Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Advance Gold Corp. (TSXV: AAX) has provided a drill update for the first hole into a large chargeability anomaly identified from recent geophysical surveys on the Tabasquena project in Zacatecas, Mexico.
The drill hole encountered a 78-metre sulphide zone with disseminated to massive sulphides associated with quartz from 226 to 304 metres. At the bottom of the hole from 405 to 415 metres is a second 10-metre zone of quartz veins with disseminated sulphides in the andesites surrounding the quartz veins. Samples from both of these zones have been submitted for assaying.
“There is ample evidence that this is a big, long lived mineralizing system,” President and CEO Allan Barry Laboucan said in the press release. “It is important to also point out that there are plenty of similarities in the mineralizing systems at Tabasquena and the various mines in the nearby region.”
Shares of Advance Gold jumped more than 40% on Tuesday. Trading volume reached over 400,000 shares, nearly 10 times the daily average. The company has a market capitalization of C$3.8 million.
The Tabasquena project, with historical silver production dating back to the 20th Century, shares the same geological feature as nearby Milagros silver mine. Advance Gold recently built headframe with a 100-metre shaft and underground workings at the project site.
