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On Wednesday, fear of military intervention in Syria brought silver prices up to nearly $25.
This week, silver continued the upward movement it began two weeks ago, when, pulled upward by gold, it moved into bull market territory.
The white metal began the week at $24.10, level with its Friday closing price. Capital Trading Group notes in its Monday precious metals commentary that silver seemed to be gaining support “from the prospect of lost supply from looming South African mining strike threats,” also stating that “the bull camp should retain an edge” as long as silver market participants believe Fed tapering is less likely.
From there, silver traded between $23.96 and $24.63 before rising to $24.93 on Wednesday, its high point for the week thus far — and also its highest level since April 15, as per Capital Trading Group. The firm notes that the precious metal was spurred upward by fear of military intervention in Syria.
However, since hitting that high, silver has declined slightly, following gold lower on reduced concern about Syria, according to The Market Oracle. After falling as low as $23.76 earlier today, the white metal closed at $23.88.
Company news
On Monday, IMPACT Silver (TSXV:IPT) provided its unaudited financial and production results for the second quarter and first half of 2013, commenting that its Q2 revenue came to $3.8 million, up 4 percent from the year-ago period. However, overall the company incurred a net loss after taxes of $1.9 million due to higher mining and operating costs. IMPACT’s silver production rose 20 percent from Q2 2012, hitting 185,998 ounces.
Alexco Resource (TSX:AXR,NYSEMKT:AXU), Canada’s only operating primary silver mine, said on Tuesday that it had been contacted by market regulators due to “unusual market activity in the company’s stock.” The company indicated that it is “not aware of any material undisclosed information regarding Alexco.”
Junior company news
Canadian exploration company Aura Silver Resources (TSXV:AUU) announced on Monday that, along with Intrepid Mines (TSX:IAU,ASX:IAU), it received a US$2-million net payout of prior concession fees owed to Pan American Silver (TSX:PAA,NASDAQ:PAAS). In total, Aura received about $1.3 million, which it will use in part to advance exploration at the East Taviche and Greyhound properties.
The next day, Southern Silver Exploration (TSXV:SSV) revealed its intention to issue up to 16,666,666 units priced at $0.03 each in a non-brokered private placement. The company hopes to raise $500,000, which it intends to put toward “county and claim fees to maintain the status of [its] properties, and for general working capital.”
In other private placement news, Northern Vertex Mining (TSXV:NEE) said that it plans to go forward with a private placement equity financing of about 7.7 million units that will be sold for $0.65 each for total proceeds of $5 million. The money will be put toward the advancement of the company’s Moss project in addition to general corporate purposes.
Wednesday, Argentex Mining (TSXV:ATX,OTCQB:AGXMF) announced that in September it plans to start resource development drilling at its Argentina-based Pingüino silver-gold project. The program will be made up of 3,000 meters of reverse-circulation drilling as well as “5,000 metres of trenching to target specific known vein systems and other high-priority mineralised zones,” the company’s press release states.
The same day, Teras Resources (TSXV:TRA,OTCQX:TRARF) reported that two drill rigs and associated ancillary equipment were being transported to its Cahuilla gold-silver project, located in California, by the National Drilling Company. When mobilization is complete, a drill program will start up.
Finally, Full Metal Zinc (TSXV:FZ), a junior exploration company focused on zinc discovery in Alaska, signed a binding letter of intent with Minera ISP, S. de RL de CV and “certain of its affiliates” to acquire the San Andres de la Sierra silver mine and processing facilities. The company will also be acquiring “the exploration land package around the area of historical operations.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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