Gold futures extended their gains following the Fed announcement, with the COMEX December contract rising to as high as $1,780.25 per ounce. In doing so, the yellow metal climbed within inches of its $1,782.50 record high, reached early this morning. As afternoon trading progressed, gold futures pared their gains, sliding back toward $1,765 per ounce.
The broader equity markets experienced far more volatile swings this afternoon, as the Dow Jones Industrial Average (DJIA) initially gave up its gains and tumbled nearly 200 points. However, the Dow subsequently bounced all the way back into positive territory, by 264.40 points at 11,074.25.
Gold shares followed a similar path to that of the broader markets, as they initially gave up their gains following the Fed announcement but later rebounded this afternoon. The AMEX Gold Bugs Index (HUI) climbed 3.8% to 546.05.
West Kirkland-Newmont Joint Venture Reports Results
West Kirkland Mining (WKM.TSXV) reported assay results from the Company's first core drilling on its TUG property, which is currently under option from Newmont Mining (NEM). The first hole of the drill program returned 15.48 meters (50.8 feet) grading 3.08 grams per tonne gold (0.09 oz/t) and 94.75 grams/tonne silver (2.77 oz/t).
Approximately 400 shallow RC type holes have been completed at the TUG property and a near surface historic resource has been calculated. West Kirkland current drill program is designed to provide confirmation of the previous gold values in order to produce an updated compliant resource calculation as well as to explore for the roots and controls on the higher grades with the recent Long Canyon model in mind. Additional targets have been identified that have the potential to expand the deposit along strike and down dip.
Full West Kirkland Mining Press Release.
*First hole returned 15.48 meters (50.8 ft) grading 3.08 grams per tonne gold (0.09 oz/t) and 94.75 grams/tonne silver (2.77 oz/t).
*2011 drill program will include a minimum of five holes for 1,500 meters (5,000 feet) in the TUG deposit - Long Canyon Trend.
*Drilling of up to 1,500 meters (5,000 feet) at the Bullion Mountain property, North of the Pipeline Mine Nevada (10 g/t surface assays-shallow and deep high grade target).