NEW YORK, June 28, 2017 /PRNewswire/ --
Gold prices increased on Tuesday as the U.S. dollar weakened and the sell-off in technology stocks resumed. Gold Spot rose 0.43 percent to $1,250.10 per ounce during the Tuesday trading session. While U.S. Gold futures for August delivery increased 0.34 percent to $1,250.60 per ounce, the U.S. dollar fell 0.63 percent against major currencies on Tuesday. Gold price is sensitive to the U.S. dollar as a weaker dollar makes other currencies holders cheaper to buy dollar-denominated commodities. The selloff in technology stocks worsened on Tuesday as investors were concerned that the valuation for technology companies are too high. The tech-heavy Nasdaq Composite Index dropped as much as 1.6 percent. Gold is considered as a safe-haven asset during times of political and economic turmoil. Magellan Gold Corporation (OTC: MAGE), Nevsun Resources (NYSE: NSU), Taseko Mines Ltd (NYSE: TGB), McEwen Mining Inc. (NYSE: MUX), B2Gold Corp. (NYSE: BTG).
Gold has gained nearly 9 percent year-to-date. Global geopolitical uncertainty is the major driver of the yellow metal. According to a report by MarketWatch, Frank Holmes, Chief Executive and Chief Investment Officer at U.S. Global Investors stated, "The metal is responding to the typical demand drivers that I always discuss, like geopolitical uncertainty, a weak dollar, low interest rates. Perhaps one of the most shocking things is that last week, for the first time since the November [U.S. presidential] election, gold was outperforming the U.S. dollar."
Magellan Gold Corporation (OTCQB: MAGE) is a U.S-based mining and exploration company focused on silver and gold. After the market close yesterday, the company commented on promising high-grade gold and silver assays obtained from prospects within trucking distance of the SDA Mill. The prospects were evaluated for their potential to supply high-grade ore to the mill. In March 2017, the Company entered into an option agreement to purchase the SDA Mill.
"We recently conducted initial sampling on ten prospects, three of which returned high-grade gold and silver assays," said CEO Pierce Carson. "We intend to follow up on these as well as a number of other attractive opportunities of which we are aware. The mill lies within the rich Sierra Madre Occidental mineralized belt, which historically has yielded millions of ounces of precious metals and offers multiple high-grade gold and silver epithermal vein targets."
"Our program to evaluate and acquire promising sources of new ore will be an on-going effort in line with our corporate objectives of first, to develop lucrative high-grade ore for processing through the mill in place of toll ore, and second, to expand production above the current capacity of 200 tons per day."
In April 2017, the Company's geologists visited and sampled ten prospects and collected 117 rock chip samples across epithermal veins. Results from all prospects returned anomalous gold and silver values. Highest individual values (not necessarily representative) ranged to 170.0 g/mt gold and 733.0 g/mt silver. Three prospects with encouraging results warrant follow up.
The assay results from five adit samples from one of the prospects show an open-ended, 70+ meter long high-grade ore shoot. The ore shoot averages grades of 14.10 g/mt gold and 6.98 oz/mt silver over an average width of 0.82 meters. The vein is exposed for 200+ meters along strike. The 70+ meter long high grade portion is open along strike and at depth. This prospect will receive high priority for follow up. In addition to the ten prospects the Company has sampled, a number of others have been identified for evaluation. One of these is a high-grade silver vein exposed in shallow workings and has been professionally sampled. The vein averages 1,200 g/mt silver (38.6 oz/mt) over a minable width. It has been estimated that approximately 2,000 tonnes are 'in sight' but strike and depth extent are unknown.
In March 2017, Magellan acquired a 150-day option to purchase the SDA Mill from Rose Petroleum plc (Aim: ROSE) for consideration of $1.0 million in cash and $500,000 in restricted common stock of Magellan. The SDA Mill consists of an operational flotation plant, and a precious metals leach circuit and associated assets. The mill's normal operation is based on sales of flotation concentrates to smelters, and payment for precious metals content. Historically the mill has operated for ten years, processing its own ore and also engaged in toll milling for third party ore producers."
Nevsun Resources (NYSE: NSU) operates Bisha, a high grade open pit copper-zinc mine, and is developing the Timok copper-gold project. Earlier in April, the company provided an update on the high-grade Timok Upper Zone, Cliff Davis, Nevsun CEO. Mr. Davis commented, "We are very satisfied with how the Timok UZ project is coming together. With over 336 Serbian nationals on staff or on contract, the team is executing the pre-feasibility study ('PFS') and further advancing the project as we remain on track to deliver the PFS in September and break ground on an exploration decline in Q4. Due to our strong cash position and Bisha cash flow, we are embarking on a regional exploration program targeting more high-grade Upper Zone type mineralization. The licence area remains under-explored, even adjacent to the Timok UZ resource, and a new discovery of an additional upper zone would be game changing."
Taseko Mines Ltd (NYSE: TGB) owns several deposits and mines, among them is the New Prosperity deposit, which is a gold-copper porphyry with a one billion tonne measured and indicated resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold. At metal prices of US$1,000/ounce gold and US$3.15/pound copper, the project has a pre-tax net present value of C$3 billion and a 40% pre-tax internal rate of return. At long-term gold and copper prices, the project has robust economics. According to the company, "New Prosperity is a project that holds the potential to dramatically increase shareholder value and improve the economic well-being of local communities. Development of this large-scale deposit will be a major step towards transforming Taseko into a strongly positioned mid-tier mining company."
McEwen Mining Inc.(NYSE: MUX) principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Sinaloa, Mexico, the Gold Bar project in Nevada, USA, the Timmins projects in Ontario, Canada and the Los Azules copper project in San Juan, Argentina. On May 4th, the company reported consolidated financial results for the first quarter ended March 31st, 2017. Increased investments in exploration and project development, particularly related to the company's Los Azules copper project, was the key feature of the quarter.
B2Gold Corp. (NYSE: BTG) is one of the fastest-growing intermediate gold producers in the world. The company has four operating mines, one mine under construction and numerous exploration projects in various countries, including Nicaragua, the Philippines, Namibia, Mali, Burkina Faso and Finland. On June 15th, B2Gold Corp. announced the maiden Mineral Resource estimate for the Anaconda area of the Fekola Project located in southwestern Mali and new exploration drill results from beneath the saprolite and for Anaconda. This initial Inferred Mineral Resource estimate is 21.59 million tonnes at 1.11 g/t gold for 767,000 ounces.
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