Gold has been a big disappointment on edging lower at a time when other commodities appear to have found their footing. The precious metal has already plunged below the $1700 an ounce level before bouncing back. While it has since retaken the $1700 an ounce handle, it remains susceptible to more downside action amid the rising yields.
Weakness in gold prices has had little effect on activities in the gold mining business. Exploration and mining activities have edged higher. Similarly, a wave of consolidation also appears to have swept the industry as companies look to strengthen their reserves
VanGold-Endeavour Silver Corp Pact
VanGold Mining Corp (TSXV:VGLD) is the latest to expand its empire by signing an asset purchase agreement with Endeavour Silver Corp (NYSE:EXK) (TSX:EDR) . Under the terms of the agreement, the company is to acquire the El Cubo mine and mill complex .
A merger of El Cubo and El Pinguico will result in Mexico’s newest silver and gold producing company. With the acquisition, VanGold intends to refurbish the EL Cubo mill as it seeks to begin processing mineralized material before the end of the year.
US Gold Metallurgical Tests
U.S. Gold Corp. (Nasdaq: USAU) is another company to make impressive strides on the exploration front. The company has confirmed outstanding metallurgical testing results from its CK Gold project, having completed 30 drill holes.
According to the Chief Executive Officer, George Bee, the mines’ preliminary results indicate that the projected oxide portion of the deposit represents early material that could be mined. Likewise, improved recoveries from the mines could positively impact the project’s economic projections.
Separately, Caledonia Mining Corporation PLC (NYSEAMERICAN:CMCL) has achieved a significant milestone on being added to the MVIS Global Junior Gold Miners index. The listing should enhance the company’s profile among institutional investors who track the performance of the index. Chief Executive Officer Steve Curtis also expects the listing to significantly impact the company’s liquidity.