FinancialBuzz.com News Commentary
NEW YORK, July 14, 2020 /PRNewswire/ -- Gold and silver prices climbed higher in midday U.S. trading on Monday, with silver prices sharply up and recording an 11-month high. According to a report by Kitco News, buying interest in both precious metals continues to be fueled by lingering worrisome geopolitical elements. August gold futures were last up USD 10.60 an ounce at USD 1,812.60. September Comex silver prices were last up USD 0.662 at USD 19.715 an ounce. Gold is of course considered to be a safe-haven asset, yet the economic impacts from the current pandemic is still unclear. Recently, the World Gold Council released important data from its first-quarter 2020 demand trends report, where it indicated that the global outbreak was "the single biggest factor influencing gold demand." In fact, many small businesses have stopped operating during this crisis with the hopes that they could resume operations after the social distancing restriction are lifted. Clarity Gold Corp. (CSE: CLAR), IAMGOLD Corporation (NYSE: IAG) (TSX: IMG), Gold Resource Corporation (NYSE: GORO), Hecla Mining Company (NYSE: HL), New Gold Inc. (NYSE: NGD) (TSX: NGD)
Kitco News indicates that the investment research firm CFRA is bullish on gold, saying the macroeconomic backdrop may be the strongest ever amid the global pandemic. "In our view, gold is the best hedge against economic uncertainty in general and, more specifically, against fiscal deficit, negative-yielding bonds, fiat currency debasement and potential inflation," the report said. "Although equity markets are attempting a strong bounce-back from the steep declines in the first quarter, there is a disconnect between the current recovery and the economic reality and the recent strength in equities could be underestimating the risk of a subsequent outbreak."
Clarity Gold Corp. (CSE: CLAR) announced last week that it, "has acquired an additional two mineral property assets situated on Vancouver Island, British Columbia, namely the Tyber and the Gretna projects, and has increased the size of its Empirical project located 12 km south of Lillooet, British Columbia (the "Empirical Project").
The Company acquired 4,007.5 ha of additional mineral claims adjacent and contiguous to the west of the Company's Empirical Project directly through online staking. The Company also entered into a mineral property purchase agreement dated July 5, 2020, pursuant to which the Company acquired a 100% interest in and to the 928 ha Gretna Green, 1,331 ha Tyber, and 1,109.7 ha of mineral claims adjacent and contiguous to the east of the Empirical project (collectively, the "Claims") for a cash consideration of C$10,000 and the issuance of 1,250,000 common shares (collectively, the "Shares") in the capital of the Company. The Shares issued in connection with the acquisition of the Claims will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
The 928 ha Tyber gold-copper-silver project (the "Tyber Project") is located in southeast Vancouver Island in the Nanaimo mining division, approximately 1.4 km south of Arrowsmith Lake and 18 km Southwest of Parksville. Historic rock samples taken from the property between 1916 and 1986 assayed up to 2.328 oz/t Au (from historic adit dump), 16% Cu and 305.5 oz/t Ag (1916 BC Mines Annual Report; Minfile 092F236). The Tyber Project consists of several mineralized shear zones ranging from less than 0.30 m to 2.60 m. Two historical adits on the Tyber Project, believed to be targeting mineralized quartz veins within local shear zones, extend approximately 14 m and 47 m in length (1981 Assessment Report 09432).
Gretna Green Project
The Gretna Green gold-copper-silver project (the "Gretna Green Project") is 1,331 ha and is located in the Alberni mining division, approximately 24 km Southwest of Port Alberni and 1.3 km North of Henderson Lake. Historical reports show that a selected sample assayed 48.00 grams per tonne gold, 51.43 grams per tonne silver and 17.8 percent copper (Minister of Mines Annual Report 1921; Minfile 092F24). Limited information on the Gretna Green Project is available, however the QP (as defined below) believes the project warrants further exploration.
The Company's gold-copper-molybdenum porphyry project, the Empirical Project, located 12 km south of Lillooet, British Columbia now totals 10,518 ha. The Empirical Project is situated in the Cordilleran Continental Arc which hosts 26 significant porphyry deposits, including Imperial Metal Corporation's historic Huckleberry Mine and Noranda's historic Babine Porphyry camp. Between 1981 – 1986, six out fifteen diamond drill holes intersected gold mineralization, including hole DD81-4 which assayed 3.67 g/t gold over 21 m. Previous exploration focused on molybdenite without an understanding or aim of targeting a larger porphyry system. For more information on the Empirical Project, please see the Company's National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") Technical Report on the Empirical Project filed on SEDAR on March 24, 2020.
The recently acquired claims have multiple copper showings in the Southeast, including the Rickhill Showing where six surface rock samples collected in 1959 averaged 0.95% copper over 12.9 meters (Minfile 092INW022). Elevated copper in soil samples indicate that this zone of copper mineralization may be extended up to a total of 30 m (Skerl, 1959). In 1970, 538 soils were collected with copper intensities ranging between 6 ppm to 212 ppm (Assessment report 02530).
