There's Gold in Them Thar Hills
Gold pulled back slightly this week, registering a weekly loss of approximately 1% and closing at the $1,190 per ounce level.
Silver was up over 2% on Friday and closed up approximately 0.5% for the week. The dollar strengthened this week and the major stock indices all hit new highs.
Next week will be interesting since China celebrates the Lunar New Year this week and its financial markets will be closed Monday through Thursday.
There’s also a Fed announcement on Wednesday that will be a catalyst for either higher or lower gold prices.
Copper added over 2% for the week, closing at $2.69/lb. Platinum tacked on approximately 0.5% for the week, closing at $979 per ounce while palladium lost over 6% for the week, closing at $740 per ounce.
Uranium broke out to the $24/lb. level and it continues to demonstrate that we may have finally seen the bottom in the spot price of uranium.
Oil prices hit a three-week high. West Texas Intermediate crude closed at $53.24 a barrel on Thursday, January 26, 2017, up approximately 1.5% for the week.
The Week in Juniors
Marathon Gold Corporation (TSX: MOZ)(OTC: MGLD)
On January 25, 2017 Marathon Gold reported results from drilling at its Valentine Lake gold project in Newfoundland.
The first two holes returned 3.43 g/t Au (uncut) over 50.0 meters with 15.36 g/t Au (uncut) over 7.0 meters, 2.57 g/t Au over 50.0 meters with 6.10 g/t Au over 12.0 meters, and 7.49 g/t Au (uncut) over 13.0 meters with 29.07 g/t Au (uncut) over 3.0 meters in MA-17-159; and 1.53 g/t Au over 73.0 meters with 6.42 g/t Au over 7.0 meters and 3.50 g/t Au over 6.0 meters in MA-17-158.
The results will be incorporated into an upcoming resource update for the Marathon Deposit, which is expected to be released by the end of February, 2017.
The second resource update will be property wide at the Valentine Lake Gold Camp and it will be completed later this year.
The second resource update will include information collected from the February 2017 resource update and the information will be used to optimize new planned drilling at the Sprite and Victory Deposits as well as other new gold showings.
Drilling with two rigs continues around the clock at both the Marathon and Leprechaun Deposits.
Phillip Walford, President and CEO of Marathon, stated:
"The consistent success of the near vertical infill drill holes in penetrating wide intervals of good grade gold from near surface to 300-meters depth in the core of the Marathon Deposit proves the vertical continuity of the gold mineralization within the Marathon Deposit mineralized corridor.
The results of drilling are impressive to date and we have an aggressive 2017 winter drilling campaign to build gold resources at the Valentine Lake Gold Camp. The Marathon Deposit is taking on some of the characteristics of some of the deposits I have been involved with in northern Ontario and Quebec.”
The news followed a release on January 22, 2017 where Marathon intersected 14 meters of 25 g/t Au.
The company currently has approximately 118 million shares outstanding and 137 million fully diluted.
The Valentine Lake property currently hosts four near-surface, mainly pit-shell constrained gold resources totaling 1,060,100 oz. gold at 2.20 g/t (Measured & Indicated) and 200,000 oz. gold at 2.85 g/t (Inferred), (April 2015).
These resources occur over a 20-km system of gold-bearing veins — much of the 24,000-hectare property has not been explored in detail to date.
Interesting project that merits a closer look.
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Ivanhoe Mines (TSX :IVN)(OTC: IVPAF)
The Kamoa-Kakula project continues to grow.
On January 23, 2017 Robert Friedland-led Ivanhoe Mines announced assay results from another 25 holes as part of the ongoing 2016-2017 drilling campaign near the mining center of Kolwezi in the Democratic Republic of Congo (DRC).
- DD1093, a step-out hole drilled 1.6 kilometers northwest of the current boundary of Kakula's current Inferred Resources, intersected typical Kakula-style mineralization similar to holes drilled in the centre of the high-grade Kakula Discovery. The hole intersected 11.10 meters (true width) of 5.82% copper at a 3.0% copper cut-off, beginning at a downhole depth of 993.0 meters; 11.10 meters (true width) of 5.82% copper at a 2.5% copper cut-off; 11.90 meters (true width) of 5.57% copper at a 2.0% copper cut-off; and 12.88 meters (true width) of 5.26% copper at a 1.0% copper cut-off. A photograph of the mineralized intersection in hole DD1093 is shown in Figure 10.
