Gold Digger: Stocks continue to run as prices take a breather
Link copied to
After slipping down for most of this week, gold prices have stabilised due to ongoing concerns over tensions between US and China.
This comes as the US reports a 5 per cent drop in its gross domestic product during the first quarter of 2020, with analysts flagging that the second quarter will be much worse.
>>>Scroll down for the top small cap movers over the past week>>>
Kitco.com senior analyst Jim Wyckoff says that souring US-China relations are back on the front burner of the market place.
The two powers have been sparring over China’s human rights policies while China has accused the US of meddling. The US has also criticised China’s handling of the COVID-19 pandemic.
Already, US President Donald Trump has indicated that the trade deal between the two countries might be dropped.
Spot gold is currently trading at $US1,720.55 an ounce, or $2,589.75 in Australian dollar terms.
While the bulls are still out for gold with major banks such as Citibank believing that the precious metal could gradually rise up to $US2,000 an ounce, there is still some resistance to break out past the $US1,800 an ounce mark.
Winners & Losers
Here’s how ASX gold stocks performed for the period May 22 – May 29 [intraday]:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Apollo Consolidated (ASX:AOP) has hit 22m at 3.44g/t gold as part of drilling to expand a maiden 1-million-ounce resource at the flagship Rebecca gold project.
That intercept, which includes a high-grade zone of 13m grading 5.19g/t, was in a new area 120m below the ‘Maddy’ mineralised structure.
It adds to the interpretation that higher-grade zones continue below current mineral resources, Apollo says.
Black Cat Syndicate (ASX:BC8) is boosting its gold resources by 145 per cent to 719,000oz through a whole slew of acquisitions including two brownfields projects from Silver Lake Resources (ASX:SLR) for about 8.5 million shares.
The Fingals project, about 30m southeast of the company’s Bulong project, and Rowe’s Find, about 100km east of Bulong, which comprise a number of modern and historically mined areas, have a combined resource of 5.2 million tonnes grading 2.5 grams per tonne (g/t) gold for 425,000oz of contained gold.
Black Cat has also reached further agreements to acquire ground from unrelated third-party vendors next to Bulong and Fingals.
De Grey Mining (ASX:DEG) continues to boost the size of its Hemi discovery in Western Australia’s Pilbara region with drilling at the Aquila zone returning 139.5m at 0.7g/t gold from 103.89m, 27m at 2.7g/t gold from 152m, 32m at 2.5g/t gold from 168m and 22m at 2.4g/t gold from 131m.
The shallow gold mineralisation across the combined Aquila, Brolga and Crow gold systems remains open and now extends over 1,000m in width, 850m in strike and 300m in depth.
Results from drilling at the Brolga zone are expected next week, while about 40 per cent of the initial 5,000m reverse circulation drilling at Crow has been completed.
Meanwhile, Tesoro Resources (ASX:TSO) is also letting the drill bit do the talking with the intersection of more wide, high-grade gold zones at its El Zorro project in Chile.
Top results are a 4.3m interval at 7.25g/t gold from 146.7m including 2.3m at 13.3g/t gold from 146.7m that extends high-grade mineralisation within the CC500 fault 50m to the northwest, while two other holes confirm wide gold zones within the CC375, CC400 and CC450 faults.
Mithril Resources (ASX:MTH) has completed the acquisition of Sun Minerals, which holds an exclusive option to acquire up to 100 per cent in the high-grade Copalquin gold-silver project in Mexico.
Historical drilling results from this project include hits of up to 17.77m at 45.16g/t gold and 118.2g/t silver from a depth of just 30.98m.
Gold producer Blackham Resources’ (ASX:BLK) drilling has also delivered some stunners, returning assays of 14.45m at 17.16g/t of gold from 18.95m, including 7.45m at 31.22g/t; and 12.4m at 7.93g/t from 31.4m.
The company believes the results increase the likelihood of transferring a large portion of its inferred resource into its mining inventory.