GOLD STOCKS NEWS – Gold stocks fell Thursday at mid-day, with the Market Vectors Gold Miners ETF dropping $1.27, or 2.5%, to $49.40 per share. Weakness in gold stocks came as the gold price retreated $17.42 to $1,206.59 per ounce, its largest decline in two weeks. For the week the GDX is now lower by 0.9%, but the gold stocks ETF remains higher by 6.9% year-to-date.
On a light news day in the gold stocks sector, Canadian-based gold miner, Claude Resources (CGR, CRJ.TSX), announced drill results from its Amisk Gold Project, located 20 kilometers southwest of Flin Flon, Manitoba, Canada. Claude Resources holds a 65% stake in the project through a joint venture with St. Eugene Mining (SEM.TSXV). Eleven holes in total were completed and assayed from the 2010 winter drill program, and the intercepts tested from surface to approximately 300 meters depth and mineralization was hit in all holes. Highlights from the results included an intercept of 1.29 grams per tonne (g/t) of gold and 8.0 g/t of silver over 161.86 meters.
Commenting on the results, Brian Skanderbeg – Vice President Exploration at Claude Resources – stated that “These 11 holes from the winter drill program have successfully confirmed near-surface, potentially bulk-mineable gold and silver mineralization. A significant number of the holes ended in mineralization. To date we have tested a strike length of 550 metres, with the potential to expand the system to the west, southwest and down dip to the northeast. These results are very encouraging and we look to expand on them through the summer program.” Claude stated that the summer program referred to by Mr. Skanderbeg is scheduled to begin this month.
Other gold stocks in the news on Thursday included:
Allied Nevada Gold (ANV, ANV.TSX), which completed its previously announced cross-border public offering of common stock. The offering consisted of 13.5 million shares at C$21.00 per share for aggregate proceeds of C$283.5 million. The company reported that it plans to use the net proceeds of the offering to satisfy its initial capital needs for the first three years of the accelerated mine plan at its Hycroft Mine, to fund exploration programs and to complete a feasibility study related to the sulfide mineralization at the Hycroft property. Shares of ANV.TSX were lower by 0.4% at C$19.97 in mid-day trading.
Gabriel Resources (GBU.TSX) was one of the few gold stocks trading higher, up 2.1% to C$4.35, after its shares were upgraded by Macquarie Research to “Neutral“ from “Underperform.“ The firm cited the approval of safety permits at two dams related to its Rosia Montana project in Transylvania, Romania as a driving factor behind the upgrade. Rosia Montana is the largest undeveloped gold deposit in Europe and one of the largest in the world. Macquarie also increased its target price on the shares from C$4.00 to C$4.75 to “reflect our outlook for continued strength in the gold price and to reflect the step forward in permitting.”
Additional notable movers in the gold stocks sector included Barrick Gold (ABX), IAMGOLD (IAG), and Randgold Resources (GOLD). Shares of ABX, IAG, and GOLD were lower by 2.3%, 1.6%, and 4.0% in mid-day trading.
