- With a record high spot price of USD 2,073.41/oz, gold showcased an exceptional performance in 2020.
- Avenira had acquired the Jundee South Gold Project to position itself in the global gold market with enormous potential.
- The gold explorer concluded an aircore drilling program which tested the priority I and II targets at Jundee South gold project
Gold has outshone most of the asset classes amid the current adverse economic situation triggered by the pandemic. The economies and the markets were disrupted significantly during the prime of the pandemic in 2020.
Investors showed their confidence in safe-haven assets like gold which surged to all-time high prices. The yellow metal saw huge investment inflows in the form of ETFs and central bank purchases which catapulted the gold price to the record high level of US$2,073/oz during August 2020.
Gold Price Chart of 12 months Image Source: Refinitiv Eikon
Gold miners and traders also made “fortunes” for themselves during the gold rally. Due to high gold prices and the weak economic situation in 2020, the gold consumption demand fell by 12% in 2020. As per the projection from the Australia Resources and Energy Quarterly December version, the gold prices are anticipated to stay strong and average around US$1,695/oz in 2021.
Interesting Read: How is the Gold Market Unfolding for ASX-listed Gold Stocks in 2021?
In the backdrop of the recent developments in the gold market, let us discuss the operational highlights of Avenira Limited (ASX:AEV), a dynamic Australian gold explorer.
Jundee South Project location Map (Image Source: ASX Update, 11 June 2020)
Avenira continues to make progress at its wholly owned Jundee South gold project in the Western Australia region.
What does 2021 hold for Avenira?
Avenira successfully completed the aircore drilling program at Jundee South project in December 2020. The company drilled 259 holes in the maiden drilling campaign at the project. The drill targets were segmented in Priority I, II and III on the basis of the geophysical data interpretation and the assessment of historical drill data.
Avenira drilled the Priority I and II targets during the last campaign and the assay results are in process. Based on the findings of the Aircore drilling and assimilating them with the geophysical logging, the Company will plan a more extensive and focused reverse circulation drilling campaign in 2021.
Action Plan for 2021
During Q1 of 2021, Avenira will correlate the findings of aeromagnetic survey data with the outcomes of the aircore drilling. The company will compile and analyse the geological interpretation from the drilling program.
Based on the findings, the company will chalk out the plans for RC drilling and deep testing of the targets. For Q2, Avenira plans to prepare the project site and acquire the necessary regulatory approvals for the RC drilling campaign. Further, the company envisages the first hole to spud in Q2 of 2021 itself.
Avenira traded at $0.011 a share on 2 February 2020 at 1:22 PM AEDT with a market capitalisation of $9.49 million.