U.S. equities have bounced back sharply after the huge drop in the previous trading session.
Equities and other risk assets have come under tremendous selling pressure since the start of this year amid concerns about the economic slowdown in China.
Lower oil prices have also weighed on market sentiment. Brent crude and WTI prices are now at multi-year low levels. Oil prices have been pushed lower by oversupply and slow demand.
Apart from concerns about the slowdown in China, geopolitical tensions in the Middle East have also hurt sentiment. Gold, not surprisingly, has benefited from the uncertain environment. Gold’s
safe-haven appeal has been boosted by the present environment. Since the start of this year, the SPDR Gold Trust (ETF) (NYSE:GLD) has gained 1.2%.
The slight recovery in gold prices augurs well for gold miners such as Northern Superior Resources Inc. (TSX-Venture:SUP). Based in Sudbury, Ontario, SUP is a junior exploration company engaged in the exploration of gold in the Canadian Shield. SUP currently has two gold properties and one diamond exploration property in Quebec and one gold, silver and copper property in Ontario. All the properties are 100% owned by SUP. In addition to these properties, SUP also has one early stage mineral property in Quebec, Wapistan.
This morning, Northern Superior announced inferred mineral resource estimates at its Croteau Est gold property located in west-central Quebec. The company said that an exploration target, ranging from 3.2 million to 3.8 million tons, for a total of 122,000 to 270,000 ounces of gold, was identified by mineralization defined by single drillhole intersections.
SUP received a National Instrument 43-101-Standards Disclosure for Mineral Projects technical report in September last year. The report, which was prepared by Optiro Pty Ltd., includes the Inferred Mineral Resource estimates for the central part of Croteau Bouchard Shear Zone (CBSZ). CBSZ is located with SUP’s 100% owned Croteau Est gold property.
Dr. T.F. Morris, President and CEO at Northern Superior, said that SUP believes that the Inferred Mineral Resource estimates presented by the Optiro report represent a great start to understanding the gold potential of the CBSZ specifically, and the Croteau Est property as a whole.
Dr. Morris further said that on the CBSZ alone, a tremendous opportunity exists to expand the number of gold ounces within the CBSZ.
Shares have not closed favorably on today’s news with the stock down 25%. Granted, this is a low-priced and thinly-trade stock, so swings of this nature are not out of the question. Hopefully the continued interest in gold will translated to a bit more love for gold miners in the coming weeks and months.
