Gold appears to be stabilizing recently after a pullback which pushed the precious yellow metal in excess of $1,400 per ounce recently. A mild pullback has occurred with the price per ounce holding in the vicinity of $1,375 this week. Mining company stock plays are still in favor with a devoting community of investors realizing the potential of their particular company of choice and the overall sentiment still riding on the bullish side of the metals industry.
Technicians are beginning to pronounce this area as a new base for the price of gold and waiting patiently for the next push to happen to see if the gold highs can be topped in the early portion of 2011.
Drilling reports have been being released regularly to kick off the New Year now that the Canadian exchanges have past shortened holiday weeks and volumes in stock plays are starting to become more regular.
Toronto-based Metals Creek Resources Corp. (TSX-Venture:MEK) is a junior exploration company that has a host of properties in its portfolio that are well-diversified. Projects include four gold exploration properties (Dogpaw, Ogden, Tilt Cove and Staghorn), a uranium property (Gabbro Lake) and a base metal property (Tillex/Currie).
The Company maintained a focus throughout 2010 primarily on developments with its extensive drill program on its Ogden gold property in Timmins, Ontario. The reason for the focus is clear as the project is under option form Goldcorp Canada Ltd and Goldcorp, Inc. and Metals Creek can earn a 50% interest in the the Property, including the former Naybob Gold mine, located 6 km south of Timmins, and has a eight-kilometre strike length of the prolific Porcupine-Destor Fault that stretches between Timmins, Ontario and Val'Dor, Quebec.
News was released yesterday of additional assay results from its recently completed 4,102-metre diamond drill program on the Ogden Gold Project. The results showed extensions of near surface gold mineralization with porphyry at Thomas Ogden Zone as well as near surface intercepts of 13.23 g/t gold over 2.95 metres with Naybob South Zone.
Highlights from the results in the Thomas Ogden Zone included hole TOG 10-21 which drilled 4.37 g/t gold over 23.4 metres within an altered porphyry with associated pyrite, strong silicification and visible gold. Results from the drill program on the Naybob South Zone, which is four kilometres east of Thomas Ogden, also provided noteworthy results including drilling on Hole OG10-030 intercepting 13.23 g/t gold over 2.95 metres.
Both the Thomas Ogden and Naybob South Zones are within or proximal to the Porcupine-Destor Fault and are hosted by altered porphyries and mafic to ultramafic volcanic rocks analogous with the geological setting of the majority of the larger gold deposits in the 70-milllion-ounce Timmins District.
Technically speaking, the chart for MEK has been, and is still, in a solid uptrend. The price per share has been rising at a steady incline from last August when it was around 10 cents per share and spiked yesterday on this news to make a new 52-week high at 42 cents, despite sliding back to approximately 33 cents at the closing bell.
While a bit of a retrace may take place, the six-month-long uptrend still is intact and technical traders will be watching now for any increase in price per share and accompanying volume as the price is approaching the lower side of the channel and may provide an entry opportunity.
A strong technical chart combined with a corporate business plan that includes a solid portfolio and agreements with industry giants such as Goldcorp gives Metals Creek Resources Corporation the kind of appeal that many mining investors are looking for regularly.
