Monday news: Auryn Resources, Skeena Resources, and Klondike Gold

POSTED ON October 26, 2015 BY James Fraser
CATEGORY Auryn Resources, Klondike Gold, Skeena Resources,

Photo: Auryn Resources (TSXV:AUG)

A look at the mining headlines that caught my eye this morning with some additional comments.

Auryn Resources - (AUG:TSXV) - Nunavut explorer Auryn Resources is out with results from a summer till sampling program at the Committee Bay gold project. The till program was successful in identifying five new significant anomalies that are between 1 and 10 km in size.

Little to no work has been completed historically on these targets.

Auryn completed a transaction with North Country Gold Corp in September to consolidate 100% of the Committee Bay project.

The team at Auryn was looking for a district-sized high-grade play similar to their previous company (Cayden), which sold to Agnico Eagle. After looking at hundreds of projects the team settled on Committee Bay.

Auryn chief executive officer Shawn Wallace commented: "The till anomalies identified in 2015 validate Auryn's exploration approach of realizing the belt's potential to host gold mineralization underneath glacial cover. We believe that these gold till anomalies represent covered mineralized systems that will become the focus of our drilling efforts moving forward."

Auryn stock has had a nice move over the last year as they have transitioned from a cash-rich shell to doing a full summer exploration program at the acquired Committee Bay project.

This will be a stock to watch as they have a proven team with an excellent track record in the space.

The treasury has about $6 million in it, according to Auryn's September presentation.

One thing rarely seen in junior mining is insiders purchasing shares. Auryn has some of the heaviest insider buying from management, particularly CEO Ivan Bebek.

Insider buys can be seen and tracked for each publicly traded Canadian company on CEO chat in the company room and are posted from SEDI daily (after midnight).

ex. Auryn room http://chat.ceo.ca/aug

Read: Auryn Identifies +20km Long Corridor of Gold in Till Anomalies in SW Committee Bay

Skeena Resources (SKE:TSXV) - Skeena has released additional assay results from the aggressive 61-hole (17,357 m) summer program, which is now complete. Nine holes were released this morning and the remaining 18 holes are expected in the next 4-6 weeks.

High-grade gold continues to be found with the drill bit and Skeena remains on track for a 43-101 resource estimate in the 1st quarter of 2016. Skeena will also release a resource estimate from the neighbouring GJ property, which it recently purchased from Teck and NGEX. That resource will be based on Teck's drilling on the property and is expected to land in December.

Spectrum highlights:

Hole S15-049, drilled on Section 4810N towards the south end of the Central Zone, intersected four intervals with greater than 5 g/t Au between 197 and 232 m, with the best being 14.0 m grading 7.82 g/t Au, including 2.0 m grading 35 g/t Au.
Hole S15-046, drilled on Section 4930N at depth in the middle part of the Central Zone, intersected a high-grade interval of 4.0 m grading 16.97 g/t Au, including 2.0 m grading 29.8 g/t Au.
Hole S15-044, also drilled on Section 4930N in the west-central portion of the deposit, encountered two broad intervals of porphyry Au-Cu mineralization with 172.0 m grading 0.60 g/t Au and 0.14% Cu beginning at a down hole depth of 6.0 m, and a deeper interval of 47.73 m grading 0.49 g/t Au and 0.13% Cu.

Walter Coles, President and CEO of Skeena, commented, "Drilling in the southern part of the Central Zone continues to reveal areas of high-grade gold intersections with meaningful widths. In addition, hole S15-044, drilled through the western part of the Central Zone, has increased the volume of newly recognized, near-surface, low-grade porphyry Au-Cu mineralization. This porphyry-style mineralization partially overlaps with the high-grade structures and is certainly open to the west, at depth, and perhaps on strike too."

A 3-month chart of $SKE shows some volatility between 6.5-10 cents as investors digest drill results.

The exploration market is extremely difficult at the moment but $SKE management is being aggressive and moving Spectrum forward.

Skeena had one of the largest drilling programs this summer of any company listed on the TSX Venture. It was overseen by Skeena chairman Ron Netolitzky, who helped discover the Eskay Creek and Snip high-grade gold mines. If the company can successfully prove up a sizeable high-grade resource, the market could re-rate the stock.

Read: Skeena Intersects 14 metres grading 7.82 g/t Au

Klondike Gold - (KG:TSXV) - Klondike Gold is reporting the final 15 holes from the summer program at Lone Star property in the Yukon. Some high-grade gold was intersected over small intervals.

Spectacular Gold from EC15-10 (Image: Klondike Gold)

Summary of Gay Gulch Drilling Assay Results

Hole ID	Dip	From (m)	To (m)	Interval (m)	True Thickness (m)	Grade	% QV
Hole ID	Dip	From (m)	To (m)	Interval (m)	True Thickness (m)	Au g/t	% QV
EC15-08	-85	41.90	47.25	5.35	4.00	1.6	16
EC15-09	-50	19.30	20.40	1.10	1.10	1.9	18
EC15-10	-85	23.90	26.70	2.80	2.10	75.6	33
	Including	23.90	24.40	0.50	0.40	420.0	100
EC15-11	-50	21.20	23.05	1.85	1.85	1.0
EC15-12	-85
EC15-13	-50	19.45	21.00	1.55	1.55	10.9	10

Peter Tallman, President of Klondike Gold, states “The small 2015 reconnaissance drilling program is complete. New gold discoveries at Gay Gulch, reported below, and at the Nugget Zone (reported October 15, 2015) demonstrate the Klondike district has exploration potential for vein-hosted gold mineralization with interesting grades and widths. The additional positive results from Gay Gulch opens up the potential for many further Klondike “lode” discoveries.

Klondike is a thin trader and can therefore move quickly in either direction.

Klondike has a royalty on a placer claim that is being mined by Todd Hoffmann of the hit TV show "Gold Rush".

The new season has begun airing in the US and I have already watched the first two episodes.

CEO of Klondike Peter Tallman made an appearance in the first episode, promising Todd Hoffman future claims if he can mine 2700 ounces of gold this summer.

Read: Klondike Gold Reports Remaining 2015 Drill Results; Intersects 75.6 g/t Au over 2.8m at Gay Gulch

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Skeena Resources and Klondike Gold are sponsors of this website (CEO.ca). This is not investment advice and all investors should do their own due diligence. Own your trades.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

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