Gold prices have edged higher today as investors digested the U.S. Federal Reserve’s monetary policy statement. The Fed concluded its two-day monetary policy meeting on Wednesday.
As expected, the Fed kept benchmark interest rates unchanged. However, the central bank noted that a 2016 rate hike is still in the cards. This, though, would not be a negative for gold as bullion investors are already pricing this in.
Remember that the Fed is likely to keep the pace of rate hikes slow. This means that the outlook for gold remains bullish. Market participants will now be closely watching the upcoming economic data, especially the jobs report for the month of September. If the jobs report for September shows any weakness, then a 2016 rate hike may become unlikely.
The outlook for gold also augurs well for Del Toro Silver Corp. (OTCPK:DTOR). Based in Carson City, Nevada, Del Toro Silver is a mining and exploration company engaged in the acquisition, exploration and development of gold properties in the western U.S.
The company focuses on California mining districts. The company’s wholly-owned subsidiary is Minera Plata Del Toro S.A. de C.V. DTOR has entered into a joint venture partnership terms agreement with Noble Mining Inc. with respect to the acquisition of a toll milling facility in the western United States. It owns 70% interest in Dos Naciones Property.
Dos Naciones Property is located in central Sonora State, 140 kilometers north-northeast of the city of Hermosillo and approximately 75 kilometers southwest of the Cananea porphyry copper mining district within the northern Mexico copper-molybdenum porphyry belt.
Del Toro Silver today announced that on September 14th, 2016, it renewed the November 14, 2011 asset sale agreement with Bowerman Holdings LLC to acquire up to 75% of the historic Discovery Day gold property in Siskiyou County, California.
As compensation for the renewal, the company paid one million restricted shares of common stock to Trinity Alps Resources, Inc., the parent company of Bowerman Holdings LLC. The agreement extends the closing of the transaction until March 17, 2017 and provides for as many as three additional 90-day extension periods.
The Discovery Day Gold Property is located near the town of Forks of Salmon, approximately 105 kilometers southwest of Yreka, California. The claim block consists of 48 unpatented BLM mining claims, controlling the prolific Knownothing Mining District and approximately 950 acres of USFS land. Historical records of the Knownothing district state the presence of high-grade gold ore deposits in at least six major, well-defined, quartz veins.
Patrick Fagen, CFO at Del Toro, said that the company has performed extensive due diligence on the Discovery Day Mine and believes it to be a unique asset.
Shares of DTOR have had a turbulent 52 weeks, but currently are in a strong uptrend that began in early-July.
