TSX Venture dips, Jan. 6-10: K92, ScoZinc, Eloro

The S&P/TSX Venture Composite Index fell 0.87% to 582.35. Spot gold moved higher to  US$1,562.10 per oz., up US$9.80 per ounce.

Shares of K92 Mining rose 20¢ to $3.20 on the back of record annual production from its Kainantu mine in the Eastern Highlands of Papua New Guinea. The company reported 2019 production hit a record 79,838 oz. gold, 951,792 lb. copper and 22,984 oz. silver for a total of 82,256 equivalent oz. gold — a year-on-year 74% increase. This exceeds the top end of the company’s upgraded guidance range of 72,000 to 80,000 equivalent oz. gold. The company posted record production despite significant interruptions to underground operations due to infrastructure upgrades, as well as the installation of new equipment at the plant. Underground development ramped up over the year, with total tonnes mined rising from under 60,000 tonnes in the first quarter to 120,000 tonnes in the fourth quarter. The Kainantu mine consists of the Kora and Kora North deposits. Commercial production started in February 2018 and the company has started a mine expansion, with the goal of doubling current capacity to 400,000 tonnes a year and increasing annual gold production to 120,000 equivalent oz. gold.

ScoZinc Mining increased 17¢ to 72¢ on no company news. In mid-December, the company announced a larger mineral resource estimate for its wholly owned Scotia mine near Halifax, in Nova Scotia. The estimate by SRK almost doubles the mine’s mineral resources. Total measured and indicated resources now stand at 25.45 million tonnes grading 1.89% zinc and 0.99% lead for 2.84% equivalent grade zinc, representing a 105% increase in tonnage from the previous estimate. Inferred resources measure 5.01 million tonnes averaging 1.55% zinc and 0.66% lead, for a 2.13% equivalent grade zinc. This marks a 7% increase in tonnage from the previous resource estimate. ScoZinc is preparing a prefeasibility study, which will include a mineral reserve estimate.

Eloro Resources gained 15¢ to 38¢. The company signed a definitive option agreement to earn a 99% stake in the Iska Iska polymetallic epithermal project in southern Bolivia. The property, which contains silver, zinc, lead, gold, copper and bismuth mineralization, is 48 km north of Tupiza city in the country’s Potosi department. Eloro completed geological mapping on the property, which showed alteration and vein minerals in a 5 sq. km area. Preliminary evaluation, including 42 channel samples in underground workings and at surface, returned anomalous silver values up to 694 grams silver per tonne, while samples of anomalous gold values returned up to 28.6 grams gold per tonne. Zinc values ranged between 1.05% and 16.95% zinc; lead values between 0.41% and 16.95%; and copper values between 0.1% and greater than 1%. The property has access to road, water and electricity.