While the broader markets rallied following this morning’s better than expected jobs data, at least one strategist remained quite negative on the outlook for the U.S. economy.
In a note to clients, Michael Marrale – managing director and head of sales trading at RBC Capital Markets – wrote the following:
“(The jobs report) doesn’t solve anything. View it more as a selling opportunity rather than a reason to get back involved on the long side…The prior revision up is encouraging but at the end of the day, we are coming off the back of last Friday’s weak GDP number, Monday’s ISM report, and we are starting to hear some company commentary that we may be heading into or already be in a recession.”
While Marrale did not specifically discuss gold, the implications of his view clearly augur well for the yellow metal.
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).