- This is Why Gold Prices Have Started to Recover Lost Ground

2022-09-10 01:24:33 By : Ms. Tina Kong

Gold prices are on the run thanks to bargain hunters. “It’s a combination of a bit of safe haven demand and buying on dips along with the headwinds from a stronger dollar and an aggressive Fed that seems committed to fighting inflationary pressures,” said David Meger, director of metals trading at High Ridge Futures, as quoted by CNBC. That could be beneficial for companies, such as NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF), 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).

In addition, “The gold market still has a path to push above $2,000 an ounce even as the Federal Reserve continues to aggressively raise interest rates throughout the year, according to commodity analysts at the French investment bank Societe Generale,” as noted by “In the bank's latest commodity outlook, the analysts raised their gold prices forecast and see the precious metal averaging around $2,100 by the third quarter of 2022. The analysts said that the most significant factor dominating the gold market remains real interest rates.”

Look at NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF)

NevGold Corp. announce it has identified an undrilled +6 meter-wide banded low-sulphidation epithermal vein outcropping at surface over 650 meters away from the main resource body at the Nutmeg Mountain Project in Idaho. (See Note 1: historical 2020 mineral resource estimate of 910,000 Indicated ounces of gold (43.5 Mt @ 0.65 g/t Au), and 160,000 Inferred ounces of gold (9.1 Mt @ 0.56 g/t Au)) The Company also identified visible gold in previously assayed historical core during a detailed core relogging campaign completed since the transaction closed on July 5, 2022. The core relogging and surface mapping campaign is now complete, and the project has been advanced to the drill-ready stage by identifying multiple resource expansion and exploration targets.

- Untapped Lateral Resource Expansion Potential: Identification of a large epithermal vein outcropping at surface with no historical drilling over 650 meters south of the main 2020 resource at Nutmeg Mountain (Figure 1) opens meaningful lateral resource expansion potential and could be the high-level portion of a high-grade feeder zone. The outcropping vein has a width of over 6 meters and over 100 meters of exposed strike length with no historical drilling. Geochemical and textural signatures indicate it is near the top of the epithermal system, above the expected gold- silver zone. (Figure 2)

- High Grade Opportunity: The Company has identified a large, structurally controlled, high-grade core in the 2020 resource. Most of the historical drilling completed at the project has been vertical and the extents of the higher-grade portions of the orebody have not been fully tested at depth or along strike. This is an immediate opportunity to increase the size and grade of the resource. Visible gold was observed in historically drilled core starting at 45.4 meters depth. (Figure 3)

- Phase 1 Core Relogging and Surface Mapping Completed, Project is Drill-Ready: The Company has diligently completed an initial geological mapping and relogging program focused on the historical work completed on the project. There are many untapped opportunities identified, which will be the focus of the initial program at the project.

NevGold CEO, Brandon Bonifacio, comments: “Although we just closed the transaction on July 5, our team has diligently worked to get Nutmeg Mountain to the drill-ready stage. Through the field and core relogging program, we have identified a number of positive developments that were not initially expected after completion of our due diligence on the project. The identification of an outcropping vein at surface over 650 meters away from the main 2020 resource boundary, with all the telltale signatures of a strong epithermal gold system has become an outstanding growth target. To our pleasant surprise we also found un-assayed core in the historical core yard with visible veining occurring outside of the 2020 resource boundary. We are confident that we have built a cost-effective, streamlined work program to deliver value from Nutmeg Mountain to both expand the gold resource and discover new ore in the district.”

NevGold VP Exploration, Derick Unger, comments: “We have rapidly advanced the field work and core relogging at Nutmeg Mountain and the project continues to impress us. The identification of a +6 meter-wide, large banded vein with near surface silica textures and no previous drilling is just one example of the potential for new discoveries on the Nutmeg property. Additionally, our relogging of previously drilled core has found unsampled veins in the drill core, and observed visible gold in previously sampled core from only 45.4 meters depth. Combined, all indications are that this is a strong gold system that starts at the surface and has untested high-grade potential at depth. We have multiple exploration and resource expansion targets already identified at Nutmeg and we look forward to our first drill program during the fall.”

Other related developments from around the markets include:

Barrick Gold Corporation announced that it has entered into a definitive agreement to sell a portfolio of royalties to Maverix Metals Inc. for total consideration of up to $60 million. The Portfolio consists of 22 royalties on the production of minerals from mines located in North America, South America, Australia and Africa. The total consideration of $60 million consists of $50 million in cash payable on closing of the Portfolio sale, subject to the exercise of any right of first refusal or buy-down right by the counterparties under certain royalties, and three contingent payments.

Newmont Corporation announced second quarter 2022 results. Produced 1.5 million attributable ounces of gold and 330 thousand attributable gold equivalent ounces (GEO) from co-products, an increase of more than 130 thousand total gold equivalent ounces from the first quarter. Generated $1.0 billion of cash from continuing operations and $514 million of Free Cash Flow (97 percent attributable to Newmont). "Newmont delivered a solid second quarter performance, producing 1.5 million gold ounces and generating $514 million in free cash flow. Through our industry-leading portfolio of assets and projects, our proven integrated operating model, our balanced and disciplined approach to capital allocation and our values-driven commitment to our purpose of creating value and improving lives through sustainable and responsible mining, Newmont remains well-positioned to safely manage through the evolving and unprecedented challenges that face our industry and the world at large,” said Tom Palmer, Newmont President and Chief Executive Officer.

Franco Nevada Corp. reported second quarter results. “We are proud to report record quarterly and half-year results on many financial metrics,” stated Paul Brink, CEO. “The low-risk nature of our business is most pronounced in today’s inflationary environment. Our top-line precious metal stream and royalty interests helped generate our highest margins since starting streaming. Our Energy assets performed well and are the driver behind our record revenues. We are pleased to add exposure to the construction-ready Tocantinzinho gold project and to have received good organic growth news from several of our assets during the quarter, in particular the further expansion of the Detour Lake mine. Franco-Nevada is debt-free and is growing its cash balances.”

Royal Gold Inc. announced that its Board of Directors has declared its fourth quarter dividend of $0.35 per share of common stock. The dividend is payable on October 21, 2022, to shareholders of record at the close of business on October 7, 2022.

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 NevGold Corp. by NevGold Corp. We own ZERO shares of NevGold Corp. Please click here for full disclaimer.

Copyright 1998 - 2022 Media Corp. All rights reserved. Nasdaq Stocks: Information delayed 15 minutes. Non-Nasdaq Stocks: Information delayed 20 minutes. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Market Data is provided by Earnings by Zacks. Analyst Ratings by Zacks