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This week, silver sank to its lowest price since August when the US and other world leaders struck a deal with Iran regarding its nuclear program.
It’s Thanksgiving in the United States today, but judging by this week’s news, the country’s silver market participants are no doubt struggling to find things to be thankful for.
The white metal got off to a bad start this week, falling to $19.54 per ounce, its lowest price since mid-August, early Monday morning, according to Reuters. The dive was the result of Iran striking a deal with the US and other world leaders regarding its nuclear program — the deal will see the Middle Eastern nation curb its nuclear activities “in exchange for limited relief from sanctions,” the National Post reported.
From that low point, silver managed to rise to $20.24, its highest price for the week thus far, late Monday. However, by the time Tuesday had drawn to a close, the white metal was back below $20, managing a close of only $19.85. Commenting on the metal’s activity, Capital Trading Group said in its daily report that to break out of its downward trend, silver will likely need to see “improved global macroeconomic psychology, a weakening of the dollar and dovish dialogue from the Fed.”
Silver spent Wednesday moving steadily downward — though it clocked in at $20.07 during the morning, as the day drew to a close it was down to $19.63. Weighing on the metal was concern that impending US economic data might signal a start to stimulus tapering next month, MarketWatch said.
Unfortunately, iNVEZZ.com revealed today that such concerns were warranted — the economic data “surprised to the upside,” with US unemployment insurance initial claims coming to 316,000, a three-month low. As a result, silver spent the day trading in a tight range of $19.63 to $19.77, ultimately closing at $19.68.
Company news
On Monday, Fortuna Silver Mines (TSX:FVI,NYSE:FSM) revealed assay results from initial step-out drilling at its Trinidad North discovery, located in Mexico, commenting that although three holes have been completed, assay results are currently only available for the first two.
Dr. Thomas I. Vehrs, Fortuna’s vice president of exploration, commented, “[t]he results of the initial step-out drilling at Trinidad North confirm the extension of a robust mineralized system to the north. The mineralized zones are characterized by strong development of hydrothermal breccias and quartz vein stockworks containing high-grade gold-silver mineralization. The system remains open to the north and to depth and we eagerly look forward to the results of this exciting program.”
Also on Monday, IMPACT Silver (TSXV:IPT) provided its financial results for the third quarter of 2013, commenting that its revenue came in at $3.1 million, down slightly from the $3.2 million it brought in during the year-ago quarter. Even so, its silver production rose 16 percent, to 177,366 ounces, compared to 153,018 ounces during Q3 2012.
Junior company news
Dolly Varden Silver (TSXV:DV,OTCBB:DOLLF) announced on Monday the final assay results for its 2013 drill program at the Torbrit mine, located at its Dolly Varden property in Northwestern British Columbia. They indicate that high-grade silver mineralization occurs at multiple stratigraphic horizons at the mine.
The next day, Homestake Resource (TSXV:HSR) released the results of Agnico Eagle Mines’ (TSX:AEM,NYSE:AEM) 2013 exploration program on the Homestake Ridge project. Agnico Eagle has been operating the project since January of this year as a continuation of a 2012 option agreement.
The highlight of the program is a bonanza-grade silver intercept in drilling southeast of the Homestake silver deposit; it “appears to be the edge of a new mineral deposit.” Hole HR13-253 contains an 18.6-meter interval averaging 101.8 grams per tonne (g/t) silver from 364.4 to 383 meters down hole, including a 0.5-meter interval averaging 1,675 g/t silver from 364.4 to 364.9 meters — as yet, true thickness has not been determined.
Silver Bear Resources (TSX:SBR) said the same day that it has identified three prominent high-grade silver zones averaging more than 1,000 g/t silver near surface at its Vertikalny deposit. Together, the zones hold an inferred mineral resource of about 5.7 million ounces at 2,041 g/t silver and an estimated indicated mineral resource of 5.1 million ounces at 1,569 g/t silver.
“This information confirms the potential that these areas could supply early high grade ore for processing using cost effective open pit mining methods,” commented Mark Trevisiol, president and CEO of Silver Bear.
Also on Tuesday, Southern Silver Exploration (TSXV:SSV) reported that the next phase of diamond drilling has begun at its Cerro Las Minitas project. About 4,000 meters of drilling are planned, and seven sites have been chosen for testing.
Southern also said that it received $250,000 from Freeport-McMoRan Exploration (FMEC); FMEC has been funding and directing Southern’s subsidiary, Minera Plata del Sur, in its exploration of the Cerro Las Minitas property since October 2012, and holds the right to earn an indirect 70-percent interest in it.
Earlier today, Argentex Mining (TSXV:ATX,OTCQB:AGXMF) provided the first drill results from its Argentina-based Pingüino silver-gold project; a total of 58 reverse-circulation drill holes were completed, and thus far the company has received the results from eight.
Michael Brown, Argentex’s president and CEO, said, “[w]e are pleased to see continued positive results from the Karina vein. Karina was discovered in 2012, and was previously identified through ground magnetics and soil surveys.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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