Durango Provides Update on Nemaska Properties, Shares Up Close to 5% On News

Durango Provides Update on Nemaska Properties, Shares Up Close to 5% On News

By: Tomas Ronolski - AllPennyStocks.com News

Thursday, June 2, 2016

Gold was written off as an asset class at the end of last year. Gold prices had surged post the financial crisis of 2008 / 2009 as the Federal Reserve implemented ultra-loose monetary policy measures to save the economy from going into a depression. The unconventional monetary policy pushed gold to a record high of above $1900 an ounce by 2011. However, gold prices began to retreat, with the decline continuing as the Fed announced that it would end its bond purchase program in 2014. In 2015, the Fed hinted at hiking interest rates for the first time in more than a decade further hurting gold prices.


The sharp pullback in gold prices also had an impact on miners such as Barrick Gold Corporation (NYSE:ABX) and Goldcorp Inc. (NYSE:GG). Shares of both companies and several other miners tumbled, forcing them to implement cost-cutting measures to adjust to the new low price environment.

At the start of this year though, gold prices rebounded sharply. And one of the biggest beneficiaries were gold miners. Cost-cutting measures implemented over the last two years, combined with higher prices have boosted miners’ margin. In the last two weeks though, gold prices have seen a retreat. However, miners’ outlook remains solid as prices are still well above their all-in-sustaining costs.

Durango Resources Inc. (TSX-Venture:DGO) is a Vancouver, British Columbia-based company engaged in the acquisition and exploration of mineral properties. The Company has a 100% interest in the Mayner’s Fortune and Smith Island limestone properties in northwest British Columbia, the Decouverté and Trove gold properties in the Abitibi Region of Quebec, and certain lithium properties near the Whabouchi mine, the Buckshot graphite property near the Miller Mine in Québec, the Dianna Lake silver project in northern Saskatchewan, the Whitney Northwest property near the Lake Shore Gold and Goldcorp joint venture in Ontario, as well as three sets of claims in the Labrador nickel corridor.

This morning, Durango Resources announced that upon further review of historic data on the Nemaska area, it refined targets for its upcoming exploration program at its NMX East property in northern Quebec. The company said that based on observations from gradiometric and total field magnetic surveys conducted on the area in 2011, several geophysical signatures have been found on the property which coincide with mapped pegmatites from the 2011 Tucana Lithium technical report on the Abigail property.

Marcy Kiesman, CEO of Durango Resources, said that there has been extensive staking in the Nemaska area over the past few months, while work programs in the area are beginning to commence. Kiesman further said that the company’s approach has been to compile and reinterpret all available materials prior to commencing work in an effort to make Durango’s upcoming exploration program in Nemaska as efficient as possible and to provide the best chance of discovery.

DGO did not start its move higher like many other miners at the beginning of 2016, instead it shot up like a rocket in early-April. After the initial run-up in share price, the stock has given back some gains but lately has started its ascent again and so far in late afternoon trading today has moved up close to 5%.

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