Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fourth quarter and full year 2022 financial results. Coeur reported adjusted fourth quarter and full year 2022 losses per share of $(0.06) and $(0.32), respectively, and in line with our estimates. Fourth quarter and full year adjusted EBITDA were $35.9 million and $139.0 million. Full year gold and silver ounces produced were 330.3 thousand and 9.8 million, respectively, while ounces sold were 330.0 thousand and 9.8 million. Free cash flow during the fourth quarter and full year 2022 amounted to $(84.5) million and $(326.7) million due in part to heavy capital expenditures of $113.1 million and $352.4 million, respectively. On balance, financial results were in line with our expectations.
Completion of the Rochester expansion is expected by mid-2023. As of December 31, 2022, approximately $605 million of the $650 million to $670 million project cost has been committed, while $494 million had been incurred.
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.
Gold Softens as Yields Rise on US Treasuries From Inflation Stickiness
As the month of February began, the talk was for gold to hit $2,000 an ounce in the first quarter. But, as is often the case with investment markets, once certainty creeps into the mindset, something unexpected often comes along and undermines it. Gold may very well reach the $2,000 price in early 2023, but it has, for now, taken a small hit caused by a resurgence of expectations related to inflation’s pervasiveness. The inflation itself isn’t necessarily a problem, it is the chain reaction of events that then follows.
The One Two-Punch Catches Gold Off-Guard
Gold futures reached 10-month highs near $1,975 just before the release of January U.S. non-farm payrolls were reported on February 3rd. The Friday release showed large gains in the employment condition which stoked old inflation worries.
Concerns about inflation had been settling down before the jobs number. One indication of that is US bond yields had been priced, by most measures, for an eventual easing of rates, not tightening of conditions. The employment report itself began to unwind gold’s strength. The price sank to below $1,830 before recovering to around $1,875. The reason is that higher inflation, begets higher expectations of bond yields, which then begets capital flows into dollars to take advantage of the higher rates available. Gold becomes relatively weaker and less desirable under these conditions.
On February 14th, as some AU investors were falling out of love with gold, an inflation report (CPI) for January showed a tick-up in January prices over December’s numbers. This exacerbated U.S. inflation fears and helped to bring gold back under $1,850.
New Expectations
The shift in expectations over a two week period are not likely to unwind without new information which undermines the new employment and inflation reports. That doesn’t seem likely in the coming days as a just released wholesale price report (PPI) now indicates inflation is more than a services sector concern.
Gold long positions are now caught in the crosshairs of the Fed’s resolve to fight inflation. Every treasury yield spike has led to a dollar spike and been used as an opportunity to reduce demand for gold or reduce it’s relative value against US dollars.
Historically, gold prices had risen with inflation as investors bought the currency alternative as a hedge against paper currency. Currency typically loses value when prices go up. What happened then is more typical and is what is still taught in textbooks – good economic news was good for risk assets.
More recently, good economic news, worries investors because it has the potential to make inflation hotter, prompting the Fed to dial up rates and hurt everything from stocks to gold and oil. The positive correlation is on hiatus, probably until the Fed’s finger comes off the rates trigger.
Take Away
The markets had begun looking past the tightening phase after 450 bp worth of Fed Funds increases. The numbers reported in February have many investors, including those that trade currencies, precious metals, stocks, bonds, and other commodities less certain about the Fed calling for a cease fire in its inflation battle.
Of course, this new trend is young, it can conceivably be unwound in an instant in a changing world with many concerns outside and away from price increases.
Central Banks Gobbled Up More Gold Last Year Than In Any Year Since 1967
The price of gold stopped just short of hitting $1,960 an ounce last Thursday, its highest level since April 2022, before plunging below $1,900 on Friday following a stronger-than-expected U.S. jobs report, indicating that the current rate hike cycle may be far from over.
I don’t believe that this takes away from the fact that gold posted its best start to the year since 2015. The yellow metal rose 5.72% in January, compared to 8.39% in the same month eight years ago.
This article was republished with permission from Frank Talk, a CEO Blog by Frank Holmes of U.S. Global Investors (GROW). Find more of Frank’s articles here – Originally published February 8, 2023.
