Still Deemed a Safe Haven Asset, Why Gold Maybe Having a Multi-Year Bull Rally

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., June 16, 2021 /PRNewswire/ -- Gold plays a unique and vital role in the world eco system. According to the World Gold Council, the annual volume of gold production has tripled every year since the early 1970s. There are several common factors that drive the gold market globally including Demand and Supply, Central bank policies and World Economic data. Gold is used in multiple human aspects like Jewelry, Technology, Investment assets etc.  Gold is having multiyear bull rally and the price of gold has risen from around $43 per ounce in 1972, to a price of over $2000 in year 2020.  There are multiple reasons behind the fall in Gold prices. The rise in dollar index is one of the major reasons accounting for this fall. The newly formed Biden government in US is providing large stimulus measures which are further slumping the gold price.  Apart from these, the US Treasury yields and the recent climb in equities toward the all-time closing high, has further weighed down gold prices. Hedge fund and many investors have exited their positions in Gold to chase crypto currency which is having a marvelous run in recent times.   Active stocks in the mining markets this week Clarity Gold Corp. (OTCPK: CLGCF) (CSE: CLAR), IAMGOLD Corporation (NYSE: IAG) (TSX: IMG), Alamos Gold Inc. (NYSE:AGI) (TSX:AGI), Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV), New Gold Inc. (NYSE: NGD)  (TSX: NGD).

A recent article in industry publication, CapitalVia said that: "For FY2022, the movement of Gold price will be based on the environment of increasing bond yield, a weak dollar, rising inflation expectations, and ongoing monetary and fiscal stimulus. President-elect Joe Biden approved the massive stimulus package of $1.9 trillion, This stimulus is directly provided in the hand of the US people which will definitely increase the spending of the people.  As current interest rates are low people will diversify this money into other assets class which will be positive for gold. However, in recent months, after the announcement of stimulus, bond yield prices are increasing rapidly. It must be noted that there is a negative correlation between Gold and Bond Yield.  The US dollar is trading firmly against the currencies of the world. Gold is universally priced in U.S. dollars and both of them are inversely correlated. Thus, a strong U.S. dollar will also be negative for gold prices. In the current scenario, Gold is trading with a negative bias. However, any rise in Inflation or public spending will be a support for Gold."

Clarity Gold Corp. (CSE: CLAR) (OTC: CLGCF) BREAKING NEWS:  CLARITY GOLD REPORTS HIGH GRADE GOLD INTERCEPTS INCLUDING 2.10 m of 18.64 gpt Au - Clarity Gold Corp. ("Clarity" or the "Company") is pleased to announce the first analytical results from approximately 2,600 m of the ongoing 10,000 m diamond drill program at the Destiny Project in the Abitibi Greenstone Belt.

Selected Intercepts

Hole DES21-156: 3.68 g/t Au over 5.25 m, 18.64 g/t Au over 2.10 m and 32.67 g/t Au over 0.45 m

Hole DES21-157: 3.79 g/t Au over 4.45 m and 20.36 g/t Au over 0.80 m

Hole DES21-160: 4.88 g/t Au over 1.25 m

Hole DES21-161: 6.97 g/t Au over 2.65 metres, 15.80 g/t Au over 0.95 m

Maps showing hole locations and analytical results are available on the Company's website claritygoldcorp.com

The results in this press release are from holes completed on the western portion of the DAC Zone that were designed to infill and confirm the mineralized structure and anticipated mineralization identified in historic drilling. The results of this drilling will play an important role in understanding the distribution of mineralization.

"These first holes confirm the presence of mineralization on the western portions of the historic DAC resource estimate area" stated CEO, James Rogers. "We are pleased with the results as they build our understanding of the mineralized system which will continue to be enhanced as we receive more data from the ongoing drilling and our work with the recently announced Minerva Intelligence AI processing of the historic database. The drills are now focused on infill and testing at depth on the recently acquired private lots where historic drilling intercepted high grade gold mineralization."

With the exception of DES21-158 which was abandoned and restarted as DES21-159, all drilling on the project, so far in 2021, has intercepted anomalous gold and confirmed the presence of the quartz carbonate altered and mineralized shear zone. Gold occurs as free gold and in association with pyrite and chalcopyrite as observed in thin section and in drill core.

