The Empire Resources Ltd [ASX:ERL] share price is up 25% today. ERL shares increased from $0.008 on 6 March to $0.010 at time of writing after a trading halt.
Empire Resources is a mineral exploration and resource investment company listed on the ASX. The company has 100% ownership in two projects in Western Australia: The Yuinmery Copper Gold project located 470km northeast of Perth and Penny’s Gold Project in the Eastern Goldfields Region.
Source: Empire Resources Limited
Why is the ERL share price up today?
Empire Resources announced that their reverse circulation (RC) drilling in the Yuinmery project yielded ‘strong copper-gold mineralisation’.
According to the company, the drilling at YT01 returned the following results: 8m at 1.09% Cu and 0.37g/t Au from 44m within 28m at 0.60% Cu and 0.20g/t Au from 32m (YRC20-03). Also, 4m at 0.89% Cu and 0.12g/t Au from 56m within 24m at 0.54% Cu and 0.08g/t Au from 56m (YRC20-02).
Empire Managing Director, Sean Richardson commented:
‘The RC drilling at Yuinmery has returned excellent results. The recently identified 3.5km copper-gold horizon between YT01 and YT19 prospects continues to return strong copper-gold mineralisation, strengthening the potential for new discoveries in this area of the project. The Company also continues to uncover value in known prospects, paving the way forward for a multi-deposit copper-gold project.’
What could happen next?
Aussie drillers have been stepping up gold exploration and production with more projects coming on. As Australian Mining reports, exploration budgets for the Australian miners increased by 15% last year. In 2019, Australia also produced an all-time record amount of gold, 325 tonnes.
It helps that gold prices have appreciated quite a bit, particularly in Australian dollars. This is mainly because as gold prices have increased, the Australian dollar has also been depreciating against the US dollar.
Year to date, gold in Australian dollars terms is up by 17.72%. In comparison, gold measured in US dollars is ‘only’ up by over 9% for the year.
Gold prices have been increasing on fears of coronavirus and a global slowdown.
Where could gold prices go?
Gold expert and author Jim Rickards is forecasting that gold prices could hit US$10,000 in the next years. In a recent exclusive video interview with The Rum Rebellion’s editor Greg Canavan, Jim explains why.