|I-80 Gold aka IAU brought us an update on their McCoy-Cove gold/silver development project in Nevada. The property already has one of the highest grade resources in North America, over 10 g/t Au, and will become one of the sources for refractory ore to be processed at IAU's Lone Tree autoclave once it is refurbished. To date, IAU has created a new portal at the Cove Mine and about 300M of the decline has been driven. Once the decline is complete, a 40KM drilling programme will begin in Q4, followed by a Feasibility Study to be completed next year.|
Savile raises an interesting point re the underperformance of gold stocks so far this year. Normally during the bust phase of the economic cycle, gold outperforms all other commodities and drives the stocks higher, but what is different time is that due to various circumstances, energy is outperforming gold, thereby raising costs and undermining gold's fundamental drivers.