In a move to create a new exploration player focused on British Columbia’s mineral-rich Golden Triangle, Eskay Mining Corp. and P2 Gold Inc. have agreed to join forces through an all-share merger. The combined company will also gain a foothold in Nevada’s Walker Lane Trend through P2’s Gabbs gold-copper project.
Under the terms of the deal announced Monday, P2 Gold shareholders will receive 0.2778 Eskay shares for each P2 share they hold. When the transaction closes, expected by October 31st, existing Eskay shareholders will own approximately 80% of the combined company, with P2 investors holding the remaining 20%.
The merger brings together two mineral exploration companies with complementary assets and expertise in prolific mining jurisdictions. Eskay’s flagship asset is its Eskay-Corey property, a large 52,600 hectare land package located in the heart of the Golden Triangle of northwestern British Columbia. This region has gained prominence in recent years due to successful mine developments by companies like Pretivm, Seabridge Gold, and others operating in the area.
P2 Gold, meanwhile, holds the Gabbs project in Nevada’s Walker Lane mineral belt. A 2022 preliminary economic assessment outlined a potentially robust mid-sized open pit mine at Gabbs producing over 100,000 ounces of gold and 13,500 tonnes of copper annually over a 14-year mine life. The deal provides the combined company with a more advanced, development-stage asset to complement Eskay’s exploration upside in the Golden Triangle.
The current P2 President and CEO, who previously helped discover and develop Pretivm’s high-grade Brucejack gold mine in the Golden Triangle, will take the helm as CEO of the as-yet unnamed combined company. P2 has already been contracted to plan and execute the 2024 exploration program at Eskay-Corey under an exploration services agreement.
In addition to exploration upside, the merger is expected to provide improved access to capital markets for funding the advancement of the companies’ project portfolio. As single assets, Eskay and P2’s respective market caps were around C$40 million each, limiting their ability to raise funds for major programs.
One investment manager sees the deal unlocking value, stating the combined company will have much more relevance and reduce single asset risk, putting it on the radar for more institutional investors and funds.
Prior to closing, P2 Gold will settle approximately $1.7 million in outstanding convertible debentures and $1.2 million in shareholder loans through share issuances. The transaction remains subject to shareholder approvals from both companies as well as regulatory and court approvals.
The merger continues the wave of consolidation across the mining sector, as companies seek economies of scale and diversified asset bases. If successful, the combined Eskay-P2 entity will aim to leverage its exploration and development expertise to establish new mines in mining-friendly North American jurisdictions.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Drilling to resume later in the year. Maple Gold has been undertaking a systematic compilation and review of its technical database associated with its 400 square kilometer property package. Maple Gold’s technical team is nearing completion of a new three-dimensional litho-structural model to support a focused ranking and prioritization of property-wide drill targets to be tested later this year. Maple also initiated high resolution drone magnetic surveys in selected areas which will be completed in the second quarter of 2024.
Significant depth potential at Douay. The 2022 Douay mineral resource estimate addressed optimizing complementary open-pit and underground scenarios. Resources below the pit have significant potential for expansion given the limited amount of drilling below approximately 300 meters vertical depth. Deep drilling in 2023 confirmed continuity of the mineralized system at depth. Maple Gold intends to increase the underground gold resource to two million ounces largely by drilling near and below the base of the pit.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
G Mining Ventures (GMIN) is supercharging its growth strategy with the $875 million acquisition of junior explorer Reunion Gold and its massive Oko West gold project in Guyana. This transformative transaction instantly vaults GMIN into the elite ranks of premier mid-tier producers and showcases the huge rewards awaiting those who can execute on major discoveries.
Oko West already boasts an eye-popping 4.3 million ounces of indicated gold resources grading a robust 2.05 g/t. On top of that, it hosts another 1.6 million ounces of inferred resources at 2.59 g/t – over 1 million of those ounces are high-grade underground at 3.12 g/t. With this incredible size and scale, Oko West has all the hallmarks of a monster gold deposit ideally suited for a large-scale open-pit and underground mining operation.
Under the deal terms, Reunion shareholders receive 0.285 GMIN shares for each share held – representing about C$0.65 per share, a 29% premium. They also gain upside through an 80% stake in a spin-out vehicle holding Reunion’s other assets, funded with $15 million from GMIN.
For existing GMIN investors, Oko West provides a powerful second operational asset to go alongside the company’s near-term cash flow generator, the Tocantinzinho gold mine in Brazil on-track for late 2024 production. GMIN shrewdly raised $50 million in upfront equity financing from key backers La Mancha and Franco-Nevada to help fund Oko West, minimizing future shareholder dilution.
The lofty valuation GMIN paid underscores the premium attached to large, high-margin gold deposits in elite mining jurisdictions like the prolific Guiana Shield of South America. With exceptional projects of this caliber becoming extremely rare, an M&A frenzy is brewing as established producers race to replenish their ravaged reserve pipelines before valuations escalate further.
Soaring gold prices, tight supply, and escalating costs have heightened the appeal of de-risked, economically-resilient projects like Oko West already advanced to later stages. Few explorers can match GMIN’s powerful combination of a quality anchor asset generating cash flows, accomplished construction team with regional experience, and robust financial warchest to help crystallize Oko West’s full value.
