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.
There are places to look for information on mining companies, the more challenging information to acquire is of the smaller junior miners – the group that have been outperforming. Channelchek can help you discover these companies and provide data, research, and videos, to help build a better understanding before committing to an investment.
Or, to really jump-start your understanding of a host of mining companies, along with those in other exciting but more difficult-to-assess industries, consider coming to Florida in early December for NobleCon19, an investment conference where you can immerse yourself in the information provided directly from Sr. management of many junior miners and along with companies of other exciting industries.
The Positive Sentiment Toward Gold Has a Large Tailwind
The number of countries bringing more of their gold reserves back within their own borders and in many cases buying additional gold has been on a strong uptrend. Why is this something investors should pay attention to, why is the trend accelerating, and who may benefit from the increased gold repatriation and hoarding? We explore these questions below and look for insights that investors may consider for their own portfolios.
During the first three months of 2023, central banks bought a combined 228 tonnes, the most ever seen in the first quarter of any year, according to the World Gold Council. This followed what is a record year in 2022, during which 1,136 tonnes of gold worth near $70 billion were added to the central banks’ reserves. Compared to the 450 tonnes bought during 2021, this 152% year-on-year increase might be worth paying attention to.
But the central banks aren’t just buying gold; they are also bringing what they currently own home. The number of countries that are repatriating gold reserves is high and rising. The methodical central banks’ accumulation of gold, “as far as we can tell, is unprecedented, given they’ve mostly been sellers throughout history,” wrote Mining.com in a recent analysis of the trend. “But the recent transactional trend, in particular over the past 30 years, illustrates a dramatic shift in the official attitude towards gold.”
In a global economy fraught with more uncertainty than in most periods, it makes sense that central banks looking to combat yield volatility and inflation risk see gold as a safe-haven asset. There is substantial verification of this in a thorough survey of central banks released last week. According to Invesco Global Sovereign Asset Management, more than 85% of the 85 sovereign wealth funds and 57 central banks that took part in the Invesco survey now believe that inflation will be higher in the current decade than in the last.
Countries that are also repatriating gold reserves are on the increase as central bankers look to reduce risk and moderate yield volatility and inflations erosion, they see gold as a safe-haven asset, according to the survey. There is also a fear of the unsettled war in Ukraine and the steps nations are willing to take. Last year’s freezing of almost half of Russia’s $640 billion of gold and forex reserves by the West in response to the invasion of Ukraine also appears to have created a move toward less trust. The survey showed a “substantial share” of central banks were concerned by the precedent that had been set. Almost 60% of respondents said it had made gold more attractive, while 68% were keeping reserves at home compared to 50% in 2020.
The Invesco survey also revealed 7% believe rising US debt is also a negative for the $US dollar, although most still see it as the most solid choice as the world’s reserve currency. Those that see China’s yuan as a potential contender fell to 18%, from 29% last year. Nearly 80% of the 142 institutions surveyed see geopolitical tensions as the biggest risk over the next decade, while 83% cited inflation as a concern over the next 12 months, Reuters reported.
Why Increase Exposure to Gold?
Central banks hold gold because it is expected to hold its value through turbulent times and, unlike currency, it does not rely on any issuer or government. It also enables central banks to diversify away from assets like US Treasury bonds and other dollar-exposed assets.
Source S&P Global
Central banks have been hoarding gold for well over a decade, even during periods when the global economy was considered stable and healthy.
When it comes to shifting values of assets, the power of the US Federal Reserve, or the combined power of central banks in countries like China, Germany, Switzerland, the Netherlands, etc. it is important to understand their unique ability to move the needle. They try not to disrupt markets in their moves, but it still stands to reason that investing alongside, or mirroring, what the world’s central banks are doing has limited downside, and a huge tailwind toward the upside.
Central banks throughout the world are buying additional stores of gold and bringing some of what they already own outside of their borders home for safer keeping. Mirroring central banks, with at least a modest allocation, in a year that already has an above-average stock market, yet is still full of the uncertainty, is something for investors to consider.
