PALM BEACH, Fla. – FinancialNewsMedia.com News Commentary – Gold has long been viewed as a safe haven asset during inflationary periods or when other markets are experiencing turbulence. While the traditional method of investing in gold is by buying gold bullion, numerous investors have gained exposure to precious metals by buying gold mining stocks or investing in gold exploration companies. According to a report from ReportLinker the Global Gold Mining Market was valued at USD 197.58 Billion in the year 2021. Global Gold Mining Market witnessed healthy growth during the historical period, on account of a significant increase in disposable income of consumers across the globe. Further, major factors driving sales of gold products include increasing, changing consumer preferences coupled with the rising population of high-net-worth individuals. Additionally, different customs followed by people across the world regarding the adoption of ornaments and gems are further anticipated to boost the purchase of products significantly. It continued: “Gold Mining Market 2020 turned out to be one of the most volatile in contemporary history, with a number of unusual events. The pace with which the COVID-19 pandemic spread, the severity of the lockdowns, the scope of global government stimulus efforts, and the extent of the equities market bounce were all major factors. Further, higher gold prices and weaker local currencies drove the domestic price of gold to historical highs, negatively impacting the demand for jewelry. Active companies in the markets this week include NevGold Corp. (OTCQB:NAUFF) (TSXV:NAU), Hycroft Mining Holding Corporation (NASDAQ: HYMC), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Prime Mining Corp. (OTCQB: PRMNF) (TSX-V: PRYM), Kinross Gold Corporation (NYSE: KGC) (TSX: K).
Gold mining is a global business with operations on every continent, except Antarctica, and gold is extracted from mines of widely varying types and scales. The rising demand for gold jewelry is driving the supply of gold. Many central banks, particularly in developing nations, are continuing to diversify their assets away from the dollar and euro, and are likely to increase their holdings in the near future. Gold has been considered one of the best sources of investment for centuries and is always in high demand regardless of any fluctuating economies and happenings in society. The high demand for gold ensures that Jewelry holds its value and will always be easy to liquidate when needed, thus impelling the market growth.” A report from O3 Mining added: “Experts believe the precious metal will remain an attractive asset regardless of what the Federal Reserve does with monetary policy. However, to rally in 2022, gold would have to fight off competition from other alternative assets, such as cryptocurrencies — which, like gold, are also scarce and which many investors use to hedge against inflation. With the recent crash of cryptocurrency, the odds of a rally are leaning in gold’s favor.”
NevGold Corp. (OTCQB:NAUFF) (TSXV:NAU) BREAKING NEWS: NevGold Makes Cadillac Valley South Discovery With 650 Meter Step-Out And Intercepts More Oxide Gold – NevGold Corp. is pleased to announce further assays from the Company’s drill program at the Cadillac Valley target area at its Limousine Butte Project, Nevada located on the southern part of the Carlin Trend. Further assays from the Company’s inaugural 10,000 meter drill program at the Project are expected over the coming months.
Key Highlights
- Cadillac Valley South Discovery Extends Mineralization 650 Meters From CV22-002: CV22-006 intercepted 0.51 g/t oxide Au over 73.1 meters from a drill pad over 650 meters away from CV22-002 (0.83 g/t oxide Au over 126.2 meters released on April 6, 2022) expanding mineralization along strike to the southwest. (Figure 1) Cadillac Valley South is an important discovery as it significantly expands the mineralized footprint at Cadillac Valley. The newly discovered area requires follow-up drilling and drillholes have been planned in the current program.
- Large, Open Mineralized Footprint at Cadillac Valley Continues to Grow: the mineralized area at Cadillac Valley now extends over 1.6 km along strike and over 400 meters laterally. There is also another +1.5 km of untested strike to the southwest of CV22-006. (Figure 3)
- More Oxide Gold Mineralization Building the Path to a Near-Term Resource: Hole CV22-004 intercepted 0.63 g/t oxide Au over 73.2 meters, including 1.00 g/t oxide Au over 19.8 meters from the top of the mineralized zone, and was lost in mineralization due to ground conditions. Target depth of the hole extended another 200 meters from terminated depth. CV22-004 was angled to infill the mineralized footprint around CV22-002 (0.83 g/t oxide Au over 126.2 meters released on April 6, 2022). More drilling in this area will be required to understand the extents of mineralization and drillholes have been planned in the current program.
- Highly Oxidized Mineralization: oxidized mineralization has been seen in all of the holes drilled to date by the Company at Limousine Butte.