A key advantage is GMIN’s in-house construction arm G Mining Services, which boasts extensive Guiana Shield expertise including delivering Newmont’s Merian mine ahead of schedule and under budget. This unmatched skill set is invaluable for safely navigating the complexities of developing a large, remote project like Oko West.
In addition to acquiring Oko West, GMIN gains exposure to new regional discoveries through Reunion’s spin-out company. This junior exploration vehicle is led by Reunion’s proven team and backed by a $15 million treasury to pursue the next big find across the underexplored Guiana Shield which continues delivering large, high-quality gold deposits.
The GMIN-Reunion merger showcases an emerging class of ambitious mid-tier producers diligently building diversified portfolios of long-life, high-margin assets across the Americas’ premiere mining districts. Through aggressive yet disciplined M&A of compelling discoveries demonstrating robust economics, GMIN aims to establish itself as a preeminent regional consolidator and operators.
With dwindling reserve inventories plaguing the sector, securing high-quality acquisitions in choice jurisdictions has become a strategic imperative for all but the most senior gold producers. Prolific belts like the Guiana Shield are rife with consolidation opportunities for well-capitalized counterparts able to fund and maximize development of world-class discoveries trapped within explorers’ portfolios.
Transformative deals like GMIN’s capture the upside of combining quality exploration assets with complementary construction capabilities under a single corporate engine optimized for growth. By uniting prospective resources with seasoned mine builders and operators, new mid-tiers are creating compelling vehicles to power the next big commodities M&A cycle.
In the perpetual hunt to replace dwindling reserves, the limited availability of sizable, high-grade resources in stable jurisdictions opens the pocketbooks of acquisitive producers. Projects like Oko West that flaunt elite size, grade and metallurgy across investment-friendly locales simply become irresistible targets for bigger fish further up the food chain.
GMIN’s Reunion acquisition stands as a tantalizing template for investors seeking the next emerging gold producer capable of rapidly ascending the value curve. Companies that stitch together prized asset bases could become the next sought-after prizes as industry consolidation kicks into overdrive.
The unrelenting surge in gold prices has shown no signs of abating, with the precious metal blasting through the $2,400 an ounce level to set fresh all-time highs. Propelled by a combination of geopolitical turmoil, stubborn inflation, and prospects for more dovish U.S. monetary policy, bullion’s blistering rally has lifted the fortunes of mining companies along with it.
On Monday, gold futures settled at a record $2,383 per ounce after Iran fired missiles at Israel, amplifying safe-haven demand. While the imminent threat was neutralized, the escalation underscored bullion’s appeal as a hedge against geopolitical instability.
But it’s not just tensions abroad fueling gold’s ascent. The anchoring factor has been the prospect of easier monetary conditions from the Federal Reserve to tame hot inflation. Hotter-than-expected price data has raised odds of two rate cuts by year-end, buffering non-yielding bullion’s appeal relative to other asset classes like bonds.
The stellar gains have unsurprisingly turbocharged mining stocks. The VanEck Gold Miners ETF (GDX) has skyrocketed over 20% year-to-date, far outperforming the metal itself. Industry titans like Newmont Corp (NEM) have risen nearly 20% as the merger with Newcrest has fattened production levels and profit margins at current lofty gold prices.
While big miners are prospering, it’s the juniors and smaller explorers that have seen the most spectacular returns. Fueled by improved economics at higher bullion levels, higher prices breathed new life into marginal projects long-shelved during the bear cycle, while re-ratings sent neglected equities rocketing higher.
According to Citi analysts, the minimum “price floor” at which mines can profitably produce has risen from around $1,000 previously to $2,000 currently. This bodes extremely well for industry profitability and increased capital spending to bring on additional supply.
In fact, Citi sees no stopping gold’s rally, projecting a push towards $3,000 an ounce over the next 6-18 months on potential stagflation risks. Goldman Sachs has also jumped on the bullish bandwagon, revising their gold target up to $2,700 by year-end. Lofty forecasts like these imply juniors may have plenty of room to run if realized.
For investors, the juniors offer a high beta play on higher gold pricing but come with elevated risks compared to the senior miners. Many are single-asset companies with higher costs, making them more susceptible to operational snags and gold price fluctuations.
However, their outsize returns in a bull market are also apparent. Juniors like Equinox (EQX) have delivered nearly triple the gains of the major producers. Their improved ability to raise capital for growth also enhances the upside potential. If the $3,000 an ounce forecast is achieved, the re-rating and bull market in juniors could be just beginning.
With a potent combination of easy money policies, inflation risks, and simmering geopolitical flashpoints buoying bullion, gold’s uptrend shows no signs of abating. As the rally rages on, the mining industry from large to small is prospering – but it’s the high-risk, high-reward juniors that have emerged as the most compelling opportunity to capitalize on gold’s unstoppable ascent.
The stock market is heating up and signaling the return of the bulls, as evidenced by fresh all-time highs in the S&P 500 and a rally across risk assets like Bitcoin and gold. Fueled by booming innovation in artificial intelligence, speculative capital is flowing back into equities in a big way. For investors, it may be time to go hunting for the next big investments.
