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.
Vancouver, British Columbia–(Newsfile Corp. – August 3, 2023) – Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (“Maple Gold” or the “Company“) is pleased to report complete gold assay results from the first phase of deep drilling at the Douay Gold Project (“Douay”) located in Québec, Canada, which is held by a 50/50 joint venture (the “JV”) between the Company and Agnico Eagle Mines Limited. The Company is also pleased to announce the appointment of Jocelyn (Josh) Pelletier, M.Sc., P.geo. as its Chief Geologist. Mr. Pelletier is both a structural geologist and a specialist in metallogeny who brings more than 20 years of progressive exploration experience primarily focused on the formation of gold deposits and porphyry copper-gold systems. The Company also announces that Joness Lang and Fred Speidel have left the Company to pursue other opportunities.
At Douay, the JV completed a total of 5,793 metres (“m”) in three new holes and two extension holes during the first half of 2023. Four drill holes were designed as deep conceptual exploration holes to test for mineralization extensions at greater depths (up to ~1,600 m vertical depth) beneath Douay’s currently defined Mineral Resources, and the fifth drill hole was a shallower step-out hole to the east of the NW Zone (see Figure 1 for a plan view map depicting drill hole locations and key results, Figure 2 for a composite longitudinal section and Table 1 for a detailed summary of assay results). This first phase of widely spaced (from ~500 m to ~3,000 m between holes) deep drilling returned 10 separate intercepts >2.5 gold grams per tonne (“g/t Au”) and four broad intervals (from ~59 to ~221 m in length) of low-grade (mostly >0.1 g/t Au) gold mineralization, demonstrating that a deep-rooted gold system is present to the current limits of drilling. Pending multi-element assays from the first phase of deep drilling will be incorporated into ongoing vectoring efforts to develop follow up targets to continue testing the depth potential at Douay from successful proof-of-concept towards potentially economic gold intercepts in undrilled zones over more than six kilometers of strike length.
Highlighted Results and Key Takeaways:
All five drill holes intersected gold mineralization >1 g/t Au, with 10 intercepts >2.5 g/t Au and several broad (from ~59 m to ~221 m in length) low-grade intervals (averaging 0.1 to 0.3 g/t Au), demonstrating continuity of the gold system down to at least ~1,600 m vertical depth.
DO-23-332 and DO-23-326X both tested beneath the Porphyry Zone and returned the most compelling visual core observations with broad intervals of alteration and elevated fine grained pyrite mineralization. Such broad low-grade haloes, with multiple >1 g/t Au intercepts, are typical of the more peripheral parts of the Porphyry Zone.
DO-23-332 intersected 10 distinct intercepts of >1 g/t Au over at least 1.0 m. A broad (121 m) mineralized envelope with anomalous gold (0.31 g/t Au average) included intercepts of 3.6 g/t Au over 1 m, and 1.2 g/t Au over 10 m, including 3.3 g/t Au over 2 m. Additional 4.9 and 2.5 g/t Au intercepts over 1 m were obtained further up hole.
DO-23-326X returned eight intercepts grading >1 g/t Au over at least 1 m. Furthermore, this hole did not appear to intersect the full width of the potential zone and, importantly, bottomed in mineralization (see cross section in Figure 3). Visible gold was also identified at 1,826 m down-hole.
DO-23-331 was collared ~500 m south of the 531 Zone conceptual pit and returned 2.85 g/t Au over 1.6 m, including 6.2 g/t Au over 0.7 m, with a broader interval of 0.25 g/t Au over 50.8 m further up-hole.
“This deep drilling program was developed to test the potential for a much larger gold system at Douay while also demonstrating continuity of mineralization beneath currently defined Mineral Resources,” stated Matthew Hornor, President and CEO of Maple Gold. “The average vertical depth of all previous drilling at Douay is roughly 300 m, with limited data below 500 m, so this first pass of deeper drilling was discovery-focused with the aim of bringing us one step closer to uncovering a new zone at depth. The program was successful from a proof-of-concept standpoint in demonstrating mineralization continuity up to four times deeper than Douay’s currently defined Mineral Resources. Given what we’ve encountered in the JV’s first deep drill holes, the Company remains highly encouraged and confident that our detailed interpretation and vectoring work will lead to promising follow-up targets to incorporate into future drill campaigns at Douay. To support these ongoing initiatives, I am delighted to welcome Josh Pelletier as the Company’s new Chief Geologist and believe that his strong structural geology and metallogeny background will help unlock value at our strategically located and district-scale project portfolio within Quebec’s Abitibi greenstone belt.”
