Pic: Bloomberg Creative / Bloomberg Creative Photos via Getty Images
Mining
It has been an ‘extraordinary’ gold run over the past few days, according to OANDA UK & EMEA senior market analyst Craig Erlam.
The price of the precious metal is now at 5 month highs of +$US1,860/oz.
“Inflation concerns have seen the yellow metal’s popularity soar as investors turned to an old friend in time of need,” he said.
“Much has been made of whether gold is still viewed as an inflation hedge or if bitcoin has taken on the mantle and trading this week suggests the traditional choice remains the favoured one.”
“So, despite US yields and the dollar rallying, gold has jumped to a five-month high and appears to have greater ambitions still.”
He said unless the Fed and other central banks provide substantial reassurances that they’re going to tackle higher inflation – beyond waiting for it to pass and hope they’re correct – “gold will remain in favour.”
Marmota (ASX:MEU) announced the acquisition of the Jumbuck Gold Project in South Australia this morning– “the largest expansion in the company’s gold interests in its history to date.”
As part of the deal, the final $2.2m in cash has been released to Tyranna Resources.
The tenements and gold resources are located adjacent to two other gold projects; MEU’s Aurora Tank gold discovery, which has been yielding intersections exceeding 100 g/t gold over 1m close to surface; and the Challenger Gold Mine, which produced more than 1.2m ounces of high-grade gold and was one of Australia’s most profitable open-pit gold mines.
Managing director Colin Rose said the project “fits like a glove” with Marmota’s Aurora Tank gold discovery and includes “six gold deposits with enormous potential.”
GBM Resources’ (ASX:GBZ) soon-to-be-finalised purchase of the +630,000oz ‘Twin Hills’ projects means they have will have 1.5moz resources in the Drummond Basin in Queensland.
The company announced this morning that the indicative approval, duty assessment, and completion is expected in mid-December 2021.
Drilling plans are being finalised to test targets in early 2022 along with the re-estimation of a mineral resource.
Popular explorer Nexus Minerals (ASX:NXM) has ticked off a $19m capital raising to accelerate exploration at its Wallbrook Gold Project, northeast of Kalgoorlie-Boulder in Western Australia.
The company said commitments were received for 41.3m shares at 46c per share, which reflects a 3.1pc discount to the 5-day VWAP and 8pc discount to the last traded price on November 10 of 50c.
Managing director Andy Tudor said the funds will allow Nexus to expedite and ramp-up exploration programs at the Wallbrook Gold Project, where the company has made exploration success at the Crusader-Templar prospect in recent drill programs.
Nexus shares are up 19pc at the time of writing to 59.5c.
Kin Mining (ASX:KIN) has made a new, shallow gold discovery at its Pegagus prospect adjacent to the 374,000oz Bruno Lewis deposit within the Cardinia Gold Project near Leonora, Western Australia.
Latest results include several strong intersections such as 4m at 10.1 g/t gold from 24m and 8m at 3.08 g/t gold from 8m on the eastern edge of the Pegasus gravity target.
KIN managing director Andrew Munkton said while still early days, Pegasus appears to be a “parallel structure” with all the hallmarks of a “significant new discovery” at Cardinia.
“Given the widespread nature of the ore grade intercepts we have seen in the results returned to date, we will now look forward to the remaining results from the north western extension of the anomaly which are expected to be returned over the next four weeks.”
Shares have jumped 9.09pc on the news to 12c.
Gascoyne Resources’ (ASX:GCY) has appointed the former Firefly Resources managing director Simon Lawson to its board as MD and CEO.
In an announcement this morning the company said Lawson joined Gascoyne as a non-executive director on November 10 following the ‘scheme of arrangement’ with Firefly.
Commenting on the appointment, Lawson said the focus will be on generating multiple higher grade ore sources for the Dalgaranga mill “not just through our new combined land package but also by accessing other regional higher grade ores.”
Mining
Mining
Mining
Get the latest Stockhead news delivered free to your inbox.