The S&P 500 broke out to new records this week, finally surpassing the previous highs set back in January 2022 before last year’s punishing bear market. The large-cap index closed at 5233 on Thursday, up over 28% year-to-date. This demonstrates that the decade-plus bull run that began after the 2008 financial crisis may have refreshed legs under it.
The strength comes as AI mania has gripped Wall Street and Main Street. The smash success of OpenAI’s ChatGPT triggered a cascade of investors plowing capital into AI startups and tech giants racing to deploy advanced language models and machine learning systems. Cathie Wood’s Ark Invest funds, which load up on disruptive innovation plays, have surged over 30% in 2023.
The AI buzz has spurred a speculative frenzy not seen since the meme stock and SPAC manias of 2021. The heavy inflows, plus robust economic data, have pushed U.S. stock indexes to their most overbought levels since the rally out of the pandemic lows. Technical indicators suggest more volatility and pullbacks could be in store, but the trend remains firmly bullish for now.
The buying spree has spilled over into other risk assets like cryptocurrencies and gold. Bitcoin soared above $70,000 recently to its highest levels ever. The original crypto has rallied over 70% in 2023 as institutions warm back up to the space and the AI buzz rekindles visions of decentralized Web3 applications and business models.
Not to be outdone, gold has surpassed $2,200 per ounce and is trading at levels far greater than what was seen in 2020 during the pandemic turmoil. Bullion is benefiting from growing concerns over persistent inflation and fears the Federal Reserve could push the economy into recession as it keeps raising interest rates aggressively. The yellow metal is increasingly seen as a haven in times of economic and banking system stress.
Combined, the advancing prices and frothy trading action point to the return of the animal spirits last seen at the height of the Robinhood/Reddit meme stock craze from two years ago. Caution is certainly warranted, as downside risk remains with growing chances of an economic hard landing from the Fed’s inflation fight.
But the market often climbs a wall of worry, and the blowout action indicates speculators are back in full force. For investors able to navigate the volatility, this may be an ideal time to put capital to work and research the next big opportunities to ride the bull’s coattails.
As ARK’s Cathie Wood stated, “Given the breakthroughs in AI broadly, we believe we are living in the most profound period of commercial invention ever.” Profound invention tends to create extreme investment returns for those with the foresight to invest early in transformative technologies.
For investors searching for the potential 100-baggers of tomorrow across sectors like AI, quantum computing, biotech, fintech, and cybersecurity, buying dips and dollar-cost averaging into high-conviction positions could pay massive dividends down the road. The market mania may only be just beginning.
The gold mining industry saw an intriguing deal announced this week, with mid-tier producer Alamos Gold Inc. unveiling plans to acquire smaller rival Argonaut Gold Inc. for US$325 million. The transaction highlights an ongoing trend of consolidation in the metals mining space, as bigger players look to grow through acquisitions of promising assets and companies.
For Alamos, the main prize in this deal is the Magino development project in Ontario, Canada owned by Argonaut. Located right next door to Alamos’ Island Gold mine, Magino provides the company an opportunity to combine the two operations into one large, low-cost complex. Alamos expects to realize over US$500 million in synergies by integrating the two adjacent mines.
The acquisition of Magino significantly increases Alamos’ production profile. The combined company is expected to produce over 600,000 ounces of gold annually in the near-term, with longer-term potential exceeding 900,000 ounces per year at declining costs. This expanded scale bolsters Alamos’ position as one of Canada’s largest and lowest cost gold producers.
While Alamos gains Magino through this transaction, Argonaut’s other assets in the U.S. and Mexico will be spun out into a newly created company called SpinCo that will be owned by Argonaut’s current shareholders. This includes the operating Florida Canyon mine in Nevada as well as several development and exploration projects in Mexico.
The Alamos-Argonaut deal follows a number of similar acquisitions of smaller gold companies by more established miners over the past year. In 2023, Agnico Eagle Mines acquired Teck Resources’ minority stake in the Minas de San Nicolas mine in Mexico, while Kinross Gold acquired Great Bear Resources and its promising Dixie project in Ontario. Going back to 2022, there were several billion-dollar M&A transactions, including Newmont’s acquisition of Newcrest’s stake in the Cadia mine and Yamana Gold’s takeover by the Pan American Silver and Agnico Eagle joint venture.
According to analysts, this renewed appetite for M&A activity reflects a growing consensus that a new bull cycle may be emerging for precious metals like gold and silver. Record high inflation rates, continued economic uncertainty, and a lack of major new production sources coming online have contributed to this increasingly bullish outlook.
In addition to building out their growth profiles through M&A, the large miners are also investing heavily in exploration and advancing their existing development projects. This dual strategy of acquisitions and organic growth initiatives should help drive a new phase of production growth across the sector in the coming years as a potential bull market unfolds.
For smaller mining companies like Argonaut, deals like this provide an attractive exit opportunity and way to unlock value for shareholders. But they also highlight the continual restructuring happening in the mining space, as promising assets and companies get consolidated into the hands of more well-capitalized mid-tier and senior producers.
With metals prices expected to keep rising on the back of supply/demand imbalances, this wave of consolidation could be just the beginning. Analysts anticipate an acceleration of M&A activity as the big miners look to position themselves for the next bullish upswing in the commodity cycle.
