Gold’s safe haven quality continues to shine bright against the backdrop of the COVID-19 pandemic and the U.S. Federal Reserve’s recently announced policy shift to average inflation targeting. The short story is that with no end in sight to coronavirus and Fed saying it will allow inflation to run hot, gold bugs are grinning ear-to-ear about the potential for the precious yellow metal to set new record highs above those printed only a few weeks ago.
Analysts at Bank of America (NYSE: BAC) see a nearly 50 percent upside from the all-time high at $2,089.20 per ounce. Based in part on the premise that, in the bank’s words, “The Fed can’t print gold,” BAC in April set its 18-month price target for gold at $3,000 per ounce, citing low interest rates and rising government debt as drivers.
The bullishness has been positive for gold stocks, including sparking a new uptrend for Gatling Exploration (TSX-V: GTR) (OTCQX: GATGF). Shares of GTR are rising in recent months, buoyed by the Canadian gold explorer advancing its Larder Gold Project in the gold-laden Abitibi greenstone belt in Northern Ontario.
The Larder project is 7 kilometers west of Kerr Addison Mine, which produced 11 million ounces of gold.
The upward movement in share value has GTR’s 50 day moving average ready to cross above the 200 day moving average, a bullish phenomenon known to technical traders as a “golden cross.”
Gatling is a success story to date, following through on its claims that previous explorers at Larder make a big mistake in thinking that the project’s three known gold deposits (Bear, Fernland, Cheminis) are independent of each other. Gatling contended that all three are part of one large mineralization system that spans at least 4.5 kilometers. In its progress, Gatling last year proved with step-out drilling that the Bear and Cheminis deposits are indeed connected.
In August, Gatling set out on the next stage of development, commencing a 13,000-meter drill program at Larder with a focus on now proving that Fernland and Cheminis are connected, as well as evaluating newly discovered targets further proving the ground is rich in gold mineralization. Concurrently, regional mapping and sampling were conducted.
Tuesday, the company said it has completed its detailed analysis of magnetic and Lidar surveys, which has resulted in identifying five high priority target areas, including previously undrilled extensions adjacent to the Cadillac-Larder Lake Break (CLLB) that hosts the Fernland, Bear and Cheminis gold deposits.
“Many of the details are highly technical, but this data is very exciting,” said Nathan Tribble, P. Geo., VP Exploration of Gatling Exploration, in a phone call with Baystreet.ca. “The crux of the analysis is that not only are we getting more valuable information about the known deposits on the eastern and northern parts of the project, we for the first time have indications that the western part of the CLLB hosts gold as well.”
Currently, the 4.5 kilometers of continuous strike Gatling is connecting is only half of the CLLB that crosses the Larder property. The three known deposits are situated on the eastern portion of the CLLB. The newest data just opened the opportunity for additional exploration at Larder and potential that the project could one day be a prolific gold mine.
Furthermore, the surveys better defined the Kir Vit area located 6 kilometers north of CLLB. Gatling acquired Kir Vit in 2019 from Teck Resources (NYSE: TECK)(TSE: TECK.B), subsequently discovering two new gold trends in their maiden drilling program in the area early this year.
Gatling is now prioritizing the drill targets, including extensions of the main deposits, Kir Vit and areas previously unexplored.
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