Gold, Silver Shares Surge, Outperform Metals

Wednesday, June 29, 2011, 10:50am EDT Written by GoldAlert Staff.

Gold and silver shares surged higher on Wednesday, as the Philadelphia Gold & Silver Index rallied 1.9% to 199.12 in morning trading.

Gold and silver equities continued their recent stretch of outperforming precious metals, as gold bullion rose just 0.2% to $1,503.81 and silver advanced 0.5% to $34.11 per ounce.

Among gold producers, Agnico-Eagle Mines (AEM) and Yamana Gold (AUY) jumped 1.0% and 1.6%, respectively. Pan American Silver (PAAS) and Silver Standard Resources (SSRI), two of the largest companies in the silver sector, added 2.0% and 2.1%, respectively.

The precious metals sector moved higher despite relative stability in the currency markets following Greece’s vote to pass a new set of austerity measures. The euro currency held near unchanged at 1.4340 against the U.S. dollar, after reaching an intra-day high of 1.4415 earlier this morning.

Spanish Mountain Gold Advances Flagship Project

Spanish Mountain Gold (SPA.TSXV) reported preliminary results of the in-fill drilling program within the Main and North Zones of its Spanish Mountain Gold Project, located in central British Columbia, Canada. The results represent approximately 30% of the total planned drill holes that are designed to upgrade mineralization from the Inferred to Measured and Indicated categories, test for extensions to gold mineralization laterally and at depth and to optimize the design of pit walls. Along with the in-fill and exploration drilling being conducted, Spanish Mountain Gold is preparing to commence a Preliminary Feasibility Study for the Project, based on the positive results contained within the Preliminary Economic Assessment completed in 2010. Full Spanish Mountain Gold News Release.

Brian Groves, President and CEO:

“The exploration drilling was successful in demonstrating that the potential exists to expand the areas of mineralization to the east and west. Additional drilling will be done in 2011 to better define the continuity of mineralization in these areas.”

HIGHLIGHTS:

Intersection of 204.3 meters grading 0.46 gram per tonne (g/t) gold including 52.8m grading 0.74g/t gold and including 20.4m grading 1.26g/t gold in hole 11-DDH-921.
62.5m grading 0.64g/t gold in hole 11-DDH-925.
53.5m grading 0.65g/t gold including 1.5m grading 15.25g/t gold in hole 11-DDH-927.

Paul Dietrich, Foxhall Capital Management:

“This Canadian gold mining development company has a market cap of about $74 million and has, by my calculations, some of the cheapest in-the-ground gold in the world that is located in a politically stable country.”

spanish mountain map

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Gold, Silver Shares Surge, Outperform Metals

Spanish Mountain Gold Advances Flagship Project