The price of gold has skyrocketed to unprecedented levels, smashing through its previous record highs as financial markets grapple with elevated uncertainty and economic turmoil worldwide. The precious yellow metal surged past $2,200 per ounce in March 2024, with many analysts forecasting prices could potentially reach $2,300 by year’s end.
Central Bank Buying Fuels Demand Surge
A major driver behind gold’s stellar rally has been the concentrated buying from the world’s central banks. Motivated by a desire to diversify reserves and hedge against financial instability, national banks have been steadily accumulating gold over the past few years. Their purchases hit an all-time high of 1,136 tons in 2023.
Leading the pack is China’s central bank, which added 62 tons to its reserves in just the first two months of 2024 alone. This buying spree represents China’s ongoing efforts to reduce exposure to the U.S. dollar amid simmering trade tensions and economic competition between the superpowers.
But China is far from the only central bank betting big on bullion. Poland’s central bank emerged as a surprise major buyer in 2023, snapping up 130 metric tons of gold as it moved to bolster its financial security buffers in the wake of the Russia-Ukraine conflict. Singapore’s monetary authority also purchased 76.5 tons last year.
Rampant Inflation Stokes Safe Haven Demand
In addition to central bank accumulation, surging consumer demand has provided another powerful upward force on gold prices across multiple major markets. Galloping inflation in many economies has amplified the yellow metal’s appeal as a store of value and hedge against currency debasement.
In Turkey, where annual inflation topped a staggering 67% in February, demand for gold jewelry and investment bullion nearly doubled in 2023 versus the prior year. With the Turkish lira plunging over 40% against the U.S. dollar, local investors piled into gold to preserve their savings from being eroded by the currency’s depreciation.
Even in relatively lower inflation environments like India, retail investment updates for gold bars, coins and jewelry have remained robust. India’s gold bar and coin demand increased 7% year-over-year, buoyed by households seeking a safe haven asset amid economic uncertainty.
China Overtakes India as Top Jewelry Consumer
China has now surpassed India as the world’s largest gold jewelry consumer market. Chinese demand for gold jewelry amounted to 603 tons in 2023, a 10% annual increase, as retail investors diversified away from underperforming asset classes like real estate and sought refuge in the perceived safety of gold.
India remains a gold jewelry powerhouse as well. Though higher prices moderated some discretionary jewelry purchases, India’s enduring cultural tradition of giving gold gifts during weddings kept consumer demand elevated. India’s gold jewelry consumption totaled 562 tons in 2023.
Economic Outlook Boosts Appeal of Non-Yielding Bullion
Looking ahead, the outlook for even higher gold prices appears increasingly supported by expectations of potential interest rate cuts amid growing fears of an economic slowdown or recession. Lower rates diminish the opportunity cost of holding non-yielding bullion versus interest-bearing assets like bonds.
Major financial institutions like the World Bank and IMF have slashed economic growth projections for 2024, citing persistent inflation, elevated borrowing costs, and supply chain disruptions. This gloomy backdrop heightens the perceived risk of central banks easing monetary policy, which could catalyze another leg higher in gold’s explosive price rally.
With its dual status as an inflation hedge and safe haven asset, gold has reclaimed its luster amidst the storm clouds gathering over the global economic horizon. As long as uncertainty and currency debasement risks persist, the precious metal’s stellar ascent may be far from over.
In a world of economic uncertainty and geopolitical tensions, gold has once again proven its mettle, reaching unprecedented heights and capturing the attention of investors worldwide. On Tuesday, March 5, 2024, the precious metal achieved a historic milestone, with its price soaring to an all-time high of $2,141.79 per ounce, surpassing the previous record set just three months ago.
This remarkable rally, fueled by a confluence of factors, serves as a reminder of gold’s enduring appeal as a safe-haven asset and a hedge against market volatility. As investors navigate the ever-changing landscape of financial markets, the demand for gold has surged, driven by expectations of a potential pivot by the Federal Reserve toward monetary easing, geopolitical tensions, and the looming risk of a stock market correction.
At the heart of gold’s ascent lies the anticipation of a shift in monetary policy by the Fed. With signs indicating a potential easing of interest rates on the horizon, investors have flocked to the precious metal, which typically benefits from lower borrowing costs. Swaps markets currently reflect a 64% chance of a rate cut in June, a higher probability than early last month, further fueling speculation and driving gold’s allure.
Moreover, the world stage has been characterized by escalating geopolitical tensions, with conflicts and uncertainties on various fronts. The attacks on shipping in the Red Sea, highlighting the volatile situation in the Middle East, have underscored the need for safe-haven assets like gold. As investors seek refuge from these turbulent times, the precious metal’s role as a hedge against turmoil has been reinforced.
The specter of a potential stock market correction has also played a significant role in gold’s ascent. With weak U.S. manufacturing data on Friday serving as a warning sign, investors have sought to mitigate risk by diversifying their portfolios and turning to the time-honored stability of gold.
While the surge in gold prices has been remarkable, it is important to note that this rally has highlighted a growing disconnect between spot prices and outflows from bullion-backed exchange-traded funds (ETFs). Persistent central bank demand for the precious metal and robust physical demand from gold bars and coins have helped offset these outflows, underscoring the broad-based appeal of gold across various investor segments.
