Gold prices have edged lower in trading today as expectations of a rate hike from the Federal Reserve have weighed down sentiment even though last week’s job report showed a steady growth in jobs though it fell slightly short of consensus forecast.
Speculation over rate hikes rose after the Chicago Federal Reserve President Charles Evans said that he is comfortable with raising rates in December. However, Evans noted that he would prefer to see how the economy and inflation progressed before taking a decision.
The Fed uncertainty is likely to keep pressure on gold prices going forward. For gold miners though, the outlook is still optimistic, mainly because many of these companies have significantly cut their costs over the last two years to adjust to the lower price environment.
Tudor Gold Corp. (TSX-Venture:TUD) is a Vancouver-based company engaged in the exploration and development of several exploration properties in the Skeena Mining Division in northwestern British Columbia.
The company’s principal projects are joint ventures on the Electrum property and the Treaty Creek property in the Golden Triangle area north of Stewart, British Columbia.
Tudor Gold announced that a new zone of gold-bearing mineralization has been discovered on Tudor's 60% owned Treaty Creek property, situated north of the KSM property of Seabridge Gold and the Brucejack property of Pretium Resources. Teuton Resources Corp. and American Creek Resources Ltd. each hold a 20% carried interest in the property (carried until a production decision is made) as well as NSR interests. Tudor Gold is the operator.
The new zone was intersected in the third hole of the 2016 drilling program (drill hole CB-16-03) and is located approximately 870 metres northeast of the Copper Belle zone (drilled in 2007 and 2009).
Ray Marks, Vice President of Tudor Gold, said that the company is very pleased to see that the information learned from the recent MT survey proved valuable in correctly delineating the drill target that was intercepted by drill hole CB-16-03.
Assays have also been received for the first two holes drilled in the 2016 program. The first of these, CB-16-01, was a follow-up of a 2009 drill hole, CB-09-14, which returned 241 metres averaging 0.8 grams gold per ton. Both the 2009 and 2016 holes were drilled in a northwesterly direction from the same site, with CB-09-14 being inclined at -70° and CB-16-01 at -60°.
Shares of TUD have had a wild ride over the last few months. First they encountered a major share price run-up from mid-May to early-July, then the trend reversed and shares have been selling off ever since. At last check, shares of TUD were down almost 8% at $0.70 per share.
