The gold market continued to climb back towards the USD 1,800 an ounce mark on Wednesday, as precious metals benefited from a weaker U.S. dollar and lower bond yields. In part, renewed concerns about the virus helped prevent a rise in long-term bond yields with the 10-year Treasury note yield remaining at around 1.56%. Subdued government debt yields can boost appetite for precious metals which don’t offer a coupon. “A growing sense of unease over the surging COVID-19 cases in Asia has hit risk sentiment and left investors on edge,” Lukman Otunuga, Senior Research Analyst at FXTM, told MarketWatch. “With concerns likely to rise over how this may impact the world’s economic rebound from COVID-19, gold has the potential to push higher as risk-off makes a return.”
The value of gold is difficult to predict, as it depends on many economic variables as well as on decisions made by the Federal Reserve. In addition, gold is often viewed as a safe haven in times of economic and political uncertainties. Economists and analysts note that weak inflation pressures could be a positive for gold prices. A report by Kitco from back in March also indicates that analysts have pointed out the latest inflation data gives the Federal Reserve some flexibility to provide more accommodative monetary policies.
Exploits Discovery Corp. announced breaking news that, “the Company has received full permitting from the Newfoundland and Labrador Government for drilling the Quinlan Vein prospect at the Dog Bay Gold Project, Newfoundland.
Michael Collins, President and Chief Executive Officer of Exploits, commented: “With the drill permit now secured for our Quinlan Vein prospect, Exploits is pleased to now have received four of its five drill applications. The Quinlan Vein prospect is an impressive piece of land with high grade, visible gold samples at surface and we are looking forward to unlocking its potential with the drill. Our 2021 exploration plans are taking shape with boots on the ground work to refine these targets, culminating in our Phase I drill campaign in May.”
About 2021 Diamond Drilling
Exploits has identified five discrete targets across their projects within the Exploits Subzone that are near drill ready status. These targets are the Quinlan Veins, True Grit, Little Joanna Veins, Schooner, and Jonathan’s Pond. To date, drill permits have been approved for the Quinlan Veins, little johanna, Schooner, and True Grit prospects totalling 33 holes for a combined length of ~8,250 metres.
One drilling application is still pending and is expected to be through the approval process shortly.
Nine holes (2,250m) were approved for the Quinlan Vein prospect, targeting quartz veins with visible gold at surface, returning assays of up to 61.3 g/t Au and 189 g/t Ag. The Quinlan Veins are several 50 to 70 centimetre-wide quartz veins over a 25m wide zone, currently running 5 to 20 metres in strike length before diving under overburden cover. Visible gold was discovered as fine grains in crack seal fractures and as fine to coarse grains disseminated in the quartz veins. Structurally, the veins are situated within secondary fault structures, associated with the Appleton Fault zone, that were highlighted by GoldSpot Discoveries’ (TSX.V: SPOT) (“Goldspot”) geophysical analysis. The Quinlan Vein targets are deemed analogous to New Found Gold’s Keats Zone due to the similarities in structural control and lithological host units…”
Equinox Gold Corp. announced on March 1st, that the Company has entered into an agreement with an affiliate of the Orion Mine Finance Group (“Orion”) to acquire 10% from Orion’s current interest in the Hardrock Mine Project (the “Hardrock Project”) for consideration of USD 51 Million plus certain contingent payment obligations (the “Hardrock Transaction”). Christian Milau, CEO of Equinox Gold, stated: “We are extremely pleased to increase our stake in this world-class Canadian gold deposit located in one of the world’s top mining jurisdictions. Hardrock will be a low-cost, long-life gold mine, bringing more than 240,000 attributable ounces of annual gold production to Equinox Gold when in production, with significant upside potential from near-mine exploration and underground development. We look forward to working with Orion to advance Hardrock to production, bringing long-term benefits to all stakeholders of the Hardrock Project and particularly First Nations and other communities in the Greenstone region of Ontario.”
Kinross Gold Corporation announced last September, that it has entered into agreements to acquire a 70% interest in the high-quality Peak Gold project in Alaska from Royal Gold, Inc. (“Royal Gold“) and Contango ORE, Inc. for total cash consideration of USD 93.7 Million. Kinross will have broad authority to construct and operate the Peak Gold project, with Contango retaining a 30% non-operating minority interest. “The relatively high-grade, low-cost Peak Gold project is an excellent addition to our portfolio, as it allows us to leverage our existing mill and infrastructure at Fort Knox and strengthens our medium-term production and cash flow profile. In today’s gold price environment, Peak Gold is an attractive, high-margin project that is expected to generate robust returns,” said J. Paul Rollinson, Kinross Gold President and CEO. “The project is also expected to add to our strong record of socio-economic contributions to our host communities in Alaska, one of the top mining jurisdictions in the world.”
Gold Resource Corporation announced on February 2nd, that it has intersected additional mineralization up to 250 meters above current production area at the Don David Mine in Mexico With Intercepts Including 11.83 Meters Grading 17.56 G/T Gold and 10.04% Zinc-Lead Combined. “I recently had the opportunity to visit the Don David Mine and see firsthand the impressive Switchback and Arista vein systems,” stated Mr. Allen Palmiere, President and CEO of Gold Resource Corporation. “These drill results, which I expect will add resources to the mineral inventory, underscore the reasons for my attraction to Gold Resource Corporation and its highly prospective ground package. We are presently taking a holistic approach to understanding and further capitalizing on the foundations laid in the areas of safety, community relations, environmental stewardship, operational excellence and organic growth. These recent drill results support the Company’s renewed commitment to invest in Oaxaca, Mexico. Our exploration team continues to do an excellent job working to expand the Don David Mine’s high-grade mineralization.”
Great Panther Mining Limited announced on January 14th, its fourth quarter (Q4) and annual 2020 production results from its three 100% owned mines: Tucano in Brazil, and Topia and the Guanajuato Mine Complex (GMC) in Mexico. “We delivered on our 2020 production guidance and produced more gold last year than in 2019, despite the challenges of COVID-19. Our teams in Brazil, Mexico, and Peru did a tremendous job prioritizing health and safety, while still achieving profitable production and executing our exploration programs,” stated Rob Henderson, President and CEO. “The Mineral Reserve and Resource update for our flagship Tucano mine, announced in December, has allowed for an extension of the life of the Urucum and Taperaba pits, and the latest mine plan will see a transition to mining higher grades in 2022 and 2023. Exploration activity at Tucano in 2021 is planned to ramp up, with a focus on identifying regional opportunities, proving up the underground potential and expanding the existing open pits. In 2021, consolidated gold equivalent production from the Tucano, GMC and Topia mines is expected to be 135,000 to 150,000 Au eq oz.”