As we look ahead, the factors driving gold’s recent success show no signs of abating. The upcoming U.S. presidential election, coupled with China’s economic woes, create a potentially volatile environment ripe for safe-haven investments. Additionally, gold’s role as an inflation hedge cannot be overlooked, as the precious metal has historically served as a bulwark against eroding purchasing power.
For investors seeking to capitalize on this golden opportunity, a well-diversified portfolio that includes exposure to gold can offer a measure of protection against market turbulence and geopolitical uncertainties. Whether through physical holdings, gold-backed ETFs, or mining stocks, there are numerous avenues to gain exposure to this precious commodity.
However, it is crucial to approach gold investments with a long-term perspective and a thorough understanding of the market dynamics. While gold has surpassed its previous nominal highs, its inflation-adjusted peak from 1980 would equate to more than $3,000 in today’s dollars, highlighting the potential for further upside.
In conclusion, gold’s record-breaking performance serves as a testament to its enduring value and resilience in the face of economic and geopolitical uncertainties. As investors navigate the complexities of today’s financial landscape, the precious metal’s allure as a safe-haven asset and a hedge against volatility remains undimmed. By carefully considering gold’s role within a diversified portfolio, investors can position themselves to weather potential storms and capitalize on the opportunities that arise in times of uncertainty.
Gold prices have been on a dazzling run in recent months, with the precious metal notching consecutive monthly gains to reach new all-time highs. On Monday, spot gold prices topped $2,100 an ounce for the first time ever, hitting $2,110 before pulling back slightly. This adds to the previous record set back on Friday when prices exceeded $2,075, blowing past 2020’s earlier high point.
Analysts say gold still has room to run in 2023 and 2024 as key conditions line up to support further upside for bullion. Low interest rates, a weakening US dollar, rising inflation concerns globally, and an array of simmering geopolitical conflicts should all conspire to keep safe haven demand elevated.
“There is simply less leverage this time around versus 2011 in gold,” said Nicky Shiels of MKS PAMP, noting that the current dynamics put $2,200/oz within reach. Other experts concur, with UOB strategist Heng Koon How targeting $2,200 gold by end-2024, and TD Securities anticipating average prices around $2,100 in Q2 2024.
Fueling this gold fever has been robust central bank buying, especially across emerging markets. Recent data shows 24% of central banks worldwide intend to pad their gold reserves over the next year as economic uncertainty persists. With these institutions showing waning faith in traditional reserve assets like the US dollar, their bullion accumulation provides a sturdy pillar of support.
Geopolitical Flare-Ups Stoke Safe Haven Appeal
Mounting geopolitical tensions represent another propellant behind gold’s rise. The bloody conflict between Israel and Palestine has recently stoked investor fears, driving many towards gold’s relative stability. Looking ahead, strategists believe various other hotspots could flare up and lift bullion demand more.
Besides the Middle East, worsening frictions between China and Taiwan or a resurgence of the crisis in Ukraine could shock markets. And if the US gets dragged into any new foreign entanglements, it may have to ramp up defense spending and borrowing, potentially weakening both growth and the dollar.
With so many risks swirling, portfolio managers and retail buyers appear increasingly eager to hedge with gold. Notably, demand has climbed even as gold prices touched multi-year highs. This underscores bullion’s unique status as a tried-and-true safe haven asset.
Fed Policy Outlook Could Offer Further Boost
Though gold has powered higher despite a spate of Fed rate hikes, any change in this tightening cycle would provide another major catalyst. After lifting interest rates rapidly from near-zero, policymakers must now decide whether to keep tightening or ease off the brakes.
Several officials, including Governor Christopher Waller, have hinted rates may not rise much further if inflation keeps slowing as expected. Markets thus see potential Fed rate cuts arriving sometime in 2024.
If implemented, this dovish shift would likely hamstring the dollar and bond yields, stirring more demand for non-interest-bearing gold. Hence analysts view Fed pivots as a probable linchpin that keeps prices locked above $2,000 over the next couple of years.
With stars aligned for gold both fundamentally and geopolitically, all the ingredients seem in place for its dazzling run to continue. That leaves bulls dreaming ever more ambitiously of how high prices could yet soar. However, given gold’s inherent volatility, traders should steel themselves for pullbacks as well while enjoying the ride upwards.
Vancouver, British Columbia–(Newsfile Corp. – November 22, 2023) – Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (“Maple Gold” or the “Company“) today announced that its Board of Directors has appointed Mr. Kiran Patankar to the positions of President and Chief Executive Officer, effective immediately. Mr. Patankar had served as Interim President and Chief Executive Officer since August 28, 2023. Mr. Patankar has also joined the Board of Directors of Maple Gold.
“We are pleased to appoint Kiran Patankar as President and Chief Executive Officer of Maple Gold,” stated Michelle Roth, Maple Gold’s Chairperson, speaking on behalf of the Board. “From the time he was appointed Interim President and Chief Executive Officer in August 2023, Kiran has spearheaded the execution of the Company’s updated corporate strategy, which includes a thorough assessment of our district-scale Québec gold projects. He has fostered alignment between our technical team and our strategic and joint venture partner to improve exploration targeting and optimize results, while also driving significant overhead cost reductions. Kiran is an experienced corporate leader with a track record of successful team building and deep mining industry connections. We are fortunate to be able to harness his skills, temperament and steady hand to steer the Company in a new direction to enhance shareholder value.”