I also maintain my bullishness for gold and gold mining stocks in 2023. Gold was one of the very few bright spots in a dismal 2022, ending the year essentially flat, and I expect its performance to remain strong in the year ahead.
Record Retail Demand In 2022
The big headline in the World Gold Council’s (WGC) 2022 review is that total global demand expanded 18% year-over-year, reaching its highest level since 2011.
Central banks were responsible for much of the growth, adding a massive 1,136 metric tons, the largest annual amount since 1967. China began accumulating again in 2022 for the first time in three years, continuing its goal of diversifying away from the dollar.
Meanwhile, retail demand for bars and coins in the U.S. and Europe hit a new annual record last year in response to stubbornly high inflation and the war in Ukraine. Western investors gobbled up 427 tons (approximately 15 million ounces), the most since 2011.
Investors To Shift From Physical Bullion To Gold-Backed ETFs In 2023?
Where I see the opportunity is with gold-backed ETFs and gold mining stocks, both of which didn’t see the same level of demand as the bullion market last year. Investors withdrew some 110 tons from physical gold ETFs, the second straight year of declines, though at a slower pace compared to 2021. Even when the gold price began to climb in November, investors didn’t seem to respond as they have in past rallies.
The WGC suggests that demand for ETFs that hold physical gold will “take the baton” from bars and coins this year. That remains to be seen, but I always recommend that investors diversify, with 5% of their portfolio in bullion, gold jewelry and gold-backed ETFs.
Another 5% can be allocated to high-quality gold mining stocks, mutual funds and ETFs. We prefer companies that have demonstrated strong momentum in revenue, free cash flow and high-growth margins on a per-share basis.
$1 Trillion Investment In The Energy Transition, On Par With Fossil Fuels
If I had to select another metal to watch this year (and beyond), it would be copper. The red metal, we believe, will be one of the greatest beneficiaries of the global low-carbon energy transition that’s taking place. As we seek to electrify everything, from power generation to transportation, copper is the one material that’s used every step of the way.
What’s more, investment in the transition is accelerating. Last year, more than $1 trillion was plowed into new technologies such as renewable energy, energy storage, carbon capture and storage, electrified transport and more.
Not only is this a new annual record amount, but, for the first time ever, it matches what we invested in fossil fuels, according to Bloomberg New Energy Finance (NEF).
China was the top investor, responsible for $546 billion, or nearly half of the total amount. The U.S. was a distant second at $141 billion, though the Inflation Reduction Act (IRA), signed into law in August 2022, has yet to be fully deployed.
Copper’s Supply-Demand Imbalance
At the same time that copper demand is growing due to the energy transition, the global supply pipeline is thinning due to shrinking exploration budgets and a dramatic slowdown in the number of new deposits.
Take a look at the chart above, courtesy of S&P Global. Copper exploration budgets have not managed to generate a meaningful increase in major new discoveries. According to S&P Global, most of the copper that’s produced every year comes from assets that were discovered in the 1990s.
It may be a good time to consider getting exposure with a high-quality copper miner such as Ivanhoe Mines or a broad-based commodities fund that gives you access to copper exploration and production.
Vancouver, British Columbia–(Newsfile Corp. – February 7, 2023) – Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (“Maple Gold” or the “Company“) is pleased to announce the appointment of Paul Harbidge to its technical committee (the “Technical Committee”), which helps guide exploration, drilling and project management at the Company’s projects located in Québec, Canada, and to provide an update on the ongoing deep drilling programs at the Douay Gold Project (“Douay”) and the Joutel Gold Project (“Joutel”), which are held by a 50/50 joint venture (“JV”) between the Company and Agnico Eagle Mines Limited.
Mr. Harbidge is an accomplished geologist with more than 25 years of experience and a track record of discovering world-class gold deposits. He is currently President, Chief Executive Officer and a Director of Faraday Copper Corp., an emerging U.S. copper developer. Mr. Harbidge was previously President and Chief Executive Officer of GT Gold Corp. and led the company to a C$456 million acquisition by Newmont Mining Corp. in May 2021. Prior to that, Mr. Harbidge was Senior Vice President of Exploration for Goldcorp Inc. from 2016 until its acquisition by Newmont Mining Corp. in April 2019. He also led the exploration team at Randgold Resources Limited that was credited with five major gold discoveries. Mr. Harbidge holds a First-Class Honours Degree in Geology from Kingston University, London (UK) and a Master of Science in Mineral Exploration and Mining Geology from Leicester University (UK).
