The same catalysts that sent gold slightly above $2,089 are still in place. For one, there’s still a considerable amount of tension with China. Two, we could see an aggressive stimulus package of $1.9 trillion, which could accelerate inflationary risks. Three, the U.S. dollar is still under pressure, and four, central banks seem likely to remain increasingly dovish. So it comes as no surprise that firms such as Citi appear to have a $2,500 price target.
As Granite Shares founder and CEO Will Rhind, as quoted by CNBC, also noted, “The conditions that drove gold to an all-time high in 2020 are very much still in place. I think it’s just natural that once you get to an all-time high in an asset class, there’s some consolidation afterward, and that’s what we’re seeing right now in terms of the price. But the fundamental conditions are still here.”
Those Catalysts are Bullish for Stocks Like Stevens Gold Nevada Inc. (CSE:SG)(OTC:STVGF)
The company just announced results from the data mining of historic geophysical and soil geochemical surveys on the optioned Millennium Gold Property (the “Property”). The Property is located 4.8 km northeast of Lake Havasu City in Mojave County, western Arizona and hosts underexplored low sulphidation volcanic-hosted epithermal gold mineralization with geological similarities in style of mineralization and alteration to other nearby epithermal gold deposits including the Castle Mountain Mine and the Moss Mine.
The Company has submitted its application for a drill permit to the Arizona State Lands Department and is currently awaiting their review and approval.
Integrated Historic Survey Results: Soil Geochemical and Ground Geophysical Surveys
As part of its ongoing exploration program at the Millennium Gold property the Company has been extracting useful information to aid exploration by mining historic geoscientific databases. A 2007 program of virtual grid-based soil geochemical surveys based on Mobile Metal Ion Technology (“MMI”) was undertaken on the Millennium Gold Property and successfully delineated multiple strongly elevated gold responses. A total of 523 samples were collected. Multi-sample, arcuate, ovoid and linear anomalies from widely spaced 400-foot stations varied from 20 to 221 times background and defined broad areas of anomalous response on the property. The wide sample spacing was utilized to assess the property for geochemical signatures originating from structurally related bulk mineable gold mineralization.
Historic ground magnetic surveys were undertaken on the property in 2008 by Zonge Engineering and I.P. geophysical surveys in 2011 by Durango Geophysical Operations. Multiple magnetic “lows” were defined by the magnetic survey and were interpreted as signatures of magnetic destructive alteration. Several of these magnetic lows were accompanied by high resistivity responses and occurred in areas of known gold mineralization that assayed up to 6 g/t gold as well as at Westley Hill where the Company will undertake its maiden drill program to confirm historic gold mineralization intersected in 2008 (c.f. Stevens Gold news release 2021.02.11).
Although ground geophysical and soil geochemical surveys were undertaken on the property at significantly different times there is marked coincidence between magnetic lows, high resistivity responses and multi-sample gold MMI anomalies in soils. These historic results are value-added information and will assist more focused exploration on the property using modern exploration techniques and drilling.
The proprietary MMI soil geochemical technique is based on the partial extraction of soil samples systematically collected from a specific depth below surface. The method has been utilized on a wide range of commodity types from precious and base metals to diamonds worldwide. The MMI Process utilizes proprietary partial extraction techniques, specific combinations of ligands to keep metals in solution, and relies on strict adherence to sampling protocols. The MMI process does not indicate the grade of mineralization responsible for an MMI anomaly nor does it indicate the depth of the source region for the anomaly. Accordingly, pairing the MMI results with geophysical surveys provides an effective tool for defining drill targets in terrain where prospective targets are buried by overburden.
The Company is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the project.
Other related developments from around the markets include:
Barrick Gold Corp. (NYSE:GOLD)(TSX:ABX) announced preliminary full year and fourth quarter 2020 results which indicate that it has met its 2020 guidance targets. Preliminary gold production for the full year of 4.8 million ounces is at the midpoint of the 4.6 to 5.0 million ounce guidance range, while preliminary copper production of 457 million pounds is also within the guidance range of 440 to 500 million pounds. The preliminary Q4 results show sales for the quarter of 1.19 million ounces of gold and 108 million pounds of copper, as well as preliminary Q4 production of 1.21 million ounces of gold and 119 million pounds of copper. The average market price for gold in Q4 was $1,874 per ounce, while the average market price for copper was $3.25 per pound.
Iamgold Corp. (NYSE:IAG) reported its consolidated financial and operating results for the quarter and year ended December 31, 2020. "IAMGOLD's efforts in advancing our peer-leading growth platform took a significant step forward in 2020 with the commencement of construction of the Côté Gold Project in Canada, supported by both robust gold prices and nearly $1.5 billion in liquidity at year-end. As reported on January 19, 2021, IAMGOLD achieved its updated production and cost guidance, generating $347.6 million in annual operating cash flows and producing 653,000 ounces of gold, resulting in $223.2 million in mine-site free cash flows," commented Gordon Stothart, President and CEO of IAMGOLD.
Equinox Gold Corp. (NYSE:EQX) announced 2021 production guidance of 600,000 to 665,000 ounces of gold, a 33% increase over 2020 production of 477,200 ounces of gold. Cost guidance includes cash costs1 of $940 to $1,000 per ounce of gold sold and all-in-sustaining costs of $1,190 to $1,275 per ounce of gold sold. “2021 represents a year of investment for Equinox Gold as we direct our strong operating cash flow to our existing portfolio of mines and growth projects,” said Christian Milau, CEO of Equinox Gold. “These investments in 2021 will set the foundation for lower-cost production, longer-life mines and substantial near-term production growth with an increase to approximately 900,000 ounces of gold at significantly lower costs in 2022 and approximately one million ounces of gold from 2023.
Royal Gold Inc. (NASDAQ:RGLD) reported net income of $59.9 million, or $0.91 per share, on record revenue of $158.4 million in its second quarter of fiscal 2021 ended December 31, 2020. Adjusted net income was $60.1 million, or $0.92 per share, after excluding a $0.01 loss on the change in fair value of equity securities. “Excellent performance from our operating portfolio combined with continued robust metal prices led to another quarter of record revenue and strong operating cash flow,” commented Bill Heissenbuttel, President and CEO. “The positive price environment continues to support organic growth from within the portfolio including new revenue contributions from Relief Canyon and South Laverton. Solid operating cash flow of almost $100 million allowed us to further strengthen the balance sheet, increase our annual dividend for the 20th consecutive year, and complete our funding of the advance payment for the 80% base silver stream at Khoemacau. We are pleased to see progress at Khoemacau remain on track for first shipment of concentrate in the third calendar quarter of 2021.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Stevens Gold Nevada Inc. by a third party. We own ZERO shares of Stevens Gold Nevada Inc. Please click here for full disclaimer.
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