MELBOURNE AUSTRALIA (Daily Reckoning): Explorer Venture Minerals has risen 15.5 cents to 48.5 cents after the company said that positive results from the first hole in its drilling program at the Churchill Dam Iron-oxide-copper-gold-uranium project in South Australia have prompted an extension of its drilling program.
Several gold miners enjoyed gains yesterday, with Lihir Gold (ASX: LHG) gaining ten cents to AUD$3.35, Newmont Mining (ASX: NEM) up eight cents to AUD$5.90 and Newcrest (ASX: NCM) gaining 32 cents to AUD$22.30.
According to Reuters gold rose to a seven-month high on Wednesday, said to be the result of the US dollar reaching a six-week low against the euro after Federal Reserve Chairman Ben Bernanke said inflation pressures were beginning to ease. Spot gold hit a peak of USD$671.85 an ounce. Meanwhile, silver rose to above USD$14, reaching its highest level since early December.
Bloomberg reports that Barrick Gold (TSE: ABX) climbed 43 cents to C$36.55 after the company said it would aim to boost Asian production through seeking new mines in Indonesia, Papua New Guinea and Australia.
An “expert” panel, including Alan Greenspan, former chairman of the US Federal Reserve, and Jean-Claude Trichet, president of the European Central Bank, has recommended that the International Monetary Fund sell 400 tonnes of gold.
The sale would generate and estimated income of USD$6.6 billion if the gold were sold at USD$500 an ounce. The proceeds would be used to set up an endowment for the IMF, which holds a total of 3217 tonnes of gold and has been struggling with a decline in income recently.
The panel recommended that the sale be accommodated by reductions in the amounts of gold that central banks might sell under the Central Bank Gold Agreement.
The Daily Reckoning