“We are thrilled to have Paul Harbidge join our Technical Committee, as his experience successfully leading teams to multiple world-class gold discoveries further strengthens our technical group during this critical phase of growth for the Company,” stated Matthew Hornor, CEO of Maple Gold. “2023 is shaping up to be an exciting year for the JV as we approach completion of the first phase (~6,000 m) of deep drilling at Joutel and with the planned deep drilling campaign (~10,000 m) at Douay testing beneath the known 6 x 2 km resource footprint already well underway.”
A total of six (6) drill holes and drillhole extensions are planned at Douay, several of which are expected to be drilled to 2,000 metres (“m”) downhole or more. Deep drilling will test beneath the current mineral resource (SLR 2022) and across the favorable Casa Berardi North Fault corridor, where modeled wireframes demonstrate the potential for higher-grade (>2 grams per tonne (“g/t”) gold (“Au”)) mineralization at greater depths.
Deep drilling at Douay commenced in early January 2023 with drill hole DO-23-331, which is collared approximately 400 m southwest of the conceptual pit limits at the 531 Zone (see Figure 1). Previous drilling at the 531 Zone has returned some of the highest-grade and largest gold accumulations (grade x thickness) to-date at Douay, including 8.8 g/t Au over 28.5 m at a depth of 295.0 m in drill hole DO-21-310 (see news from September 9, 2021). While the primary target for this hole is located approximately 1,900 m downhole, where it is expected to intersect the projection of the defined mineralized zone at the 531 Zone significantly down-plunge, DO-23-331 will also serve to test the full width of the mineralized corridor in this area (see Figure 2). DO-23-331 is currently approaching 1,100 m downhole and is proving to be more mineralized than anticipated in the hanging wall rocks (see drill core images with preliminary observations in Plate 1).
Two (2) additional drill rigs were recently mobilized to Douay and as previously reported the Company expects five (5) rigs to be turning concurrently throughout Q1/2023.
“We are encouraged and cautiously optimistic after observing significant pyrite mineralization in the upper portion of the first deep drill hole in an area well south of the 531 Zone with very limited drilling,” stated Fred Speidel, VP Exploration of Maple Gold. “These initial observations point to the potential for these deep drill holes to intersect new mineralized horizons enroute to the targeted depths.”
Figure 1: Plan view showing locations of DO-23-331 and DO-23-332 (both in progress) with line of section for DO-23-331.
Figure 2: Cross section (300 m total width) looking WNW showing DO-23-331 drill hole trace with position of Casa Berardi North Fault (CBNF) and primary target corridor at depth.
Assays for the entire deep drilling program (Douay and Joutel) are pending and results will be released on a periodic basis over the coming months once they are received and interpreted.
Option Issuance
The Company has approved the grant to certain consultants of stock options (“Options”) to purchase an aggregate of 200,000 common shares of the Company at an exercise price of $0.26 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 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.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Deep drilling program at Douay. A 10,000-meter drill program is underway at the Douay project, a joint venture with Agnico Eagle. Two additional drill rigs were mobilized at Douay and the company expects progress to accelerate with five rigs turning throughout the first quarter of 2023. A total of six drill holes are planned, several of which are expected to be drilled to at least 2,000 meters downhole. Mines in the Abitibi gold belt are known for vertical continuity and higher grades at depth. Deep drilling will test beneath the current mineral resource and across the Casa Berardi North Fault corridor.
Nearing the target. In January,deep drilling at Douay commenced with Hole DO-23-331, collared approximately 400 meters southwest of the conceptual pit limits at the 531 Zone, currently approaching 1,100 meters downhole. Previous drilling at the 531 Zone returned some of the highest-grade and largest accumulations of gold at Douay based on grade and thickness. The primary target is roughly 1,900 meters downhole where it is expected to intersect the projection of the defined mineralized zone at the 531 Zone significantly down plunge. Hole DO-23-331 will also test the width of the mineralized corridor in this area.
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.
Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent* “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag)) with an effective date of Feb. 4, 2022. The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the past-producing Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the past-producing Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
The new focus is focus. While acquisitions characterized the company’s development during the last two years, the company is now actively pursuing the sale, joint venture or spin-off of projects outside of the Maverick Springs project in Nevada and projects in Peru. The company is making progress toward closing the sale of its Long Peak, Stargo, Elder Creek, North Mill, and Elephant projects in Nevada.
Objectives for 2023. Plans associated with the company’s projects in Peru are nearly completed with the intention of beginning site work during the first calendar quarter of 2023. The company’s core focus is to commence preliminary production in Peru in 2023 to generate cash flow. With respect to the Maverick Springs project in Nevada, a re-logging, re-sampling, and petrographic program is planned to help define future drill targets.
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.
In 2022, central banks purchased the largest amount of gold in recent history. According to the World Gold Council, central bank purchases of gold have reached a level not seen since 1967. The world’s central banks bought 673 metric tons in one month, and in the third quarter, the figure reached 400 metric tons. This is interesting because the flow from central banks since 2020 has been eminently net sales.
Why are global central banks adding gold to their reserves? There may be different factors.
Most central banks’ largest percentage of reserves are US dollars, which usually come in the form of US Treasury bonds. It would make sense for some of the central banks, especially China, to decide to depend less on the dollar.
China’s high foreign exchange reserves are a key source of stability for the People’s Bank of China. But the high amount of US dollars ($3.1 trillion) may have been a key stabilizing factor in 2022, but it could be too much if the next ten years bring a wave of money devaluation that has never happened before.
Central banks have been talking about the idea of issuing a digital currency, which would completely change the way money works today. By issuing a digital currency directly into a citizen’s account at the central bank, the financial institution would have all access to savers’ information and, more importantly, would be able to accelerate the transmission mechanism of monetary policy by eliminating the channels that prevent higher inflation from happening: the banking channel and the backstop of credit demand. What has kept inflation from going up much more is that the way monetary policy is passed on is always slowed down by the demand for credit in the banking system. This has obviously led to a huge rise in the prices of financial assets and still caused prices to go through the roof when the growth in the money supply was used to pay for government spending and subsidies.
If central banks start issuing digital currencies, the level of purchasing power destruction of currencies seen in the past fifty years will be exceedingly small compared with what can occur with unbridled central bank control.
In such an environment, gold’s status as a reserve of value would be unequalled.
There are more reasons why a central bank might buy gold.
Central banks need gold because they may be preparing for an unprecedented period of monetary devastation.
The Financial Times claims that central banks are already suffering significant losses as a result of the falling value of the bonds they hold on their balance sheets. By the end of the second quarter of 2022, the Federal Reserve had lost $720 billion while the Bank of England had lost £200 billion. The European Central Bank is currently having its finances reviewed, and it is predicted that it will also incur significant losses. The European Central Bank, the US Federal Reserve, the Bank of England, the Swiss National Bank, and the Australian central bank all “now face possible losses of more than $1 trillion altogether, as once-profitable bonds morph into liabilities,” according to Reuters.
If a central bank experiences a loss, it can fill the gap by using any available reserves from prior years or by requesting help from other central banks. Similar to a commercial bank, it may experience significant difficulties; nevertheless, a central bank has the option of turning to governments as a last resort. This implies that the hole will be paid for by taxpayers, and the costs are astronomical.
The wave of monetary destruction that could result from a new record in global debt, enormous losses in the central bank’s assets, and the issuance of digital currencies finds only one true safe haven with centuries of proven status as a reserve of value: Gold. This is because central banks are aware that governments are not cutting deficit spending.
These numbers highlight the enormous issue brought on by the recent overuse of quantitative easing. Because they were unaware of the reality of issuer solvency, central banks switched from purchasing low-risk assets at attractive prices to purchasing any sovereign bond at any price.
Why do central banks increase their gold purchases just as losses appear on their balance sheets? To increase their reserve level, lessen losses, and foresee how newly created digital currencies may affect inflation. Since buying European or North American sovereign bonds doesn’t lower the risk of losing money if inflation stays high, it is very likely that the only real option if to buy more gold.
