Gold Prices Edge Higher as the Economic Recovery Remains Uncertain
FinancialBuzz.com News Commentary
25 Mar, 2021, 09:00 ET
NEW YORK, March 25, 2021 /PRNewswire/ -- Gold and silver prices modestly increased on Wednesday. April gold futures were last up USD 5.70 at USD 1,730.80 and May Comex silver was last up USD 0.103 at USD 25.33 an ounce. Economically, the U.S. is on track to recover into next year, with the help of the government's relief program. Yet, the pandemic and the subsequent partial economic shutdown have had some severe consequences. Janet Yellen, Secretary of the Treasury, explained that "1 in 10 homeowners with a mortgage are behind on their payments and almost 1 in 5 renters are behind on their rent. There are 22 million people who say they don't have enough food to eat. 1 in 10 adults are hungry in America. I looked at data like these and I worried that the COVID economy was going to keep hurting millions of people now and haunt them long after the health emergency was over." Exploits Discovery Corp. (CSE: NFLD) (OTC: RNRRF), Alamos Gold Inc. (NYSE: AGI), Coeur Mining, Inc. (NYSE: CDE), DRDGOLD Limited (NYSE: DRD), Golden Star Resources Ltd. (NYSE: GSS)
Even though there is a gradual easing of all the restrictions and businesses are slowly starting to reopen, the actual economic repercussions from the current pandemic and measures taken to combat it are still unclear. The value of gold is problematic to forecast, as it contingent on many economic variables as well as on decisions made by the federal reserve. Nevertheless, gold investments are frequently regarded as safe haven in a time of economic and political turmoil.
Exploits Discovery Corp. (CSE: NFLD) (OTCQB: RNRRF) Outlined yesterday its, "drilling targets at the Jonathan's Pond Project (the "Project") located in the Exploits Subzone, Newfoundland. The Company also announces that it will hold an online special investors meeting March 25th, 2021 (See details below).
- Exploits defined two high priority targets at the Jonathan's Pond Gold Project JP Vein, and a 2-kilometre long demagnetized fault zone.
- The JP Vein target contains high grade gold in quartz veining up to 28 g/t Au, low grade gold in wall rock returning 0.44 g/t Au over 5 meters, including 1 meter at 0.80 g/t Au in trenching, and a further 300 metres of anomalous unexplored strike length of gold indicated by Spatiotemporal Gas Hydrocarbon (SGH) soil samples.
- The 2-kilometre fault zone is a demagnetized geophysical target located 1.3 km northeast of the highest documented cluster of heavy mineral concentrate (HMC) samples on the island of Newfoundland and 1.6 km northeast of a float boulder that assayed 700 g/t Au (Keats, 2004).
- These targets are a high priority for the Spring 2021 drilling program.
Exploits identified two high priority target areas on the Jonathan's Pond Gold Project through late 2020 trenching, outcrop mapping, SGH soil sampling, and geophysical analysis. The JP Vein received the majority of the 2020 field work that resulted in the identification of the gold bearing phase of quartz veining and its structural orientation, with samples assaying up to 28 g/t Au. The SGH soil sampling results over this area coincided with this orientation and opened up a further 300 metres of additional unexplored strike length to be followed up on.
The structural information collected during outcrop mapping allowed for a detailed geophysical analysis of historic high resolution airborne magnetic data over the Project. A series of tight folds were defined with an apparent 2-kilometre demagnetized secondary fault. This secondary fault displays the preferred orientation similar to the gold bearing phase of quartz veining as seen at the JP Vein. Demagnetized "destruction" fault zones are important in orogenic gold systems as it demonstrates fluids potentially carrying gold have propagated through this structural conduit and replaced the magnetic minerals with non-magnetic alteration minerals, such as sericite (mica). This target is located 1.3 km from the highly elevated, historic gold in till samples (New Found Gold Corp., 2017).
Michael Collins, President & Chief Executive Officer of Exploits, commented: "Jonathan's Pond has delivered great targets for us that are backed by solid geology field work with high grade assays and large scale structures to be targeted."
