It has been an excellent year for gold mining stocks so far. The reason behind the rally in gold mining stocks of course is the comeback in gold prices. Gold prices have bounced back as the U.S. Federal Reserve has stayed on a dovish path for longer than anticipated.
But even if we see the Fed tightening, we could see gold mining stocks continue to gain momentum. One major reason for this is that miners do not need prices to continue to move in an upward trajectory. What they are looking for is price stability. As long as prices remain around $1,300 an ounce, miners will enjoy strong margins, given that they have significantly brought down costs during the low price environment of the last two years.
Makena Resources Inc. (TSX-Venture:MKN) is a Vancouver-based mining company. The company today announced that drilling is now underway on its Clone gold and gold-cobalt property located 12 miles (20 kms.) southeast of Stewart in the Golden Triangle region of northwestern British Columbia.
To date, the company has achieved significant drill results that returned grades of 12.80 m (42ft) of 44.75g/t (1.305oz/t) gold values including 4.87m (16 ft) of 76.80g/t (2.240oz/t). During another phase of a work program, the Company completed a 102-tonne bulk sample from which the average grade was 4 oz/t or 137.1 g/t gold over the 102 individually tested one tonne samples.
The company also recently acquired 4,060 hectares prospective for diamonds in the Athabasca region of Saskatchewan in the direct vicinity of the De Beers' diamond option from CanAlaska Uranium Ltd.
Negar Adam, President of Makena, said that the company is very optimistic about this drill program and that it has had success in this area in the past and he looks forward to what may transpire on the property in the next few weeks. Adam added that the company is pleased finally to be drilling Makena's most advanced and flagship property once again.
Makena Resources shares are seeing subdued activity in trading today as investors digest the latest news. At last check, the stock was trading at $0.0250, unchanged from the previous trading session’s closing price, on volume of 125,000. So far this year, Makena Resources shares have gained more than 66%, which is in line with the performance of gold stocks.
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