Exposure to gold need not mean buying gold buillion or gold coins; investors also get exposure by owning stock in gold mining companies, gold exchange-traded funds (ETF) and mutual funds, gold royalty companies, or gold futures and options.
Publicly traded equities of gold producers may offer the simplest and most attractive way to invest given the disproportionate percentage impact higher commodity prices may have on a company’s bottom line and valuation for a given percentage increase in the commodity itself.
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.
Hitting on all cylinders. Drilling at Labrador Gold’s 100%-owned Kingsway gold project continues to target the Appleton Fault over a 12-kilometer strike length. The drilling is part of the company’s ongoing 100,000-meter diamond drilling program of which approximately 69,000 meters are complete. Assays are pending for approximately 3,500 meters of core. Most of the drilling has occurred at the Big Vein target which has been drilled over a 722-meter northeast-southwest strike length and remains open in both directions.
Drilling to resume next week. Following the seasonal thaw, drilling is expected to resume next week at the Drop Kick target, previously known as Home Pond South, where 10 to 12 holes representing approximately 2,000 meters of drilling will be completed. Following Drop Kick, the drill could move to the Pristine target where Labrador may drill 5 or 6 holes representing approximately 1,200 meters of drilling. Following Pristine, the drill could move either to the Gap Zone between Pristine and Big Vein or to the Peter Easton target, depending on receipt of drill permits for the Gap Zone. We expect the company to operate with three drill rigs, including two rigs at Big Vein to test for extensions of the mineralization to the northeast and southwest.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
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.
Volcanogenic massive sulfide (VMS) targets. Maple Gold Mines Ltd. revealed plans for a summer field program at the Douay and Joutel Gold Projects to explore volcanogenic massive sulfide (VMS) targets. Maple Gold is also planning VMS exploration work at its 100%-owned Morris Project approximately 30 kilometers east of the town of Matagami in Morris Township, Quebec. Morris is located approximately 30 kilometers east of the Matagami VMS mining camp and hosts the Watson Lake rhyolite unit which forms the footwall of all the VMS mines at Matagami.
Multiple styles of mineralization. Maple Gold’s 400 square kilometer land package is highly prospective for multiple styles of mineralization and the company has added technical expertise to its board and technical advisory committee to ensure the land package is fully explored for all sources of potential world class deposits. For example, the joint venture recently hired Dr. Marina Schofield, an expert in volcanology, structural geology, and VMS systems, to lead the company’s VMS exploration efforts.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
Vancouver, British Columbia–(Newsfile Corp. – May 18, 2023) – Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (“Maple Gold” or the “Company“) is pleased to provide an update regarding property-wide volcanogenic massive sulfide (“VMS”) targeting and plans for a summer field program at the Douay and Joutel Gold Projects (“Douay” and “Joutel”, respectively) located in Québec, Canada, which are held by a 50/50 joint venture (the “JV”) between the Company and Agnico Eagle Mines Limited. The Company is also planning VMS exploration work at its 100%-owned Morris Project (“Morris”) located approximately 30 kilometres (“km”) east of the town of Matagami in Morris Township, Québec.
The JV’s primary focus remains on testing resource expansion targets at Douay and testing prospective near-mine extension targets in the Telbel mine area at Joutel. However, the Douay and Joutel projects each have demonstrated potential for gold and base metals VMS mineralization, as is illustrated by a series of targets previously defined by field mapping and geophysical surveying across the combined 400 km² property package (see news from July 19, 2022). Under the terms of the JV agreement, the partners agreed to jointly fund C$500,000 in exploration on VMS targets on the western portion of Douay (see news from February 3, 2021).
Summary of VMS-focused exploration and corporate initiatives:
The Company’s mapping, sampling and top of bedrock drilling during 2018 identified six (6) priority target areas for potential base metals and gold-rich VMS mineralization (see press release November 14, 2018).
The Company subsequently appointed Dr. Gérald Riverin, a recognized VMS expert with 40+ years of experience in the Abitibi Greenstone belt, to its board of directors and Technical Advisory Committee (see news from June 9, 2020).
