- Gold prices have surged by over ~31.11% on YTD basis, Gold Stocks gaining benefits of commodity price surge, strengthening economics, and improving fundamentals
- SHH’ Golden Chimney, is a highly prospective project in the neighbourhood of several multi-million operations and discoveries
- Shree joins Arunta Joint Venture with Territory Lithium to explore Gold and base metals projects
Gold prices have grown by leaps and bounds fuelled by the dismal investment scenario mostly attributable to the impact of the coronavirus pandemic and increasing the fluctuations and risks to the conventional investment instruments.
Gold Price Performance Source: World Gold Council
Gold traded at US$1,989.40 an ounce on 1 September 2020 at 3:05 PM AEST registering an increase of almost 31% since the beginning of the year and ~25.5% in the past 6 months. Gold prices hit the record highs of over US$2,070 an ounce during August 2020. The strong rally in the gold prices has encouraged the gold explorers and developers to strengthen the supply from their existing operational mining facilities and the prospective gold projects during the shorter and longer period.
Unprecedented Gold Rally, ETF And Central Banks Consistent Buying Fuelling the Momentum
The coronavirus pandemic coupled with the already prevalent weak economic conditions triggered the bull run in the gold prices far exceeding the investment returns compared to any major savings supported by the consistent and robust Gold backed ETF demand and the gold buying by central bank globally.
As per the Australian resources and energy quarterly, Australia aims to emerge as the world’s largest gold producer surpassing China in 2021 on the back of increasing gold output from the existing mines and the mineral projects. Furthermore, these gold stocks focus on sustainable growth with the gold trading in the record ranges of over US$1,900 maximising the project economics and investment values.
With surging gold prices and strong exploration results, gold stocks present a strong case as investible instruments amid intense volatility in the equity markets. Since the 2008 gold rush, there has been a strong rally in the gold prices which hit its highs during 2011 whereas 2020 saw the resurgence of Gold prices reaching a record high.
Resurgence of an Experienced Explorer with Substantial Gold Opportunities at Golden Chimney
Shree Minerals Ltd. (ASX:SHH), an experienced and diversified metals explorer, progressing on the Golden Chimney Gold project in Western Australia. Shree Minerals holds a diversified portfolio with mineral projects across various precious and base metals including Gold, Iron ore, copper and lead, substantially reducing the risk related to the fluctuations in the commodity prices.
Gold Chimney project is situated in the neighbourhood of renowned gold mining and operations including Sons of Gwalia Gold mine (Production to date – 4 Moz Reserves – 1.9 Moz Gold), King of the Hills Mine (Resource – 380 koz Gold), Tower Hill (Resource – 625 ko. z Gold), Ulysses (Resource – 760 koz Gold).
Historical and recent RC drilling results at the Golden Chimney prospect Source: Shree Minerals
Shree completed the Reverse Circulation drilling at the Golden Chimney prospect aiming to test the extent of the mineralisation in the southwest (holes 19GCRC01, 19GCRC02) and northeast directions (hole 19GCRC04).
Further, the Western Australia Department of Mines, Industry Regulation and Safety had previously confirmed the grant of the prospecting licence P40/1354 in amalgamation with E40/378 (Golden Chimney project). Production track record updates over 358 kilograms of ore with a grade of 2.08 grams per tonne from Lone Hand and the Blue-Ribbon gold workings in 1983-84 was treated as per the stats from the government records from the Mines and Mineral Deposits database (MINEDEX).
Furthermore, Shree entered into a farm-in and joint venture agreement with Territory Lithium Pty Limited to explore prospective gold and base metals tenements. The Arunta Joint Venture includes Box Hole, Edwards Creek and Bruce Gold Projects in the Northern Territory stretching over 380 square kilometres including Jervois Copper Project and the Johnnies Reward Gold-Copper Project.
SHH share price closed at $0.012 a share on 1 September 2020, with a market capitalisation of $8.35 million.
All financial information pertains to Australian currency unless stated otherwise.