Gold Prices Hold Steady Amidst Burgeoning Manufacturing Activity
- FinancialBuzz.com News Commentary
Mar 19, 2021, 09:00 ET
NEW YORK, March 19, 2021 /PRNewswire/ -- Gold prices held steady on Thursday, at round USD 1,720 an ounce. Additionally, the Philadelphia Federal Reserve showed growing momentum in the region's manufacturing sector. The index for current manufacturing activity in the region jumped from a reading of 23.1 in February to 51.8 this month, its highest point in nearly 50 years. Nearly 59% of the firms reported increases in current activity this month (up from 35% last month), while only 7% reported decreases (down from 11%). Currently, traders take into consideration the outlook for economic growth and the low interest rates, which will also have an impact on the precious metal's price. While positive for the gold market, the increased manufacturing activity is also coming with higher prices, indicating further inflation pressures. Exploits Discovery Corp. (CSE: NFLD) (OTC: RNRRF), McEwen Mining Inc. (NYSE: MUX), Gold Fields Ltd. (NYSE: GFI), Equinox Gold Corp. (NYSE: EQX), IAMGOLD Corporation (NYSE: IAG)
Billionaire investor Mark Mobius, Executive Chairman of Templeton Emerging Markets Group and founder of Mobius Capital Partners, explained to an interview with CNBC that "you've got to be in these precious metals, simply because they represent a form of currency… So I believe that those who are looking at gold and silver would be wise to have some of that in their portfolio." According to the investor, even if bond yields would reach 2%, precious metals are still worth it in the long run. "A 2% rate for the 10-year is not high and I don't think that will attract many people," he said. "It's not very significant."
Exploits Discovery Corp. (CSE: NFLD) (OTCQB: RNRRF) along with its exploration partner GoldSpot Discoveries Corp. announced breaking news that it, "has defined three high priority drill targets through Goldspot's proven artificial intelligence (A.I.) machine learning and data analysis technology, which was instrumental in New Found Gold's discovery of the Keats and Lotto zones.
What we have done:
- The True Grit Project hosts the GRUB Line, a deep seated gold bearing fluid conduit that crosses the Exploits sub zone and defines mineral pathways similar to the Appleton Fault, the Joe Batts Pond Fault and the Dog Bay Line.
- In the last six months Exploits has undertaken:
- A high resolution (100m spacing) airborne VTEM geophysical survey.
- SGH soil grid analysis
- Surficial structural mapping and sampling
- Historic drill data compilation and modeling
Where we are going:
- Goldspot has identified three high priority exploration targets using proven techniques similar to those used by GoldSpot for New Found Gold's Keats high grade epizonal gold discovery where they drilled 92.86 g/t Au over 19 metres.
- The geophysical targets display a structural patterns of primary and secondary faulting, that is reinforced by results of SGH soil anomalies, structural mapping, sampling, and 3D modeling of historic shallow drilling.
- The True Grit Property is road accessible and fully permitted for drilling in Spring of 2021. It is the first prospect in a series of five drill targets that Exploits is focused on drilling in the spring of 2021.
Michael Collins, president and chief executive officer of Exploits, commented: 'Exploits exploitation strategy is benefiting our shareholders. In only 6 months we have defined and filed drill permits on 5 projects. With our first permit at True Grit we have defined 3 new targets. That is based on a synthesis of new and old geological information by some of the best minds and A.I. in the business. We look forward to drilling at True Grit and applying our exploration model to the next 4 projects.'
The companies have identified 3 high priority drilling targets on the True Grit Gold Property. GoldSpot's data analysis techniques along with Exploits' historic data compilation, SGH soil survey, and preliminary results from the new high resolution airborne VTEM survey have clearly defined new gold targets for drill testing at True Grit.
The True Grit Project is host to the deep seated GRUB Line fault zone, a known conduit for gold mineralization and gold bearing fluids across the Exploits subzone. The preliminary results have identified a structural pattern of primary and secondary fault structures associated with the GRUB Line, similar to structures Goldspot identified on New Found Gold's Queensway South project.
Current evidence suggests that historical exploration drilling took place on the fringe of the identified targets and the gold intercepts discovered to date are potentially distal to the main mineralized bodies.
Target 1: 3D geological modeling of the historical drilling at True Grit indicates that veining may have a spatial/geometric association with metasediment rock units, coincident with north-south EM conductors. This target was poorly tested by shallow historic drilling that missed both the EM-sedimentary rock hosted anomaly as well as the SGH/Magnetic anomaly. This suite of features are usually expressed by rocks that have been broken up and subject to fluid flow. This structural preparation gives the host rock a higher capacity to host significant gold mineralization than the adjacent areas of known gold mineralization on the True Grit Project.
