Gold Busts Out following the FOMC Announcement
Welcome to Mining Stock Daily. I am Trevor Hall.
Today is Thursday July 29th.
As has become customarily routine for several years ahead of an FOMC policy meeting announcement, the gold price was systematically taken lower early Wednesday morning shortly after the physical gold trading markets in the eastern hemisphere had closed for the day. Once the Comex floor hours commenced, paper gold was used to push the price down to as low as $1793. When the FOMC policy decision headlines began to hit the tape, gold was spiked like a football down to $1791 but then launched back up and over $1800 to $1809 before settling at $1806. Silver actually traded higher overnight before succumbing to Comex paper silver selling pressure when the Comex silver pit opened. As with gold, silver was spiked lower at the FOMC policy release and then launched back up to and settled at $25. The mining stocks were quiet until the Fed headlines hit but then joined the metals party and rallied to finish higher, with GDX up 1.5% and the Amex Gold Bugs index up 1.65%. The Mining Stock Journal said that the FOMC policy statement had all of the language removed from the June policy statement that had been interpreted as hawkish. The newsletter also said that new language concerningthe level of monthly Treasury and mortgage purchases by the Fed introduced the possibility that the Fed is considering increasing the level of Quantitative Easing. With the FOMC circus event out of the way, the Mining Stock Journal is becoming highly confident of a big move higher for the precious metals sector between now and year-end.
We’ll get to the news out of the miners and explorers in a moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Western Copper and Gold.
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning.
Rupert Resources reported drill results from in-mine exploration drilling at the Pahtavaara mine in the Central Lapland Greenstone Belt, Finland. Highlights included 11.6 g/t gold over 5 meters and 26.8 g/t gold over 2 meters within a broader 12.4 meter interval of 3.7 g/t. The focus of resource expansion drilling was T-Vein, where a new geological interpretation envisaged an easterly plunging mineralized trend. The drill program successfully delineated continuous mineralization over a 500m easterly plunge between surface and 300m depth. This trend has only been the subject of sporadic previous mining. Rupert trades on the TSX Venture with RUP. News Release
Aurion Resources also announced results from drilling on the Aamurusko Discovery on its Risti property in Finland. Drilling has extended gold mineralization to the northeast of Aamrusko NW with assay of 2.4 g/t gold over 6.3 meters. Drilling as also confirmed and extend gold mineralization at Aamurusko Main with intervals up to 88.9 g/t gold over .4 meters. Zones of gold mineralization remain open in multiple directions at all target areas. Aurion trades on the TSX Venture with AU and on the OTCQX with AIRRF. News Release
Manning Ventures shared results from its recent Phase 1 ground mapping and rock sampling program at three of its Iron Ore projects, located in the Wabush-Fermont Iron Ore District, Quebec, Canada. As previously announced in a Company news release, the Phase 1 program successfully confirmed the presence of iron-formation at the Company’s Lac Simone, Hope Lake, and Broken Lake properties. Iron Formation outcrop was sampled at three locations on the Lac Simone Property, each assaying greater than 15% Fe, which is the minimum cut-off grade used for many of the advanced projects in the region. In total, 8 samples collected returned assays greater than 15% Fe, including 4 that are greater than 25% Fe. Sampling work has confirmed two new discovery areas that have not had any documented work as well. Manning Ventures trades on the CSE with MANN. News Release
Denison Mines provide an update on the Phase 1 field work on that Phoenix uranium deposit at the Wheeler River uranium Project. Drilling has returned 22% U3O8 over 8.6 meters from hole 45, located outside the existing resource domain associated with Zone A and Phase 1 of the mining approach currently planned for Phoenix. Based on the Phoenix block model, GWR-045 was expected to intersect low-grade uranium mineralization along the northwestern margin of the deposit, approximately 5 metres outside of the boundary of the Phoenix Zone A high-grade resource domain. The drill hole, however, intersected a thick interval of high-grade unconformity-associated uranium mineralization. Denison's exploration team is currently incorporating the results of GWR-045 into the Phoenix geological model to evaluate the potential to extend the high-grade domain with additional exploration drilling in the Phase 1 area of Phoenix. Denison trades on the TSX with DML and on the NYSE with DNN. News Release
Talon Metals and the United Steelworkers Union announced a new workforce development partnership to advance the Tamarack Nickel Project in Tamarack, Minnesota. As part of the agreement, the USW will work collaboratively with Talon management to plan for the potential production and maintenance workforce required at the Tamarack Nickel Project and develop a strategic plan for future recruitment. It is envisaged that the proposed mine at the Tamarack Nickel Project will require a mix of experienced underground miners and "new age" miners with skills in automation, AI, and computer modeling. From new skills to fundamental mining experience, the Talon management team and Steelworkers plan to work together to source talented people from the local community and mining regions in the US that are facing declining demand. It is currently expected that the Tamarack Nickel Project would likely create 500 full-time high paying jobs. Talon trades on the TSX with TLO. News Release
That’s it for the news briefing this morning. We have a couple of great interviews coming your way later today.
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