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Silver sank below $22 at the end of last week and since then has had little luck rising above that point.
After managing to stay above $22 for most of last week, silver fell Friday, closing at $21.65 in New York. Unfortunately for the white metal, since then it has spent only a brief period of time above that level.
Silver opened at $21.77 on Monday, quickly falling to $21.47, its low for the week thus far. Though it rose to $22.06 during the afternoon, Tuesday morning it was again down at $21.47. The metal seems to have taken its cues from gold, which, according to Reuters, sank to almost a three-week low on Tuesday due in part to worries that central banks around the world will follow the Bank of Japan’s lead in failing to provide further economic stimulus.
Wednesday silver rose to $21.98, its second-highest point for the week. Reuters reported that the increase brought the gold/silver ratio — the amount of silver ounces needed to buy an ounce of gold — up to 63.5, slightly down from last week’s two-and-a-half-year high of 64. Some experts believe that may herald a coming increase in silver prices.
The white metal’s lowest price Thursday was $21.65; it closed the day at $21.85 in New York.
Company news
Endeavour Silver (TSX:EDR,NYSE:EXK) announced the latest exploration drill results from its San Sebastian property, located in Mexico. Highlights include:
- 1,226 grams per metric ton (MT) silver and 3.19 grams per MT gold over 3.5 meters true width in hole TR3-5, including 5,580 grams per MT silver and 15.9 grams per MT gold over 0.52 meters true width
- 421 grams per MT silver and 0.84 grams per MT gold over 11.5 meters true width in hole TR4-5, including 1,085 grams per MT silver and 2.11 grams per MT gold over 1.21 meters true width
Junior company news
Black Mountain Resources (ASX:BMZ,LSE:BMZ) is due to put out first production from its Montana-based New Departure property within the next few weeks, the company reported last week, according to Mineweb. The company holds a 70-percent interest in New Departure, as well as in two other silver properties in the area. It estimates that together they hold 14.5 million silver equivalent ounces grading around 600 grams per MT.
While Black Mountain emphasizes that the cost of bringing the mine online will be low, investors should be aware that the company is moving forward based on a historic resource and “does not have an NI 43-101 or JORC compliant resource,” as per Mineweb. Based on that resource, the mine’s life is expected to be around four years, but the company believes it will prove longer.
NSX Silver (TSXV:NSY) reported the results from its ongoing geochemical sampling and mapping program at the Huerigo area of its Mexico-based Oso Blanco 2 mining concession, commenting that it has now identified five “highly prospective” areas. Efforts were focused on the Los Tajos and Chipahuiri zones; highlights from the Los Tajos zone include 3.41 grams per MT gold and 95 grams per MT silver in a 2-meter trench as well as 189 grams per MT silver and 0.174 grams per MT gold in a 2-meter trench.
Aurcana (TSXV:AUN,OTCQX:AUNFF) filed on SEDAR an amended version of the technical report for its Mexico-based La Negra project, commenting that there are “no material differences between the mineral resources and reserves estimates regarding the La Negra project set out in the May 17, 2013 News Release and the Amended Technical Report.”
The move follows the company’s May 17 announcement that as a result of a review by the British Columbia Securities Commission, it would be amending and refiling the original technical report. Since then, Aurcana’s share price has declined.
Lenic Rodriguez, president and CEO of Aurcana, commented in a May 23 press release, “[t]he decrease in Aurcana’s share price over the last few months and especially over the last few days has been disappointing and we strongly believe does not reflect the true value of Aurcana’s two mines, our solid fundamentals and growth profile. I would like to reaffirm today, that there has been no fundamental changes and there is no undisclosed material changes regarding our mineral resources or ability to operate the mines that in management’s opinion would justify the recent drop in the Company’s valuation.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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Silver Shaky Following Last Week’s Rise