Gold prices have risen to record heights for the third time in a week, supporting Earth Dragon Resources, Inc. belief that the ceiling is potentially much higher yet. Gold futures for April delivery settled at US$1,434.50 at 1:32 p.m. on the Comex in New York yesterday. Last week, the metal climbed 1.4 percent, extending the rally to six weeks, the longest since September 2007.
Because the Earth Dragon’s economic model was predicated on gold prices in the US$1200/oz range, the company is in an increasingly advantageous position to capitalize on the record high prices. The company’s ability and motivation to rapidly move its projects forward is increasing every time the price rises.
The market outlook is especially positive for precious metals when one considers that before much of the recent unrest in the Middle East had come into being, many industry analysts and pundits alike were predicting $3,000/oz gold prices within the next 2 years driven by demand from the electronics and jewellery sectors in China and India combined with inflation fears in North America. Many experts are now aggressively correcting their timeline estimates.
Earth Dragon’s primary focus is to develop its gold ventures in both Ghana and Tanzania which are both moving ahead as scheduled. Plans to develop a technical report (N.I. 43-101) to develop a regulatory compliant resource estimate are moving ahead at the Chisu Gold Project in Tanzania and recent assays from the Nkwanta Concession have returned outstanding gold values generating great interest in the project and further accelerating the company’s efforts.
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