As equities open in a broad-based decline, precious metals miners show early strength: ABX +4.1%, NG +4.1%, EXK +3.7%, GG +3.7%, IAG +3.3%, SA +2.9%, AG +2.8%, SSRI +3.1%, AUY +2.7%, GOLD +2.5%, NEM +2.3%, MVG +2.3%, SLW +2.2%, PAAS +2.2%, AU +2.1%, KGC +2.2% (Briefing.com).
Shares of MAG Silver (MVG -9.8%) plunged in the final hour of trading on news that Benito Juarez landholders voted during a local assembly meeting over the weekend to expel the company from its Cinco de Mayo property and establish a 100-year mining moratorium. MAG believes the resolutions are illegal and will not be permitted to stand.
MAG Silver (MVG +6%) shares shoot higher after the miner reports multiple silver/lead/zinc intercepts in its Mexican Bridge Zone property and plans to expand its Cinco de Mayo drill program. MVG increases its 2012 planned drilling by $2M to $5.5M, and ramps up drilling from one to four rigs with a fifth expected in the near future.