Gold and silver shares surged higher alongside precious metals Wednesday afternoon after the Federal Reserve extended the time period for its near-zero interest rate policy from mid-2013 to late-2014.
COMEX gold futures rallied from an intra-day low of $1,649.20 to as high as $1,704.50 per ounce, its highest level since December 9, 2011. Silver futures jumped from $31.525 to an intra-day high of $33.32 per ounce on the COMEX.
The rebound in precious metals coincided with the U.S. dollar turning lower against a basket of foreign currencies following the release of the Fed statement.
The Philadelphia Gold & Silver Index (XAU), a composite of the world’s largest precious metals companies, climbed 3.6% to 193.02 – marking its best day since a 4.8% surge on January 3rd of this year.
Among gold miners, notable advancers included Gold Fields (GFI) and Kinross Gold (KGC), which climbed 2.7% and 3.3%, respectively.
As for silver stocks, Coeur d’Alene Mines (CDE) rallied 4.8% and Hecla Mining (HL) advanced 4.4%.
Aurizon Reports Record Gold Production in 2011
Aurizon also provided details on its capital and exploration budgets for 2012, which included $71 million at Casa Berardi for the continuation of the shaft deppening, equipment, infrastructure and sustaining capital. The Company plans to spend $2.3 million at its Joanna project in Canada for metallurgical testwork and completion of the final feasibility and related studies. Full Aurizon Mines Press Release.
- 2012 gold production forecast of 155,000-160,000 ounces
- Exploration drilling program of 24,500 meters on Joanna's Heva deposit at a cost of $3.6 million
- Exploration expenditures of $9.7 million on Aurizon's other properties including 47,000 meters of drilling
- The Company expects to release an updated mineral reserve and resources estimate for Casa Berardi in early March 2012
