Weekend Rundown 07/09/19

It was a very rocky week for metals across this board.

SILVER

Silver exploded on Tuesday reaching a high of USD $19.57 then coming back down, ending the week down 1.5% at USD $18.160. I do think we are at the start of a multi-year bull run. Below is a chart by @This_Guhy I find interesting and shows a compelling reason why the bull run will happen. 

GOLD

Gold had a similar week to Silver, running hard on Tuesday and again on Thursday reaching a high of USD $1552.14 but coming back down on Friday finishing the week down 1.5% at $1506.62. As nothing ever goes up in a straight line, I think this slight pullback is a small consolation in line with a big bull run over the next few years. 

Below is another great chart from @Northst18363337 which indicates a Gold bull run for the next 4-5 years, reaching highs of USD $2100.

GDXJ

The Junior miners took the biggest hit this week down 3.92%, ending the week at $39.18. As Gold and Silver continue to rise in the future as will the GDXJ.

Iron Ore

Iron Ore finished the week in the green after coming off the back of the biggest monthly drop in price in the past 8 years. After reaching a high of USD $110 in late July, the price has shot back down finishing this week up 1.31% at USD $89.44. Many analysts predict the price slide over the next two years as the domestic slowdown in China continues. 

Great Bear Resources (GBR.TSX)

GBR finished the week up 26.5% on the back of recent drill results returning multiple gold discoveries along 3.2 kilometres strike length of the approximately 18 kilometre long LP Fault target at its 100% owned Dixie project in the Red Lake district of Ontario.

New high-grade gold intercepts include: 101.70 g/t gold over 1.50 metres, within 10.65 g/t gold over 17.25 metres at the Auro Zone, and 27.77 g/t gold over 2.00 metres within 11.08 g/t gold over 7.00 metres in the Yuma Zone.

Compass Gold Corp (CVB.TSX)

Compass Gold Corp ending the week up 31% on the back of results from the recently completed diamond core drilling program at the Farabakoura artisanal workings on the Ouassada permit, Sikasso Property in southern Mali.

Diamond drilling at Farabakoura intercepts high-grade gold mineralization in bedrock, including:

  • 6.1 m @ 65.6 grams per tonne (g/t) gold (Au) from 19.5 m (OUDD004)
  • 13 m @ 9.25 g/t Au from 21.1 m (OUDD006)
  • 7.1 m @ 2.13 g/t Au from 68.9 m (OUDD007)
  • 7.0 m @ 1.45 g/t Au from 76 m (OUDD008)

CVB only has a market cap of CAD $12 million so this could be one to watch.

Saint George Mining (SGQ.ASX)

SGQ announced on Monday a new Nickel discovery close to the surface. The readings according to XRF were up to 6% Ni. SGQ ended the week up 42%. This will be another one to watch as drilling is due to commence next week.

Chesser Resources (CHZ.ASX)

On Tuesday, CHZ announced drill results from there flagship Diamba Sud Project in Senegal. 

Significant intersections encountered along two interpreted north-trending host structures adjoining Line D within the Northern Arc Target, including:

  • 53m at 2.61g/t gold from 57m, including 17m at 4.97g/t gold from 59m in hole DSR103
  • 4m at 2.23g/t gold from 93m, and 4m at 2.75g/t gold from 99m in hole DSR097
  • 14m at 1.74g/t gold from 8m in hole DRC096
  • 2m at 4.99g/t gold from 22m in hole DSR100

These drill results follow results last week from the company which showed Best intersections of 21m at 6.62g/t gold and 14m at 9.53g/t gold. CHZ only has a market cap of AUD $15 million. If they keep hitting similar grades, this could be a decent-sized deposit. 

I leave everyone this weekend with an image that best describes why in the last 50 years now is the best time to invest in commodities. Have a great weekend and stay safe. 

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