Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Sippin' coffee, watching metals

Hey everybody,

This is your Resource Stock Digest editor Gerardo Del Real here with some Monday morning thoughts on what I’ll be keeping an eye on this week.

I’ll be watching the gold price to see if the consolidation is as short-lived as I believe it will be or if it actually has further room to the downside. So far, the US$2,300 per ounce level has held up pretty well despite the dollar index still being right around the 106 level. 

I'll be doing the same with uranium, which is now back above the US$90 per pound mark. We absolutely applaud last week’s legislation, which effectively bans Russian uranium imports to the US. It’ll be interesting to see what effect that has on uranium spot prices going forward. 

Major utilities are starting to secure long-term uranium contracts, which are currently happening around the US$75 to US$85 per pound level. We’ll, of course, be keeping an eye on what the next round of contracting looks like. 

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In terms of company-specific news, I'll be watching Patriot Battery Metals (TSX: PMET)(OTC: PMETF). On the clock, Patriot’s Albemarle MOU is coming to an end here within the next week or two… and, as a shareholder, I am anticipating, hopefully, some positive news there. I think any indication of a further relationship between Patriot and lithium-giant Albemarle bodes extremely well as an endorsement of the Corvette lithium project. 

Last week, Patriot released a new batch of drill assays from the CV5 spodumene pegmatite… and those results continue to be world-class. Infill drilling, yes… but very important infill drilling to increase confidence in the resource as the company continues to do a brilliant job advancing Corvette, including recently expanding its land position.  

Patriot is on track to release a maiden mineral resource estimate (MRE) next quarter — to include both CV5 and CV13 — so very excited for that. And I’m also really looking forward to later in the year when the team gets back to some more exploration drilling.

Another company that’s advancing yet another phenomenal discovery — gold this time — is Southern Cross Gold, which, as you know here on the Canadian side is 51%-owned by Mawson Gold (TSX-V: MAW)(OTC: MWSNF). 

I think it’s no coincidence that MAW is trading at 52-week highs as the Southern Cross and Mawson teams continue to absolutely hit it out of the park at the Sunday Creek gold discovery in Victoria, Australia. I’m anticipating more spectacular results from that project over the coming quarters, which, I believe, will eventually produce millions of ounces of high-grade gold.  

Turning to copper, the red metal made a quick dash to the US$4.55 - US$4.60 per pound level as the market has finally caught on to the fact that a copper deficit is indeed materializing. It has since pulled back slightly to the current US$4.40/lb level… so I’ll be curious to see how long that lasts before the metal resumes its trek toward record highs. 

That's what I'm looking at this week, folks. I hope everyone has a phenomenal week out there.

Let's get it!

Gerardo Del Real
Editor, Resource Stock Digest