New Found Gold Corp V.NFG

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An End to the Carnage that is Junior Exploration?

Many of us here are invested in the resource arena - junior explorers (or explorecos), developers, producers, and entities that collect royalties in the space. Some of us have been positioned in these equities for years, riding the ups and downs, the crests and troughs... the swings between prosperity and calamity. The past few months have been a particularly rough ride for most. For some, it was like accidentally wandering onto the set of Deliverance.



But since the Fed hit the market with a second consecutive three-quarter-point rate hike, the metals and related equities have rallied. A good cross-section of the highest quality stocks in the sector have since claimed higher ground, kindling hopes that THE bottom is in.

Where gold is concerned, we'd really like to see some protracted weakness in the U.S. Dollar Index.

The following chart shows the USD's price performance over the past two decades (it's currently waaaay stretched)...



If (when) the USD rediscovers gravity, perhaps when the market is convinced the Fed's bullying tactics have softened, Gold could go on the mother of all tears.

For now, we take comfort in the favorable price action we've witnessed over the last half dozen sessions.

Not the Kind of Hole a Miner Wants to Leave in its Wake

Lundin Mining's shares took out their 52-week low after a sinkhole, 32 meters in diameter, was discovered near its Chilean copper mine over the weekend - Lundin Mining shares fall after large sinkhole develops near Chile mine.

The discovery forced the company to suspend development work in the area. Not only is it a big one, it's deep, roughly 200 meters to the bottom.



Lundin is investigating to determine the cause of the event. Chilean authorities are conducting their own investigation.