Gold prices have made a strong recovery since the start of this year. Last week, prices jumped above $1,300 U.S. an ounce as a weak jobs report raised the possibility of a delay in rate hikes from the U.S. Federal Reserve.
Several analysts have turned bullish on gold in recent weeks. Earlier this week, Goldman Sachs analysts raised their price forecast for gold. Dennis Gartman of Gartman Letter expects prices to hit $1,500 U.S. an ounce.
The recovery in gold prices has also boosted shares of gold mining companies. Indeed, year-to-date performance of gold mining stocks has been significantly better than the performance of gold itself.
Barrick Gold Corporation (NYSE: ABX), for example, has gained almost 148% this year. Goldcorp Inc. (NYSE: GG) shares have gained more than 58% so far this year. Kinross Gold Corporation (NYSE: KGC) shares have gained more than 177%.
Another gold mining stock that has posted strong gains this year is Knick Exploration Inc. (TSX-Venture:KNX). KNX shares are also surging in trading today, up 50% on close to 800,000 in volume, which is more than 35 times the daily average volume.
Based in Canada, Knick Exploration is engaged in identifying new gold deposits on its properties located within two key gold mining areas the Val-dae Or (Quebec) and West Timmins (Ontario) mining camps. Knick is also focused on identifying new gold deposits in another mining region, the Abitibi Gold District.
The company is actively exploring its flagship East-West property, located in the Val-dae Or Mining Camp along strike between the active Kiena Mine (Wesdome Mining Ltd) and past gold producer Marban Mine.
Knick Exploration shares are soaring in trading today after the company reported that the ongoing compilation of data on the East-West property has delivered positive results by identifying new high grade gold targets to expand the property’s West Gold Zone, and also a start to evaluating the strategy for the resumption of drilling as soon as possible.
KNX said that the grade pattern obtained by the compilation work confirmed the continuity of drill intervals above three grams of gold per tonne over a core length of more than three metres down to 220 metres centered on the West Zone.
KNX said that the drill program planning is well advanced, and all targets of the next drilling campaign will be focused on confirming gold grade, and thickness and consistency of known gold concentrations.
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