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ASX slides as this gold play pumps up

The Australian All Ordinaries was in negative territory across all segments of the economy as sour overseas leads inspired a bearish reaction from investors. This gold play, however, continued to add value in the resilient precious metal sector.
ASX slides as this gold play pumps up

The Australian All Ordinaries closed 1.5% lower today at 4,964 points on widespread losses across all segments of the local economy.

Investors picked up negative overnight leads from Wall Street and translated them into losses of more than 2% for the energy, consumer discretionary and information technology sectors.


Mining stocks were among the more resilient plays in today’s session, with gold developer Blackham Resources (ASX:BLK) closing in the black at A$0.245 per share with strong new drilling results at its Matilda project in Western Australia.

This represents a 158% gain for the stock year on year.

The latest results at Matilda’s Galaxy deposit have demonstrated gold mineralisation below the initial open pit design with 3.1 metres at 9.6 g/t gold, 3.1 metres 2 g/t gold and 0.7 metres at 8.52 g/t gold.

These assays represent the completion of Definitive Feasibility Study drilling at Galaxy, where metallurgical testwork has now confirmed the free milling nature of the ore with recoveries up to 96%.

Galaxy remains open at depth, and a follow up 800-metre reverse circulation program is due to begin next week to test Galaxy’s potential as an underground mining target.

This bodes well for a resource upgrade in the near term, which could accelerate production plans at Matilda.


Major miners

BHP Billiton (ASX:BHP) up 0.7% to $14.88
Fortescue Metals Group (ASX:FMG) down 3.2% to $1.52
Newcrest (ASX:NCM) up 4.0% to $13.06
Rio Tinto (ASX:RIO) down 1.8% to $38.85

Energy or Oil and Gas

Oil Search (ASX:OSH) down 1.3% to $6.24
Santos (ASX:STO) down 8.0% to $2.86
Woodside Petroleum (ASX:WPL) down 2.1% to $26.87

Big 4 banks

ANZ Bank (ASX:ANZ) down 1.6% to $25.05
Commonwealth Bank (ASX:CBA) down 1.9% to $79.42
National Australia Bank (ASX:NAB) down 2.0% to $27.11
Westpac (ASX:WBC) down 1.0% to $31.16

Other banks, financials and industrials

AMP (ASX:AMP) down 2.9% to $5.31
Bank of Queensland (ASX:BOQ) down 1.9% to $13.08
Bendigo and Adelaide Bank (ASX:BEN) down 3.4% to $10.94
Macquarie Group (ASX:MQG) down 2.2% to $74.25
Suncorp (ASX:SUN) down 2.1% to $11.58
Telstra (ASX:TLS) down 1.1% to $5.37


JB Hi-FI (ASX:JBH) down 1.1% to $21.70
Wesfarmers (ASX:WES) down 1.4% to $39.40
Woolworths (ASX:WOW) down 1.4% to $22.93

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October 14 2016

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