Gold futures closed fractionally lower on Wednesday, with the COMEX December 2011 contract falling $3.60, or 0.2%, at $1,826.50 per ounce. The yellow metal fell to an intra-day low near $1,814 this morning, but pared its losses as trading progressed.
Silver underperformed gold futures, with the COMEX December contract sinking $0.61, or 1.5%, to $40.58 per ounce.
Weakness in precious metals came as investors moved into cyclically-sensitive stocks and commodities after German Chancellor Angela Merkel and French President Nicolas Sarkozy reportedly reaffirmed their support for Greece.
Gold and silver equities posted modest losses alongside the metals, with the Philadelphia Gold & Silver Index (XAU) retreating 0.6% to 217.04.
Colossus Strikes High Grade Gold at Serra Pelada
Colossus Minerals (CSI.TSX) announced additional assay results from the 25,000 meter surface drilling program at its 75% owned Serra Pelada Gold-Platinum-Palladium Project. The Serra Pelada Project is a Colossus-COOMIGASP Joint Venture located in Para, Brazil. Colossus plans to announce further details in the coming weeks once all results are received and interpreted. Full Colossus Minerals News Release.
HIGHLIGHTS:
- Hole SPD-113 intersected several ultra high-grade subzones within a continuously mineralized intercept of 74.4m at 31.17 grams per tonne (g/t) gold, 3.02 g/t platinum and 6.78 g/t palladium in the Central Mineralized Zone (CMZ).
- These results confirm the continuity of and extend the high-grade CMZ in the first area to be underground bulk sampled in 2012.
- Hole SPD-115 intersected 11.65m at 57.28 g/t gold, 6.58 g/t platinum and 7.66 g/t palladium.
- A detailed geochemical program is nearing completion on the entire concession package and new targets have been generated.
ARI SUSSMAN, CEO AND PRESIDENT:
“We are finally starting to see improved productivity in diamond drilling pace after changes we implemented over the summer period. The exploration focus for the balance of 2011 is going to be step-out drilling on the CMZ, follow up drilling on the ultra high-grade zone encountered in SPD-095, SPD-099 and SPD-115, and drilling of new targets outlined by extensive radiometrics and geochemical programs."
COLOSSUS VS. S&P 500, XAU
RON STEWART, DUNDEE SECURITIES:
“We believe the company is well on-track for their Q1/13 commercial production start. With infrastructure in place and construction of the gravity plant to begin shortly, we envisage Serra Pelada producing ~100k oz of attributable gold in 2013 along with some platinum and palladium."
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