ASX gold stocks are shining as price recovers
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Gold stocks had one of their best days in months on Monday as the surging gold price contributed to higher share prices.
The price of gold has gained about 2.2 per cent since Friday compared to a 13 per cent fall in the prior four months.
One of Australia’s most experienced resources journalists Tim Treadgold writes in latest weekly Stockhead column that “there are clear signs that gold is poised to take off”.
There are about 160 ASX explorers classified as gold stocks according to the Morgan Stanley / Standard & Poor’s Global Industry Classification Standard.
Of these, 133 either moved ahead or stayed put on Monday. About 29 lost ground.
In the four months prior when the gold price was sliding, only about 37 moved ahead or went untraded while 123 went backwards.
(There are actually some 400 ASX stocks with any kind of esposure to gold according to resources data provider MakCorp).
The price of gold rose 2 per cent over the weekend.
Gold stocks moving ahead
Middle Island Resources (ASX:MDI) gained 21 per cent to 1.7c on Monday after announcing “significant gold results from new diamond drilling at its Sandstone project, west of Kalgoorlie in Western Australia.
Alaska-focused Nova Minerals (ASX:NVA) moved ahead after announcing a new season of driling had gotten underway at its Estelle gold and copper project.
Matador Mining (ASX:MZZ) delivered a first resource of 750,000 ounces of gold and 2.7 million ounces of silver. The maiden resource is 13.35 million tonnes at 1.75 grams per tonne (g/t) gold and 6.3g/t silver. On announcement Matador shares gained 14 per cent to an intraday high of 35.5c before closing at 32c. Notably, 56 per cent, or 423,000 ounces, of the resource is already located in the higher confidence indicated category.
Newly listed Tietto Minerals (ASX:TIE) — which has gold projects in the Ivory Coast and Liberia — gained 18 per cent to 8.3c.
Orminex (ASX:ONX) — which just poured the first gold from its half-owned Comet Vale project in the Goldfields of Western Australia — put on 15 per cent to 19.5c.
Hammer Metals (ASX:HMX) climbed 11 per cent after announcing significant results of up to 43 grams of gold per tonne and 9 per cent copper from at its Mt Frosty joint venture in north-west Queensland.