Technical Observations, Key Takeaways and Next Steps
The JV’s first phase deep drilling program delivered several key geological findings related to the potential depth continuity of gold mineralization at Douay:
From top-to-bottom (~2,000 m vertical depth), gold mineralization appears to be spatially associated with a porphyry-style intrusive complex and also appears in quartz-carbonate veins associated with shearing in the Casa Berardi Deformation Zone (“CBDZ”) that may be related to a separate orogenic gold system along this E-W regional structure.
Gold mineralization was identified within the contact zone between the two main lithologic sequences (Cartwright Hills Grp. volcanic sequences and Taibi Grp. sedimentary rocks) located along the crustal-scale CBDZ North structural corridor.
There are key structural corridors that appear to crosscut the auriferous porphyry-style mineralization, which provides potential for gold remobilization and reconcentration.
At Douay, two types of gold mineralization have been recognized: 1) gold that is spatially associated with porphyritic intrusive phases and 2) gold that is spatially associated with shear zones in the CBDZ. Both styles of mineralization may have formed in different conditions and time frames. The porphyry-style gold displays similarities to low-grade gold zones formed in magmatic-hydrothermal systems, while the gold related to shear zones is similar to other orogenic gold deposits that represent the majority of gold mines in the Abitibi gold belt. Therefore, it is important to distinguish both mineralization events, and to define their spatial distributions and orientations. The JV will be completing additional metallogenic interpretations and analysis to generate optimal targeting at Douay for future drill testing.
Figure 1: Plan view showing completed 2023 drill traces at Douay. Note DO-23-332 was drilled to 1,453 m but appears shorter due to subvertical inclination.
Multi-element analysis to define geochemical zonation and possible tracers to gold mineralization in order to improve vectoring within the mineralized system.
Paragenesis of gold mineralization based on mineralogical studies of the alteration patterns, gold deposition phases and other hydrothermal events.
Structural controls study to better constrain the geometry of known zones and improve targeting of structural traps.
Lithological studies to distinguish the different intrusive phases and evaluate their relationship with gold mineralization.
The Company will continue its vectoring work to refine the next set of priority drill targets at Douay, including follow-up on the first phase of deep drilling, as well as revisiting areas where the JV previously had successes (e.g. 531 and Western Porphyry zones). The Company is concurrently refining targets along its 100%-controlled Eagle Mine Project and in the Telbel Mine area within the JV’s Joutel Gold Project in preparation for anticipated fall and winter drilling campaigns, which are expected to be announced in the coming weeks. The Company’s VMS-focused exploration work is also ongoing with the aim of defining new drill targets, which are anticipated to be tested in early 2024.
Table 1: Complete Assay Results from the First Phase of Deep Drilling at Douay
Hole
UTME
UTMN
Azimuth
Plunge
Length (m)
From
To
Interval
Au g/t
DO-23-324X
704278
5490900
32
-66.5
779
1385.6
1397.0
11.4
0.28
including
1389.0
1391.0
2.0
0.95
DO-23-324X
1455.3
1457.5
2.2
0.74
DO-23-324X
1560.0
1568.3
8.3
0.83
including
1561.0
1561.9
0.9
2.76
including
1561.0
1565.9
4.9
1.28
including
1564.0
1565.9
1.9
1.50
DO-22-326
706400
5491650
172
-54
98
Master hole – reported on 11/30/22
DO-23-326XW1
706400
5491650
176.92
-50
1111
869.0
874.0
5.0
0.21
DO-23-326XW1
973.0
974.0
1.0
3.55
DO-23-326XW1
1213.0
1214.0
1.0
4.85
DO-23-326XW1
1276.0
1277.0
1.0
0.62
DO-23-326XW1
1641.0
1642.0
1.0
0.58
DO-23-326XW1
1664.8
1885.9
221.1
0.16
including
1670.0
1672.0
2.0
0.76
including
1695.0
1697.0
2.0
0.66
including
1706.0
1714.0
8.0
0.81
including
1711.0
1713.0
2.0
1.28
including
1739.0
1781.0
42.0
0.17
including
1790.0
1791.0
1.0
0.51
including
1826.0
1827.0
1.0
1.78
including
1833.3
1834.2
0.9
2.12
including
1850.5
1853.0
2.5
1.46
including
1852.0
1853.0
1.0
2.86
including
1861.0
1876.0
15.0
0.18
DO-23-326XW1
1945.4
1959.2
13.8
0.23
DO-23-331
706400
5491650
172
-54
2044
1869.0
1870.0
1.0
1.04
DO-23-331
1901.0
1951.8
50.8
0.25
including
1901.0
1902.0
1.0
1.15
including
1925.4
1927.0
1.6
2.85
including
1925.4
1926.1
0.7
6.17
including
1950.3
1950.8
0.5
2.96
DO-23-332
706820
5489915
340
-79.5
1453
135.0
136.0
1.0
1.10
DO-23-332
498.7
499.7
1.0
4.94
DO-23-332
653.7
664.7
11.0
0.29
including
657.0
659.0
2.0
0.74
DO-23-332
789.0
809.0
20.0
0.18
including
805.0
805.5
0.5
2.11
DO-23-332
845.2
852.0
6.8
0.29
DO-23-332
864.2
865.2
1.0
2.53
DO-23-332
953.0
953.5
0.5
1.26
DO-23-332
991.0
1112.0
121.0
0.31
including
1020.0
1021.0
1.0
3.61
including
1034.0
1044.0
10.0
1.16
including
1035.0
1037.0
2.0
3.31
including
1043.0
1044.0
1.0
1.01
including
1058.0
1059.0
1.0
1.25
including
1075.0
1077.0
2.0
1.12
including
1075.0
1076.0
1.0
1.49
including
1111.0
1112.0
1.0
1.07
DO-23-332
1205.0
1329.0
124.0
0.13
including
1295.0
1297.0
2.0
0.61
DO-23-333
705950
5492140.3
360
-55
297
248.0
252.8
4.8
0.69
including
251.3
252.8
1.5
1.55
Note: All reported intercepts are downhole core lengths. Estimated true widths are unknown at this time due to the limited data at the depths drilled.
Corporate Updates
Maple Gold is pleased to announce the appointment of Jocelyn (Josh) Pelletier as the Company’s new Chief Geologist. Mr. Pelletier is a structural geologist and a specialist in metallogeny with over 20 years of exploration experience primarily focused on the formation of gold deposits and porphyry copper-gold systems. He holds an M.Sc. degree in geology (UQAM – Montreal), a BSc in management and is a Fellow of the SEG as a Professional Geologist (OGQ). Mr. Pelletier has significant experience exploring Canada’s greenstone belts, including the Abitibi, Timmins, Red Lake, Beardmore and Rankin Inlet. He will work closely with the Company’s geological team, highly experienced Technical Committee and the JV to support the next phase of drill targets across the Company’s project portfolio.
The Company also announces that Joness Lang and Fred Speidel have left the Company to pursue other opportunities. The Company wishes both Mr. Lang and Mr. Speidel every success in their future endeavors.
Option Issuance
The Company has approved the grant to an employee and officer of stock options (“Options”) to purchase an aggregate of 400,000 common shares of the Company at an exercise price of $0.17 per common share. The Options have a 5-year term and vest 1/3 immediately, 1/3 in 12 months and 1/3 in 24 months from the date of grant until fully vested.