'We also welcome you to join us tomorrow for a live discussion on the history and outlook of the prolific Exploits Subzone, also known as the Newfoundland Gold Belt. We will also joined by Al and Kevin Keats and Gary Lewis, who have played an instrumental part in the identification of Jonathan's Pond and other targets within the Exploits Subzone Gold Belt.'
About Jonathan's Pond Targets
Jonathan's Pond is a 100% Exploits owned gold Project located along Highway 330, 17 kilometres north of Gander, Newfoundland. Situated along the Gander River Ultramafic Belt (GRUB) Line Fault Zone, the Project hosts gold in heavy mineral concentrate (HMC) till anomalies with 24 samples ranging from 720 to 410,000 ppb Au, float boulder samples up to 700 g/t Au, and outcrop samples up to 28.0 g/t Au in quartz veins. In December 2020, Exploits acquired an additional 11.25 square kilometres of land from New Found Gold Corp. This consolidated the Project area allowing uninhibited exploration on the identified targets.
Trenching and outcrop mapping efforts Exploits undertook in the fall of 2020 at the JP Vein helped move the Project along in the understanding of geology, structure, and gold mineralization style. Outcrop grab and channel sampling has highlighted that the high-grade gold mineralization is localized to late-stage quartz veining, associated with a third phase of structural deformation. Trenching highlighted the presence of lower grade gold mineralization in host rock that returned 0.44 g/t Au over 5 meters, including 1 meter at 0.80 g/t Au, in altered gabbro. This indicates the high-grade gold in quartz veins may be contained within a lower grade envelope in the host rock. SGH soil sampling results were also consistent in the orientation of the anomalous gold in SGH signature to the high-grade gold in quartz vein orientation, outlining a further 300-metres of unexplored strike length…"
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Alamos Gold Inc. (NYSE: AGI) reported on January 27th, new results from surface and underground exploration drilling at the Island Gold Mine, further extending high-grade gold mineralization in Island Main, East and West. "These latest results conclude another successful drilling campaign in 2020. Despite not completing as much drilling as planned due to COVID-19, the 2020 program included some of the best exploration results drilled to date at Island Gold. We expect these results to drive further growth in high-grade Mineral Resources at Island Gold with our 2020 year end update, improving already attractive economics with the Phase III shaft expansion, while also clearly demonstrating the significant ongoing growth potential of the deposit," said John A. McCluskey, President and Chief Executive Officer.
Coeur Mining, Inc. (NYSE: CDE) announced last year, details of the expansion of its Rochester silver-gold mine in Nevada, reflecting significant reserve growth and the benefits of a larger-scale expansion project. "The expansion of Rochester represents the Company's single largest organic growth opportunity," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "The combination of significant reserve growth, the scope of the expansion project to leverage economies of scale and the benefit of higher and faster silver recoveries from HPGR technology is expected to generate an internal rate of return of over 30%. Importantly, the project is supported by a technically sound foundation with robust economics that helps drive an anticipated step-change in Coeur's cash flow profile."
DRDGOLD Limited (NYSE: DRD) reported on October 27th, in an operational update for the quarter ended 30 September 2020, a 45% quarter-on-quarter increase in gold production to 1 514kg, due primarily to a 27% increase in tonnage throughput to 7 260 000t and a 15% increase in yield to 0.209g/t. Gold sold increased by 60% to 1 522kg. As a result, cash operating costs per kilogram of gold sold decreased by 10% to R489 750/kg. Cash operating costs per ton of material processed increased by 2% to R104/t.
Golden Star Resources Ltd. (NYSE: GSS) filed on March 1st, a National Instrument 43-101 technical report which includes a mineral reserve and resource update and a preliminary economic assessment of the potential expansion of the Southern Extension zone in the Wassa underground gold mine in Ghana. "In 2020, we focused on improving our geological confidence in the orebody through an extensive infill drilling program which has resulted in a significant increase in our measured resource and proven reserve. Converting the open pit reserve at Wassa to an underground reserve allows us to bring production from those areas forward with a lower upfront capital cost. Development of the Upper Mine will start to deliver production from 2023 and will provide a second decline access to the mine which can be incorporated into the long term mine design.
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