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Silver jumped to a three-month high of $21.14 per ounce on Tuesday and since then it has managed to stay fairly close to that level.
It was only a few short weeks ago that silver was struggling to stay above $19 per ounce, pressured downward by reduced Russia-Ukraine tension and positive economic data out of the United States.
The times have changed, however.
Silver, along with gold, started climbing last week as conflict raged in Iraq and the Federal Open Market Committee held its June meeting. And, while some were skeptical about whether the precious metals would be able to retain their gains, thus far silver has done so.
Though the white metal spent Monday moving between just $20.72 and $20.93, Tuesday was a little more exciting. That day, silver managed to breach $21, hitting a three-month high of $21.14 midway through the day, according to Reuters. The gain came as equity markets slipped following gains last week and on the release of soft German business sentiment data.
The past two days have been much the same. On Wednesday, silver rose to a high of $21.13, and though it sank down to $20.78 this morning, it has since recovered, ultimately closing at $21.11.
Company news
On Monday, Pan American Silver (TSX:PAA,NASDAQ:PAAS) released a preliminary economic assessment (PEA) regarding the expansion of its Mexico-based Dolores mine. The expansion would be completed by both “adding a milling and pulp agglomeration circuit to the processing flow sheet” to enhance the recovery of higher-grade silver-gold mineralization and “developing an underground mine to extract mineral resources” under and to the south “of the ultimate open pit floor.”
Geoff Burns, president and CEO of Pan American, spoke positively about the PEA, but said, “we have decided to defer a construction decision for another 9 to 12 months while making a small investment to further de-risk the Project.”
Wednesday, Great Panther Silver (TSX:GPR,NYSEMKT:GPL) reported that one of its employees was killed by a rock fall at its Mexico-based Topia mine. An internal investigation is now taking place.
The same day, Excellon Resources (TSX:EXN) said it has resumed diamond drilling at its La Platosa mine in Mexico. A 10,000-meter program is now in progress; one focus will be on finding new, high-grade massive sulfide mantos and “following up on the carbonate replacement deposit … ‘source’-style discovery announced in 2012.”
This afternoon, Avino Silver & Gold Mines (TSXV:ASM,NYSEMKT:ASM) announced that it has agreed to acquire 9,500,000 common shares of Bralorne Gold Mines (TSXV:BPM) via a share purchase agreement. The acquisition, which will cost Avino a total of C$2.66 million, represents about 33.3 percent of Bralorne’s total issued and outstanding shares.
Avino holds an additional 179,149 common shares of Bralorne that it acquired previously.
Junior company news
Golden Arrow Resources (TSXV:GRG) on Monday provided further results from a 9,000-meter Phase III drill program at its Argentina-based Chinchillas silver project. Seven out of eight drill holes encountered “significant mineralization.” For one, hole CGA-121 yielded 43 meters averaging 269 grams per tonne silver and 2.8-percent lead at 98 meters depth; that includes 4 meters averaging 1,218 grams per tonne silver and 6.4-percent lead.
Today, MAG Silver (TSX:MAG,NYSEMKT:MVG) raised C$75,030,000 by entering into an agreement with a syndicate of underwriters that has agreed to buy 7,320,000 common shares of the company priced at $10.25 each. The syndicate is led by BMO Capital Markets and Raymond James.
Proceeds will be used to fund exploration and development at the company’s Mexico-based Juanicipio project, as well as for general corporate purposes.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Related reading:
Golden Arrow Resources: Moving Towards a Feasibility Study at Chinchillas
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