“I am delighted and honored to lead Maple Gold into its next phase of growth,” stated Kiran Patankar, President and CEO of Maple Gold. “While current market conditions remain challenging for junior gold explorers, our strong financial position, including nearly C$5 million of available liquidity as of September 30, 2023, combined with cost reduction efforts and a new value-oriented exploration approach in ongoing partnership with Canada’s largest gold producer ideally positions the Company to discover the next major gold camp in Québec’s prolific Abitibi Greenstone Belt. I look forward to working with the dedicated team and Board of Directors at Maple Gold to build upon the Company’s strong foundation and contribute to its future success.”
Mr. Patankar has more than 15 years of senior leadership experience in the mining industry. He has served as Maple Gold’s Interim President and Chief Executive Officer since August 2023, after serving as the Company’s Chief Financial Officer since 2022 and its Senior Vice President, Growth Strategy since 2021. From 2015 to 2018, Mr. Patankar served as President, CEO and a Director of two TSX-V listed gold exploration and development companies, where he led growth initiatives and orchestrated successful company turnarounds. As an investment banker with leading Canadian and global financial institutions from 2007 to 2014, he worked exclusively with mining companies on strategic corporate matters and executed M&A and corporate finance transactions totaling more than C$3 billion in value. Mr. Patankar holds a Bachelor of Science in Geological Engineering from the Colorado School of Mines and an MBA from the Yale School of Management.
Q3 2023 Financial Results
The Company filed its Q3 2023 Financial Statements and MD&A on SEDAR+ (www.sedarplus.ca) on November 20, 2023. The Company’s Q3 2023 Financial Statements and MD&A are also available on the Company’s website (www.maplegoldmines.com).
Equity Incentive Plan Grants
Pursuant to its Equity Incentive Plan (the “Plan”) dated December 17, 2020, as amended, and the policies of the TSX Venture Exchange, the Company’s Board of Directors granted stock options (“Options”) and Restricted Share Units (“RSUs”) to certain employees, officers, directors and consultants. The Company granted Options to purchase an aggregate of 3,825,000 common shares of the Company (each, a “Common Share”), with an exercise price of $0.06 per Common Share. Each Option grant vests in three equal tranches over a 24-month period. Once vested, each Option is exercisable into one Common Share for a period of five years from the date of the grant. The Company also granted a total of 400,000 RSUs. Each RSU grant vests in three equal tranches over a 24-month period. Once vested, each RSU entitles the holder thereof to receive either one Common Share, the cash equivalent of one Common Share or a combination of cash and Common Shares, as determined by the Company, net of applicable withholdings.
The Company also terminated an aggregate of 4,125,000 Options that were previously granted to certain former employees and consultants who are no longer providing services to the Company.
About Maple Gold
Maple Gold Mines Ltd. is a Canadian advanced exploration company in a 50/50 joint venture with Agnico Eagle Mines Limited to jointly advance the district-scale Douay and Joutel gold projects located in Québec’s prolific Abitibi Greenstone Gold Belt. The projects benefit from exceptional infrastructure access and boast ~400 km2 of highly prospective ground including an established gold resource at Douay (SLR 2022) that holds significant expansion potential as well as the past-producing Eagle, Telbel and Eagle West mines at Joutel. In addition, the Company holds an exclusive option to acquire 100% of the Eagle Mine Property.
The district-scale property package also hosts a significant number of regional exploration targets along a 55 km strike length of the Casa Berardi Deformation Zone that have yet to be tested through drilling, making the project ripe for new gold and polymetallic discoveries. The Company is well capitalized and is currently focused on carrying out exploration and drill programs to grow resources and make new discoveries to establish an exciting new gold district in the heart of the Abitibi. For more information, please visit www.maplegoldmines.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
Forward-Looking Statements:
This press release contains “forward-looking information” and “forward-looking statements” (collectively referred to as “forward-looking statements”) within the meaning of applicable Canadian securities legislation in Canada, including statements about exploration work and results from current and future work programs. Forward-Looking statements are based on assumptions, uncertainties and management’s best estimate of future events. Actual events or results could differ materially from the Company’s expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Maple Gold Mines Ltd.’s filings with Canadian securities regulators available on www.sedarplus.ca or the Company’s website at www.maplegoldmines.com. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Labrador Gold Receives Permits to Drill Targets in the Gap and Kingsway South
October 19, 2023 07:30 ET
TORONTO, Oct. 19, 2023 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that it has received all permits required for drilling two target areas along the prospective Appleton Fault Zone at its 100% owned Kingsway Project.
LabGold has received permits to drill The Gap, located between Big Vein and Pristine and the area between Big Vein and the southern property boundary (Kingsway South).
The Gap extends approximately 700 metres along the Appleton Fault Zone between Big Vein and Pristine, two occurrences where LabGold discovered high grade near surface gold. Both occurrences remain open to the northeast and southwest and the aim of drilling The Gap is to extend Pristine to the Southwest and Big Vein to the northeast and possibly connect the two. Should this be achieved, the total strike length would be approximately 1.7 kilometres. Drilling from Big Vein will step out along the Black Shale North Fault, a NNE trending splay off the Appleton Fault, that is associated with gold at Big Vein. Likewise, drilling from Pristine will step out to the southwest along the Disco Fault.
