Gold is among the first assets that come to mind when investors look to hedge against inflation. The U.S. and other nations are now experiencing the highest levels of inflation in forty years. As consumer prices continue to increase, gold, in all of its investible forms, has been trading down or sideways at best. Will its value pick up and catch up, or has it lost its shine as an inflation hedge?
Up is Down
In any market, the economic inputs impacting prices are many. One overriding factor that has been keeping gold prices at bay is inflation expectations. That’s right; it sounds counter-intuitive, but up is now down, and down is now up in the markets as investors look several steps out to determine their expectations. In this case, the steps follow this path:
Even during the weeks when the Federal Reserve’s monetary policy making board, the FOMC, meets and is universally expected to raise interest rates, longer rates on the treasury curve trade lower, not up. The markets are being very forward-looking and are more concerned with recession than inflation. I suspect this confounds the Fed’s efforts to slow growth and price pressures via rate increases that are being undermined by recession fears.
Gold is not seeing investors increasing their allocation of bullion, gold certificates, ETFs, gold mining companies, or any other assets linked to the price of gold, in large part because markets view the Fed as on a path to wipe out the economy and inflation. This was apparent last week as so-called meme stock AMC Theaters (AMC) shared a positive event related to their gold holdings, the stock traded down.
Dollar Strength
Outside of the U.S., expectations for a deep or deeper recession are growing. This week the German central bank (Bundesbank) said “There are mounting signs of a recession in the German economy in the sense of a clear broad-based and prolonged decline in economic output. This drives investment in the stronger U.S. economy.
In addition to viewing inflation as a reason for rates to be brought down, global unrest and the U.S. central bank being perceived as tightening the most aggressively among trading partners has brought consistent strength to the U.S. dollar. When the performance of dollars and gold are viewed side by side, it hasn’t made sense to exchange the U.S. currency for gold. So in effect, gold which is often viewed as a currency is not competing well with greenbacks.
Take Away
Inflation has been rising. And not just in supply chain-related industries, in services as well. The Federal Reserve’s resolve to bring it down by increasing rates in the U.S. is attracting capital from overseas which has been keeping the dollar strong and as a perceived better alternatve to gold.
While gold prices are historically a beneficiary of higher inflation growth, the expectation that the Fed may quickly overshoot and cause a recession which could halt the run-away prices is winning the price tug-of-war with gold buyer enthusiasm.
Newrange is focused on district-scale exploration for precious metals in the prolific Red Lake District of northwestern Ontario. The past-producing high-grade Argosy Gold Mine is open to depth, while the adjacent North Birch Project offers additional blue-sky potential. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders. Further information can be found on our website at www.newrangegold.com .
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New flagship project. Newrange signed a non-binding Letter of Intent (LOI) with Great Panther Mining Limited (NYSE American, GPL) to acquire a 100% interest in the past-producing Coricancha mine in central Peru. Management expects to sign a definitive agreement shortly. Coricancha is a high-grade, narrow-vein, gold-silver-copper-lead-zinc underground mine in the Central Polymetallic Belt of Peru. It is 90 kilometers east of Lima and includes a 600-tonne per day processing plant, dry-stack tailings storage facility and requisite surface and underground infrastructure.
Acquisition terms. Newrange has agreed to make a single cash payment of US$750,000 to Great Panther upon closing and the transaction will be on an “as-is” basis. Shareholder approval is not required. Because the acquisition is subject to financing, Newrange is considering a “one new for six old” share consolidation and subsequent name change to be effective upon closing. Closing is subject to certain conditions, including the completion of a definitive agreement, financing by Newrange, and receipt of all necessary third-party approvals.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
AMC Diversified into Mining Last Winter – The Prospects Look Good
They should make a movie about the CEO of AMC Theaters, Adam Aron. But they ought to wait because it seems his story and that of AMC Theaters ($AMC) have a few more plot twists left. Yesterday AMC Shareholders struck gold. That is, the 22% of a gold mining operation in Nevada that AMC purchased in March returned extremely positive results as to the amount and quality of the yellow metal found in recent tests.
