Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
Closing in on its first gold pour, Pure Gold Mining has released assay results for eight underground exploration drillholes completed at its PureGold mine in Ontario’s Red Lake district.
These hit high-grade mineralization near the main ramp and extended mineralization around planned stopes. In addition, the latest intercepts hit areas with potential for additional contributions to the mine plan and confirmed stopes scheduled in the near term.
The drill highlights include 2.9 metres of 23.4 g/t gold; 6 metres of 10.3 g/t gold; and 2.2 metres of 13.7 g/t gold.
“These latest high-grade gold intercepts continue to bolster our belief that continued high-grade growth will add to the mine plan as we open up new zones,” CEO Darin Labrenz said in a press release.
“Our continued underground drilling success in concert with our ongoing surface exploration program, forms the foundation of our near-term and extended growth plan for the PureGold mine.”
The executive added that the new gold zones could add near-term tonnes to the mine plan at lower development costs due to their proximity to existing development.
The company continues to drill from surface along the 7-km prospective corridor at the 47-sq.-km PureGold site.
The company’s website is guiding for a first gold pour from the past-producing project by Christmas.
Probable reserves at the site are at 3.5 million tonnes grading 9 g/t gold, for a total of 1 million oz.
Midday Monday, Pure Gold’s stock was up 5% on the TSXV. The company has a C$1 billion market capitalization.
(A version of this article first appeared in the Canadian Mining Journal)