The central banks of industrialized nations will make an effort to shrink their balance sheets in order to fight inflation, but they will also discover that the assets they own are continuing to depreciate in value. A central bank that is losing money cannot immediately expand its balance sheet or buy more sovereign bonds. A liquidity trap has been set. Quantitative easing and low interest rates are necessary for higher asset values, but further liquidity and financial restraint may prolong inflationary pressures, which would then increase pressure on asset prices.
The idea that printing money wouldn’t lead to inflation served as the foundation for the monetary mirage. The evidence to the contrary now demonstrates that central banks are faced with a serious challenge: they are unable to sustain multiple expansion and asset price inflation, lower consumer prices, and fund government deficit spending at the same time.
So, why do they buy gold? Because a new paradigm in policy will unavoidably emerge as a result of the disastrous economic and monetary effects of years of excessive easing, and neither our real earnings nor our deposit savings benefit from that. When given the choice between “sound money” and “financial repression,” governments have forced central banks to choose “financial repression.”
The only reason central banks buy gold is to protect their balance sheets from their own monetary destruction programs; they have no choice but to do so.
About the Author:
Daniel Lacalle, Ph.D., economist and fund manager, is the author of the bestselling books Freedom or Equality (2020), Escape from the Central Bank Trap (2017), The Energy World Is Flat (2015), and Life in the Financial Markets (2014).
Daniel is a professor of global economy at IE Business School in Madrid.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Exploration continues at Hopedale. Labrador Gold released results from grab and channel samples from the northernmost Thurber Dog license at the company’s Hopedale project in Labrador. Hopedale consists of 998 claims in five licenses covering 249 square kilometers of the Florence Lake greenstone belt. Previous work by others revealed significant gold in rock and soil over a three kilometer strike length, including four mineralized occurrences: 1) Thurber North with up to 3.8 grams per tonne, 2) TD500 with up to 21.59 grams per tonne, 3) Thurber Dog with up to 11.4 grams per tonne, and Thurber South with up to 4.1 grams per tonne. In addition to gold, the property has nickel and copper potential.
Encouraging assay results. Grab samples at TD500 returned gold values ranging from 0.46 grams per tonne to 21.59 grams per tonne. Channel sampling over a strike length of 60 meters returned 2.91 grams gold per tonne over 5.17 meters including 14.02 grams of gold per tonne over 0.61 meters, 2.35 grams of gold per tonne over 6.88 meters, and 4.23 grams of gold per tonne over 5.04 meters. Shear hosted gold mineralization has been discovered over a 35 meter strike length. Grab samples at the Kaapak copper occurrence returned up to 10.2% copper with seven of nine grab samples assaying over 1% copper. Channel sampling over a strike length of 50 meters at Kaapak returned copper values of up to 3.31%.
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, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Leading off 2023 with a strong treasury. Exploration at the company’s 100%-owned Kingsway gold project continues to target the Appleton Fault over a 12-kilometer strike length. To date, 63,055 meters of the planned 100,000-meter drill program has been completed. With approximately C$18 million in cash, Labrador Gold has ample financial resources to fund the remaining 37,000 meters of drilling. Assays are pending for samples from 2,700 meters of core.
Big Vein returns high-grade intercepts. The company recently released assay results from four holes, including two holes that were drilled at the north end of the Big Vein target. Hole K-22-206 intersected 20.88 grams of gold per tonne over 5 meters that included 124.2 grams of gold per tonne over 0.81 meters, and 7.41 grams of gold over 1.0 meter. It provides another example of high-grade mineralization over a reasonably long interval. Hole K-22-208 returned 1.07 grams of gold per tonne over 2.0 meters, along with 5.0 grams of gold per tonne over 1.54 meters, including 6.04 grams of gold per tonne over 1.2 meters. Results from two holes associated with the CSAMT and Golden Glove targets returned no significant values.
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.
TORONTO, Jan. 12, 2023 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce the latest results from recent drilling targeting the highly prospective Appleton Fault Zone over a 12km strike length. The drilling is part of the Company’s ongoing 100,000 metre diamond drilling program at its 100% owned Kingsway Project.
Highlights of the drilling include an intersection of 20.88 g/t Au over 5 metres that included 124.21g/t Au over 0.81 metres and 7.41 g/t Au over 1.0 metres in Hole K-22-206, and 6.04 g/t Au over 1.20 metres in Hole K-22-208. Both holes were drilled at the north end of Big Vein.