Let’s Rewind
In mid-March of this year AMC Theaters, coupled with Natural Resources Guru Eric Sprott, had taken a large stake in a gold and silver mining company. The company, Hycroft Mining Holdings ($HYMC), has a 71,000-acre gold mine in Northern Nevada. AMC’s stake was 22%. It invested $27.9 million in cash in Hycroft in exchange for 23.4 million warrant units, with each unit consisting of one common share of Hycroft and one common share purchase warrant. The units were priced at $1.193 a share, while each purchase warrant was priced at about $1.07 and carried a five-year term. HYMC had been trading in the $0.30 to $0.33 range when the deal was executed, as of September 14, the mining company was trading for $0.84 per share. AMC also was granted the right to appoint someone to Hycroft’s board.
Eric Sprott’s investment was made through a holding company for Sprott, not the alternative investment manager owned by Mr. Sprott, Sprott Inc. The holding company will make an equal investment in Hycroft with the same terms. Together, AMC and Sprott invested $56 million in the mining company.
So Far, So Good
The large stake taken by a completely unrelated business was ridiculed by many. One Seeking Alpha author called it a “Horror Story.” But the run-up in AMC’s stock from the short-squeeze in 2021 and its foresight to set aside capital for growth and diversification may have been smart. As of yesterday, the 22% stake in the uncorrelated business (Leisure vs Natural Resources) makes the CEO presiding over the popular meme-stock look like a hero.
According to a press release from Hycroft Mining, initial drill results from the test they conducted in different areas of the the property more than confirmed their expectations.
Alex Davidson, Vice President, Exploration at Hycroft commented, “These initial drill results confirm the higher-grade opportunities identified in the 2021 drill program. While we have only just begun investigating the planned targets of our 2022-23 drill program, these results are very encouraging and further confirm the importance of additional drilling to explore the untapped potential of the Hycroft deposit. Importantly, we are observing the high-grade zones are more continuous than previously interpreted in addition to seeing silver and gold grades significantly higher than the average grade at the Hycroft deposit.”
Adam Aron tweeted dramatically yesterday after the results were made public, exclaiming, “Eureka, In Hycroft’s early efforts, the biggest exploration program there in a decade, they found it! There’s MORE gold in them thar hills. And MORE silver. And it’s MUCH higher grade than previously known at the site. To my critics in the cheap seats: #AFeast of CrowStewForYou.
Take Away
The AMC story, so far this decade, is full of so many plot twists and unexpected events that it confounds even the most veteran market watchers.
High-level research and analysis for many natural resource producers is regularly posted on Channelchek, along with information on stocks within the leisure sector. Watch for continued updates on this story by signing up for Channelchek emails.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Recent drill results. Labrador Gold released results from recent drilling associated with its 100,000-meter drill program at its 100%-owned Kingsway gold project targeting the Appleton Fault Zone over a 12-kilometer strike length.A total of 52,648 meters have been drilled to date with assays pending for samples from approximately 3,343 meters of core. The company has four drill rigs operating, including two at the Big Vein target, one rig at the Golden Glove target, and one at the CSAMT target. Till sampling and prospecting continues to generate new drill targets along the Appleton Fault Zone and the gabbro trend north and south of Midway. Drilling on these targets will commence once initial drilling at the CSAMT target is complete.
Big Vein results continue to impress. At the Big Vein target, Hole K-22-177 returned 2.02 grams of gold per tonne over 32 meters from 134 meters depth that included 18.08 grams of gold per tonne over 0.63 meters and 11.42 grams of gold per tonne over 1.05 meters. It represents the longest mineralized intersection on the property to date. Hole K-22-187 at Big Vein southwest intersected 12.84 grams of gold per tonne over 0.8 meters from 341 meters depth.
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.
Hole K-22-177 intersected 2.02 g/t Au over 32 metres including 18.08 g/t Au over 0.63 metres and 11.42 g/t Au over 1.05 metres.
Mineralization at Big Vein remains open along strike to the southwest and northeast.
Drilling also intersected high-grade mineralization at Big Vein southwest grading 12.84 g/t Au over 0.8 metres.
TORONTO, Sept. 08, 2022 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce results from recent drilling targeting the 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 2.02 g/t Au over 32 metres from 134 metres that included 18.08 g/t Au over 0.63 metres and 11.42 g/t Au over 1.05 metres in Hole K-22-177 from the north end of Big Vein. The intersection is approximately 75 metres north of the discovery outcrop. In addition, Hole K-22-187 at Big Vein southwest intersected 12.84 g/t Au over 0.8 metres from 341 metres.
