Fortitude Gold Corp (OTCMKTS:FTCO) Announces Results From Its Expansion Drill Program at Golden Mile Property

Fortitude Gold Corp (OTCMKTS:FTCO)is down by 8% this week. Its shares seem to be on a downward trend as the company was also down 6.75% last month. This trend shows it is not the right time for investors to buy shares from Fortitude.

Trading Data

On Wednesday, FTCO stock fell 0.64% to $6.22 with 54K shares, compared to its average volume of 22K shares. The stock moved within a range of $6.22 – 6.31 after opening trade at $6.25.

About Fortitude Gold Corp

Fortitude Gold, which operates in Nevada, is a gold producer. Since it runs in Nevada, a mining-friendly location, the company can grow its performance with few limitations. Its performance is a testament to the company’s expertise as it managed to win over $1 billion in ten years. Moreover, it has managed to return $115 in dividends to its shareholders.

The company owns five quality gold properties. All these properties are in the Walker Lane Mineral Belt, a prolific location. These properties also have a high amount of near-surface or surface gold. Fortitude’s strategy involves finding new gold deposits and expanding current deposits for longevity. It also intends to operate with no debt while providing dividends to its shareholders.

Fortitude Gold Intercepts 6.10 Meters of 3.10 g/t Gold Within 21.34 Meters Grading 1.79 g/t Gold at Golden Mile

Fortitude Gold recently announced another source definition round and the results from its expansion drill campaign at Golden Mile Property, Mineral County. The intercepts were 15.24m grading1.81g/t gold, 21.34m grading 1.79g/t gold, and 6.10m grading 3.10g/t gold.

In November last year, the company had revealed an until mineral resource for the Golden Mile location. The release showed 84,500 ounces at1.1g/t gold for the inferred category and 78,500 ounces at 1.14g/t for the indicated class.

The company intends to convert and upgrade its resource into a gold reserve. Furthermore, it wants to complete a Maiden Golden Mile pre-feasibility study by December 31. The previous 2021 resource shows that Fortitude Gold plans to make the Golden Mile project a possibility soon.

The company’s newest drill program concentrated on step-down and infill targets. The results included 21.34m of 1.79g/t gold, 6.10m of 3.10g/t gold, and 25.91m of 1.16g/t gold. Additionally, the company had authorization from the Bureau of Land Management. This permit would allow it to test mineralized extensions beyond its patented claims. Fortitude Gold intends to keep mining the Golden Mile property.

Key Quote

“These additional drill results continue to confirm and further delineate high-grade gold mineralization at Golden Mile,” stated Mr. Barry Devlin, Vice President of Exploration for Fortitude Gold.

Technical Data

FTCO stock is trading below the 20-Day and 50-Day Moving averages of $6.58 and $6.74 respectively. Moreover, the stock is trading below the 200-Day moving average of $6.66.