In late 2021, the JV consolidated two (2) inlier claim blocks covering 22 claims and 12.3 km² of ground in the central portion of Douay in an area deemed prospective for zinc and copper mineralization (see news from October 19, 2021).
Also in 2021, the Company acquired 100% of Morris and completed preliminary ground geophysics and lithogeochemical sampling. In 2022 and 2023, the Company completed deep penetrating pulse electromagnetic (“PEM”) surveys that outlined a 3 km long conductive zone adjacent to a favorable rhyolite unit.
In 2022, the JV completed a regional airborne magnetic and electromagnetic (“Mag-EM”) survey to support exploration drill targeting, which identified 55 targets within four (4) primary target areas prospective for pyritic gold and VMS mineralization (see news from July 19, 2022). After geophysical review, sixteen (16) of these targets were selected for priority follow-up (see Figure 1).
In 2023, the Company appointed Paul Harbidge, CEO of Faraday Copper Corp., an emerging U.S. copper developer, to its Technical Advisory Committee to further strengthen the Company’s technical group and support gold and base metals exploration (see news from February 7, 2023).
The JV has recently hired Dr. Marina Schofield, an expert in volcanology, structural geology and VMS systems, to lead the Company’s VMS exploration efforts.
“We have methodically built a pipeline of prospective gold and base metals VMS targets across the large >400 km² Douay-Joutel property package and have expanded our technical expertise in order to systematically evaluate and advance a VMS-focused exploration program,” statedMatthew Hornor, President and CEO of Maple Gold. “The past-producing high-grade Estrades zinc-gold mine is located just over 11 km to the west of Douay-Joutel and the same geologic horizon that hosted that mine appears to continue onto the western portion of the Douay property. Further to the southeast, historical regional exploration drilling along the Joutel Deformation Zone, east of the historical Eagle-Telbel deposits, has also returned anomalous zinc and gold values. We look forward to completing further cost-effective field work this summer to bring the highest priority VMS discovery targets to a drill-ready stage.”
VMS Targets and Associated 2023 Summer Exploration Plans:
Figure 1: Geology base map highlighting VMS and VMS-like base metal mines and deposits in the region and copper-zinc showings.
The Douay-Joutel property straddles the Casa Berardi Deformation Zone, which is geologically underlain, from south to north, by predominantly intermediate to felsic tuffs of the Joutel-Raymond Grp, the basinal sediments of the Harricana Grp and the predominantly mafic volcanic sequence forming the Cartwright Hills Grp, followed by further basinal sediments of the Taïbi Grp. Although the geological model for Eagle-Telbel is still evolving, gold mineralization was associated with mixed sedimentary and pyroclastic horizons hosting abundant iron carbonate and semi-massive sulfide (pyrite) at the top of the volcanic package that hosts the past-producing Joutel/Poirier VMS mining camp. The main VMS target horizons occur laterally along the Eagle-Telbel Mine Horizon, as well as along multiple interflow horizons within The Cartwright Hills Grp, which include the interpreted eastern extension of the Estrades horizons.
Figure 2: Gold, VMS and base metal target areas in the greater Joutel area (same legend as Fig 1).
The Joutel Targets (see Figure 2 above) include several EM anomalies within ~2-5 km of the historical Eagle, Telbel and Eagle West deposits that have very limited drilling. These deposits are associated with the Harricana and Joutel Deformation Zones and appear as discrete conductive zones aligned along a well-defined northwest trend. The Mag-EM survey indicates possible similar structures extending more than 9 km further to the east in this area where historical drilling intersected anomalous gold (“Au”) and zinc (“Zn”) in several holes. Hole M-94-078 (also known as McClure 93-2 showing) intersected 0.81% Zn over 0.6 metres (“m”); hole JO-12-05 intersected 6.1 g/t Au over 1.5 m, as well as 0.55% Zn over 4 m further downhole, including 0.88% Zn over 1m.
