Is the Hawkstone Mining Share Price Showing Signs of Recovery?
The Hawkstone Mining Ltd [ASX:HWK] share price could be showing signs of recovery after announcing the acquisition of a new gold project.
HWK shares have been under pressure since hitting its 52-week high at the end of August.
With lacklustre exploration results possibly to blame.
Although the HWK share price could be on the mend, with the weighted moving average lines hinting at upwards momentum.
At the time of writing, the Hawkstone Mining share price is 15.39% higher trading at 1.5 cents per share.
Hawkstone rolls the dice on Nevada
This morning HWK announced it has entered into an agreement to acquire the Devil’s Canyon Gold Project, located in the Carlin Trend in Nevada.
Devil’s Canyon will add to HWK’s US-focused exploration portfolio that include projects in Idaho, Utah, Arizona and New Mexico.
The new project sits between two +1Moz mines.
Most notably, the Barrick Gold Corp [NYSE:GOLD]-owned Ruby Hill Gold Mine, located 40kms to the south of Devil’s Canyon.
14 rock chip samples completed by the owner and analysed by Hawkstone returned some promising results including:
- Gold to 92.2 grams per tonne (g/t)
- Silver to 59.2 g/t
- Copper to 5.62%
- Zinc to 4.81%
Discover why this gold expert is predicting a HUGE spike in Aussie gold stock prices. Download your free report now.
HWK said that Devil’s Canyon already has six existing Bureau of Land Management (BLM) mining claims.
But its landholding will be immediately increased by 1,500% (a further 84 claims) on signing the agreement.
Company making claims
HWK said it would purchase Devil’s Canyon for US$15,000 after completion of a 30-day due diligence period.
And then US$15,000 per year on the anniversary date.
They will also pay a 3% fee on all exploration expenditure and a 3% fee on commercial production (if it reaches that stage).
Though they do have the option to purchase the 3% fee and royalty within four years from completion by the payment of US$3,000,000.
Will it be worth it?
Managing Director, Paul Lloyd seems to think so, commenting:
‘The Agreement to acquire the Devil’s Canyon Gold Project increases the Company’s holding of ground in known mineralised belts, in this case within the highly endowed Carlin Trend.
‘We continue to explore company making projects in an area that is host to world class gold deposits, and look forward to reporting the results of the due diligence on the Devil’s Canyon Gold Project and further drill results from Lone Pine Gold project in Idaho.’
Although, we’ll have to wait a while longer to see if this ‘company-making’ project will come to fruition.
Drilling isn’t scheduled to begin until some time in the first half of next year.
Meanwhile, Aussie gold stocks could soon be set for a huge bump in their share prince. Gold expert Shae Russell has tipped Australia to knock China off the top spot as the undisputed global leader in gold exploration, mining and production. In our latest report, Shae breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia