Gold Digger: Is sentiment slowly returning to the gold space?
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Gold continues to consolidate around $US1,800/oz which, if we went back in time to July 2020, would be cause for celebration.
Back then $US1,800/oz was an eight-year high and bullish sentiment was nudging even the shittiest exploration stocks into the stratosphere.
It was a ‘rising tide lifts all boats’ kinda vibe.
Sentiment, mostly (with a smidgeon of trading ex-dividend). Money has simply moved into the next red hot sector, like lithium or uranium.
But perhaps sentiment, and money, is making a tentative return, with good news stories turning the dial for several gold stocks – including an IPO or two — over the past week.
Leading the winners this week with a 100% gain was Newpeak Metals (ASX:NPM), which is now prepping to drill its Las Openas gold project in Argentina.
This time it’s the nearby, previously undrilled ‘Templar’ discovery delivering numerous hits like 10m @ 5.64g/t gold (within 23m @ 2.85g/t Au from 132m).
Crusader and Templar could be part of one giant system, Nexus managing director Andy Tudor says.
This week, the stock punched through all-time highs after announcing incredible ‘screen fire’ assay results like 10m at 123g/t gold from 66m (including 2m at 613g/t gold) at the ‘Didievi’ project in Côte d’Ivoire.
On top of the impressive width of mineralisation in the assays, Kumova highlighted the project’s proximity to the nearby Agbaou and Bonikro projects.
“Those projects are about 2-3Moz tonne per annum processing plants each, but Agbaou actually runs out of ore late next year so it will need feed,” he said.
“Our project doesn’t have a resource yet, but our first campaign has come back with some really nice numbers – it looks high grade, it looks large, and it may well have a natural home without having to build a plant.”
Then there’s newly listed Ballymore Resources (ASX:BMR), which hit the bourse Friday last week with portfolio of Queensland gold and base metals projects including Dittmer (a historic high-grade goldfield), Ruddygore (a large copper porphyry target) and Ravenswood (a bunch of drill ready targets in a 17moz gold province).
The stock is already up 50% on its IPO price of 20c per share.
Here’s how ASX-listed gold & silver stocks are performing:
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