Planned work to advance VMS targets at Douay and Joutel is expected to include compilation of existing data, including review of historical drill logs, followed by field work including lithogeochemistry and initial follow-up ground EM surveys to support bringing highest priority VMS target areas towards a drill ready stage.
Separately, planned work at Morris is expected to include detailed lithogeochemical sampling to establish the full extent of strong VMS related hydrothermal alteration identified in 2021 and identify promising portions of the 3 km long conductor identified by ground geophysics in 2022 and 2023 (see Figure 3). Morris is located approximately 30 km east of the Matagami VMS mining camp and hosts the Watson Lake rhyolite unit which forms the footwall of all the VMS mines at Matagami.
Figure 3: 100% owned Morris claims with geology and geophysics compilation. Favorable alteration is highlighted by higher Riverindex values.
The scientific and technical data contained in this press release was reviewed and prepared under the supervision of Fred Speidel, M. Sc., P. Geo., Vice-President Exploration of Maple Gold. Mr. Speidel is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Speidel has verified the data related to the exploration information disclosed in this press release through his direct participation in the work.
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.
Is Further Consolidation in the Mining Sector Expected?
Two of the world’s leading gold producers have agreed to merge. In a press release this week, Newmont Mining (NEM) said it entered into a definitive agreement to acquire 100% of shares of Newcrest Mining (NCMGY). The deal represents a 30.4% premium to Newcrest stockholders above the price when Newmont first made an offer in February. While this is a huge deal that will greatly expand the world’s largest gold-producing company, investors are seeing possible opportunities in smaller mining companies. It’s likely some are quietly being targeted in 2023 for a number of important reasons. Investors interested in this industry may want to familiarize themselves with the current dynamics.
About the Newmont Newcrest Deal
Newmont, the world’s largest gold producer, is solidly moving toward becoming much larger after the board of takeover target Newcrest Mining unanimously agreed to recommend the merger bid to shareholders. Newmont projections indicate the combined entity could create annual production of 8Moz of gold and 155k tonnes of copper.
The merged company would easily control world-leading gold stocks. Newmont is also set to become a significant copper producer, with current and expected developments to provide significant production upside in the coming years, including the world-class Wafi-Golpu copper-gold project in Papua New Guinea.
Takeover Details
After rejecting Newmont’s initial February 2023 offer, the Newcrest board today elected to accept the significantly upgraded April revised proposal. The deal carries an implied equity value of US$26.2 billion and enterprise value for Newcrest of US$28.8 billion.
Current Newcrest shareholders will have 31% ownership of the combined group.
According to Newcrest’s chairman, Peter Tomsett, the transaction will combine two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of the company growth pipeline.
Will the Merger Trend Continue?
Higher metals prices and increased demand brought on by changing energy production and storage, post-pandemic demand, and commodities investing in an uncertain global economy have caused a number of deals in this sector already this year.
The primary reasons to expect more consolidation within the mining sector are growing.
The chart above created by the CRU Group shows how fragmented gold mining is relative to other metals. The top 10 largest gold miners only produce 28% of all output. Gold prices have been rising fairly steadily but spending on exploration has been stalled. Growth to create shareholder value, would most efficiently and expediently be achieved by merger and acquisition (M&A). In the current environment, buyouts of active producers with known reserves are the alternative way for larger miners to to increase their production share, replenish depleting gold reserves and… lower production costs through with far less risk and in a shorter time period.
More Reasons to Own Mining Companies
World demand has been heightened for gold, copper, and other minerals used to store or distribute electricity. This dynamic which has been trending upward in recent years, is likely to push other financially strong mining companies, that want to satisfy new production demand now rather than through exploration and long, uncertain bureaucratic approval processes will shop for producers to increase production and grow to serve shareholders. Smaller companies that find themselves the target of an acquisition, also have a duty to serve shareholders. Often this plays out by the target company negotiating terms that are similar to the 30% gain seen in the Newmont/Newcrest deal.
What Else
Informed stock selection is key to discovering and deciding whether to invest in companies best positioned to benefit from a sector experiencing growing demand where acquisitions, in full or in part, fulfill larger company goals.