The Kingsway South area includes the recently discovered Knobby occurrence, located 1.1 kilometres southwest of Big Vein, and from which grab samples returned gold values from below detection (<5ppb) to 30.58 g/t including samples grading 2.7g/t and 29.19 g/t Au (See news release dated August 14, 2023). Knobby consists of three parallel quartz veins that have been traced along strike for approximately 200 metres. Stibnite mineralization was observed in the quartz veins.
“We have been waiting to drill targets at The Gap and Kingsway South along the Appleton Fault Zone and are pleased to have the permits in place to be able to do so. Knobby is a priority target since the east-west strike crosscuts the regional northeast trend like structures known to host high-grade gold in quartz veins elsewhere in the district. This trend differs from those at Big Vein, Pristine and Dropkick which are closer to the stratigraphic trend and represents a new target at Kingsway, one that we are excited to begin testing,” said Roger Moss, President and CEO of LabGold.
Figure 1. LabGold discoveries along the Appleton Fault Zone.
Figure 2. Plan map of The Gap with structure and geochemical anomalies. Abbreviations: AFZ Appleton Fault Zone; BSNF Black Shale North Fault; DF Disco Fault
Figure 3. Geochemical anomalies along the Appleton Fault Zone at Kingsway South.
Qualified Person
Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.
The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.
About Labrador Gold Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.
Labrador Gold’s flagship property is the 100% owned Kingsway project in the Gander area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with numerous gold occurrences in the region. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold is drilling a projected 100,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone with encouraging results. The Company has approximately $10 million in working capital and is well funded to carry out the planned program.
The Hopedale property covers much of the Florence Lake greenstone belt that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt. Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.
The Company has 170,009,979 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
For more information please contact:
Roger Moss, President and CEO Tel: 416-704-8291
Or visit our website at: www.labradorgold.com
Twitter: @LabGoldCorp
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
TORONTO, Oct. 12, 2023 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce results from recent drilling targeting the highly prospective Appleton Fault Zone. The drilling is part of the Company’s ongoing 100,000 metre diamond drilling program at its 100% owned Kingsway Project.
Final results from first stage drilling at DropKick include significant near surface gold mineralization of 20.15 metres grading 1.81g/t Au from 50 metres, including 4.14g/t Au over 4.5 metres in Hole K-23-248. Several near surface intervals were also intersected in Hole K-23-245 including 1.77g/t Au over 5.15 metres from 31.85 metres downhole. Holes K-23-245 and -248 represent a 67 metre step out to the northeast. Hole K-23-254, a 136 metre step out to the southwest, intersected 2.45g/t Au over 4.1 metres from 108.9 metres, including an interval of 16.68g/t Au over 0.3 metres that contained visible gold. These latest intersections extend the known mineralization at Dropkick to over 360 metres strike length and it remains open in both directions. Twelve of the 15 holes drilled at Dropkick intersected gold mineralization with four holes containing visible gold.
“During the first phase of drilling at DropKick we demonstrated the presence of near surface gold over significant widths while increasing the strike length of known mineralization which remains open along strike in both directions. Further drilling is required to demonstrate the true potential of this discovery,” said Roger Moss, President and CEO of LabGold. ”Planning is currently underway for drilling in The Gap, between Big Vein and Pristine, and to the south of Big Vein towards the recent Knobby discovery. Drilling of targets in these areas is expected to begin before the end of the month. We are excited to start filling in the gaps between the four discoveries made along a 7 kilometre section of the Appleton Fault Zone at Kingsway.”
Follow up drilling at Pristine included an intersection of 1.05g/t Au over 11 metres from 90 metres in Hole K-23-276 and 1.28g/t Au over 6.18 metres from 66.47 metres in Hole K-23-272. Mineralization drilled to date at Pristine mostly occurs above 86 metres vertical depth and extends over a strike length of approximately 160 metres.
Ongoing drilling at Big Vein intersected 2.76g/t Au over 8.97 metres from 233.56 metres, including 7.04g/t over 3.09 metres in Hole K-23-278.
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Zone
K-23-278
233.56
242.53
8.97
2.76
Big Vein
including
236.00
239.09
3.09
7.04
K-23-276
90.00
101.00
11.00
1.05
Pristine
including
92.95
97.80
4.85
1.82
K-23-272
66.47
72.65
6.18
1.28
Pristine
including
68.00
70.80
2.80
2.33
K-23-260
156.57
160.00
3.43
1.06
Pristine
K-23-259
67.50
68.35
0.85
1.22
Pristine
K-23-254
108.90
113.00
4.10
2.45
DropKick
including
108.90
110.80
1.90
4.56
including
109.40
109.70
0.30
16.68
K-23-253
nsv
Big Vein
K-23-252
53.00
91.00
38.00
0.55
Big Vein
including
60.00
64.00
4.00
1.28
and
73.00
74.00
1.00
1.11
K-23-249
nsv
Big Vein
K-23-248
50.00
70.15
20.15
1.81
DropKick
including
55.00
70.15
15.15
2.32
including
58.00
70.15
12.15
2.72
including
59.90
64.40
4.50
4.14
K-23-247
126.70
128.00
1.30
1.32
Big Vein
198.00
198.95
0.95
1.20
K-23-245
10.00
12.65
2.65
1.16
Dropkick
31.85
37.00
5.15
1.77
including
35.00
36.35
1.35
3.17
44.80
45.60
0.80
1.34
53.00
54.50
1.50
1.04
89.00
103.00
14.00
0.60
including
91.95
94.00
2.05
1.42
192.00
193.15
1.15
1.90
250.25
251.15
0.90
1.32
K-23-244
29.00
33.00
4.00
1.10
Big Vein
K-23-243
nsv
DropKick
K-23-242
224.43
225.16
0.73
1.88
Big Vein
K-23-241
nsv
Big Vein
Table 1. Summary of assay results. All intersections are downhole length as there is insufficient Information to calculate true width.
