newspaper

A few more news releases that caught my eye today and some comments on each.

Teranga Gold - (TGZ:TSX) - Teranga had positive news this morning that they have successfully received an environmental license for the high grade Gora satellite deposit. The deposit sits ~25 km from the current mill and construction on a road has already begun. Ore is expected to be processed from Gora before the fourth quarterof this year. Gora has been estimated to produce between 30-45 thousand ounces this year. The grade of Gora is ~5 grams per tonne which is ~4 times the grade of the material processed at Sabodala. Teranga is now debt free after paying a $4 million dollar equipment loan in February. Teranga is focused on generating free cash flow and makes money at $1200 gold. Over $700 million has been invested in the project and the current market cap is ~$200 million.

Pierre Lassonde, Chairman of Franco Nevada with whom Teranga has a streaming deal with recently mentioned Teranga as a stock on the Casey Research promotion Going Vertical. Franco has obviously done its due diligence on the project and likes what it sees. If you are looking for a gold producer generating Free Cash Flow you would be smart to take a look at Teranga in my opinion.

Read: Teranga Gold Announces Receipt of Environmental Approval for High-Grade Gora Deposit 

Pure Gold Mining - (PGM:TSXV) - Pure Gold is out with more high grade drill results from the Madsen project in Ontario. Highlights included drill hole  PG15-031 which included 2 m of 39.1 g/t from a downhole depth of only 13.2 m. The drill results were important because they have now confirmed the Beta target has now intersected gold mineralization. This is the second target on the Russet South area to hit mineralization following successful intercepts on the Alpha target. The winter drill program of 5000 m is now approximately one third of the way with 1,755 m of drilling completed.

"We're very excited by the drilling results to date from Russet South," stated Darin Labrenz, president and chief executive officer of Pure Gold. "Drill testing at the Alpha and Beta targets has discovered high-grade gold mineralization hosted in parallel D2 shear zones proximal to a refolded ultramafic contact. Our plans include further drill testing of the strike and down-dip potential of the Alpha and Beta targets, and drill testing several other D2 geologic structures identified at Russet South during our 2014 field program."

Pure Gold is the newest company of the Oxygen Capital group which includes companies True Gold and Pilot Gold. The Madsen project was purchased from Claude Resources in 2014 for ~$10.9 million in cash and shares. Pure Gold is exploring the prolific Red Lake district for the next multi million ounce gold deposit. The Pure Gold team is bringing a new theory to finding gold in the area in which over 28 million ounces of gold have been produced.

Read: Pure Gold discovers high-grade gold at the Beta Target at Russet South, Madsen Gold Project

Related: Dreaming big in the heart of Red Lake

Discuss in CEO.ca live 

This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.