TSX posts marginal gain, Dec. 9-13: Kirkland Lake, Pan American, Centerra

The S&P/TSX Composite Index rose 0.04% to 17,003.10. The S&P/TSX Global Mining Index rose 3.80% to 80.99 and the S&P/TSX Global Base Metals Index gained 4.97% to 109.84. Spot gold climbed US$16 per oz. (1.10%) to US$1,475.70 per oz., and the S&P/TSX Global Gold Index advanced 3.02% to 251.40.

Kirkland Lake Gold topped the list of value gains during the trading week, jumping $3.03 to $56.64 per share. The company released drill results from the Robbin’s Hill area, north of its Fosterville mine in Australia. Step-out highlights included 6 metres of 10.4 grams gold per tonne and 5 metres of 9.5 grams gold per tonne. The holes were drilled 500 metres down-plunge of Robbin’s Hill resource. Highlights from extension drilling included: 13 metres of 6.5 grams gold, 11 metres of 6.4 grams gold and 4 metres of 8.2 grams gold. Additional infill drilling was completed to assess mineralization continuity for a potential upgrade of inferred resources. Highlights included 9 metres of 11.7 grams gold, 4 metres of 24.5 grams gold and 11 metres of 11.3 grams gold. Five rigs continue to work on the Robbin’s Hill area. The drill results will be incorporated into a year-end resource update. Kirkland Lake is also working on a 3-D seismic survey over 6 sq. km in the north part of the Fosterville licence, where Robbin’s Hill is situated.

Shares of Pan American Silver increased $2.08 to $28.40. The company reported a mineral resource for its La Colorada skarn deposit at its La Colorada mine in Zacatecas, Mexico. The skarn deposit contains 72.5 million inferred tonnes averaging 44 grams silver per tonne, 0.17% copper, 2.02% lead and 4.40% zinc, assuming a cutoff value of US$60 per tonne after accounting for transportation, smelting and refining costs. Contained metal in the maiden resource works out to 102 million oz. silver, 3.2 million tonnes zinc, 1.5 million tonnes lead and 121,000 tonnes  copper. The large polymetallic deposit was discovered in 2018 and is open in nearly all directions. Most of the mineralization is contained within a larger polymetallic mineralized skarn covering an area measuring 500 by 600 metres. The deposit, as currently defined, is located between 600 and 1,700 metres below surface and east of the current La Colorada mine workings. The resource was based on 65 diamond drill holes with a total length of 54,000 metres. Pan American plans to spend US$10 million to drill 44,000 metres at the deposit in 2020.

Shares of Centerra Gold fell 23¢ to $10.16. Mining operations remain temporarily halted at the company’s Kumtor mine in the Kyrgyz Republic, after a significant rock movement on Dec. 1 at the Lysii waste rock dump, north of the open pit. Search and rescue operations continue for two missing employees. There are enough ore stockpiles on surface for normal production levels through the end of 2020, Centerra says, and there is no change to its 2019 production guidance.