Gold Summary for Aug. 21, 2013

2013-08-21 21:04 ET - Market Summary

by Stockwatch Business Reporter

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Noront Resources Ltd. (NOT) rose one-half cent to 24.5 cents on 39,000 shares. The company has sold its 25-per-cent interest in the Windfall Lake gold property in Ontario to 75-per-cent-owner Eagle Hill Exploration Corp. (EAG: $0.105). Eagle paid $5-million for the 25 per cent, giving Noront some extra cash to help complete an environmental assessment for its McFauld's Lake property in Northern Ontario. Noront hopes to submit its environmental assessment sometime this year, and aims to start production in 2017. For that, however, the company will need to start raising money. It expects a mine at McFauld's Lake to cost $604-million dollars -- $734-million should neighbour Cliffs Natural Resources Inc. (CLF: $21.21) not build its $600-million proposed access road. Cliffs put the road and its Black Thor chromite project on hold in June, citing stalled talks with the government. Like Noront, Cliffs also needs to come up with some money. Its mine will cost over $1-billion. Raising that much may be difficult, as the company already has over $6-billion in short- and long-term debt. Meanwhile, the federal government has made some Ring of Fire progress recently. Last week, it promised $6-million in Ring of Fire jobs training for members of the Matawa First Nation.

Noront has been working at McFauld's Lake since the summer of 2007. It was a summer worth remembering. In August, a Noront discovery hole sent the 40-cent stock on a climb to $6.50, prompting a large area play. Media outlets started calling Noront an overnight sensation, and the company had to apologize for booking only a small, 100-person room for its October AGM.

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