The additional ground to the southwest of the Empirical Project consists of two molybdenum showings namely, the Molybdenite Lake and Fyp showings where historic samples taken from quartz veins have assayed up to 0.32% molybdenum and 0.35 g/t gold (Nelson, J. (1985-10-01): B.C. Gold Reconnaissance 1985 - Lillooet Project - Final Report; Assessment Report 30875; Minfile 092ISW109,092ISW110). Previous work has focused on the area's molybdenum potential, with minimal exploration for gold.
'We are building a solid foundation of exploration assets for Clarity with the acquisition of the Tyber and Gretna Green projects and the expansion of the Empirical Project' said James Rogers, Clarity's Chief Executive Officer. 'We believe these properties are underexplored and represent an opportunity for Clarity to increase shareholder value with systematic exploration.'
Mr. Rory Kutluoglu P. Geo. is the Qualified Person ("QP") under NI 43-101 for the technical information in this news release and has reviewed the appropriate and available data for the Empirical Project, Tyber Project and Gretna Green Project and approves the technical contents of this news release. The QP intends to visit the additional Empirical Project claims, Tyber Project and Gretna Green Project shortly and thus cannot validate the historical databases nor the results of the historical work presented herein."
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IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) announced on June 18th, initial assay results from its 2020 exploration diamond drilling program completed at its Nelligan joint venture project (IAMGOLD Corporation: 75%, Vanstar Mining Resources Inc. ("Vanstar"): 25%), located 60 kilometres southwest of Chibougamau, Quebec, Canada. The Company is reporting assay results from six (6) diamond drill holes totaling 3,717 metres completed as part of the 2020 drilling program. Assays are pending from a further three (3) completed drill holes totaling 1,278 metres. The Nelligan Gold project (on a 100% basis) hosts Inferred Mineral Resources containing 3.2 million ounces of gold grading 1.02 g/t Au (see news release dated October 22, 2019). The 2020 diamond drilling program was designed to infill selected areas of the resource to upgrade resource classification from Inferred to an Indicated category and evaluate potential resource extensions at depth and along strike. Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated: "We continue to be pleased with these further positive results obtained from the 2020 program completed before our activities were suspended as directed by the Government of Quebec in response to the COVID-19 crisis. The drilling program continued to intersect the expected alteration and associated mineralization within the resource area, and importantly has demonstrated that the alteration system remains open along strike to the west outside of the current modeled resource for potentially another 500 metres. Additional drilling is needed to assess this potential and we look forward to the resumption of our drilling activities once conditions allow us to do so in a safe manner."
Gold Resource Corporation (NYSE: GORO) announced on June 1st, the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114 million in shareholder dividends from its Oaxaca Mining Unit in Mexico. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery. "A decade of production success marks a milestone from our Oaxaca Mining Unit and is the ultimate triumph over the numerous mining industry challenges and metal market volatility over that time frame," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "To return ten percent of total gross revenues back to shareholders in dividends is a second milestone few other mining companies will ever pursue or achieve. In addition, our Oaxaca Mining Unit's success lead to the formation and building of our Nevada Mining Unit. We are proud to say 2019 marked our ninth consecutive full year of profitability since announcing commercial production, and as we look to the future, we optimistically see another decade of production ahead in Oaxaca. The Oaxaca Mining Unit has grown into the keystone asset of the Company and shareholders are very fortunate this large and powerful high-grade epithermal system has delivered its first billion dollars of production and may ultimately deliver several more."
Hecla Mining Company (NYSE: HL) announced earlier in January preliminary silver and gold production results for the fourth quarter and full year 2019 as well as a significant reduction of net debt and an increase in cash position. The Lucky Friday Union workers have ratified the collective bargaining agreement, reversing the result of the vote held in early December, and many of the workers are expected to return to work. "2019 marked a year of higher metal production and in the second half of the year, strong cash flow generation and an improved balance sheet," said Phillips S. Baker, Jr., Hecla's President and CEO. "While gold & silver prices have increased, Greens Creek's record silver production combined with the most gold production in Hecla's history were the primary reasons for the cash flow strength."
New Gold Inc. (NYSE: NGD) (TSX: NGD) reported recently preliminary first quarter operational results from the Rainy River and New Afton mines. (All amounts are in US dollars unless otherwise indicated.) The Company is also announcing that due to the rapidly changing and unpredictable environment caused by the global COVID-19 pandemic, the Company is withdrawing its 2020 operational guidance until any impact is better understood. Total production for the first quarter was 103,435 gold equivalent (gold eq.) ounces (66,790 ounces of gold, 131,417 ounces of silver and 18.5 million pounds of copper). The New Afton Mine produced 52,329 gold eq. ounces (16,409 ounces of gold and 18.5 million pounds of copper) for the quarter.
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