Good afternoon
hard lockdown in Germany…similar measures being taken across Europe…yet equity markets are racing higher…markets are looking past the virus, expecting stimulus programs to carry economies past the worst, and a strong recovery once various vaccines are available…Let´s hope, that tehy are right! The hangover from the spending spree might be significant! But I guess everybody wants to have a strong finish for the year, and a lot of people will want their cash to be deployed early in the new year. After that - god knows!
Metals are also charging gigher, led by nickel - helped by trouble at Goro in New Caledonia, where separatists are a real problem. a little bit of profit taking in copper.
Some crazy people are speculating about Australia to retaliate against China, by imposing tariffs on iron ore exports to China!
Gold continues to be out! Down 10$ by late afternoon, and redemptions of Gold ETF´s have resumed following a short respite.
Bellevue - will become a member of the Junior Gold Index - the GDXJ has to buy an estimate 35 mill shares. That explaines some of the recent strength.
Horizon Gold - have finally announced some drilling results from the first round of drilling at their Gum Creek Gold Project, Swift and Swan deposits. These deposits have an inferred resource of approx 500.000oz at around 7g. Results have been excellent, from infill- as well as extensional drilling: 29m with 9g/9m with 12,7g / 12m with 7,4g / 21m with 2.8g etc. Once the company has converted inferred resources to indicated resources, they are allowed to publish scoping- or at a later stage, prefeasibility studies. IF resources can be increased substantially, a stand-alone plant would become an alternative - if not, trucking the ore could be a very sexy attraction. The project has an operational mining camp, as well as an airstrip. On my numbres, the mine could produce 25-30.000 oz at about 700 A$/oz cash operating costs for many years…plus additional costs of say 300 A$ to use somebodies plant! That adds ap to roughly 1000 A$/oz…or about 35-42 mill A$ p.a. before headoffice and exploration, and at todays A$ 2400/oz. ! To bring the mine into production on that basis, only roughly 20 mill A$ would be needed in pre-production capital! At a market cap of 41 mill A$, the stock is very cheap - and it´s not hard at all to see HRN double in value - despite it´s major shareholder Zeta Resources!
Have a nice evening
WS