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From: B-Haile (eritrea.lave@comhem.se)
Date: Thu Oct 07 2010 - 16:15:22 EDT
Gold Price Hits $1,350, Sunridge Advances
Posted by jturbin on Oct 6 2010. Filed under Breaking News, Gold Price, Gold Stocks, Sponsor News
GOLD PRICE NEWS - The gold price rose to a new record high as the spot price of gold briefly surpassed the $1,350 level Wednesday. Further weakness in the U.S. dollar helped propel the gold price to new all-time highs, with the U.S. Dollar Index falling 0.5% to 77.41, its lowest level since mid-March. The gold price rally and U.S. dollar sell-off came after the September ADP employment report missed expectations, showing a 39,000 payroll decline versus an expected 20,000 gain.
With Wednesday's advance, the gold price extended its year-to-date rally to 23.3% and is on track for its tenth consecutive year of gains. While the price of gold has outperformed most other asset classes, shares of many small-cap gold explorers have posted far superior gains due to the gold price leverage they can provide to investors. One noteworthy company is Sunridge Gold (SGC.TSXV), a Canadian-based gold explorer that has climbed 74.5% in 2010 as it continues to advance its Asmara Project in Eritrea, Africa.
This afternoon Sunridge Gold announced the start of a new exploration drilling program on the exploration areas of Asmara. The new joint venture drilling program is operated by Sunridge and funded by Antofagasta Minerals, a London-based mining conglomerate with a market capitalization over $6 billion. The program consists of no less than 3,000 meters of diamond drilling and is targeting areas that have the potential for large new discoveries. The company noted that initial results are expected to be received in November 2010 and announced upon receipt.
Sunridge also reported that it has mobilized a reverse circulation drill rig to Eritrea to begin a 4,000 meter drill program at the Gupo Gold deposit and a 1,000 meter program at the new Medrizien gold target within the next four to five weeks. At Gupo, the goal of the program is to upgrade the existing gold resource, presently 189,000 ounces contained in 1,965,000 tonnes at an average grade of 2.99 g/t gold, from an Inferred to an Indicated category and to potentially expand the size of the resource. At Medrizien, Sunridge's objective is to make a new gold discovery on the Asmara Project.
While investments tied to the price of gold such as Sunridge undoubtedly carry more risk than the yellow metal itself, the gold price leverage offered by junior gold companies often compensates for this risk. Shares of many small-cap gold names have posted returns several multiples of the price of gold this year, and while there is no guarantee that a gold explorer will achieve production status, with a gold price north of $1,300 per ounce, the potential investment rewards have improved considerably.
Short URL: http://www.goldalert.com/?p=4521
http://www.goldalert.com/2010/10/gold-price-hits-1350-sunridge-advances/
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