Mithril Resources Share Price Flat on New Gold Intercept (ASX:MTH)

Mithril Resources Share Price Flat on New Gold Intercept (ASX:MTH)

At time of writing, the Mithril Resources Ltd [ASX:MTH] share price of is flat at 2.1 cents after trading as high as 2.5 cents in early trading.

Like many gold stocks, the MTH share price is down significantly from a September 2020 peak as you can see below:

ASX MTH Mithril Resources Share Price Chart

Source: tradingview.com

We look at the latest news out of Mithril, which includes a very high-grade intercept from their project in Mexico. We then turn to the outlook for gold stocks generally.

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Highlights from MTH announcement today

Here they are:

• Drill hole CDH-050 designed to test further down-dip at the El Refugio target returned the exceptional result: o 4.17m @ 62.0 g/t gold and 445 g/t silver from 233.43m (285 gram-metres gold equivalent1)

• CDH-050 intercept supports the geologic model at El Refugio with significantly increased grade thickness with depth

• CDH-050 minerals in the core (kaolinite) show evidence of fluid mixing, a powerful process for deposition of high-grade gold and silver

• 12 hole campaign starts at El Refugio to systematically test to the west

• Assays pending for holes CDH-054 – CDH-060 from nearby La Soledad and Los Reyes targets

Despite the extremely high grading of the intercept, it wasn’t enough to really excite investors today.

With assays pending, there could be a repeat of today’s events.

That is, if they are good, you may see a spike and then a quick return to around the 2-cent mark.

For reference you can see the El Refugio target below:

Mithril Resources

Source: Mithril Resources Ltd

Outlook for MTH share price and gold stocks generally

It’s a tough one for MTH at the moment, as the gold price remains stubbornly low.

As a promising explorer, it is not out of the ordinary to see a faster rise and a steeper fall based on what’s happening with the gold price.

As such, the MTH share price may take some time to break out of this rut even though the stars are aligning for a further rise in the gold price.

Fed Chair Jerome Powell said inflation was coming soon in a recent speech and indicated that rates would stay low for around three years.

The gold market didn’t mind the speech either, as you can see below in the chart for USD gold over the last five days:

Chart for USD gold over the last five days

Source: tradingview.com

That’s a relatively strong move from when the speech got going.

Our Editor Shae Russell actually called the gold sell-off early many months ago.

That doesn’t mean Shae is abandoning gold though.

In fact, if you read this in-depth report of the current state of gold mining in Australia — you’ll see why she is still bullish on the shiny stuff’s long-term prospects.

It’s a great read and you’ll also get a free subscription to The Daily Reckoning Australia — a great resource for precious metal investors.

Regards,

Lachlann Tierney

For The Daily Reckoning Australia