What can really be said about gold that hasn’t been said already? The story continues to remain the same; the only difference is the dollar figure per ounce. Its astronomical climb continues again today as investors flock to the safe haven as equities continue to take a royal beating despite yesterday’s one-day rally. The U.S. Federal Reserve's announcement that it will maintain its low interest rates served as yet one more catalyst to keep driving the precious metal even higher.
December gold surged again today, breaking through the 1,800-per-troy ounce barrier on the Comex division of the New York Mercantile Exchange. At least in the short term, there doesn’t appear to be an end in sight for just how high gold can climb. While this may not be boding well for all the miners on a daily basis simply because of "equity fear," it could prove to be a strong harbinger for future revenues.
GoGold Resources, Inc. (TSX-Venture:GGD), a Halifax-based junior miner, is positioning itself to capitalize on the ongoing rise in gold and other mineral prices. The Company controls properties in both Canada and Mexico, but is focusing its efforts on its flagship property in Mexico, the "San Diego" Property.
The San Diego property is comprised on 24,000 hectares located in Durango, Mexico in what many consider to be the richest epithermal gold and silver belt in the world, the Sierra Madre Occidental Gold-Silver Belt. GoGold is keeping good company in the region, to say the least.
Eight other mining projects with substantial resources surround San Diego. Just a few of the notables include Gammon Gold’s Ocampo deposit (4.06 million ounces Eq Gold), Agnico Eagle’s Pino Altos deposit (5.88 million ounces Eq Gold) and Primero Mining’s Tayoltita deposit (6.79 million ounces Eq Gold).
The seasoned management team of GoGold is hoping to post the same sort of reserves on the San Diego property as its neighbors. The property is still relatively new to development, but is chock-full of widespread quartz veins, breccias over the project. Both gold and silver are exposed at the surface and the hillsides are littered with hand-dug mines.
Bringing modern exploration techniques to the property, GoGold released news today that mapping and sampling by its geological team at San Diego East (Chispa De Oro) property -- located 13 kilometers southeast of the San Diego North (Breccia Hill Open Pit Target) area -- have discovered widespread gold and silver mineralization within a 2,500-metre long x 750-metre-wide altered Andesite zone. A total area of 1,000 m x 750 m has been mapped and 1,380 Samples have been assayed to date. The 1,380 samples returned a weighted average of 0.40 g/t Gold Equivalent (0.205 g/t Gold, 9.20 g/t Silver).
The results of the trench samples were highlighted by sample SDL-603 (which is along the strike of the structure) showing 7.62 g/t gold and 96.48 g/t silver, sample SDL-601 showing 4.14 g/t gold and 33.66 g/t silver and sample SDL-551 showing 1.17 g/t gold and 88.45 g/t silver.
Investors are showing their support of the GoGold findings and efforts on the San Diego property. Shares of GGD have been on the rise over the last year, climbing from a low of 20 cents to find a plateau around 80 cents before another surge drove share value to a new 52-week high at $1.45. Even with the recent fall in the markets, GoGold shares are still holding firm around the $1.30 mark. As exploration continues, GoGold may just keep on Go-Going. Proper due diligence is always encouraged.
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