- DD1080, drilled 1.0 kilometer northwest of the boundary of Kakula's current Inferred Resources, intersected 4.49 meters (true width) of 8.51% copper at a 3.0% copper cut-off, beginning at a downhole depth of 857.6 meters; 4.99 meters (true width) of 7.96% copper at a 2.5% copper cut-off; 4.99 meters (true width) of 7.96% copper at a 2.0% copper cut-off; and 10.23 meters (true width) of 4.75% copper at a 1.0% copper cut-off.
- DD1065, drilled 300 meters northwest of the boundary of Kakula's current Inferred Resources, intersected 6.24 meters (true width) of 6.44% copper at a 3.0% copper cut-off, beginning at a downhole depth of 638.0 meters; 7.24 meters (true width) of 5.96% copper at a 2.5% copper cut-off; 8.39 meters (true width) of 5.43% copper at a 2.0% copper cut-off; and 8.39 meters (true width) of 5.43% copper at a 1.0% copper cut-off.
Executive Chairman Robert Friedland stated:
"It is remarkable to drill a step-out hole more than 1.6 kilometres beyond the limits of the previous mineral resource boundary and intersect almost identical, high-grade, chalcocite-rich mineralization.
The open-ended nature of the extremely high-grade copper mineralization at the unfolding Kakula Discovery certainly has caught the attention of the mining industry. The ongoing results speak for themselves - and leave me speechless.”
Nine rigs are now drilling at Kakula, focused in the northwest resource expansion area, where the aim is to initially infill an area of 2.6 square kilometers immediately northwest of Kakula's current Inferred Resource boundary. Infill drilling of Inferred Resources is ongoing in the central section of Kakula. To the southeast, step-out drilling is continuing to explore extensions of the Kakula high-grade zone along trend.
Ivanhoe Mines is advancing its three principal projects in Sub-Saharan Africa: Mine development at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South Africa's Bushveld Complex; mine development and exploration at the Kamoa-Kakula copper project on the Central African Copperbelt in the DRC; and upgrading of the historic, high-grade Kipushi zinc-copper-lead-germanium mine, also on the DRC's Copperbelt.
Gold Standard Ventures (TSX-V: GSV)(NYSE: GSV)
On January 23, 2017 Gold Standard Ventures released results which found the northern extension of the North Bullion high-grade deposit.
Four more core holes were completed in the 2016 program at North Bullion.
Drill hole RR16-05 returned 19.8m of 4.40 grams gold per tonne (g Au/t), which includes a higher grade interval of 5.3m of 7.02 g Au/t.
Mac Jackson, Gold Standard's Vice President of Exploration, stated:
"We had tremendous results at North Bullion this year, intersecting high-grade gold in both our west-northwest and north trending targets while substantially lowering our drill costs. With this isolated, high-grade intercept in RR16-05, it looks like we have found a new extension of the gold system, well north of previous drill holes. Once again, we have demonstrated the potential for a North Carlin-style big system in the Railroad-Pinion district. We are looking forward to following up on these results with a larger exploration program at North Bullion in 2017.”
Gold Standard is an advanced-stage gold exploration company focused on district-scale discoveries on its Railroad-Pinion Gold Project, located within the prolific Carlin Trend.
The Pinion deposit now has an NI43-101-compliant resource estimate consisting of an Indicated Mineral Resource of 31.61 million tonnes grading 0.62 grams per tonne (g/t) gold (Au), totaling 630,300 ounces of gold and an Inferred Resource of 61.08 million tonnes grading 0.55 g/t Au, totaling 1,081,300 ounces of gold, using a cut-off grade of 0.14 g/t Au (announced March 15, 2016). The Dark Star deposit, 2.1 km to the east of Pinion, has a NI43-101-compliant resource estimate consisting of an Inferred Resource of 23.11 million tonnes grading 0.51 g/t Au, totaling 375,000 ounces of gold, using a cut-off grade of 0.14 g/t Au (announced March 3, 2015). The 2014 and 2015 definitions and expansions of these two shallow oxide deposits demonstrate their growth potential.
It’s long been speculated that the company could be a takeout target. I expect 2017 will be the year that suits finally start writing checks.
That’s all for this week.
To your wealth,
For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Resource Stock Digest Premium, and Junior Mining Trader. For more about Gerardo, check out his editor page.
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