AuRico Gold Inc. late yesterday announced preliminary results for the third quarter that included increased production and operating cash flows, resulting in a significantly higher quarter-end cash position. It said: "During the third quarter the company continued to deliver strong performance across the key operational and financial metrics including production, cash costs and operating cash flow, and reported a significantly increased quarter-end cash position of $145 million. The company is well positioned for continued production growth from its three wholly-owned mines in Mexico and is scheduled this month to complete the strategic acquisition of Northgate Minerals Corp. . This transaction has the potential to create a new leading intermediate gold producer." AuRico said it remains on track to meet its 2011 operational guidance: 265,000 to 295,000 gold equivalent ounces, at cash costs of $445 to $475 per gold equivalent ounce (using the company's long-term gold equivalent ratio of 55:1).
PMI Gold Corp jumped 70 per cent to hit a new year high of $1.10 with around 7 million shares traded early Friday as it announced a 270 per cent increase in the NI 43-101 and JORC code compliant gold resources for its flagship Obotan gold project in Ghana, West Africa. Measured reserves now stand at 1.22 million ounces, indicated at 2.00 million ounces and inferred at 1.29 million ounces, paving the way for completion of a pre-feasibility study on a gold mine development by the end of this year. The stock hasn't traded above the $1 mark consistently since before early 2004.
West African Iron Ore Corp. edged away from near a year low of 6 cents after it late yesterday reported that it has intersected near surface and sub-surface, high-grade iron ore mineralization in its second set of three diamond drill holes from the company's phase one drilling program.
Rockwell Diamonds Inc. jumped as much as 14 per cent early Friday after it announced results for the second quarter ended Aug. 31. Net profit was $2.0-million, which it said "reflects an improvement of $9.1 million from the comparable quarter in fiscal 2011.
CGX Energy Inc. , which lost more than 4 per cent on Thursday, jumped more than 6 per cent early today as it announced that Pacific Rubiales Energy Corp. has agreed to purchase 58.7 million common shares of CGX at a price of $0.70 per Offered Share for a total investment of $41.1 million. The investment by Pacific Rubiales will be made pursuant to CGX's recently announced bought deal financing. Pacific Rubiales does not currently hold any common shares or other securities of CGX. Following completion of the offering, Pacific Rubiales will hold approximately 19 per cent of the outstanding common shares (18 per cent of the outstanding common shares if an Over-Allotment Option is exercised in full).
Pacific Coal Resources Ltd. , which jumped 24 per cent on Thursday, announced late yesterday that the company underreported production at its Cerro Largo La Divisa mine in its third quarter operational update as set out in its press release dated October 6, 2011. The production as reported previously accounted for the production at Cerro Largo in the month of September 2011 only, rather than the entire quarter.
Great Panther Silver Ltd. reported third-quarter production at its two wholly owned Mexican silver mining operations, Topia and Guanajuato, and also appointed Graham Parsons as general manager of its Guanajuato Operations. It said: "Ore processed in Q3 is up 16 per cent year on year; however, a significant drop in ore grades resulted in metal production being lower by 18 per cent. Metal production, from the two mines, at 484,550 silver equivalent ounces , included 343,768 ounces silver, 1,494 ounces gold, 222 tonnes lead, and 294 tonnes zinc. At Guanajuato, ore grades are expected to improve in the fourth quarter. The deeper extensions of the Cata Alto 1 and 2 zones have been explored and found to be significantly higher grade and production improvements are now anticipated with the addition of high grade ore from the Alto 1, 1a and 2 zones at the 510 metre level. ... The estimated production for the fourth quarter is expected to improve to 550,000 silver ounces for a year-end total of approximately 2.2 million ounces."
Portal Resources Ltd. announced that it has signed an agreement for the acquisition of production and assets from an intermediate NYSE listed oil producer for $9.1-million. The assets are located in West Central Saskatchewan and produced 365 boe/day during the month of August. The effective date of the transaction is August 1, 2011. The acquisition includes a 100 per cent working interest in 19 sections (13,340 acres) of land, two sections (1,280 acres) of gross overriding royalty lands, approximately 20 sections of proprietary 3D seismic and 125 line km of proprietary 2D seismic. There are 38 wellbores on the property. Oil is produced to single well batteries (tanks) and natural gas production (non-associated) is tied into approximately 30 km of natural gas pipeline and infrastructure included in the transaction.
Atlanta Gold Inc. , which had been trading near a year low 6 cents, announced that discussions are continuing with Concept Capital Management Ltd. to finalize documentation in respect of the issuance by the company of a $3 million (Canadian) 6 per cent secured convertible debenture and 30 million common share purchase warrants of the company to CCM. As previously announced, the convertible debenture and warrants will be issued in repayment of the $3 million (U.S.) bridge loan previously advanced to the company by CCM. Completion of this financing is subject to approval of the TSX Venture Exchange.
Omni-Lite Industries Canada was up by as much as 3 per cent after announcing that it has received several new orders spread across all its divisions valued at approximately $743,500 (U.S.). The high technology company said of these new orders, 44 per cent are in the Specialty Automotive division, 26 per cent are in the Aerospace division, 18 per cent are in the Sports and Recreation division, and 12 per cent are in the Military division.
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