By: Tomas Ronolski - AllPennyStocks.com News

Friday, September 9, 2016

Gold prices surged last week after the jobs report for the month of August came in below the consensus forecast. A strong report would have raised the possibility of a rate hike from the Federal Reserve at its next meeting in September. A rate hike would be a negative for gold therefore a weak jobs report boosted gold prices last Friday. Gold prices have been strengthening throughout the week. However, the rally has been interrupted by comments from some of the dovish officials at the Federal Reserve. Boston Fed President Eric Rosengren said that the central bank risks financial instability if it continues with low interest rates. Another dovish Fed official will be speaking at the Chicago Council on Global Affairs on Monday. Market participants will be closely watching the speech to see if the Fed is still considering a rate hike later this month.

If the Fed does hike, we could see a further pullback in gold prices. Having said that, the outlook for gold miners still remains bullish as they have cut down their costs significantly during the downturn in gold prices from 2011 to 2015.

Copper North Mining Corp. (TSX-Venture:COL) is a Canadian mineral exploration and development company. The company’s assets include the Carmacks Project located in the Yukon, the Redstone Property located in the Northwest Territories, and the Thor Property in British Columbia.

This morning, Copper North Mining announced that it has commenced drilling of its Thor property in northwest British Columbia. Drilling will test two large targets interpreted as porphyry copper-gold mineralization (see news release of August 4, 2016). The company said that exploration in the 1960s to 1990s discovered porphyry copper-gold type mineralization on Thor property. The Thor Property covers approximately 20,000 hectares including the historic Thor, Marmot, Thorne and Goldvale mineralized areas. The mineral prospects follow a 20 km long mineralized zone within the central part of the porphyry copper-gold trend, from Kemess North in the north northwest and Kliyul in the south southwest, a distance of 75 kilometres.

COL said that diamond drilling at Thor will begin with the proposed drill hole TH16-01 in the Thor East Area 3. The target 3 area has been defined by sparse outcrops of granodiorite with copper oxide mineralization in the lower reaches of the mountain that is capped by Takla mafic volcanic rocks that host numerous small veins with copper and gold and extensive alteration zones.

Shares of COL have lagged its peers with the stock actually declining so far in 2016, whereby most of its peers have seen a sector wide bullish rally over the last 8 months or so. Until shares can successfully break above their $0.20 resistance level, a new uptrend cannot be confirmed and thus investors should consider staying on the sidelines from a trade perspective. Today’s news is a fundamental development, so perhaps it will become the catalyst for shares to gather enough momentum to try and take out the above mentioned resistance level.

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