Oceanagold aka OGC released an update on their mineral Reserves and Resources, and the news was neutral at best. Due to mining depletion, total Proven and Probable Reserves across the company decreased by 430k oz Au to 5.20M oz Au, 7.4M oz Au, and 0.15Mt Cu. M&I resources decreased by 540k oz Au to 8.59M oz Au, 13M oz Ag, and 0.17Mt Cu, while Inferred resources stayed the same at 3.9 Moz of gold, 7.3M oz Ag, and 0.04Mt Cu.
Bottom line -- even after the slight decrease in Reserves and Resources, their mimes have years of life left in them. That said, after not doing much exploration or definition drilling in 2022 as they concentrated on operational issues, this year's renewed focus on exploration drilling and resource conversion needs to bear fruit.
In response, Scotia issued a new analyst report which like me called the impact Mixed, for similar reasons. They kept OGC at Sector Outperform with a target of $3.50.
Nevada miner i-80 Gold aka IAU had already told us plenty about their plans for this year (and beyond), but their latest PR details exactly what they plan to do for the remainder of 2023.
One notable development is that they have now anointed Ruby Hill, bolstered by the recent purchase of a company that owns land containing extensions of the Ruby Hill mineralization, as their flagship project. Ruby Hill contains two types of deposits, Carlin-style gold and CRD polymetallic, and they will continue exploring and developing both types. They will continue to expand the known deposits at Ruby Hill while testing new prospects, as well as starting economic studies of the Ruby Deeps and 426 Au deposit3, with a PEA expected in Q2. Meanwhile, their geologists will continue to refine their on the complex mineralization across the property, (Most recently, they are even starting to find some massive sulphides.)
As well, there is ongoing metallurgical testing, plus permitting for underground construction at the Archimedes pit.
And that is just for one property. Phew....
At the producing Granite Creek Au property, they continue to develop new mining levels in the Ogee deposit to increase production. This will also allow more drilling at the high grade SPZ zone, which is expected to deliver refractory ore for processing at Nevada Gold Mine's nearby mill. Meanwhile, and FBS for the Ogee undergroiund and a PEA for SPZ will be released in Q2.
At Lone Tree, they continue to add oxide ore from Granite Creek to the leach pads, but the main focus is on bringing the Lone Tree autoclave back into production so they can process refractory ore that is currently being trucked to NGM's mill. They have given a first look at the numbers by releasing an FBS, according to which it cost about $250M to get the autoclave running again. A reined economic study is underway and will be released later this year.
At the McCoy-Cove Au/Ag project, they are continuing the construction of an underground drift, which will allow further exploration and eventual ore production. They expect to drill another 10KM over the next 18 months, and these will feed into the FBS currently underway.
And finally, Buffalo Mountain hhs now been added to the pipeline of projects under development after the initial drill programme last year produced promising results. The project is located adjacent to Lone Tree, making for easy access to processing of ore.
So there you have it. Between all these properties, various mills,, and multiple types of ore, IAU has a lot of balls in the air. Fortunately they are all cashed up to pay for all these efforts. I am hoping they have enough money to take them through to the point where production starts generating profits.
According to Saville, the number that signal a breakout for gold and silver prices, are monthly closes above $2100 and $25, respectively. He continues to expect that there will be a correction in both before this happens, and that once these corrections are complete, HUI will exceed its 2020 high during the second half of 2023.
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