Auryn Resources Inc (CVE:AUG) has released the results of the 2016 drill and boulder-sampling program. The sampling program was carried out in the Nunavut area of Canada where the Committee Bay gold project is located. Auryn Resources has particularly focused on prospecting in established mining areas especially where there are scalable gold deposits of a high-grade value. Some of its operations are in Southern Peru, British Columbia and in Nunavut.

Drilling program objectives

The aim of the drilling and boulder sampling program was to assist in the development of high-grade targets for 2017. This was to be achieved by screening the potential boulder trains which had been identified by using high-res imagery captured by use of drones. The focus of the program was in 2 areas, namely the Three Bluffs and the Anuri corridors. These boulder trains had been identified as containing gold of a high-grade value.

The report comes amidst gold futures recently hitting a nine-month low. This was attributed mainly to the rising prospects of the US federal reserve bank raising interest rates in the coming month when it meets on the 13th and 14th of December. Markets have priced the likelihood of a rate hike at 100% probability. There are also fears that if the incoming Trump administration makes good its promise to spend big on infrastructure projects, the result will be inflationary pressures which will force the Fed’s hand in increasing interest rates further. Any signs of interest rates rising are usually accompanied by the price of gold falling as investors don’t earn interest on it.

The dollar index

Gold prices are also thought to be hurting from the fact that the dollar index has been inching upwards. Every time the dollar appreciates, the prices of commodities suffer since a strong dollar only makes the particular commodity only more expensive for holders of other currencies. But despite the gloomy outlook for gold this year, there are also various market analysts who are  projecting a recovery in the price of other commodities such as iron ore, coal, oil, zinc, and nickel.