Where does an investor start to better understanding the mining sector and individual companies? Earlier this year The Channelchek Take Away Series brought to viewers a live in-depth presentation of 12 mining companies that were just coming off the huge PDAC mining conference in Canada. These presentations are available on video to be replayed – they may be the best place to begin hearing from mining company executives and a highly respected senior natural resources analyst. Click here to get started. Then visit Channelchek’s Natural Resources data of the many other companies available to discover for even more interesting, actionable opportunities.
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.
First quarter 2023 financial results. First quarter revenue totaled $187.3 million compared to $210.1 million in the prior period and $188.4 million in the first quarter of 2022. Coeur reported an adjusted first quarter loss of $33.1 million or $(0.11) per share compared to our first quarter loss estimate of $33.8 million or $(0.11) per share and the median loss estimate of $30.7 million or $(0.10) per share. On a GAAP basis, the first quarter loss was $24.6 million or $(0.08) per share. First quarter adjusted EBITDA amounted to $25.1 million. Free cash flow during the first quarter amounted to $(109.0) million, inclusive of capital expenditures totaling $74 million.
Guidance reaffirmed. First quarter gold and silver ounces produced were 69.0 thousand and 2.5 million, respectively, while gold and silver ounces sold were 70.9 thousand and 2.6 million. We had forecast gold and silver production of 69.2 thousand and 2.3 million ounces, respectively. Silver production at the Rochester mine was ahead of our estimate. Coeur reaffirmed its 2023 gold and silver production guidance of 320.0 to 370.0 thousand ounces and 10.0 to 12.0 million ounces, respectively. Production is weighted toward the second half of the year due to mine plan sequencing and the anticipated ramp-up and commissioning of the Rochester expansion. Operationally, we expect the third quarter to be the company’s strongest based on the Rochester mine’s production profile.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
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.
First phase of deep drilling completed. Maple Gold announced first phase completion of deep drilling at the Douay and Joutel gold projects which are held by a 50/50 joint venture (JV) between Maple and Agnico Eagle Mines Limited. The JV completed more than 13,100 meters of drilling across both projects. Early indications from the joint venture’s first phase of deep drilling are encouraging, particularly at Telbel. At Douay, management is most excited by what has been observed in the drill core beneath the Porphyry Zone. Assay results are expected in the second quarter of 2023 and will be reported once received and interpreted.
100% success rate at Telbel. In the Telbel mine area at Joutel, the joint venture drilled a total of 7,343 meters in three master drill holes and four wedge drill holes. All Telbel drill holes intersected broad zones of semi-massive to massive sulfide mineralization. Hole TB-22-003 and its associated wedges intersected three mineralized zones and bottomed in mineralization. Importantly, upper mineralized zones intersected by the hole were well north of the main mine horizon.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
The Debate Over the U.S. Spending Limit Opens Investment Opportunities
The U.S. debt-ceiling crisis, as Summer 2023 approaches, can go one of two ways. First, all parties in Congress could quickly meet and vote on fixing it, thus averting a catastrophe; alternatively, the debate could heat up as we approach the day when the U.S. Treasury can’t borrow to pay the country’s bills. At the risk of sounding negative, the timing of Washington finally ironing out a solution is likely to be hours before the moment the country would have been unable to fund maturing debt, minutes before it would have to send workers home and halted other spending.
Okay, so that was a bit pessimistic. But, as investors, we rely on past performance, even though we know it is no guarantee of future results. And past performance by Congress has been that it waits until the 11th hour after all hope seems to be lost.
This has happened many times in the past. The last time it became truly scary was in 2011. For equity investors, stocks became volatile but overall averaged flat in the period. But, there were two investment sectors that attracted positive activity.
What’s Rallied in the Past?
The winning sector was U.S. Treasury bonds out along the yield curve with maturity dates not expected to be impacted by a possible non-payment at maturity. Today, bonds are rallying (rates down) even after the PCE inflation gauge showed little headway over the past two months, so this is an indication that government debt may still be considered an investor safe haven. But, investing in an entity headed toward insolvency is questionable practice, even when the entity speeding toward bankruptcy is the United States of America.