“We continue to follow up on the success of last year’s drilling at Big Vein with another high-grade intersection at the north end of the zone. Big Vein has now been drilled over a strike length of approximately 520 metres along the west side of the Appleton Fault Zone and remains open to the northeast and to the southwest,” said Roger Moss, President and CEO. “Drilling is ongoing at both ends of the zone to extend the strike length of the mineralization.”
Table 1. Summary of assay results. All intersections are downhole length as there is insufficient Information to calculate true width.
Figure 1. Big Vein plan map.
A total of 63,055 metres have been drilled to date out of the planned 100,000 metre program. Assays are pending for samples from approximately 2,700 metres of core.
The Company has $18 million in cash and is well funded to carry out the remaining 37,000 metres of the planned drill program as well as further exploration to add to the pipeline of drill targets on the property.
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.
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 gold occurrences in the region, including those of New Found Gold immediately to the south of Kingsway. 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 $18 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.
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.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Beginning the year in a position of strength. In 2022, exploration at the company’s 100%-owned Kingsway gold project targeted the Appleton Fault over a 12-kilometer strike length. A total of 62,504 meters of the planned 100,000-meter program have been drilled to date, with roughly 36,000 meters of drilling completed in 2022. With approximately $18 million in cash, Labrador Gold has ample financial resources to fund the remaining 37,496 meters of drilling. Assays are pending for samples from 3,903 meters of core, or approximately 10% of the total submitted.
Appleton Fault is proving to be fertile ground. Labrador Gold’s exploration program resulted in the discovery of four new gold occurrences. Three of these, Golden Glove, Big Vein and Pristine, are located along the Appleton Fault Zone which continues to be Labrador Gold’s primary exploration target. With only about two kilometers of the 12-kilometer strike length of the Appleton Fault Zone tested by drilling, management is confident additional discoveries will be made as the remaining ten kilometers are drill tested.
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.
Gold is rising amid a weakening dollar and languishing cryptocurrencies as weaknesses in these asset classes are causing institutions and small investors alike to back off. What’s going on with gold and all the different methods for investors to gain exposure (bullion, ETF trusts, mining stocks)? And can it be believed? While several dynamics could indicate a perfect storm for exposure to gold prices, there have been a number of “head-fakes” over the past few years that have disappointed investors. Let’s look at what has been driving the recent upward march in the metal, which is still considered a store of value.
What’s Going On?
Gold futures touched an eight-month high on Wednesday, January 11 (Six-month chart below). The US dollar (shown here vs Yen and Euro) has been losing its strength in response to central bank hawkishness overseas coupled with a sizable decline in US bond yields.
The ramp up of China’s economy after a long period of Covid-related restrictions is pushing precious and industrial metal prices higher as demand is expected to escalate. Copper is also benefiting as futures contracts for this highly conductive metal reached its highest level since June.
The concerns over the global economy in 2023 also have some wealth managers allocating a larger portion to gold and silver for “investment insurance”. Gold historically has a low correlation to stock prices. Investors who were relying on a 60/40 (stocks & bonds) allocation to hedge each other against one asset class tumbling found they could have benefited from further diversification
Outlook (Bullion/Miners)
In a survey conducted before Christmas, BullionVault users forecast a gold price of $2,012.60 for the end of 2023, with nearly 38% of the 1,829 full responses pointing to the need to spread risk and diversify portfolios as the top reason for investing in bullion.
In his quarterly report on metals and mining, the Noble Capital Markets senior equity analyst, Mark Reichaman shared an outlook that sounded positive but cautious on precious metals miners. “We think precious metals prices around current levels are sufficient for mining companies to be profitable and attract new investment. Our outlook is for range-bound pricing around current levels with a modest upward bias in the first half of 2023, said Reichamn who focuses on materials and mining.
Take Away
A dollar trending upward attracts assets from across the globe. The long trend seems to have broken which has left higher demand for gold and gold mining investments. Also feeding into the demand is China reopening manufacturing that had been shuttered.
The crypto crash and current uncertainty have had the affect of causing investors in these alternative assets to move to other investments.
There has been a move by investors looking for alternative allocations to more traditional stock and bond holdings, including registered investment advisors (RIA). The 60/40 portfolio took a huge hit last year, an allocation to less correlated gold and gold stocks may be deemed prudent by those not looking to repeat.