Qualified Person
The scientific and technical data contained in this press release was reviewed and prepared under the supervision of Jocelyn Pelletier, M.Sc., P.geo., Chief Geologist of Maple Gold. Mr. Pelletier has verified the data related to the exploration information disclosed in this press release through his direct participation in the work performed. Mr. Pelletier is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Quality Assurance (QA) and Quality Control (QC)
The Company implements strict Quality Assurance (“QA”) and Quality Control (“QC”) protocols at Douay and Telbel covering the planning and placing of drill holes in the field; drilling and retrieving the NQ-sized drill core; drill hole surveying; core transport; core logging by qualified personnel; sampling and bagging of core for analysis; transport of core from site to the Val d’Or, Québec ALS laboratory; sample preparation for assaying; and analysis, recording and final statistical vetting of results. Check assays for gold will be done on a sample subset at AGAT laboratory in Val d’Or. For a complete description of protocols, please visit the Company’s QA/QC webpage at www.maplegoldmines.com.
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.sedar.com 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.
On Friday, July 7, 2023, news broke in the financial market media that the “BRICS” (that is, Brazil, Russia, India, China, and South Africa) will implement their plan to create a new international currency for trading and financial transactions, and that this new currency will be “gold-backed”. Most recently, on June 2, 2023, the foreign ministers of the BRICS – as well as representatives from more than 12 countries – met in Cape Town, South Africa (interestingly at the “Cape of Good Hope”). Among other things, it was emphasized that they wanted to create an international trading currency. Undoubtedly, this is an undertaking that could have consequences of epic proportions.
After all, the BRICS countries represent about 3.2 billion people, approximately 40 percent of the world’s population, with a combined economic output nearly the size of the economy of the United States of America. And there are also many other countries (such as Saudi Arabia, United Arab Emirates, Egypt, Iran, Algeria, Argentina, and Kazakhstan) that might want to join the BRICS club.
The goal of the BRICS countries is to reduce their economic and political dependence on the US dollar, challenging “US dollar imperialism”. To this end, they want to create a new international currency for commercial and financial transactions, replacing the US dollar as the means of transaction unit.
The reason is obvious. The US administration has on many occasions used the greenback as a “geopolitical weapon” and engaged in a kind of “financial warfare”: Washington sanctions enemy countries by denying them access to the US dollar capital market, but above all, it shuts them off from the international US dollar-centric payment system.
The freezing of Russia’s currency reserves (the equivalent of almost 600 billion US dollars is currently at stake) has set off alarm bells in many non-Western countries. It has reminded a number of them that holding US dollars comes with a political risk. This, in turn, has prompted many to restructure their international foreign reserves: holding fewer US dollars, switching to other (smaller) currencies, but above all, buying more gold.
But how might the BRCIS manage to swim away from the US dollar? While no details are available yet about how the new BRICS currency might be structured, it should not stop us from speculating about what lies ahead.
The BRICS could establish a new bank (the “BRICS-Bank”), funded by gold deposits from BRICS central banks. The physically deposited gold holdings would be shown on the asset side of the BRICS bank’s balance sheet – and could be denominated, for example, “BRICS-Gold”, where 1 BRICS-Gold represents 1 gram of physical gold.
The BRICS-Bank can then grant loans denominated in BRICS-Gold (for example, to exporters from BRICS countries and/or to importers of goods from abroad). To fund the loans, the BRICS-Bank makes a credit contract with the holders of BRICS-Gold: The holders of BRICS-Gold agree to transfer their deposit to the BRICS-Bank for, say, one month, or one or two years, against receiving an interest rate. What is more, the BRICS-Bank, and it can also accept further gold deposits from international investors, who can hold (interest-bearing) BRICS-Gold deposits this way.
BRICS-Gold could henceforth be used by the BRICS countries and their trading partners as international money, as an international unit of account in global trade and financial transactions. Incidentally, the new de facto gold currency would not even have to be physically minted but could be and remain an accounting-only unit while being redeemable on demand.
The exporters from the BRICS countries and the other member countries would, however, have to be willing to sell their goods against BRICS-Gold instead of US dollars and other Western fiat currencies, and the importers from the Western countries would have to be willing and able to pay their bills in BRICS gold.
How do you get BRICS-Gold? Those demanding BRICS-Gold must either get a BRICS-Gold loan from the BRICS-Bank or purchase gold in the market and deposit it with the BRICS-Bank or a designated custodian, and the gold deposit is then credited to his account in the form of BRICS-Gold.
