The U.S. Federal Reserve just concluded its two-day monetary policy meeting a short while ago. As expected, the Fed kept benchmark interest rates unchanged. Interestingly, the Fed held on to its view about two rate hikes in 2016.
The Fed last hiked interest rates in December 2015. In May, the Fed had hinted at rate hike in the summer itself. However, a weak jobs report for the month of May has forced the Fed to delay a rate hike.
With the election coming up in November, it is unlikely that the Fed will now hike interest rates before that. Overall, the interest rate hike delays are positive for gold prices and gold mining companies.
Indeed, following the Fed statement, gold prices hit the $1,300-an-ounce mark. Gold mining stocks have also got a boost.
One major mover is Endurance Gold Corp. (TSX-Venture:EDG). Based in Vancouver, Endurance Gold is a metal exploration and development company. The company is focused on the exploration and development of mineral properties in North America.
The company’s properties include Pardo Joint Venture (JV) Property, Bandito Property and Elephant Mountain Gold Property.
EDG shares are also gaining momentum after the company announced that it plans to drill its 4,960-acre Elephant Mountain Gold Property in Alaska. The company said that three targets are being prioritized for drilling within the 1,800 metres by 600 m intrusive-hosted gold target.
EDG’s Elephant Mountain Property is well located close to Eureka in the Rampart-Manley Hot Springs area of Alaska, around 76 miles (123 kilometres) northwest of Fairbanks.
The Property can be accessed by highway, road and all-terrain vehicle trails from Eureka, a historic and active placer gold mining camp.
The Property area was previously explored for gold by Placer Dome, Inc. ("PDI") culminating in the drilling of 10 holes in 1992. The best of the PDI drill holes returned an average grade of 0.015 ounce per ton gold (0.514 grams per tonne (“g/t”) gold) over an interval of 326 feet (99.4 m) and bottomed in mineralization on the North Zone Target.
Mineralization on the property is associated with three generations of quartz veinlets crosscutting altered granite and syenite.
At last check, EDG shares were trading 11.11% higher at $0.0500 on above average volume of 60,000. Shares have been on the climb since April and are at about the mid-way point of their 52-week range.
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