The ADP jobs report and ISM manufacturing numbers released Wednesday didn’t do much for the market, but they did help kick gold in gear a bit again today. ADP’s weaker than expected jobs report has sent economists scrambling to slash projections for the much-watched monthly non-farms jobs report due on Friday.
Couple that data with May’s ISM Manufacturing Survey which showed PMI diving 6.9 percentage points to 53.5%, from 60.4% in April (the worst monthly PMI drop since January 1984) and the Dow going down 200 while gold surges back over the $1,550-U.S.-per-troy-ounce mark as investors seek the "safe haven" of the precious yellow metal. The tone is also set for the coming days -- and perhaps months -- with more bleak economic data now expected as people fear the economic recovery is running out of steam with the end of QE2.
Miners typically take their lumps along with the rest of the markets on bloody days on Wall Street such as today, but in the longer-term often are dealt a rewarding hand as gold continues to escalate faster than production costs; which equates to more cash in the bank from revenue streams.
No one ever hopes for bad economic times, in fact most of the society is growing tired of the multi-year economic struggles that continue to linger, but business is still business and the rise in gold has yielded strong rewards for many of the mining faithful in recent years. Hoping to capitalize on the ever-rising commodity, Gold Bag, Inc. (OTCBB:GBGI), operating as Focus Gold Corp., is focused on acquisition and development of gold mining properties with a portfolio of properties around the world.
Focus Gold has projects in Mexico, in the prolific Timmins Mining District in Canada and a pending acquisition of Metallum Resources PLC which will result in properties in Ireland and Scotland.
Today, Gold Bag released news of a NI 43-101 compliant technical report on its subsidiary’s (Focus Gold Mexico Corp.) properties in Huicicila, Nayarit State, Mexico. The report was commissioned to cover over 29,000 hectares controlled by Focus Gold Mexico by the properties. Per the report, "the rock units, alteration, base and precious metal vein mineralization observed on the Properties are consistent with a porphyry copper-gold deposit type. Poly-metallic, high-grade veins (with up to 52 grams per tonne gold) which up until now have been the focus of exploration (and historic production) on the properties are now interpreted as indicators of a buried porphyry copper-gold system.
"In addition, recent geologic mapping and exploration have recognized several areas of classic porphyry copper-gold style hydrothermal alteration and mineralization. These include quartz-sericite-pyrite (phyllic) alteration in granodiorite and diorite intrusive rocks as well as a potassically altered diatreme breccia which contains visible copper mineralization. Alteration zones appear to be roughly circular in shape and cover a large area (over 10 square kilometres mapped to date), consistent with the presence of a large buried porphyry copper system."
While that may be a bit too scientific for most, the key words fall at the end of the comments when it is stated, "…consistent with the presence of a large buried porphyry copper system."
With gold and copper prices near all-time highs and not looking to drop back in the foreseeable future, Gold Bag may have literally "hit a gold mine" judging by the wording of the report from Carl Nelson, "a certified professional geologist with several decades of world-wide experience in both epithermal and porphyry-related deposit types."
So, while shares of GBGI aren’t exactly in their glory today, closing about even on the day, the Company may be in possession of a billion-dollar asset and a company to keep an eye on in future. Proper due diligence is always required.
