Top 5 Market Moments

De Grey Mining’s Milestone: Over 10 Million Ounces at Hemi Gold Project (source: Smallcaps)

This week’s top market moment in the Australian gold mining sector features De Grey Mining‘s (ASX:DEG) Hemi gold project. The project’s gold resources have now surpassed 10 million ounces, fueled by recent drilling successes. Significant increases were noted both above and below 390 meters depth, with potential for further expansion. The company has refocused its efforts on extensional drilling and new discoveries, particularly in the Diucon-Eagle area. These developments indicate promising growth for the Hemi project, emphasizing its significance in the Australian gold mining landscape​.

Strickland Metals Shines with High-Grade Gold Discovery at Marwari Prospect (source: The West Australian)

Strickland Metals‘ (ASX:STK) noteworthy development last week was centered on its Marwari gold prospect, part of the Horse Well project in Western Australia. The company’s focus on Marwari, which features a new, high-grade gold target, significantly impacted its market performance. Key to this development was a gold discovery announced in mid-September, with promising drilling results. Strickland’s continued exploration and positive drilling outcomes at Marwari underline the company’s growing potential in the gold mining sector​.

Westgold Resources’ Strategic Financial and Operational Advancements for Growth (source: Share Cafe)

Westgold Resources‘ (ASX:WGX) notable development last week included a new $100 million revolving credit facility and significant operational progress. This financial move, coupled with the company’s strong cash position, signals its readiness for growth opportunities. Operationally, Westgold is advancing the Great Fingall mine and the Fender project, with production goals set for the 2024 financial year. The company’s strategy focuses on stabilizing and expanding its mining operations while maintaining a debt-free status, highlighting its robust position in the Australian gold mining sector​.

Sunshine Metals Strikes Gold: Major Discovery at Liontown Prospect (source: Smallcaps)

Sunshine Metals (ASX: SHN) made a significant gold discovery at the Liontown prospect in North Queensland, identifying a gold-rich feeder zone. Drilling results included a notable intersection of 17 meters at 22.1 g/t gold. This forms part of a new geological model, revealing potential for rapid growth in gold and copper inventories. With assays from further drilling expected in December 2023, the company is optimistic about uncovering more gold mineralization, applying modern exploration techniques at this historic mining site.

Astral Resources Expands Eos Deposit, Revealing High-Grade Gold Potential (source: Smallcaps)

Astral Resources (ASX: AAR) reported notable progress at its Eos deposit, part of the Mandilla gold project in Western Australia. Recent drilling has extended the high-grade central portion of the Eos palaeochannel by about 120 meters. Key results include intercepts of 4 meters at 3.22 g/t gold and 6 meters at 5.57 g/t gold. These findings highlight the potential for a shallow primary gold resource and suggest more bedrock gold mineralization, indicating room to increase the current 48,000-ounce mineral resource estimate.

Commodities Corner: Gold Recap

Gold prices experienced a dynamic week, with significant movements influencing the market. Starting the week on November 20 at $1,992 per ounce, gold prices exhibited a bullish trend, reaching as high as $2,000.49 by November 24. This upward movement marked a notable increase from the previous year, with a current price up 12.65% from the same period last year​​​​.

Several factors contributed to this trend. The U.S. dollar hitting a more than 2-1/2-month low played a crucial role, making gold less expensive for holders of other currencies. Additionally, the U.S. Federal Reserve’s minutes indicated a cautious approach to future interest rate hikes, prompting expectations that the central bank had reached a peak in its interest rate cycle. This dovish stance from the Fed, coupled with signs of slowing inflation in the U.S., boosted market expectations that further rate hikes might not be imminent​​​​​​​​.

Despite these positive indicators, gold didn’t sustain its rally above the $2,000 mark, showing a decline by the end of the week. This downturn was seen as a real invalidation of its previous rally, with a more bearish outlook for gold prices prevailing by the week’s end. Such fluctuations underscore gold’s volatility and its sensitivity to external economic factors, particularly U.S. monetary policy and currency strength​​​​.

Overall, the week’s activity in the gold market highlighted its role as both a safe-haven investment and a hedge against inflation, with its price movements closely tied to broader economic indicators and central bank policies.


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