Good Results from Redstar, Gold Standard, Novo and Aton
As I said in early January, resource exploration companies stop putting out results from the middle of December pretty much until the middle of January knowing that most of their investors are caught up in the hoopla surrounding the holidays. This year results were delayed a little longer than usual due to the inauguration of President Trump on the 20th but good results have been flowing for days now.
Redstar Gold delivered final drill results from their drill program completed in November at the Shumagin gold zone at the Unga project in Alaska with grades as high as 34.5-g/t gold. Redstar is well cashed up and will begin a bigger drill program in the spring. This small drill program has expanded the high-grade resource and is a lot more important technically than the market gave them credit for. Redstar has fallen back to the really cheap area.
Gold Standard continues their usual series of boring but blisteringly rich drill results. On the 23rd of January they announced more results from the North Bullion target of 19.8 meters of 4.4 g/t gold. The company already has a 43-101 resource of over 2 million ounces of gold and growing. On the 19th of January they released results from 15 holes drilled on the North Dark Star and Dark Star zones as high as 24.4 meters of 2.04-g/t au. Hole 33 designed to test the area between North Dark Star and the Main Dark Star returned results of .62 g/t gold over 33.1 meters. That’s very important because it shows the two zones are in fact joined as one deposit.
The Railroad property of Gold Standard is a stone’s throw away from a mine already in production by Newmont Mining called the Emigrant / Rain gold mine. What Gold Standard has already defined in an oxide resource is both higher grade and twice as large as Emigrant. As the price of gold continues to go up, Newmont is going to be looking to expand their operations in Nevada, especially given the more favorable climate under President Trump. Gold Standard will be the first company they buy out. It will be higher than today’s price, perhaps a lot higher.
Gold Standard is well cashed up and continues their major program of drilling. Expect results to come out on a regular basis.
My favorite geologist in the world, Quinton Hennigh, runs my favorite gold company Novo Resources. After years of moving forward slowly, the pace is increasing rapidly and the company came out with some blistering results from their drill project at the new Blue Spec project. Announced on January 18th the results shows grades as high as 35.9 grams gold over 4 meters including 1 meter of 138.4 g/t gold. Those kind of numbers build ounces in a hurry.
In addition, on the 10th of January Novo announced the final numbers from their bulk sample test. The total gold contained in the actual material mined proved much higher than the original assays showed. That is not uncommon when dealing with free gold and it’s very good news. It gives Novo a lot of reason to move forward quickly to a full-scale mining and milling operation.
I visited Egypt in December and saw the Aton Resources gold project and wrote about it. I tried making the point in the article that Egypt has lost a lot of revenue from the terrorist attacks and government crackdown on dissent. Egypt has pretty much killed their tourism industry and indeed, while I was in Cairo airport, there was an attack that killed two policemen and two days later another attack on a Christian church.
Egypt insists on treating gold projects as if they are oil properties with both up front payments and high taxes. Their head up their ass attitude has pretty much killed the interest of juniors to spend the money to develop a resource worth mining. Aton just announced a 43-101 resource on their Hamama West zone of over 478,000 ounces. Egypt contains a lot of gold but there will be little more exploration until their terms begin to jib with those offered by the rest of the world. As of now, there is great risk both from a terrorism and technical point of view with little chance of seeing a real return on investment. The government of Egypt needs to understand that unless you are Australia or Greenland, no major country is an island.
All of these companies are advertisers and as such, I have a vested interest in their success. I am biased and you need to take responsibility for your own due diligence and investment decisions.
Redstar Gold Corp
Gold Standard Ventures