Gold prices are only rising, as investors rush to protect their wealth. After all, “Traders and holders of gold are very concerned with upcoming currency values, interest rates and pandemic headlines,” George Gero, managing director at RBC Global Wealth, as quoted by Fox Business.
Plus, in a world of zero interest rates, the price of gold could rally as high as $3,000, says Bank of America. “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure.” Other analysts are just as bullish, with Elliott Management’s Paul Singer saying gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.” This is all opening a wide range of opportunity for companies including Emgold Mining Corporation (TSXV:EMR)(OTC:EGMCF), Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), Rio Tinto Ltd. (NYSE:RIO), Hecla Mining Company (NYSE:HL), and Troilus Gold Corp. (TSXV:TLG)(OTC:CHXMF).
Emgold Mining Corporation (TSXV:EMR)(OTC:EGMCF) BREAKING NEWS: Emgold Mining Corporation just announced the following update on its New York Canyon and East-West Properties. Emgold has completed the transfer of 21 patented claims and 60 unpatented claims from Searchlight Resources Corporation into Emgold's Nevada subsidiary, Golden Arrow Mining Corporation. Total claims owned by Emgold at New York Canyon, through its subsidiary, now include 21 patented claims and 152 unpatented claims. Emgold is in the process of transferring a reclamation bond from Searchlight to Emgold's subsidiary, which is the final step in its acquisition of the core claims of the New York Canyon Property from Searchlight.
Emgold's claims, combined with 265 unpatented claims staked by Kennecott Exploration Company, a subsidiary of Rio Tinto PLC, now total 21 patented claims and 417 unpatented claims encompassing about 8,700 acres that make up the current New York Canyon Property. Kennecott and Emgold signed an Earn-in with Option to Joint Venture Agreement (the "Agreement") whereby Kennecott can earn up to a 75% interest in the Property by completing up to US$22.5 million in exploration expenditures (see press releases dated Feb. 11, 2020 and Mar. 30, 2020). Kennecott is committed to spending US$1.0 million in exploration expenditures at New York Canyon within 18 months of the signing of the Agreement.
As announced by press release on December 11, 2019, Emgold is in the process of acquiring a 50% interest in the East-West Property in Quebec, with an option of acquiring an additional 5% interest. The East-West Property is situated in the Val d'Or Mining Camp between Wesdome Mining Corporation's Kiena Mine and O3 Mining Corporation Marban Block Property.
On June 25, 2020, Wesdome announced the filing of an independent Preliminary Economic Assessment for the Kiena Mine, which was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mining Projects ("NI 43-101"). The Technical Report, titled "Preliminary Economic Assessment for the Kiena Mine Complex Project" was prepared by BBA Inc. The PEA showed positive economics with an After Tax Internal Rate of Return of 102%. The Kiena Complex is a fully permitted former mine with a 930 meter shaft and a 2,000 tonne per day mill.
On May 22, 2020, O3 Mining announced that it had appointed Ausenco Engineering Canada Inc. as the lead consultant to prepare a PEA in accordance NI 43-101 for its 100% owned Marban Property. According to the press release, "The Marban Project contains three past-producing mines (Marban, Norlartic and Kierens), which collectively produced 585,000 ounces of gold between 1959 and 1992. The land package owned by O3 Mining in the heart of the Cadillac, Malartic, and Val D'Or gold mining camps covers 125 square kilometres and is located 15 kilometres from the Canadian Malartic Mine, and lies along the same shear structure as Wesdome's Kiena deposit. To date, there has been a total of 4,577 holes drilled on the Malartic Property for a total of 600,369 metres. The current mineral resource estimate on the Marban, Norlartic and Kierens deposits is 38.2Mt at a grade of 1.29 g/t Au for 1.59 Moz in the measured and indicated mineral resource categories and 4.1 Mt at a grade of 1.47 g/t Au for 195,000 oz in the inferred mineral resource category.
Note that no mineral resources or reserves have been defined on the East-West Property. The location of the East-West Property adjacent to the Kiena Property or Marban Property is no guarantee of exploration success or that mineral resources or reserves will be defined on the East-West Property. Emgold is in the process of reviewing historic information it has received on the East-West Property with the goal of delineating a drill program to be conducted in 2020, subject to financing and the Company's ability to conduct exploration on the Property due to Covid-19 restrictions.
Other related developments from around the markets include:
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) announced that it has sold 79,268,800 shares of Shandong Gold Mining Co., Ltd., at a price of HK$20.50 per share for gross proceeds of approximately US$210 million. Barrick purchased the shares in the fourth quarter of 2018 at a cost basis of HK$10.50 per share. Barrick continues to hold 10,250,000 shares of Shandong Gold, representing a 2.05% interest in Shandong Gold’s Hong-Kong listed (H-class) shares, re-affirming its commitment to the strong existing long-term strategic partnership between the two companies. The shares were sold by an accelerated book building process and were placed primarily with new and existing institutional shareholders of Shandong Gold.
Rio Tinto Ltd. (NYSE:RIO) added a new role to its executive committee as it considers the next phase of its transformation to reinforce the company’s commitment to strategy, technology and climate change in a new era. Peter Toth will become Group executive, Strategy and Development with a focus on leading Rio Tinto’s transformation efforts around portfolio, climate change, and closure, working in partnership with the product group and commercial teams. He will also assume responsibility for Rio Tinto Exploration and Ventures. Stephen McIntosh, Group executive of Growth & Innovation and Health, Safety & Environment (HSE) has decided to retire after more than 30 years with Rio Tinto, leaving the company on 30 September. Stephen joined Rio Tinto as an exploration geophysicist in 1987 and led the exploration team from 2011 to 2016, joining the executive committee in 2016. During his time with the company, Stephen built strong exploration, project and technology capabilities.
Hecla Mining Company (NYSE:HL) announced first quarter financial and operating results. "Our rapid and early response to COVID-19 protected our workers, operations, and the communities in which we operate," said Phillips S. Baker, Jr., Hecla's President and CEO. "With our key mines operational, we expect the second half of the year to be strong as Casa Berardi resumes normal operations, Lucky Friday ramps-up to full production and Greens Creek continues to deliver. Our Nevada operations have performed well and have taken a step forward with a third-party processing agreement for a bulk sample of refractory ore and positive results from the hydrological study which could result in continuing production through the end of the year and beyond." “While our financial position is strong, with over $200 million in cash at quarter end, no near-term debt maturities and no large capital projects planned for the next several years, we are reducing 2020 capital and exploration expenditures by 25%. We also continue to protect our revenues with put options for silver and gold that set a floor price but don't limit upside participation, and forward sales of our lead and zinc production," said Baker.
Troilus Gold Corp. (TSXV:TLG)(OTC:CHXMF) provided results from the first two (2) holes drilled at its 100% owned Troilus gold and copper property located Northeast of the Val-d’Or district in Quebec, Canada. The 30,000 metre drill program is designed to confirm and expand existing mineral resources from the historically producing Troilus mine, as well as explore down dip and along strike from known mineralization. The first seven (7) holes drilled at the Troilus Project were designed to confirm the lower extent of gold and copper results from historic drilling below the Z87 open pit and to develop a better understanding of mineralization and lithological characteristics of the Troilus deposit to guide next phases of drilling.
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. Emgold Mining Corporation has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Emgold Mining Corporation. Please click here for full disclaimer.
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