US markets inch higher, May 29-June 2

Markets in the U.S. were closed for the Memorial Day holiday on May 29. For the rest of the week, the Dow Jones Industrial Average rose 0.60% to 21,206.29 and the S&P 500 Index advanced 0.96% to 2,439.07. The Philadelphia Gold & Silver Index lost 1.69% to finish at 83.22.

Shares of Iamgold were up US16¢ to US$6.70. The company released drill results from its Boto project in eastern Senegal. Highlights from the Malikoundi deposit included 37 metres grading 1.83 grams gold per tonne and 19 metres grading 3.28 grams gold per tonne in hole 2201; 42 metres of 1.26 grams gold in 2261; and 77 metres grading 4.35 grams gold including 9 metres of 11.76 grams gold in 2266. Drill results from the Malikoundi North extension included 14 metres of 1.64 grams gold in 2321 and 22 metres grading 1.79 grams gold in 2322. The Boto project has indicated resources of 27.7 million tonnes averaging 1.8 grams gold per tonne for 1.56 million oz. gold and an inferred resource of 2.9 million tonnes averaging 1.3 grams gold for 125,000 oz. gold gold.

Primero Mining’s shares were down 15% to US39¢. In an operations update, the company said it is on track to achieve 2017 production guidance of 140,000 to 170,000 equivalent oz. gold and reported it “continues to see operational improvements” at its San Dimas mine in Mexico and its Black Fox mine in Canada. Primero is advancing the restart of San Dimas after resuming operations on April 17, and “daily throughput rates have been increasing as per plan, and opportunities for productivity improvements have been identified.” Primero says San Dimas will achieve production guidance of 90,000 to 110,000 equivalent oz. gold. “San Dimas’ unionized workers have been responding well to the new shift structure and implementation of the realigned bonus structure is underway,” Primero said, adding that “relations between management and the unionized employees have been improving, and dialogue remains ongoing with regard to the annual bonus payout relating to 2016.” Black Fox produced 8,200 oz. gold in May, thanks in part to “improved and more consistent mining rates from the underground, as well as better-than-expected grades from the Deep Central Zone.” TNM