For example, in payment transactions, the goods importer’s BRICS-Gold deposits (held, for example, at the BRICS-Bank) are credited to the account of the exporter of goods (also held at the BRICS-Bank or at a correspondent bank or gold custodian).
However, the transition, the use of BRICS-Gold as an international trade and transaction currency, would most likely have far-reaching consequences:
(1.) It would presumably lead to a (sharp) increase in the demand for gold compared to current levels, with not only gold prices measured in US dollars, euros, etc. but also in the currencies of the BRICS countries increasing (substantially).
(2.) Such an increase in the gold price would devalue the purchasing power of the official currencies – not only the US dollar but also the BRICS currencies – against the yellow metal. Also, the prices of goods in terms of the official fiat currencies would most likely skyrocket, debasing the purchasing power of presumably all existing fiat currencies.
(3.) The BRICS countries would build up gold reserves to the extent that they run, or will run, trade surpluses. They would presumably be the winners of the “currency switch”, while the countries with trade deficits (first and foremost, the US) would lose out.
BRICS official gold holdings, in billion US dollars, Q1 2023
Source: Refinitiv; The BRICS’ gold reserves amounted to 5452.7 tons in the first quarter of 2023 (market value currently around 350 billion US Dollars).
These few considerations already show how disrupting the topic of “creating a new gold-backed international trading currency” could be: The BRICS could well trigger landslide-like changes in the global economic and financial structure. Still, it will be interesting to see how the BRICS countries intend to proceed at their August 22-24 meeting in Johannesburg, South Africa.
About the Author:
Dr. Thorsten Polleit is Chief Economist of Degussa and Honorary Professor at the University of Bayreuth. He also acts as an investment advisor.
The better-than-expected inflation numbers are having a positive impact on precious metals (PM) prices. And, depending on how one is invested to provide exposure to gold or silver, the performance varied by a wide margin. Gold commodity prices jumped by 1.3% and silver by 4.5% after the CPI report on Wednesday July 12. With even better performance were mining stocks. What is causing the leap in prices, and is there a preferred category of investment taking preference over the others?
Why the Spike in Precious Metals?
A slowing inflation trend is reviving talk of the Federal Reserve pausing or completely halting rate hikes. The market had already built two rate hikes into prices. At about the same time the U.S. CPI report was released, The Bank of Canada raised its interest rates by 25bp. The EU raised its rates on June 15, meanwhile the U.S. central bank opted not to raise rates in June.
In reaction to a difference in rates available in the U.S. compared to outside in other currencies, the $U.S. dollar tumbled 1% to a low not seen in more than a year against major peers. This made PMs, including gold and silver, a more attractive asset to preserve wealth outside the U.S. And rates have dropped, the 10-year U.S. Treasury that had been trading at 3.94% before the print, and 4.08% as recently as last week, was yielding 3.86% by mid-afternoon.
Performance of PM Related Assets
Looking out since the beginning of July, we find that both gold and silver dipped to their lows last Friday. Additionally, gold mining stocks and silver mining stocks, using GDX and SIL ETFs as proxies, had the most dramatic dip, while gold and silver (expressed in $US dollars) barely went negative on the month.
What we also see is that when gold and silver rise, or fall, there has been an amplification of the move among the mining stocks. On the upside, the magnification of the trend was even more pronounced among junior mining stocks.
While silver junior miners are the top performers MTD at 8.42%, they are closely followed by the gold junior mining stocks at 8.42%. Larger gold mining company stocks returned 5.96%, while gold itself, only returned 2%. Silver edged out the major mining stocks returning 5.92% compared to 5.35% over the 12 day period.
The patten of performance held during the one-day of trading that CPI was released with the gold majors swapping places with silver. And gold, the commodity, up significantly in one trading day but trailing the others by a wide margin.
Investing in the commodities gold or silver is fairly straightforward and can be done with most brokerage accounts today. ETFs are also as easy to trade as a stock. However, the owner receives the weighted average of all the ETFs holdings, less fees.
While individual stock pickers run the risk of reduced diversification among miners, with some understanding of the differences in companies, they may also be able to perform above the average of a broad swath of companies within an ETF for gold, silver, or both.
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