These 2 gold plays have defined new mineral resources as prices soar

Gold prices continue to stay at the high end of their current range amid ongoing concerns over the COVID-19 pandemic and how it might affect economic recovery.

The virus has now infection more than 10 million people across the globe, according to John Hopkins University, with almost half a million killed by the disease.

The continued strength of gold is music to ears of companies like Auteco Minerals (ASX:AUT), which has defined a maiden resource of 830,000 ounces of contained gold at a grade of 11.6 grams per tonne (g/t) at its Pickle Crow project in Canada.

This resource runs from the surface immediately adjacent to existing underground and surface infrastructure.

Auteco notes that the mineralisation remains open along strike and at depth with a drill program to grow the resource already underway.

Pickle Crow produced 1.6 million ounces of gold at 16g/t prior to its closure in 1966 when gold prices were around $US35 an ounce.

Meanwhile, Ora Banda Mining (ASX:OBM) has defined a maiden underground resource for the Callion deposit at its Davyhurst project in Western Australia’s Eastern Goldfields region.

The resource of 411,000 tonnes grading 5.8g/t gold, or 77,000 ounces of contained gold, takes the total resource at Callion up to 680,000t at 4.9g/t gold, or 107,000 ounces of contained gold.

Mineralisation remains open down plunge with the company saying that drilling could extend resources.

The Callion Main Lode was the focus of underground mining in the late 1980s with ore development and stoping evident over six levels.

Over in the Pilbara, Calidus Resources (ASX:CAI) has updated the pre-feasibility study for its Warrawoona project, which indicates that it could generate post-tax cashflow of $468m and average earnings before interest, taxes, depreciation, and amortization of $97m per annum.

Post-tax net present value and internal rate of return, both of which are measures of profitability, have been estimated at $303m and 77 per cent respectively. Additionally, payback is expected within 13 months.

The definitive feasibility study for Warrawoona is on track for completion in the current quarter.

As more companies prove up their resource, spot gold prices continue to hold steady at all-time highs in AUD terms above $2,500 an ounce. The value of the precious metal has risen by around 30 per cent since the start of the year.