Almost 85,000 metres have been drilled to date out of the planned 100,000 metre program. Assays are pending for samples from approximately 6,100 metres of core.
The Company has approximately $10 million in cash and is well funded to carry out the remaining 15,000 metres of the planned drill program as well as further exploration to add to the current pipeline of drill targets on the property.
Figure 1. Plan map of Dropkick drill holes showing highlights of latest results.
Figure 2. Plan map of occurrences with selected drill intersections along the Appleton Fault Zone.
Hole ID
Easting
Northing
Elevation
Azimuth
Inclination
Total Depth
K-23-278
661736
5435392
37
130
65
420
K-23-276
661927
5436072
56
275
65
200
K-23-272
661933
5436069
59
315
65
278
K-23-260
661750
5435872
58
0
90
209
K-23-259
661845
5436001
53
300
45
191
K-23-254
663159
5438126
55
140
45
160.55
K-23-253
661554
5435459
45
20
45
160
K-23-252
661450
5435312
54
125
70
349
K-23-249
661272
5435093
62
145
65
379
K-23-248
663408
5438381
52
140
65
173
K-23-247
661553
5435458
50
125
50
233
K-23-245
663409
5438380
53
140
45
259
K-23-243
663353
5438273
58
140
65
131
K-23-244
661589
5435430
49
140
45
228
K-23-242
661321
5435111
52
145
55
307
K-23-241
661450
5435312
53
125
50
250
Table 2. Drill hole collar details
QA/QC
True widths of the reported intersections have yet to be calculated. Assays are uncut. Samples of HQ split core are securely stored prior to shipping to Eastern Analytical Laboratory in Springdale, Newfoundland for assay. Eastern Analytical is an ISO/IEC17025 accredited laboratory. Samples are routinely analyzed for gold by standard 30g fire assay with atomic absorption finish as well as by ICP-OES for an additional 34 elements. Samples containing visible gold are assayed by metallic screen/fire assay, as are any samples with fire assay results greater than 1g/t Au. The company submits blanks and certified reference standards at a rate of approximately 5% of the total samples in each batch. Approximately 5% of sample pulps are submitted to Bureau Veritas, an ISO 17025 accredited Laboratory in Vancouver, BC for check assays.
Qualified Person
Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.
About Labrador Gold Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.
Labrador Gold’s flagship property is the 100% owned Kingsway project in the Gander area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with numerous gold occurrences in the region. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold is drilling a projected 100,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone with encouraging results. The Company has approximately $10 million in working capital and is well funded to carry out the planned program.
The Hopedale property covers much of the Florence Lake greenstone belt that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt (see news release dated January 25 th 2018 for more details). Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.
The Company has 170,009,979 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
Photos accompanying this announcement are available at
Metalla Royalty & Streaming Ltd. (TSXV: MTA) (NYSE American: MTA) and Nova Royalty Corp. (TSXV: NOVR) (OTCQB: NOVRF) have announced a definitive agreement to combine in an all-stock deal valued at approximately $190 million. The merger will create a larger royalty and streaming company focused on precious and base metals.
Under the agreement, Nova shareholders will receive 0.36 shares of Metalla for each Nova share they own. This represents a premium of 25% based on recent share prices.
The combined company will hold a portfolio of over 100 royalties and streams on mine projects operated by major miners like Barrick, Newmont, and Glencore. The deal is intended to boost scale, diversify assets, and enhance access to capital.
Nova recently conducted a strategic review process with the goal of maximizing shareholder value. After considering options, the Nova Board determined the merger with Metalla offered the best opportunity.
Both companies’ Boards have unanimously approved the transaction. It still requires shareholder and regulatory approvals before expected completion in late 2023. The merged entity will trade on the NYSE American exchange.
An investment firm called Beedie Capital is investing $15 million and expanding Metalla’s convertible loan facility by $35 million in conjunction with the deal. This will provide capital to fund further acquisitions and growth.
Brett Heath, CEO of Metalla, said the combination creates a clear path to becoming an intermediate royalty company. Nova interim CEO Hashim Ahmed noted the merger provides improved scale, cash flow, and trading liquidity.
The companies believe the increased diversification into copper along with gold and silver will give shareholders exposure to critical metals needed for the energy transition. According to management, the merged portfolio will have peer-leading growth potential.
