Gold ETFs opened lower Tuesday, as the SPDR Gold Trust (NYSE: GLD, Stock Forum) fell 0.3% to $132.13 per share.
The weakness in gold ETFs and the GLD came as gold bullion tumbled $15.65 to $1,352.95 on the back of further strength in the U.S. dollar and renewed sovereign debt concerns in Europe.
Since the GLD reached a new all-time high of $139.15 on November 9, the largest gold ETF in the world has declined considerably as the yellow metal has fallen over 3.5%.
As gold ETS such as the GLD have climbed to new all-time highs in recent weeks, several small-cap gold explorers have posted substantial returns as investors seek out enhanced leverage to the price of gold.
One company that has benefited considerably from this trend is Dorato Resources Inc., (TSX: V.DRI, Stock Forum), which recently hit a new two-year high of C$1.58 per share.
On November 16, Dorato announced the receipt of airborne electromagnetic (EM) and magnetic geophysical survey results for the Lucero Discovery from Minera Afrodita.
Lucero is located on the Cordillera del Condor Project in northern Peru, and Dorato has the right to acquire 100% of Minera Afrodita.
The Vancouver- Canada-based gold explorer reported that the survey covers the same area as the 2009 AeroTEM survey (which was collected at 200 meter line spacing) but has now been collected at 50 meters line-spacing for increased resolution.
Moreover, the survey defines a coincident magnetic and electromagnetic anomaly centered on surface gold and copper mineralization at Lucero.
With the addition of close-spaced flight lines, the anomalies have grown significantly, with the most compelling anomalies including surface trenches grading 2.08 grams per tonne (g/t) gold over 188.0 meters.
Dorato stated that the scale of anomalies at Lucero continues to indicate the bulk tonnage potential of Lucero, and has scheduled drill testing for the end of this month.
Commenting on the survey results, Keith Henderson, Dorato’s President and CEO, stated that “Initial results from Lucero target indicate that the 2010 Cordillera del Condor regional geophysical survey is producing high-quality geophysical anomalies.
The 2010 survey produced a coincident magnetic and electromagnetic anomaly at Lucero where insitu gold and copper mineralization has been established within a 750 by 1100 meter multi-element surface geochemical anomaly.
The technical team has learned a great deal from the 2008 and initial 2010 surveys and is eager to apply this knowledge to the rest of this highly prospective approx. 135 kilometer-long, gold-copper belt.”
Readers should note that Dorato is a Stockhouse sponsor and GoldAlert advertiser.
Jarret Turbin is a Senior Editor with GoldAlert.com in Northbrook, Illinois.