By: Dylan Sikes - AllPennyStocks.com News

Monday, February 29, 2016

Gold prices have risen sharply today as investors pour money into safe haven assets amid ongoing concerns over the state of the global economy. Earlier today, Chinese markets fell sharply amid concerns that the world’s second-largest economy is continuing to struggle. Shortly after market close, the People’s Bank of China (PBoC) once again announced a cut in its reserve requirement ratio. This is the latest in a number of measures announced by the PBoC to provide support to the Chinese economy.

The PBoC is not the only major central bank that is implementing an expansionary monetary policy. Central banks in Japan and Switzerland, and the European Central Bank (ECB) have announced radical measures in recent weeks, including negative deposit rates. Even the Federal Reserve has toned down its hawkish stance. In fact, analysts now believe that the Fed will hike benchmark interest rates only once this year.

The expansionary monetary policy adopted by global central banks, combined with the negative sentiment on risk assets has boosted gold’s safe haven appeal.

The rebound in gold prices augurs well for miners such as Calibre Mining Corp. (TSX-Venture:CXB). Based in Vancouver, British Columbia, Calibre controls a 100% interest in more than 5,000 square kilometers of mineral concessions in the Mining Triangle of Northeast Nicaragua. The company also has an option agreement with IAMGOLD covering 176 square kilometers of concessions.

CXB shares are up more than 11% in mid-day trading today after the company announced the start of a 5,500 meter drilling program on the Eastern Borosi project. The project is being funded by CXB’s partner IAMGOLD.

CXB said that the 2016 drilling program has been approved by partner IAMGOLD and will consist of a minimum 5,500 meters of drilling with a budget of $1.5 million. Drilling will commence in the first week of March and continue to test extensions of high grade gold-silver vein systems outlined in 2014-2015 drilling programs.

Greg Smith, President & CEO at Calibre Mining, said that drilling in 2014-2015 has been highly successfully in outlining a number of high grade gold-silver vein systems within the Eastern Borosi Project. Smith said that the 2016 drilling program will focus on the most advanced of these targets. He added that CXB continues to advance its land position in the historic Borosi Mining Triangle of northeast Nicaragua along with its partners.

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