Gold creeps back up after last week’s dip
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Despite closing at $US1,686.80 per ounce on Thursday, spot gold prices have crept back up towards the $US1,700 per ounce level with analysts continuing to say that despite some volatility, the precious metal remains well supported.
The Australian price for gold is currently at $2,659.21 per ounce thanks to the favourable currency exchange rate.
Kitco News recently quoted Invesco chief investment officer Kristina Hooper as saying that gold prices are well supported around $1,800 an ounce as central banks and governments pump liquidity to jump start financial markets impacted by the COVID-19 pandemic.
Hooper also expressed her view that there is only a 10 per cent chance that the US economy would experience a significant recovery this year, noting that the key to a strong economic recovery is consistent fiscal action from the government.
“We could dig ourselves a much bigger hole if we don’t have enough fiscal stimulus going forward,” she added.
Hooper’s forecast is decidedly conservative given that the Bank of America has lifted its 18-month price target from $US2,000 per ounce to $US3,000 per ounce while TD Securities believes it could hit $US1,900 per ounce.
Black Cat Syndicate’s (ASX:BC8) drilling at the Myhree deposit within its Bulong project near Kalgoorlie has intersected several zones of thick, high grade mineralisation.
Top results are 28m at 6.59 grams per tonne (g/t) gold from 5m, 3m at 41.95g/t gold from 41m and 9m at 10.11g/t from 24m.
These holes were drilled parallel to the strike of mineralisation to investigate a possible east-west high grade vein set observed in diamond core samples.
“The thick zones of mineralisation at Myhree are pleasing and demonstrate a robust project that continues to provide consistently high grades,” managing director Gareth Solley said.
“The potential for additional resource upside as a result of the results in the north of Myhree will be investigated when drilling resumes in late May 2020.”
Exore Resources (ASX:ERX) has defined a maiden resource of 6.65 million tonnes grading 2.5g/t gold, or 530,000 ounces of contained gold, for its Bagoe project in northern Cote d’Ivoire.
The estimate comes just a little more than a year since the company acquired the project and includes its drilling at the Antoinette and Veronique deposits.
Potential for further growth exists with Antoinette remaining open in all directions with the resource estimate covering just 1,000m of several kilometres of strike potential while Veronique is also open in all directions with the resource considering just one zone of mineralisation.
Bagoe is in a major gold producing region with several nearby large operating gold mines including Barrick’s 4.2 million ounce Tongon mine, Resolute Mining’s (ASX:RSG) 11.5Moz Syama mine and Teranga’s 3.2Moz Wahgnion mine.
Meanwhile, 3D Resources (ASX:DDD) has received firm commitments to raise $2.1m for the acquisition of the Adelong gold project.
The placement of 1.7 billion shares priced at 0.00125 cents each was heavily oversubscribed and closed early.
Adelong has historical gold production of over 800,000 ounces and has existing resources of 127,000 ounces.
3D believes that additional drilling could quickly generate additional resources for the Donkey Hill, Gibraltar, Sawpit and other parallel structures to Curragong that are currently excluded from the resource estimates.