MONDAY saw a rise in the price of gold, after the U.S. Federal Reserve Chairman signaled that the central bank is likely to raise U.S. interest rates gradually.
Gold Spot rose 0.33% to USD 1,209.31 per ounce during the Monday trading session, while U.S. Gold future for December delivery gained 0.21% to USD 1,215.90 per ounce. Fed Chairman Jerome Powell’s speech at Jackson Hole on Friday suggested that a gradual rate hike will be appropriate to protect the U.S. economy and keep inflation under control. Gold price jumped about 1.7% on his comments on Friday, the biggest one-day gain since March. The market expects two more rate hikes this year. Sixty North Gold Mining Ltd. (OTC: SXNTF), Hecla Mining Company (NYSE : HL ), Gold Standard Ventures Corp. (NYSE : GSV ), Alio Gold Inc. (NYSE : ALO ), Tahoe Resources Inc. (NYSE : TAHO )
A weaker U.S. Dollar also helps support the gold price. The Dollar index, which tracks the U.S. Dollar against a basket of six major currencies, fell 0.44% to 94.73 on Monday. According to MarketWatch, the analysts at Commerzbank, led by Carsten Fritsch, said in a note, “As in the weeks before, it was mainly a question of short positions being increased while longs remained virtually unchanged. Some of the short positions are likely to have been covered at the end of last week, especially after the price exceeded the USD 1,200 mark.”
Sixty North Gold Mining Ltd. (OTCQB: SXNTF) also listed on the Canadian Securities Exchange under the ticker (CSE: SXTY). Earlier this month, the Company announced that, “it has received the metallurgical test results from a quarter ton sample of the crown pillar of the A-Zone at the Mon Gold Property.
Three separate transects across the East Limb, Fold Nose (hinge) and West Limb of the A-Zone were sampled by mechanical hammer by the Company’s CEO and Director Ronald Handford and Dr. D.R. Webb. The material was bagged and tagged, and delivered to Bureau Veritas Laboratories in Yellowknife where it was shipped to their metallurgical testing lab in Richmond B.C. for testing by gravity and flotation methods.
Table 1. Summary results from metallurgical testing, 2018
Composite ID – Sample Weight Tested – Head Grade, g/t Au —–Gold Recover, %Au
(kg) Measured Calculated Gravity Flotation Overall
Composite 1 75.6 17.4 16.6 79.9 18.0 97.9
Composite 2 83.8 266.8 314.8 73.2 26.0 99.3
Composite 3 83.6 170.7 128.9 75.7 23.5 99.2
(Composite 1+2+3) 243.0 156.2 158.0 76.1 22.7 98.8
All assays by Bureau Veritas FAA550 1 assay ton sample. Average sample size=1.8 kg.
All samples were collected using an electric percussion hammer and located by tape and compass, bagged and tagged, sealed, delivered to Bureau Veritas Laboratories in Yellowknife and processed at their ISO/IEC 17025:2005 and ISO 9001:2015 metallurgical testing laboratory in Richmond, B.C. Bureau Veritas is independent of the Company. The sample was received, dried and weighed. Test grinds were completed and the samples were batched with a targeted grind of P80 -105µm.”
Ronald Handford, CEO of Sixty North Gold, reports, “These results were expected based upon historic results and our recent trenching (News Release August 7th, 2018). The very high recoveries, both by gravity as well as the combined gravity plus flotation, averaging around 76% and 99% respectively are consistent with historic results. The former operators only ran a gravity mill on site. The simple mill circuit required to process this mineralization has been permitted and could be installed upon confirmation of a larger bulk sample. These results further differentiate the Mon Gold Property as an advanced exploration opportunity and past producer, and represent a significant milestone for the Company in its advancement of the project. The environmental benefits of achieving very high recoveries without the use of cyanide leaching is notable.”
Mr. Handford further reports, “Crews have been on the property since June assessing all historic showings and identifying new zones. Sample results are being received and will be released upon completion and confirmation by our QP.”