Wars have been fought over it; men and women have died over it; and now it is becoming a commodity again, to the point where folks are trading in old, unused jewelry containing it for cash. Gold – more so than cash, it seems – is king, witness by its prominent place on the financial food chain when other markets show weakness. This past winter saw the price of gold scrape around the thousand-dollar U.S. mark before settling to saner levels (up around $900 U.S. last time we checked).
No surprise, therefore, that the cast of characters in the gold field is an ever-growing one and word of their most recent finds fascinates more with each passing day. And just when you thought the gold was running low in the area called the Hemlo, near Timmins, in Northern Ontario, along comes a Montreal-based development-stage company known as Adventure Gold Inc. (TSX-Venture: AGE), to surprise all of us. As April wound to a close, Adventure, which trades on the TSX Venture Exchange under the symbol AGE, announced a new discovery in the vicinity of Timmins, and slightly across the border in the aptly named town of Val d’Or (literally, Valley of Gold), Quebec.
And the latest reports indicate that this is a fairly rich strike. Adventure’s exploration team discovered a new gold showing, returning results up to 12.4 g/t Au on its Pascalis-Colombiere property. Historical showing sampling on the property returned values up to 73.5 g/t gold. Drilling for a total of nearly 700 metres around the nearby Senore property (8.7 g/t Au over 1.2 metres, at less than 20 metres deep) discovered earlier this year, was completed at the end of March. The company hints we should know more about the results before too long.
The most recent strike follows up on a similar discovery this past winter on its Beaufor and Senore properties in the western Quebec gold belt. It found 8.7 g/t gold over 1.2 metres within 20 metres of the surface. The geological context of this system is similar to that found on the Beaufor mining system, which has produced close to a million ounces of the shiny metal over the years.
AGE plans to be active in 2009 with $1.15 million slated for exploration in the Val-d'Or and Timmins regions. The company plans aggressively to seek new properties in the area to bolster its bottom line. The devotion to digging left the company in a deficit position of more than $650,000 at the end of the October quarter of 2008, more than triple the red ink from the comparative quarter of 2007.
Stock in AGE hit its peak last May at 25 cents, and dipped as low as a nickel last November. News of the latest discovery triggered a fair bit of volume on the stock, at a price around 15 cents.