The last results from initial drilling at Midway showed an intersection of 5.69 g/t Au over 1.33 metres in Hole K-22-171. Further drilling is planned at Midway to test the continuity of gabbro-hosted mineralization along strike towards Cracker.
“Drilling at Big Vein continues to deliver excellent results with the longest mineralized intersection of 32 metres grading 2.02 g/t gold drilled on the property to date. We are currently testing this intersection down dip. The intersection is approximately 30 metres north of another long intercept of 6.07 g/t Au over 19m in hole K-21-111.” said Roger Moss, President and CEO. “Big Vein has now been drilled over a strike length of approximately 520 metres and remains open both to the northeast and southwest. Two rigs continue drilling at Big Vein to test for extensions of the mineralization in both directions.”
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Zone
K-22-187
157.80
158.25
1.20
1.08
Big Vein SW
328.55
328.85
0.30
3.27
341.00
341.80
0.80
12.84
K-22-184
140.26
140.59
0.33
2.89
Big Vein SW
336.25
337.89
1.64
2.69
K-22-180
nsv
CSAMT
K-22-179
72.00
72.76
0.76
1.08
Golden Glove
K-22-178
nsv
Big Vein SW
K-22-177
8.00
9.00
1.00
1.01
Big Vein
93.74
94.55
0.81
1.11
134.00
166.00
32.00
2.02
including
142.77
143.40
0.63
18.08
and
158.95
160.00
1.05
11.42
212.00
215.00
3.00
2.63
245.00
248.00
3.00
3.60
265.00
266.00
1.00
1.73
K-22-176
nsv
Golden Glove
K-22-175
63.00
65.00
2.00
1.48
Big Vein
230.00
232.00
2.00
2.87
K-22-174
296.00
297.49
1.49
3.65
Big Vein SW
407.00
407.30
0.30
3.24
K-22-173
11.00
12.00
1.00
1.04
Big Vein
16.00
17.00
1.00
1.38
50.00
51.00
1.00
2.23
K-22-172
nsv
CSAMT
K-22-171
194.50
198.00
3.50
1.44
Midway
201.17
202.50
1.33
5.69
K-22-170
11.00
12.00
1.00
1.10
HTC
35.00
44.00
9.00
1.42
218.00
219.00
1.00
1.01
K-22-169
nsv
Golden Glove
K-22-168
165.91
166.21
0.30
1.01
Midway
217.90
218.40
0.50
1.82
K-22-167
57.00
62.00
5.00
1.90
Big Vein
K-22-166
nsv
Midway
K-22-165
243.00
244.00
1.00
1.05
Golden Glove
Table 1. Summary of assay results. All intersections are downhole length as there is insufficient Information to calculate true width.
A total of 52,648 metres have been drilled to date out of the planned 100,000 metre program. Assays are pending for samples from approximately 3,343 metres of core (11% of the total submitted).
Drilling at Kingsway continues with four drill rigs, two working at Big Vein, one at Golden Glove and one at the CSAMT target. Ongoing detailed till sampling and prospecting continues to generate new drill targets along the Appleton Fault Zone and the gabbro trend north and south of Midway. Drilling will begin on these targets once initial drilling at CSAMT is complete.
The Company has $23.6 million in cash and is well funded to carry out the remaining 47,000 metres of the planned drill program as well as further target generation on the property.
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 $23.6 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 169,189,979 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements .
Allegiant owns 100% of 10 highly-prospective gold projects in the United States, seven of which are located in the mining-friendly jurisdiction of Nevada. Three of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Core diamond drill program. In June, Allegiant Gold commenced a diamond core drilling program at Eastside in the high-grade zone discovered during the 2021 drill program within the original pit zone. The company is on the fifth hole which have averaged 530 meters to 550 meters depth. We think the company could complete up to 9 holes by the end of the year. Recall that in May 2021, results from Allegiant’s nine-hole drill program returned strong gold intercepts for Holes 239, 243, 244, and 245.
RC drilling results expected soon. Allegiant completed a 32-hole, 6,703-meter reverse circulation drill program in June to test new exploration targets at Eastside, including 21 holes drilled in the East Pediment and 11 holes drilled at the West Anomaly. The targets are to the east and west of the original pit zone and we expect the company to begin releasing available drill results from this program soon. We believe Allegiant may resume reverse circulation drilling in October to continue drilling additional targets based on assays….
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.
