Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Gold and silver have fallen out of bed this week as the top stories provide an opportunity for the mainstream media to deliver another volley of ‘things are getting better’ nonsense into the economic ear of the permanently numbed investing public.
Osama Bin Laden’s worst day of his life ended with his death Sunday at the hands of United States Storm Troopers who caught the lanky lethal lunatic with his pants down at fancy mansion outside the Pakistani capital of Islamabad. The Pakastani government was also caught without pants, admitting it had no idea of the presence of Bin Laden nor the impending raid by Navy Seals. The sheer glee of that fact was enough to send gold, silver and oil into a tailspin, which we predict will last a week or so before this small victory is forgotten amid the bigger problems the United States, and thanks to its larcenous government, the rest of the world have ahead of them.
But all the good or bad news in the world can’t stop the drills from turning among the roster of 1,600 Canadian TSX and TSX Venture listed exploration companies, who are responsible for 80% of the world’s precious resource financings and a proportional number of the important discoveries in precious metals.
Today brought several big announcements, which, following on the heels of last week’s knocked-it-straight-outta-the-park intersection by Newstrike Capital (TSX.V:NES, NWSKF:PK) of a 230 metre intercept grading 7.51 grams per tonne gold, demonstrates how the record investment in junior exploration is finally paying off.
Newstrike wasn’t the only one putting out news of a big hit, though it certainly qualifies as the home run of 2011 so far. Golden Predator Corp. (TSX:GPD) drilling on two fronts, announced a 74 metre intercept grading 7.08 grams per tonne gold from the company’s winter drilling program at Brewery Creek in the Yukon. This intersection follows others from the same program including 28 metres grading 5.06 grams per tonne, 32.9 metres grading 3.01 grams per tonne. Brewery Creek is shaping up to be a large, high grade deposit.
Also noteworthy was Rio Alto Mining Ltd.’s (TSX.V:RIO) 173 metre hit grading 1.53 grams per tonne gold from its La Arena mine in Peru. Another hole reported in the same press release graded 1.2 grams per tonne gold over 208 metres.
Galway Resources Ltd. (TSX.V:GWY) announced a 125 metre intercept grading 3.8 grams per tonne gold, within which was a 36 metre section grading 8.9 grams per tonne gold from its California property, which is along the eastern border of Ventana Gold’s La Bodega project in northern Santander province.
Galway has two drill programs running right now with a total of 5 rigs working and an additional one expected to join the underground program at the Vetas target. Considering the substantial drilling success realized to date, Galway Resources looks like it is going to become very attractive to Ventana, which was purchased by Eike Batista’s AUX Canada Acquisition Corp. for $13 a share.
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