Untested Targets 2 and 3, were identified on a conductive northeast trending EM anomalies along a major fault structure.
Target 2: is a coincident magnetic high and conductive EM anomaly, overlaid by intersecting major north trending and northeast trending faults to the north of known low grade gold mineralization. It is the strongest of the three highlighted EM conductors and has the structural complexity to develop open spaces required for deposition of gold mineralization.
Target 3: is a coincident conductive EM signature and high priority SGH gold soil anomaly. The SGH gold soil anomaly is spatially associated with an interpreted northwest trending fault, defined by magnetic inversion data, and cross cuts the regional scale EM conductor. This interpreted structural network of primary and secondary structures is critical for the generation and emplacement of epizonal, orogenic gold mineralization.
The True Grit property is 100% owned by Exploits Discovery, subject to a 2% royalty with a 1% buy back for $1 million. It is easily accessible, located only two km west of the junction of the Harbour Breton (Route 360) and St. Alban's highways (Route 361) in the Baie d' Espoir area of Newfoundland's Exploits subzone.
*This press release contains information with respect to adjacent or similar mineral properties which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.
National Instrument 43-101 disclosure
Ian Herbranson, P.Geo, is Vice-President of Exploration for the company and qualified person as defined by National Instrument 43-101. Mr. Herbranson supervised the preparation of the technical information in this news release."
For our latest "Buzz on the Street" Show featuring Exploits Discovery Corp. recent corporate news, please head over to: https://www.youtube.com/watch?v=RusxTZjdhtE&ab_channel=FinancialBuzzMedia
McEwen Mining Inc. (NYSE: MUX) reported earlier this year an updated Indicated Resource Estimate of 499,000 contained gold ounces and Probable Reserve Estimate of 302,000 recoverable gold ounces for the Gold Bar Mine in Nevada ("Gold Bar"). See Tables 1-3 for the updated estimates. Gold Bar's estimated after-tax net present value (NPV) discounted at 8% and using a gold price of USD 1,500/oz is in the range of USD 62 to USD 76 Million; while the upside case at a gold price of USD 1,900/oz is in the range of USD 150 to USD 170 Million. Potential mine life is in the range of 5 to 7 years based on currently estimated reserves. In Q1 2020, the Company reported that a significant reduction in contained ounces at Gold Bar was likely. Since that time significant work, as described below, has been completed to determine the extent of the reduction and mitigate it. To provide perspective on the changes that have occurred at Gold Bar, consider that in 2019, when we started mining, the Reserve estimate was 430,000 gold ounces.
Gold Fields Ltd. (NYSE: GFI) announced on January 22nd that it has formally started construction of the mining infrastructure at its Salares Norte project, in line with the project's construction schedule announced in February last year. Pre-stripping of the mine and construction of the process plant commenced this month. Construction of the USD 860 Million project is scheduled to be completed in late 2022, with first gold production in early 2023. Once commissioned, the mine will process two million tons of ore per year for the production of doré gold. Max Combes, Director of the project, says Salares Norte is good news for Chile and the economy of the Atacama Region. "A project like Salares Norte generates a very valuable productive chain in the industry and significant economic opportunities in the region."
Equinox Gold Corp. (NYSE: EQX) announced on March 1st, that the Company has entered into an agreement with an affiliate of the Orion Mine Finance Group ("Orion") to acquire 10% from Orion's current interest in the Hardrock Mine Project (the "Hardrock Project") for consideration of USD 51 Million plus certain contingent payment obligations (the "Hardrock Transaction"). Christian Milau, CEO of Equinox Gold, stated: "We are extremely pleased to increase our stake in this world-class Canadian gold deposit located in one of the world's top mining jurisdictions. Hardrock will be a low-cost, long-life gold mine, bringing more than 240,000 attributable ounces of annual gold production to Equinox Gold when in production, with significant upside potential from near-mine exploration and underground development. We look forward to working with Orion to advance Hardrock to production, bringing long-term benefits to all stakeholders of the Hardrock Project and particularly First Nations and other communities in the Greenstone region of Ontario."
IAMGOLD Corporation (NYSE: IAG) announced on January 29th, that it entered into a subscription agreement (the "Subscription") with INV Metals Inc. ("INV"), pursuant to which IAMGOLD indirectly, through a wholly-owned subsidiary, acquired 4,848,287 common shares of INV (the "INV Shares"), from treasury, at a price of CAD 0.45 per INV Share, for gross proceeds totaling CAD 2,181,729. IAMGOLD acquired the INV Shares pursuant to the Private Placement for investment purposes. Depending on market conditions and other factors, IAMGOLD may, from time to time, further acquire or dispose of INV Shares, or maintain its current shareholdings, as it sees fit.
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