- Exploration Upside: large areas of the 67 km2 Limousine Butte Project are untested and there are various identified targets based on the current Company geological model. (Figure 4) The mineralized system is open and growing as drilling occurs along strike with large step-out holes.
NevGold CEO, Brandon Bonifacio, comments: “We are continuing to build a meaningful, near-surface, high-grade oxide gold story at Limousine Butte. Intercepting another thick, continuous hole with a 650 meter step out (Hole CV22-006) significantly expands the mineralized footprint at Cadillac Valley. It is very encouraging to see new areas of potential mineralization being identified and then confirmed by drilling, and we believe this will continue as we apply the same targeting techniques project wide. The thesis is building that we have a large oxide gold system with higher grade material than many heap-leach projects in production or development in the Western USA. We have remained on budget and on schedule with our 10,000 meter drill program and expect further assays shortly.”
NevGold VP Exploration, Derick Unger, comments: “We are very excited about this current batch of results as they further build momentum around the Cadillac Valley target area. As we have highlighted in the past, our technical team continues to increase confidence in our geological model, which drives our drill program. We are seeing positive reconciliations of expectations against results in terms of thickness and grade, and this trend will continue as we further expand the mineralized system. Hole CV22-004 that was lost in mineralization due to ground conditions was targeted to extend another 200 meters in a very prospective area. With the continuous reinforcement of our geological model, we have also identified a number of targets on untested ground that have the potential to add to the mineralized footprint.”
Hycroft Mining Holding Corporation (NASDAQ: HYMC), a gold and silver development company which owns the Hycroft Mine in the prolific mining region of Northern Nevada, recently announced that it has filed its 10-Q for the first quarter of 2022.
Diane Garrett, President and CEO commented “We are extremely pleased with the results from the first quarter and particularly in welcoming two new investors – Eric Sprott and AMC Entertainment. Our strengthened balance sheet allows us to reduce our debt, complete our technical studies and launch a robust exploration program to capitalize on recent exploration results. Several higher-grade intercepts were identified onsite, including the high grade silver Vortex deposit and the initial results from our 2021 drill program also returned higher grades than previously known at the mine. Our work also revealed that silver may be under-estimated in the resource model due to a lack of assays for silver values. The Company is now identifying targets for a drill program to optimize the high-grade and district potential of the mine.”
Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) recently announced that it has completed an amendment and restatement of the company’s undrawn $3.0 billion revolving credit facility, including an extension of the termination date by one year to May 2027, replacement of LIBOR with SOFR as the floating rate mechanism related to the interest rate for any US dollar funds drawn down, and the establishment of sustainability-linked metrics.
The sustainability-linked metrics incorporated into the revolving credit facility are made up of annual environmental and social performance targets directly influenced by Barrick’s actions, rather than based on external ratings. The performance targets include Scope 1 and Scope 2 greenhouse gas emissions intensity, water use efficiency (reuse and recycling rates), and Total Recordable Injury Frequency Rate (TRIFR). Barrick may incur positive or negative pricing adjustments on drawn credit spreads and standby fees based on its sustainability performance versus the targets that have been set.
Prime Mining Corp. (OTCQB: PRMNF) (TSX-V: PRYM) recently announced additional Phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit. Guadalupe East is one of eight known gold-silver deposits that comprise the current resource at Los Reyes
Chief Executive Officer, Daniel Kunz commented, “The high-grade drill results reported today will continue to expand the resource potential at Guadalupe East considerably. We are encouraged by multiple intercepts of high-grade gold-silver mineralization being encountered in individual drill holes on the west end of this area. We await assay results from more step out drill holes and expect to report these results as soon as they become available. Ongoing drilling has now defined the Guadalupe East vein group length over 420 metres and the total strike length of the Guadalupe East vein system now over 1,000 metres.”
Kinross Gold Corporation (NYSE: KGC) (TSX: K) recently announced its results for the first-quarter ended March 31, 2022.
J. Paul Rollinson, President and CEO, made the following comments in relation to 2022 first-quarter results:
“During the quarter, we announced the sale of our Russian assets, and in late April, announced the sale of our Chirano mine in Ghana. With these pending divestments, and the close of the acquisition of Great Bear Resources, our overall portfolio has been re-balanced, with approximately 70% of our production now expected to be generated by our mines in the Americas.
“We have maintained our guidance for our pro-forma portfolio, with a substantial production outlook of 2.15 million gold ounces in 2022, which is expected to grow to 2.3 million gold ounces in 2023. Going forward, we will prioritize balance sheet strength while also returning capital to our shareholders through dividends and our share buyback program.”
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