the new zones 5B4-5M4-5NE.

The Chimo mine property hosts three gold-bearing corridors (North, Central and South) that to date host the following mineral resources:

  • 4,017,600 tonnes at an average grade of 4.53 g/t gold for a total of 585,190 ounces gold in the indicated category;
  • 4,877,900 tonnes at an average grade of 3.82 g/t gold for a total of 597,800 ounces gold in the inferred category.

“These new results indicate that the gold mineralization is open in all directions below zones 5B4-5M4-5NE which have been drilled to date from surface to a depth of 1,300 metres,” commented Philippe Cloutier, President and CEO, adding, “growing the dimensions of the cluster of zones 5B4-5M4-5NE is an important addition to the development potential of the project.”

A 12.8-metre interval grading 1.1 g/t gold was also intersected 250 metres below the new zones 5B4-5M4-5NE. At 30 metres south of zones 5B4-5M4-5NE, the new zone 5CE returned a 19.5-metre interval grading 1.3 g/t gold indicating the presence of a gold-bearing shoot hosting higher grade gold sections.

The estimated true thickness of the mineralized intersections represents approximately 85-90% of the measured length of the drill core.

Zones 5B4-5M4-5NE and 5CE, situated 450 metres east of the underground infrastructures, are being drilled in order to increase the resource over a distance of 550 metres below known zones. The length of this cluster of gold-bearing zones is known over 1,300 metres.

As well, internal engineering studies and tests of industrial sorting of the mineralization are in progress in order to assess possibilities of cost reduction while increasing gold ounce recuperation, which in turn could contribute to increasing the mineral resource of the property. The first internal engineering study was completed with positive conclusions.

Cartier holds a 100% interest in the property for which a 1% NSR (net smelter return) royalty has been granted to IAMGOLD Corp. [IMG-TSX; IAG-NYSE]. No rights of first refusal (buyback) have been granted.

The property, which is accessible year-round, is located near six mills in the Val d’Or area.

Fourteen gold zones were exploited by three producers between 1964 and 1997 for a production of 379,012 ounces of gold (MERN DV-85-05 to DV-97-01).

The mining infrastructure consists of a network of drifts over seven km, distributed over 19 levels and connected by a 5.5-metre by 1.8-metre three compartment shafts for a depth of 920 metres. The head frame and the surface installations were dismantled in 2008 but the 25-kilovolt power line and the sandpit are still in place.

The drilling, completed to date by Cartier consists of 121 holes totalling 55,890 metres and 20,792 gold samples collected. This work demonstrated the continuity of the main 5B and 5M gold zones under the existing mining infrastructure, explored the extensions of 19 gold zones peripheral to the main zones and explored the extensions of the seven gold zones that were prioritized; which allowed the discovery of the zones 5B4-5M4-5NE and 5CE and to develop the potential of zone 6N1. These areas have excellent potential to deliver future discoveries.

Cartier Resources has a strong cash position of more than $5.7-million, as well as a significant corporate and institutional endorsement including Agnico Eagle Mines and Quebec investment funds.