Hillary's Little Gift to Gold, and Some Strong Drilling Results

Written by Gerardo Del Real
Posted October 31, 2016 at 8:15PM

Gold and silver spiked higher while the Dow dropped nearly 1% immediately after reports that the FBI was re-opening an investigation into Hillary Clinton’s emails.

Gold prices gained for a third straight week and hit a one-month high before closing at $1,277 an ounce.

Silver closed up approximately 0.96% and closed at $17.73 an ounce.

It’s worth noting that gold is still down 3% for the month while silver is down approximately 7% for the month.

Oil meanwhile closed down 2.13% at 48.66.

The dollar closed down 0.60% for the day but is still up approximately 3% for the month of October.

Economic data supports the view that the Fed will raise in December. Those calling for a weaker dollar and a resumption of higher gold prices may be in for a surprise.

The Week in Juniors

Mariana Resources (TSX-V: MRA)(AIM: MARL)(OTC: MRLDF)

On October 26, 2016 Mariana Resources reported results for a total of 13 infill and extension drill holes (HTD‐63 to HTD‐74 and HTD‐76).

The results were nothing short of sensational and a topic of conversation among everyone at the New Orleans Investment Conference.

Here are the highlights from the release:

The highest grade gold‐copper (Au‐Cu) intercept to date from Hot Maden has been returned from initial drilling along two new infill cross sections (4,542,125N and 4,542,225N);

This infill drilling also successfully continues to confirm the internal continuity of gold‐ copper mineralization within the Main Zone resource area. Best results include:

Infill Section 4,542,125N

  • HTD‐71: 69.6 m @ 62.7 g/t Au + 2.68% Cu from 210m downhole.

This mineralized zone includes the following subintervals:

  • 210‐217m: 7m @ 526 g/t Au + 3.28% CU (“Ultra high grade zone”) 217‐231m: 14m @ 27.7 g/t Au + 3.38% Cu (“High grade zone”)
  • 231‐279.6m: 48.6m @ 1.7 g/t Au + 2.39% (“Low grade zone”)

Infill Section 4,542,225N

HTD‐70: 63m @ 8.3 g/t Au + 1.65% Cu from 218m downhole.

  • Including 5m @ 35.6 g/t Au + 1.46% Cu from 225m downhole.

HTD‐72: 34.5m @ 19.4 g/t Au + 1.31% Cu from 180.5m downhole.

  • Including 3.0m @ 54.4 g/t Au + 1.30% Cu from 192m downhole.

HTD‐77: Step forward hole to HTD‐72 which intersected 43.5m of massive sulphide mineralisation from 96.0m downhole and 41.5m of multiphase suphide‐ bearing breccia from 139.5m downhole. Assays are pending.

The potential for the discovery of a deep (>250m), possibly fault-offset block of Main Zone‐ type mineralization beneath the “Ridge” area (southern limit of the Main Zone resource; Figure 5) has increased with the successful intersection of high grade gold(‐copper) mineralization at depth in two holes, HTD‐69 and HTD‐76. Host rocks to this mineralization are brecciated andesites — similar to the host rocks in the Main Zone resource — which lie immediately to the east of the dominant dacitic breccias.

Key results returned include:

HTD‐69: 7m @ 19.7 g/t Au + 2.1% Cu from 351m downhole.

HTD‐76: 33m @ 1.4 g/t Au + 0.99% Cu from 357m downhole, and 11m @ 6.1 g/t Au + 0.97% Cu from 443m downhole.

Chief Executive Officer, Glen Parsons, commented:

“I look forward to updating the market on the anticipated PEA results which are now expected around the end of November, along with the further pending assays and ongoing drilling activities.”

Bottom line is those are absolutely exceptional drill results. Congrats to Mariana Resources. I have the feeling that won’t be the last time I say that.

This is what beautiful core looks like.

gold drill core

Barsele Minerals (TSX-V: BME)(OTC: BRSLF)

Another sign that we are in a better precious metals market. On October 27, 2016 Barsele Minerals announced that JV partner Agnico Eagle was increasing its exploration project by US$2.5 million.

Ownership in the project is 55% Agnico Eagle and 45% Barsele.

Phase-2 drilling continues, with three diamond drills and one BOT (base of till) machine, testing for both gold and the VMS targets. Thirteen holes totaling 2,625 meters were completed during the month of August; CNT16-(002-005), AVA16-(008-010), KOH16-(001-006).

Holes CNT16-(003-004-006-012) were designed to validate drill results from pre-existing holes in the Central Zone. CNT16-003 yielded 26.0 meters core length (estimated 19.5 meters true thickness) grading 1.78 g/t gold, plus 10.50 meters core length (estimated 7.9 meters true thickness) grading 10.99 g/t gold uncut (1.55 g/t gold cut).

Hole CNT16-004, returned 55.0 meters core length (estimated 41.3 meters true thickness) grading 1.27 g/t gold.

Hole CNT16-006 yielded 126.00 meters core length (estimated 94.50 meters true thickness) grading 1.66 g/t gold uncut (1.59 g/t gold cut).

Hole CNT16-012 returned 148.60 meters core length (estimated 111.50 meters true thickness) grading 1.38 g/t gold uncut (1.19 g/t gold cut), including 20.00 meters core length (estimated 15.00 meters true thickness) grading 4.72 g/t gold uncut (3.34 g/t gold cut).

Premier Gold Mines (TSX: PG)(OTC: PIRGF)

On October 26, 2016 Premier Gold mines announced that it had entered into two separate and definitive agreements with Goldcorp Inc. (TSX: G, NYSE: GG) ("Goldcorp") and Kinross Gold Corporation (TSX: K, NYSE: KGC) ("Kinross") to acquire highly prospective exploration projects in Nevada and Mexico.

The two projects, Goldbanks Project — Nevada (Kinross Deal) and Alto-Cristina Project — Mexico (Goldcorp Deal), add two more projects to an already impressive portfolio.

Ewan Downie, President & CEO of Premier, commented:

"These prospective high grade opportunities will further bolster Premier's pipeline of exciting projects and both agreements adhere to our strategy of gaining access to projects with the potential of high-margin production and minimal upfront risk and costs. We consider these targets to be some of the most attractive that the Company has identified over the past several years…”

Premier remains focused on building its mining business towards a mid-tier producer status with two gold-producing mines, South Arturo and Mercedes, and the ongoing permitting for future mine development at Hardrock in Ontario (Trans-Canada JV) and McCoy-Cove in Nevada. 

Advanced exploration continues in Red Lake and further work on the newly acquired projects will assist to prioritize the next tier of development projects and the future growth of the company.

Premier is positioning itself well for the next leg up in this young gold bull market.

To your wealth,


Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

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, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

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