Climate for U.S. Gold Miners Remains Good

LOS ANGELES, November 1, 2017 /PRNewswire/ --

While the stock market continues to boom, gold is holding its own and looks like it may make things even strong for U.S. mining companies. That is if the new Central Bank chair appointed by President Trump keeps interest rates low.

The low interest rate would bode well for gold and means miners could prosper in the coming year.

Emerging companies with gold resources in play include Pershing Gold (NASDAQ: PGLC), Corvus Gold (OTC: CORVF)(TSX:KOR), Otis Gold (OTC: OGLDF)(TSX-V: OOO), and Bullfrog Gold Corp. (OTC: BFGC).

A report from Bloomberg said President Donald Trump is leaning toward appointing Fed Gov. Jerome Powell to be the next chairman of the central bank.

Analysts believe that would be positive for gold as he is in the dovish camp, in favor maintaining low interest rates. Trump is expected to announce his choice before starting a trip to Asia on Nov. 3.

Major gold producers enjoyed a rally this year, alongside smaller companies who have gold resources under development.

Likely the most undervalued is Bullfrog Gold Corp. (OTC: BFGC), which is perfectly positioned to take advantage of market strength. Bullfrog Gold has one of the best gold projects (based on price per ounce) in Nevada. It's in what is now being seen as a new Carlin Gold trend in the area Bullfrog gained from a former Barrick operation.

Miners with strong gold in ground economics and who are also poised to benefit include Pershing Gold (NASDAQ: PGLC), Corvus Gold (OTCQX: CORVF)(TSX: KOR), and Otis Gold (OTC: OGLDF)(TSX.V: OOO), all which are working on the trend in Nevada.

NEVADA GOLD A GOOD BET 

Nevada is still at the heart of the gold mining sector in the US.

During 2015 Nevada production accounted for just shy of 78% of America's total production. That also contributed to the U.S. ranking as fourth leading gold producer in the world.

Nevada's 2015 production totaled 166 metric tons of gold. In all, the industry that is responsible for production added some $4.6 billion to U.S. GDP.

It makes sense that companies looking to fortify their gold resources in the U.S., are looking in Nevada.

Faults located in Nevada such as the famous Carlin Trend and neighboring Cortez Trend have produced dozens of massive gold deposits of more than 10 million ounces. So when word gets out of a possible new Carlin style trend, gold miners and investors take note.

With this in mind, Nevada gold producers and exploration miners are moving with all speed to advance the projects in the region.

THE TREND: CARLIN STYLE 

Most recently, a new trend has been emerging in the area Nevada are where Bullfrog Gold, Corvus and several others have been developing gold projects.

In October, Corvus released news from its drill results that are SE of Bullfrog Gold's property - reporting 2.69 g/t gold over 37.2 meters, including 11 meters at 5.78 g/t, and the discovery of a new Lower Zone with 25.6 meters at 2.17 g/t gold.

According to the release, Corvus' drilling on its Mother Lode property has outlined two stacked, higher-grade zones within its deposit: an Upper Zone, hosted in intrusive and Tertiary sediments which is the primary initial target along the Mother Lode structural zone, and a newly discovered Lower Zone.

Corvus says that the new Lower Zone discovery has "alteration and textures analogous to structurally controlled deposits that occur more commonly in the Carlin and Battle Mountain - Eureka trends of north central Nevada.."

Gold miners take that to mean that this is a new Carlin Gold trend.

BULLFROG GOLD UNDERVALUED 

If gold continues its strong play into the coming season, undervalued producers like Bullfrog Gold Corp. could prove to have exceptional value, especially with discoveries of new trends.

The company's flagship property, the Bullfrog Gold Project, is located 120 miles to the NW of Las Vegas, Nevada, and includes an ex-Barrick pit that recovered 2,300,000 ounces, along with the northern third of the Bullfrog deposit.

It is also SW of the Corvus Gold Motherlode project and appears to be on trend with another miner announcing similar new gold discoveries, Northern Empire.

The Bullfrog Gold Project produced gold up until Barrick Gold (NYSE: ABE)(TSX: ABE) terminated production in early 1999. Since project economics were different then, with gold prices at an average less than $290 per ounce, it didn't make sense.

But mining sector advances have improved the economics of this play and for Bullfrog gold, with the infrastructure already in place, the project holds tremendous value.

In the acquisition, Bullfrog managed to acquire mounds of data that came with the property, mostly from Barrick's vaults.

Bullfrog Gold has announced estimates in its 43-101 report in June of 525,000 ounces averaging 1.02 g/t using a gold price of $1200/oz and a base case cutoff grade of 0.36 g/t. Inferred resources were estimated at 120,000 ounces of gold averaging 1.20 g/t.

Now that the likes of Corvus Gold and others on the same trend have released findings on what appears to be a new Carlin style gold trend, valuations could rise quickly.

Bullfrog Gold is moving to advance its project, bringing it to the producing stage while the strong economics for gold continue.

The market will have to determine some direction on gold based on the strength of the new Central Bank chair, interest rates and the view of political stability, especially if Trump's tax cuts take effect.

In the meantime, gold is certainly holding its place and the U.S gold miners, like those in Nevada, should get a boost from new resources and production alike.

POTENTIAL COMPARABLES 

Pershing Gold (NASDAQ: PGLC)

Pershing Gold is an emerging Nevada gold producer on a fast-track to re-open the Relief Canyon Mine, which includes three open-pit mines and a state-of-the-art, fully permitted and constructed heap-leach processing facility. Pershing Gold is currently permitted to resume mining at Relief Canyon under the existing Plan of Operations.

Corvus Gold (OTCQX: CORVF)(TSX: KOR)

Corvus Gold Inc. is a North American gold exploration and development company, focused on its near-term gold-silver mining project at the 100% owned Nevada, North Bullfrog project. In addition the Company controls a number of royalties on other North American exploration properties representing a spectrum of gold, silver and copper projects. Corvus is committed to building shareholder value through new discoveries and the expansion of those discoveries to maximize share price leverage in a recovering gold and silver market.

Otis Gold (OTC: OGLDF)(TSX.V: OOO)

Otis Gold has a resource estimate of 520,000 ounces on its Kilgore Project. The company is currently valued at $42.17 million, leaving their gold with a valuation of $81.10/oz of gold.

For a more in-depth look into BFGC you can view the in-depth review at USA News Group: http://usanewsgroup.com/2017/10/29/gold_bull_run-2-2/

Article Source: 

USA News Group

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