Vancouver, British Columbia–(Newsfile Corp. – January 9, 2023) – Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (“Maple Gold” or the “Company“) is pleased to report additional assay results from the Company’s 2022 drilling at its 100%-controlled Eagle Mine Property (“Eagle”) located in Québec, Canada. The new results represent complete assays from five (5) follow-up holes for which partial results were previously reported (see news from December 13, 2022), targeting northwest extensions of the main mine horizon and along multiple sub-parallel gold horizons (see Figures 1 and 2). The Company’s latest drilling in the northern splay of the main mine horizon (the “North Mine Horizon”) has returned the best intercept to-date from its 2022 program at Eagle.
Highlights:
Drill hole EM-22-015 intersected 10.3 g/t gold (“Au”) over 7.8 metres (“m”), including 41.1 g/t Au over 1.0 m in the North Mine Horizon.
Further up-hole, EM-22-015 intersected 4.3 g/t Au over 3.9 m, including 6.6 g/t Au over 2.0 m, demonstrating the potential for the North Mine Horizon to be wider than what was previously interpreted (see Figure 2).
The EM-22-015 intercepts are located down-plunge from historical high-grade, near-surface drill results from a geologically similar hole (E-19: 19.6 g/t Au over 7.9 m, as well as 17.5 g/t Au over 5.6 m further up-hole) in an area with limited drilling that remains open further down-plunge (see Figure 3).
EM-22-015 has now returned seven (7) separate intercepts over a 120 m interval starting from 142.5 m downhole.
Assays are still pending for roughly 20% of the Company’s 2022 drilling at Eagle.
“Drill results continue to support the Company’s view that multiple sub-parallel gold horizons exist beyond what was historically mined at Eagle and have expanded our target areas along a broader mineralized corridor over a stratigraphic thickness that now exceeds 100 metres in width,” stated Matthew Hornor, CEO of Maple Gold. “There is an apparent concentration of >10 g/t gold starting near surface and extending down-plunge to the EM-22-015 intercepts along the North Mine Horizon in an area with limited drilling that remains open further down-plunge. This represents just one of several compelling follow-up targets that we are excited to pursue in 2023.”
Interpretation and Summary of Results
Key assay results reported herein are from holes drilled at different orientations from the site of hole EM-22-005 (see news from June 20, 2022); three (3) starting from the same drill collar (EM-22-013, EM-22-015, EM-22-016) and one (1) wedge drill hole (EM-22-005W). The new results from EM-22-015 support the Company’s model of multiple sub-parallel gold horizons, some of which are particularly high-grade (>10 g/t), extending from the southern splay of the main mine horizon (the “South Mine Horizon”) to beyond the North Mine Horizon over a mineralized corridor that now exceeds 100 m in width. These two horizons merge into a single main mine horizon in the central part of the Eagle property (see Figure 1).
Figure 1: Plan view showing all 2022 drill holes (28) at Eagle with lines of section for Figures 2 and 3.
Gold mineralization at Eagle is not only limited to the known main mine horizon, hosted in mixed epiclastic and pyroclastic rocks of the northern part of the Joutel-Raymond volcanic complex, but also extends into a sill-like microgabbro occurring close to the Harricana Fault, and sporadically into the Harricana sediments further to the north.
Figure 2: NW-looking cross section (85 m total width) highlighting new assay results (gold boxes) and previously reported/historical intercepts (white boxes) along well-defined sub-parallel horizons.
Figure 3: NE-looking long section (55 m total width) highlighting the location of the EM-22-015 intercept (10.3 g/t Au over 7.8 m) relative to pre-existing grade contouring in the North Mine Horizon. Note the open area extending down-plunge from hole E-19 (19.6 g/t Au over 7.9m).
The EM-22-015 intercepts are located approximately 60 m down-plunge from historical hole E-19. Additional historical drill holes intersected >5g/t Au roughly 250 m further down-plunge, highlighting the grade and volume potential of this new zone that will be tested via follow-up drilling in 2023.
