Gold prices were moderately higher in midday U.S. trading on Wednesday, supported by a mildly bullish near-term technical posture and by rallying crude oil prices that hit a two-month high yesterday. June gold futures were last up USD 6.60 to USD 1,782.60 and July Comex silver was last down USD 0.033 to USD 26.525 an ounce. According to a report by Kitco, the U.S. Treasury said on Wednesday morning that it may take extraordinary measures to fund the government if the federal borrowing limit is reinstated this summer. The Treasury also warned it could run out of cash sooner than in previous debt-limit clashes between lawmakers.
The value of gold is difficult to predict, as it depends on many economic variables as well as on decisions made by the Federal Reserve. Nevertheless, gold is often viewed as a safe haven asset in a time of economic and political uncertainties. To reduce the impact of the pandemic on the economy, various measures have been taken, such as near-zero interest rates and economic stimuli for business and individuals. The impacts of such economic measures taken to fight the pandemic, however, are yet to be fully understood. Nevertheless, such measures also impact the price of precious metals.
Gold Mountain Mining Corp. just announced breaking news that, “it has received its Notice of Work (“NoW”) permit, allowing it to expand its 2021 exploration program at its 100% owned Elk Gold Project. The NoW permits Gold Mountain to continue chasing it’s deep, high-grade mineralization while exploring additional satellite zones throughout the property.
‘This is fantastic news for Gold Mountain as we move towards Phase 2 drilling,’ commented CEO, Kevin Smith. ‘With this Notice of Work, we now have a lot more optionality to target deep, high-grade zones, particularly down-dip of the 1300 vein and other satellite areas we’ve identified as being highly prospective for vein extensions and new discoveries. Our main focus remains to aggressively grow the Elk deposit, and this enables the company to take a big step in that direction.’
Notice of Work
The Company has received its Notice of Work (“NoW”) from the Ministry of Energy Mines and Low Carbon Innovation, allowing them to transition to Phase 2 of their Drill program which targets areas outside the current Mine Permit Area in the south portion of the Siwash North Zone.
Previously, the Company could only drill within its Mine Permit boundaries, hindering its ability to target certain high-grade areas of the Elk Gold Project. With this milestone, Gold Mountain can move its drill pads further south of the Siwash North Zone, allowing the Company to explore high interest satellite zones and continue chasing the 1300 vein deeper, targeting the high-grade mineralization at the Elk.
Phase 2 Exploration Program
In Phase 1 of Gold Mountain’s drill program, the Company focused on the Siwash North Zone with predictable, step out and infill drilling to methodically add ounces to the resource. The Company hit significant mineralized intercepts in 100% of 41 drill holes completed at the Siwash North Zone, including high-grade mineralization in the zone within the 1300 vein dubbed the “Mother Shoot” with grades reaching 124g/t.
Phase 2 drilling targets extensions of high-grade mineralization the Company consistently encountered during its Phase 1 program. The image below presents a broad overview of planned targets at Siwash North, all extensions of the current resource:
The Company is also evaluating drilling the Elusive Zone located approximately 4km from the Siwash North Zone where historic high-grade soil geochemical samples indicate promising new potential at the Elk Gold Project.
Phase 2 Re-Logging
The Company had begun the process of re-logging historic core, digitizing historic data and updating the geological interpretation. Given the past success of the Phase 1 re-logging of historical core, which unveiled undocumented core samples as high as 216 g/t, Gold Mountain plans to continue to relog and resample core from previous operators in areas identified as high-interest to the Company.
The foregoing technical information was approved by Grant Carlson, P.Eng., a Qualified Person, as defined under National Instrument 43-101 and the Chief Operating Officer for the Company.”
New Found Gold Corp. announced this week assay results from an additional four holes drilled at the Keats Zone (“Keats”). These holes were drilled as part of the Company’s ongoing 200,000m diamond drill program at its 100%-owned Queensway Project (“Queensway”), located on the Trans-Canada Highway 15km west of Gander, Newfoundland. Greg Matheson, P.Geo., Chief Operating Officer of New Found, stated: “The outstanding intervals of 131.1 g/t Au over 4.65m plus 124.4 g/t over 17.7m in Hole NFGC-20-59 yield the highest width x grade of any hole to date at Keats (cumulative +2800 m*g/t). These intervals provide further drill confirmation of the substantial zone of near surface high-grade gold mineralization at the north end of Keats. We continue our infill and step-out drilling at Keats and look forward to reporting further results in the near future.”
New Gold Inc. in their fourth quarter and annual operational results for the Company as of December 31st, 2020, reported achieving the mid-range of the revised annual production guidance. Total production for the fourth quarter was 120,567 gold equivalent1 (gold eq.) ounces (83,096 ounces of gold, 199,428 ounces of silver and 18.5 million pounds of copper). For the year, production was 437,617 gold eq. ounces (293,139 ounces of gold, 636,952 ounces of silver and 72.1 million pounds of copper), achieving mid-range of the revised annual production guidance. The Rainy River Mine produced 68,241 gold eq. ounces (66,734 ounces of gold and 127,390 ounces of silver) for the quarter. For the year, production was 233,201 gold eq. ounces (228,919 ounces of gold and 361,862 ounces of silver), achieving the higher end of the revised annual production guidance.
K92 Mining Inc. announced last month production in the first quarter (“Q1”) at its Kainantu Gold Mine in Papua New Guinea of 18,654 oz AuEq, or 17,774 oz of gold, 426,153 lbs of copper and 7,925 oz of silver. During the first quarter, the operation took a significant step forward towards ramping up to run-rate Stage 2 Expansion throughput, delivering record mill throughput of 73,221 tonnes processed, including 6 consecutive weeks averaging ~1,000 tpd in January and February, with 18 days exceeding 1,100 tpd, 8 days exceeding 1,200 tpd, and a daily record of 1,315 tpd over this period.
Sun Summit Minerals Inc. announced earlier this year that it has commenced a significant drill program at the Buck Property, central British Columbia. Sun Summit will complete over 5,000 metres of drilling focused on expanding zones of high-grade gold mineralization. Bob Willis, Sun Summit’s CEO, states, “We are excited to commence this round of drilling at our Buck property. The identification of visible gold throughout our discovery hole is significant and confirms our assay data. Running these select samples, as well as samples from other mineralized zones, for metallic screen fire assay will further investigate the grade of these intercepts. This data will be compared to our fire assay data to better inform our sampling and analytical protocols going forward if visible gold is identified again.”
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