Gold Rebounds Following Fed Announcement; Exploration News from Calibre, Nighthawk, Great Bear and More
The Fed announced yesterday that interests rates would be cut once again by a quarter of a basis point. Precious metals sold off a bit immediately following the announcement but ended flat on the day. It obviously wasn’t enough to bury gold and silver.
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The price of gold moved toward $1500 Wednesday until the Fed's FOMC policy statement was released around 2 p.m. Wednesday, which triggered a $14 price smash in the Comex paper gold market. The Mining Stock Journal said that it's customary for the big bank Comex market markers to hammer the price of gold when the FOMC issues the monetary policy update after it convenes. Gold however, bunjee'd right back and jumped over $1500 in a move that no doubt left gold bears with a sore neck. The Mining Stock Journal commented that Indian imports, which re-activated late last week, are helping to buffer the world gold price from manipulative efforts in the west.
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Here’s what you need to know today out of the junior resource sector.
Calibre Mining reported drilling results from B2 Gold’s exploration activity from El Limon in Nicaragua. Calibre says B2 was successful in extending gold ineralization along the El Limon vein system for over 2.5 kilometers, with high grade intercepts at Limon Sur, Limon Central, Limon Norte, Tigra, Chaparral and Cacao. There was a host of results in this morning’s news release,but a few highlights did include 10.82 g/t gold over 20.42 meters at Limon Norte and 10.53 g/t gold over 23.6 meters at Limon Central. Calibre will commence more drilling at Limon Norte in early November this year. Calibre trades on the TSX with the symbol CXB and on the OTC markets with CXBMF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/523-tsx/cxb/69062-calibre-mining-reports-results-from-b2gold-drilling-program-at-el-limon-vein-system-now-extends-over-2-5-kilometres.html
Ascot Resources shared results this morning of an updated mineral resource estimate for its Red Mountain Gold Project in British Columbia. The company says the project now consists of more than 782,000 ounces of measured and indicated gold, up 15% from a year ago, and just under 70,000 ounces in the inferred category, which is up 28% from a year ago. The updated mineral resources for the Red Mountain Project are reported at a 3 g/t gold cut-off for underground longhole stoping mining methods. The company added that this cut-off grade may be re-evaluated considering prevailing market conditions. Ascot Resources trades on the TSX with the symbol AOT and on the OTC markets with AOTVF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/667-tsx/aot/69069-ascot-increases-gold-resources-at-red-mountain-project.html
Nighthawk Gold provided results from 5 drill holes completed on Zones 1.5 and 2.0 of the Colomac Main Sill located within its Indin Lake Gold Property in the Northwest Territories of Canada. Nighthawk says drilling has provided additional evidence for the merger of high-grade Zone 1.5 with the northern part of Zone 2.0 and extended this broad panel of mineralization to new depths below previously reported intersections. Highlights from today’s results included 1.12 g/t gold over 124.5 meters and 1.57 g/t gold over 118.5 meters. Dr. Michael Byron, CEO of the company, said the drilling of the Colomac Main Sill continues to document cohesive zones of mineralization uninterrupted to depth with relatively uniform distribution. Nighthawk trades on the TSX with the symbol NHK and on the OTC markets with MIMZF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/329-tsx/nhk/69067-nighthawk-extends-broad-mineralized-zones-to-new-depths-at-colomac.html
Rugby Mining closed a financing which raised $1,000,000 in Canadian dollars. Despite exceptional demand for the deal, insiders bought over 33% of the deal. The proceeds will be used to fund exploration expenses at the company's Motherlode Project plus its Argentine and Columbian projects. The Mining Stock Journal has a strong buy on Rugby's shares for investors who want a very high risk high return opportunityThe Comapny's shares trade under RBMNF in the U.S. and RUG on the TSX venture exchange.
Yesterday, Great Bear Resources shared new drill results which the company said made three new gold discoveries on the Dixie project in Red Lake, Ontario. Drilling at the new Yauro Zoe returned 10.32 g/t gold over 18.2 meters and 5.14 g/t gold over 37.4 meters. Great Bear said the gold system at yauro appears to increase in apparent width and number of gold intervals with increasing depth. Great Bear trades on the TSX Venture with GBR and on the OTC markets with GTBDF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1467-tsx-venture/gbr/69023-great-bear-drills-new-near-surface-high-grade-yauro-zone-discovery-at-dixie-10-32-g-t-gold-over-18-20-m-5-60-g-t-gold-over-25-25-m-and-16-60-g-t-gold-over-6-00-m.html
The Mining Stock Journal will be releasing its latest issue tonight and will feature a review of Prophecy Development Corp, which is advancing the high-grade silver-lead-zinc Pulacayo Project in the heart of Bolivia's silver producing region. Eric Sprott has accumulated a 9% stake in Prophecy and the Mining Stock Journal will examine why. Be sure to visit investmentresearchdynamics.com for a subscription to that publication.
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