By: Tomas Ronolski - AllPennyStocks.com News

Thursday, April 21, 2016

It has been a phenomenal year for gold mining companies so far. After struggling for the last few years amid low prices, gold mining stocks have rebounded sharply in 2016. In 2014 and 2015, mining stocks struggled as gold prices fell sharply. Gold prices dropped as the Federal Reserve began to tighten its monetary policy after years of easing. However, in 2016, volatility in global markets has boosted gold prices. While prices are still well below the levels they were at in 2011 when the Fed was printing money under its quantitative easing, they have bounced back enough to significantly improve the outlook of gold mining companies.

Not surprisingly, gold mining stocks have rallied this year. Year-to-date, the Market Vectors Gold Miners (ETF) (NYSE ARCA:GDX), whose components include gold mining companies such as Barrick Gold Corporation (TSX:ABX), has gained more than 68%.

This morning, Barkerville Gold Mines Ltd. (TSX-Venture:BGM), a Toronto-based company engaged in the exploration and production of mineral properties located in the Cariboo Mining District in east-central British Columbia, provided an update on its forthcoming exploration program and small scale production plans, as well as a summary of recent activities with respect to optimizing the Cow Mountain Resource.

Following the update, BGM shares rose sharply. At last check, the stock was trading 5.45% higher at $0.580 on volume of 185,700.

BGM said that in the first quarter of 2016, it completed an underground mine plan for the balance of Bonanza Ledge and development of BC Vein ore which will be accessed from the same infrastructure. The company noted that geotechnical drilling has also been completed on Bonanza Ledge. BGM said that the plan will be submitted to the BC Ministry of Energy and Mines in the current quarter.

BGM noted that it has added more than 80,000 hectares of additional exploration lands to its current extensive property package in the Cariboo Mining District in Q1. After a detailed regional and localized evaluation by the company’s exploration team, a substantial drilling program on Island Mountain adjacent to the Cow Mountain Resource has been recommended. BGM added that an airborne geophysical magnetic and electromagnetic survey has been tendered and will commence in Q2 along with geochemical surveys, geological mapping and prospecting and priority targets generated from this program will be drill tested in the latter part of 2016.

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