Australian gold price soars to yet another record high, approaches $2800/oz
It’s a good time to be in gold with the precious metal strapping on its rocket boots, sending April gold futures up nearly $US100 to $US1660.20 per ounce.
And with the anaemic Australian dollar to US dollar exchange rate, this means that the Australian price for gold has surged to an all time high of $2,788.77/oz.
Concerns have been raised about the supply of physical gold due to air travel restrictions and the closures of precious metal refinery closures with Reuters reporting that this had sent London spot gold prices falling well below US gold futures.
The high price of gold has undoubtably played at least some role in Bellevue Gold (ASX:BGL) securing firm commitments from Australian and overseas institutions for a $26.5m capital raising.
Proceeds from the placement of shares priced at 30c each will be used to fund infill and resource extension drilling at its namesake project in Western Australia’s Eastern Goldfields region.
The company completed initial infill drilling at the project last week and is on track to publish its maiden indicated resource in the coming quarter.
Indicated resources have enough grade continuity and geological certainty behind them to support mine planning.
Bellevue currently has an inferred resource of 6.1 million tonnes grading 11.3 grams per tonne (g/t) gold, or 2.2 million ounces of contained gold.
Meanwhile, Krakatoa Resources (ASX:KTA) has completed aircore drilling that outlined two intrusive complexes at its Belgravia project in New South Wales’ Lachlan Fold Belt that may be prospective for gold and copper.
The company says that shoshonitic (high potassium) rocks, which are associated with many epithermal and porphyry-style gold-copper deposits worldwide, were intersected during drilling.
It added that its work programs will continue due to the availability of locally based geological consultants and assay results from the aircore drilling are expected in about two weeks.