Gold equities turned higher Thursday afternoon despite weakness in gold bullion, as the second largest rally in over two years in U.S. financial markets lifted shares tied to the yellow metal.
The AMEX Gold Bugs Index (HUI) rose 0.7% to 571.20 this afternoon, after falling to an intra-day low of 550.34 this morning. The sector’s advance was fueled by a 423.37 point, or 3.95%, rally in the Dow Jones Industrial Average to 11,143.31.
Following this past Tuesday’s 3.98% climb in the Dow, today marked the Index’s second best day since it surged 6.8% on March 23, 2009, just weeks after the stock market reached its lowest point since 1997.
Furthermore, strength in gold shares came despite a negative reversal in gold futures. COMEX gold futures, per the December contract, reached a new record high of $1,817.60 early this morning, but plummeted to as low as $1,734.50 per ounce in afternoon trading. As of 4:18pm ET, gold futures traded at $1,757.40 per ounce.
With today’s rally, the HUI and Dow cut their respective year-to-date losses to 0.4% and 3.8%.
Within the gold sector, three of the top performing names included AngloGold Ashanti (AU), Freeport-McMoRan Copper & Gold (FCX), and Newmont Mining (NEM).
AU climbed 3.3% to $45.80 per share, FCX added 5.2% to $45.82 per share, and NEM rallied 4.5% to $58.30 per share.
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).