The Gold market has been on the rally in recent weeks with the yellow metal increasing its price to over $1,500. The signs are there that gold will continue holding to this firm position as market volatility and fears of recession continuing to push it higher. The growing gold prices are seen as a boom for gold mining companies including Crystal Lake Mining Corporation (TSX.V: CLM, OTCMKTS: SIOCF).
Gold prices have hit fresh highs in six years
Currently, there is a bullish sentiment in the gold market owing to the rate that gold prices have increased this year. So far, they have established new six tear highs despite gold remaining overbought. Geopolitical issues and growing economic uncertainties continue to push gold prices up which have made it hit new highs. Mining companies have been performing well following the promising outlook of the gold market.
The bullish cycle has been looming and the recent escalation of gold prices is an indication that global economic uncertainties are still there. If the rally continues in it will see gold soon suppressed other classes of assets, especially equities. Demand for gold has increased as economic downtown signs become apparent. SPDR Gold Trust which is the largest gold exchange-traded fund in the world has reportedly indicated that its holdings have increased to around 859.83 tonnes.
Crystal Lake Mining intensifies its exploration activities in Canada
The increase in gold prices is good news for mining companies because there will be a trickle down effect. More money is being put into exploration and mining activities to produce more gold which is good news for a junior exploration companies like ours which recently announced the extension of the Burgundy Ridge Project where they outlined a large-scale gold/copper-rich system. Our newest discovery is at the Eskay Camp in the Northwest BC’s Golden Triangle region. This has greatly expanded the target area for the company relative to its four first-ever shallow drill holes.
The company is also targeting high-grade god at the Newmont Lake project after it added a second drill rig targeting the Northwest Gold Zone. The company’s team was lucky to recover a huge amount of historic core boxes. The on-going reclogging and sampling program has delivered promising results regarding the presence of gold in the area. A geochemical analysis performed by the company show strong possibility for an extension of the high-grade system to the northeast.
Equally a previous induced polarization survey carried by Crystal Lake’s geophysics contractor showed the presence of an anomaly to the Northeast of the zone. This area is a prospective target for new high-grade gold exploration by Crystal Lake.
Crystal Lake has been building its value through a series of high-grade discoveries in Canada, especially in Ontario and British Columbia. The company looks to expand and be among the top gold exploration companies, it has an option to earn a 100% interest in the Newmont Lake Project which is one of the biggest land packages in the Golden Triangle.