In contrast with the South Mine Horizon, which is hosted in a mixed package of fine-grained crystal tuffs and laminated sediments with the latter hosting most of the gold-bearing semi-massive sulfide mineralization cut by irregular ankerite-(quartz) veinlets, the North Mine Horizon is associated with coarser lapilli-tuffs that appear to have been quite permeable and allowed deposition of abundant matrix sulfide (see Plate 1) adjacent to and overlapping with the microgabbro further downhole. The distribution of these coarse tuffs adjacent to the microgabbro represent a favorable target that has relatively limited drilling to the northwest as well as down-dip and down-plunge (see Figures 2 and 3).
Plate 1: EM-22-015 intercept at 230.8 m downhole in lapilli-tuff host. Sulfide patches in between lapilli are semi-massive to massive. NQ core, 47.6mm diameter.
Intercepts >2 g/t Au have now been obtained at Eagle at downhole depths ranging from 109 to 1,234 m, which is indicative of the significant depth continuity of the system. Multi-element geochemistry, a first for the Eagle project, indicates that Au is associated with elevated silver (“Ag”) and that several additional elements can be used for targeting purposes as they provide for a significantly broader footprint than Au and Ag alone.
The Company completed a total of 28 drill holes corresponding to ~13,823 m at Eagle during 2022. Approximately 20% of the assays for the entire program are still pending. Additional assay results will be released on a periodic basis over the coming months once they are received and interpreted.
Outlook for Further Exploration at Eagle-Telbel
The Company’s next steps will include a comprehensive review of all available data at Eagle, including incorporating results from the 2022 program into its 3D geological model, along with definition of priority targets for follow-up drilling in H1 2023. The Company also believes that continued drilling success at Eagle will relate positively to ongoing exploration on its joint venture ground at Telbel and along the entire Joutel Deformation Zone.
Table 1: Complete assay results for EM-22-015 and nearby drill holes at Eagle (note: bolded Drill Hole IDs correspond to new assay results).
Drill Hole ID
UTME
UTMN
Azimuth
Plunge
Length (m)
From
To
Interval
Au g/t
EM-22-013
690758
5486043
63.8
-69.8
327
257.0
267.4
10.4
2.3
including
257.0
260.2
3.2
5.0
EM-22-013
273.0
273.7
0.7
1.8
EM-22-013
298.0
299.0
1.0
1.5
EM-22-014
690565
5486334
64.5
-67.9
621
160.0
160.7
0.7
1.8
EM-22-014
231.0
231.7
0.7
4.6
EM-22-014
272.0
273.0
1.0
1.3
EM-22-015
690758
5486043
45
-50.1
411
142.5
148.6
6.1
1.6
EM-22-015
164.9
165.5
0.7
4.8
EM-22-015
217.1
221.0
3.9
4.3
including
218.5
220.5
2.0
6.6
EM-22-015
228.0
235.8
7.8
10.3
including
228.5
232.8
4.3
15.9
including
230.0
231.0
1.0
41.1
EM-22-015
246.7
248.4
1.7
4.3
including
247.5
248.4
0.9
7.1
EM-22-015
252.2
255.0
2.8
1.8
EM-22-015
260.0
262.6
2.6
1.1
EM-22-016
690758
5486043
45
-62.6
297
182.6
183.2
0.6
1.7
EM-22-016
193.0
200.3
7.3
3.1
including
196.0
199.6
3.6
4.0
EM-22-016
202.0
206.2
4.2
1.7
including
204.3
206.2
1.9
2.7
EM-22-005W
690795
5486136
2.2
-65.5
363
364.3
365.8
1.5
1.3
EM-22-005W
624.0
625.0
1.0
1.2
All intervals are downhole lengths. True widths are estimated to be between 35% (for steeper holes) to 80% (for shallower angle holes) of downhole lengths. Assays are uncut, but overlimits (>10 g/t Au initial assay) were reassayed using Fire Assay with Gravimetric finish, and subsequently, screen metallics. The latter results are deemed more accurate and are reported here.
Qualified Person
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.
Quality Assurance (QA) and Quality Control (QC)
The Company implements strict Quality Assurance (“QA”) and Quality Control (“QC”) protocols at Eagle 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 AGAT laboratory; sample preparation for assaying; and analysis, recording and final statistical vetting of results. Check assays for gold are being done on a sample subset at ALS’ 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.
