Gold Digger: Gold pushes through $US1,800/oz, but can it hang on?
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Gold is performing well this week, up more than 1% to $US1,802/oz ($A2,513/oz) as the US dollar pulls back off recent highs.
“The Fed delivered but didn’t surpass expectations which seems to be leading to some profit-taking in the greenback,” OANDA senior analyst Craig Erlam says.
The Fed said on Wednesday it would end its pandemic-era bond purchases in March, paving the way for three interest rate hikes by the end of 2022.
“Add in the over-delivery from the BoE [Bank of England] and the ECB [European Central Bank] committing to end PEPP [pandemic emergency purchase program] and the dollar is under a little pressure, which is typically good for the yellow metal,” he says.
Whether it can continue to push higher is another thing, Erlam says.
“Higher rates, a strong dollar, and central banks addressing inflation concerns should be bearish for gold, despite today’s moves.”
Despite weak investor sentiment the gold price has been remarkably steady, trading in a narrow ~$US150/oz range in the back half of the year.
Here’s how ASX-listed gold & silver stocks are performing:
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How many $40m MC stocks have a +4Moz and growing gold deposit? Not many.
ANL has launched a 3,500m drilling program to grow the 4.1Moz Kebigada gold deposit, part of the ‘Giro’ project in the Democratic Republic of Congo.
This drill program, the first drilling at Kebigada since 2019, will be completed early 2022.
The $43m market cap stock recently raised $7m in a private placement to develop and commercialise the deposit.
Drilling designed to test the depth extent of the ‘Redback’ gold deposit demonstrates strong potential for high grade gold from surface to +500m vertical depth, MXR says.
Redback is ~600 metres south-southeast of the Ramelius Resources’ (ASX:RMS) company maker ‘Wattle Dam’.
Wattle Dam was one of Australia’s highest-grade gold mines, producing ~286,000oz @ 10.1g/t gold until closure in about 2012.
MXR believes Redback could be Wattle Dam 2.0, and has kicked offphase 2 diamond drilling targeting infill and resource extensions.
GMR last year acquired the Kada gold project in Guinea, where it is earning the right to own up to 75%.
The project hosts a non-JORC resource in its oxide profile to around 100m deep and sits just 36km south of AngloGold’s Siguiri mine.
Kada was previously drilled by Newmont, which sunk 33,857m worth of diamond and RC holes, but was considered too small a target for the world’s biggest gold miner.
That’s all good for $22m capped Golden Rim, which is undertaking a 6500m resource definition RC drilling campaign with the intention of delivering a maiden resource in January next year.
Early results are excellent, with the company unveiled a 62m at 1.3g/t oxide (shallow) gold intercept just this week.
GMR are consistently seeing broad intervals of gold mineralisation within the oxide and transitional zones, MD Craig Mackay says.
“The new oxide gold result of 62m @ 1.3 g/t gold in KRC020R is the widest oxide gold intersection Golden Rim has obtained at Kada so far,” he says.
“The new gold intersections have filled multiple gaps in the previous drilling and will likely add significant ounces to our maiden Mineral Resource estimate, due in January 2022.”
“The resource definition drilling will continue for another 5,500m proximal to the Newmont gold resource area, infilling large gaps in the data and extending our drilling coverage north and south, before we embark on the much-anticipated exploration drilling to test areas of anomalous bedrock gold along the 15km-long Kada gold corridor.”
The cash will come in handy. REZ has now taken advantage of rig availability “which has emerged for a short program prior to the Christmas shutdown” to punch some holes into the ‘Springfield’ (nickel) and ‘Gigante Grande’ (gold) prospects in WA.
“Due to its structural heterogeneity, the Gigante Grande prospect has the potential to be a very big system,” REZ said October 31.
“The Company has secured additional prospecting licences north and south of the original discovery.
“This unlocks a further 4.6km strike length of prospective ground along the Moriarty Shear zone and its contact with the Gigante Granite for exploration, bringing total strike to just over 8km.”
The gold miner announced two drill hits containing more than 900m of low-grade gold and copper mineralisation at its ‘Boda’ and ‘Kaiser’ prospects.
That’s right, 900m.
The porphyry copper-gold project is located near Alkane’s Tomingley gold mine and now stretches to a strike length of around 3km.
There’s more where that came from with drilling also taking place at Boda Two, Boda Three, the area between Boda and Kaiser (Korridor Prospect) and other regional targets within the Northern Molong Porphyry Project in New South Wales.
The ~$500 million company is targeting a maiden resource estimate at Boda in the March quarter.