Gold prices could see $3,000 this year, according to Bloomberg Intelligence. All based on the “fear of missing out,” which could dominate gold, especially if we see a severe economic slowdown. "Central-bank accumulation and the potential for a global economic slowdown, on the back of the most aggressive rate-hike period ever, may set the stage for gold to move toward $3,000 an ounce," said Bloomberg Intelligence senior macro strategist Mike McGlone said. That could be a powerful catalyst for Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Royal Gold Inc. (NASDAQ: RGLD).
Gold also saw support from the political turmoil in Russia. “The marketplace wonders what’s going to happen next because the Russian military appears to be destabilizing. Putin appears to see his power weakening, and that has major implications around the world,” says CNBC.
Look at Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF), For Example
Luca Mining Corp., announced two significant milestones. Firstly, the Tahuehueto Gold Project in Durango, Mexico, has achieved a major milestone with a production capacity of 500 tonnes per day, on time and budget. Secondly, Luca has successfully closed an oversubscribed non-brokered private placement, for a total of CAD$24,896,551.42 (see the Company’s news release dated March 31, 2023).
Highlights
- Tahuehueto Gold Project achieves 500 tpd production milestone, on schedule and budget
- Funded to achieve commercial production of 1,000 tpd, scheduled for year-end 2023
Mike Struthers, CEO, commented, "We are delighted to have accomplished our goal of reaching 500 tpd at Tahuehueto. This achievement is a testament to the dedication and collaborative efforts of our site teams, contractors, management, and staff. But our focus on delivering Tahuehueto for all our stakeholders continues, as we push towards the ultimate goal of commercial production at 1,000 tpd by year-end. This underpins our strategy of operating two profitable mines and laying a solid foundation for growth, ultimately leading to an exceptional performance in 2024."
“In addition to this significant operational milestone, Luca is proud to announce the successful completion of its funding round, raising an impressive CAD$24.9 million. This accomplishment, particularly under current market conditions, is the result of tremendous efforts by our core team and key stakeholders.”
“These significant accomplishments underline the trust and confidence investors have placed in the Company, our new team, and our ambitions for growth. The strong support received from new and existing shareholders is a testament to the dedication of the Luca Mining team.”
Tahuehueto Achieves 500 TPD
The Company is very pleased to hit this critical first production goal of 500 tpd at Tahuehueto, as planned, by June 30th, 2023. With an installed capacity of 500 tpd the mine is expected to generate positive cash flow at current metal prices.
This is the first of two major milestones for Tahuehueto construction. Commercial production will be achieved when a capacity of 1,000 tpd is completed by end 2023. Based on the pre-feasibility study updated in April, 2022, at a capacity of 1,000 tpd the mine will have a net present value of USD $131.8m, an IRR of 65%, and will have an average all-in sustaining cost of USD $855/oz AuEq over the 10-year mine life.
Recent production (June 2023 to date) grades have averaged 2.47 g/t Au, 31.2 g/t Ag, 1.23% Pb, and 2.92% Zn. Recoveries of all key metals were within 5% of plan, and the lead concentrate, to which the majority of gold and silver report, achieved an average content of 51.2 g/t Au and 648.5 g/t Ag. The zinc concentrate achieved the plan, at an average content of 45.2 % Zn.
A key component of this milestone is the completion of the first stage of the tailings dam. Tailings deposition within this facility has now commenced, and construction of the remaining two stages will continue for the remainder of 2023.
Other key achievements include:
- Ongoing mining of access and operating development on various mine levels, to sustain planned production rates.
- Optimisation of the existing tailings filter press, and completion of foundations for a second.
- Completion of definitive power supply to process plant and related facilities, and all earthing systems.
- Upgrades to camp facilities.
Construction of certain ancillary systems for both the 500 tpd and 1,000 tpd stages continues. The overall construction effort will be maintained, towards the ultimate goal of 1,000 tpd by year-end 2023.
Key elements for the 1,000 tpd project include:
- Installation of the second ball mill, and associated systems
- Further advances in tailings dam construction
- Installation of additional tailings filter presses
- Completion of certain material handling infrastructure in the underground mine.
News flow over the coming months will focus on progress towards achieving the 1,000 tpd goal.
Other related developments from around the markets include:
The completion of major processing plant maintenance at Nevada Gold Mines, the conversion of the Goldstrike autoclave to a carbon-in-leach process, a much-improved performance from Turquoise Ridge and the steady ramp-up of throughput at Pueblo Viejo’s expanded plant will boost production in the second half of the year and keep Barrick Gold on track to achieve its 2023 guidance, the company said. “Reporting on the results for the first quarter, president and chief executive Mark Bristow said production, while lower than Q4 2022, was on plan, and free cash flow had still increased, demonstrating the value of Barrick’s Tier One asset portfolio. Net earnings per share for the quarter were $0.07, while adjusted net earnings per share were $0.14, and the quarterly dividend was maintained at $0.10 per share.”
Newmont Corporation announced that following completion of due diligence it has entered into a binding Scheme Implementation Deed under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement. “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, President and CEO of Newmont.
Franco Nevada Corp. said, “Our diversified portfolio continues to generate strong cash flows and high margins. The first quarter was impacted by production disruptions at Cobre Panama and Antapaccay as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2 with both assets having returned to normal operations. “Cobre Panama’s CP 100 Expansion is on-track for year-end and we look forward to initial contributions from Magino, Se´gue´la and Salares Norte during the year”, commented Paul Brink, CEO. Franco-Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities. “
Royal Gold Inc. announced that its wholly-owned subsidiary RG Royalties, LLC, has entered into a binding commitment letter with ACG Acquisition Company Ltd. to acquire new royalty interests on the producing Serrote and Santa Rita mines in Brazil for total cash consideration of $250 million, subject to satisfaction of certain conditions, including negotiation and execution of definitive documentation. The royalty interests consist of a gold royalty on the Serrote mine, a gold, platinum and palladium royalty on the Santa Rita mine, and a copper and nickel royalty on both the Serrote and Santa Rita mines. ACG has agreed to acquire the Serrote and Santa Rita mines from funds advised by Appian Capital Advisory LLP, and Royal Gold has agreed to pay the cash consideration for the royalty interests upon the closing of the transaction between ACG and Appian, which is expected to occur by the end of July 2023, after the satisfaction of closing conditions. ACG will be renamed ACG Electric Metals upon completion of the acquisition of the mines from Appian.
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 Luca Mining Corp. by Luca Mining Corp. We own ZERO shares of Luca Mining Corp. Please click here for disclaimer.
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