The second is precious metals (PM), a currency alternative – the longest-running safe haven of all. By precious metals, I’m speaking specifically of gold, silver, and the stock of companies whose main business it is to mine these metals.
The most recent nail-biting standoff was in 2011. It was a politically contentious time in Washington, arguably, today’s climate is even less agreeable. At the time, the U.S. government had reached its borrowing limit of $14.3 trillion and needed to raise the debt ceiling in order to continue paying its bills and avoid default. Congress, and the White House eventually agreed to a last-minute compromise, which included some spending cuts but avoided a U.S. default.
Between July 1 and September 8, 2011, PM investments trounced the S&P 500 (Koyfin)
During this time, the financial markets whipsawed investors. However, gold-related investments, along with silver related, turned dramatically upward until a deal was struck the second week of September. Gold rose to an all-time high of around $1,900 per ounce in September 2011. Investors used gold as a hedge against the same concerns we are experiencing in 2023, namely inflation and currency debasement.
Silver also saw its price rise, although not to the same extent as gold. The price of silver reached a high of around $48 per ounce in April 2011, before retreating to around $30 per ounce by the end of the year.
Mining stocks also benefited from the uncertainty in the financial markets (see above graph). Shares of companies like Barrick Gold, Newmont Mining, and Goldcorp all saw significant gains while other industries were getting whipsawed. Junior miner Coeur mining (CDE) rose 25.7% during the period between July 1 and September 8, 2011. Endeavour Silver (EXK) rose a full 30% in the same period.
Mark Reichman the Senior Research Analyst covering Natural Resources at Noble Capital Markets pointed to additional macroeconomic events shaping precious metals investment, “We remain constructive on precious metals. Year-to-date, gold prices have risen more than silver, and the gold-to-silver ratio has widened since the beginning of the year. Mr. Reichman suggests, “Two things to track are changes in monetary policy and the strength of the U.S. dollar.” Outside of the U.S., Reichman informed, “Global demand for precious metals, particularly in Asia, is very strong, and is driven in part by global uncertainty.”
Take Away
Historically, investors asking, “what happened last time?” can be helpful when choosing a direction. The U.S. may avert a showdown on the debt ceiling/spending limit issue. But the month of June, when analysts expect the U.S. to run out of money, is fast approaching. There doesn’t seem to be any headway at this point.
Every challenge brings opportunities to investors. Market participants interested in precious metals mining companies can get detailed information on many companies here on Channelchek by clicking here.
Mark Reichman, Managing Director, Natural Resources Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Big Vein strike length extended to 722 meters. Labrador Gold released results from five drill holes at the Big Vein target within the company’s 100%-owned Kingsway project. Step out drilling to the northeast and southwest continue to intersect gold mineralization at Big Vein which has now been extended to 722 meters in strike length and remains open in both directions. Hole K-23-216 intersected 3.69 grams of gold per tonne over 2.97 meters from 389.41 meters including 12.05 grams of gold per tonne over 0.59 meters, while Hole K-23-218 returned 1.95 grams of gold per tonne over 9 meters including 8.97 grams of gold per tonne over 1.6 meters. Hole K-23-225, a 100-meter step-out to the northeast intersected 1 gram of gold per tonne over 10.1 meters from 46.9 meters, that included an interval of 2.28 grams of gold per tonne over 2.26 meters containing visible gold.
Discovery of a new mineralized zone. Hole K-22-214B returned 5.22 grams of gold per tonne over 2.80 meters from 418.6 meters that included 22.02 grams of gold per tonne over 0.4 meters, along with 8.62 grams of gold per tonne over 0.7 meters from 496 meters. Both it and Hole K-22-214 are associated with a new mineralized zone, the Greenmantle Zone, that lies below the HTC Zone at a vertical depth of 415 meters. The discovery of the Greenmantle zone demonstrates the potential for continued mineralization at depth.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