The Company looks forward to updating further as additional results are received and as we continue to interpret these results as we evaluate bulk tonnage and high-grade models for the Destiny Project.  CONTINUED…   Read this entire release along with tables for the Clarity Gold at:  https://www.financialnewsmedia.com/news-clar/ 

Other recent developments in the mining markets include:

IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) recently announced that it has entered into a voting and support agreement (the "Support Agreement") with Dundee Precious Metals Inc. ("DPM") pursuant to which IAMGOLD has agreed, subject to the terms and conditions thereof, to vote all of its common shares (the "Common Shares") of INV Metals Inc. ("INV") in favour of the proposed acquisition of INV by DPM by way of a plan of arrangement (the "Transaction"). Under the terms of the arrangement agreement dated May 30, 2021 (the "Arrangement Agreement"), holders of Common Shares will receive 0.0910 common shares of DPM in exchange for each Common Share. IAMGOLD beneficially owns and has control or direction over 53,331,158 Common Shares, representing approximately 35.5% of the total issued and outstanding Common Shares.

The Support Agreement may be terminated by the mutual agreement in writing of DPM and IAMGOLD. The Support Agreement will also terminate and be of no further force or effect in certain circumstances, including in the event that the Arrangement Agreement is terminated by INV in order to accept a superior proposal.

Alamos Gold Inc. (NYSE:AGI) (TSX:AGI) recently reported new results from surface and underground exploration drilling at the Island Gold mine, further extending high-grade gold mineralization in Island East and West.

"Over the past year, ongoing exploration success has driven another one million ounce increase in Mineral Reserves and Resources at Island Gold and returned the two best intersections to date. We expect these new results to drive further Mineral Resource growth in one of the highest grade portions of the ore body. This already large Mineral Resource block in Island East is in proximity to the planned shaft and remains open laterally and down-plunge demonstrating further significant upside to the Phase III Expansion," said John A. McCluskey, President and Chief Executive Officer.

Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV) recently announced that it has acquired 14.7% of Vale'soutstanding Participating Debentures ("Royalty Debentures") from the Brazilian Development Bank ("BNDES") and the Government of Brazil for $538M. The Royalty Debentures provide holders with life of mine net sales royalties on Vale'sNorthern and Southeastern Iron Ore Systems and on certain copper and gold operations (together, the "Royalty"). This transaction provides royalty exposure to some of the world's largest and most profitable integrated iron ore mines with reserve weighted mine lives of 30 years and potential for multiple additional decades through reserve growth. The Royalty covers a total of 15.6 thousand square kilometers of mineral properties held by Vale in Brazil, also offering exposure to a number of development properties. The Royalty currently generates an annualized pre-tax cash yield of 10% based on acquisition cost and the most recent semi-annual Royalty Debenture payment. The amount of production capacity subject to the Royalty is expected to grow by approximately +60% by 2026 which would imply an 8% yield on investment at that time, assuming consensus long term iron ore prices.

Franco-Nevada has also accumulated a 9.9% equity investment in Labrador Iron Ore Royalty Corporation ("LIORC"). The position was acquired over a number of years for a total investment of C$93M, representing an average cost of C$14.72/share, versus recent trading of approximately C$38/share. An investment in LIORC functions as a flow through of income from its royalty and equity interest in the Iron Ore Company of Canada's("IOC") Carol Lake mine operated by Rio Tinto in Labrador. Reserves at Carol Lake are sufficient to sustain mining for 24 years and resources indicate potential for further multi-decade extensions. Since starting to accumulate the position, Franco-Nevada has recouped more than 95% of its original investment (inclusive of Q1 2021 dividends declared and to be paid April 26, 2021). Our LIORC investment is generating an annualized cash yield of 27% based on acquisition cost and the most recent dividend payment. Franco-Nevada has no intention of increasing the position at current prices.

New Gold Inc. (TSX: NGD) (NYSE American: NGD) recently provided an update on exploration activities at its New Afton Mine.  Exploration activities at New Afton are focused on underground drilling targeting new porphyry copper-gold mineralization defined within the New Afton deposit footprint as identified through an Artificial Intelligence (AI) study in 2020. In addition, surface exploration drilling is underway targeting new porphyry copper-gold grade mineralization along the prospective Cherry Creek trend located three kilometres west of the New Afton mill.

Highlights were: Underground exploration drilling on the AI West target, located approximately 500 meters west of the B3 block cave reserve, returned 25.2 g/t gold over 2 metres; 0.39 g/t gold and 0.19% copper over 16 metres; 0.34 g/t gold and 0.18% copper over 34 metres; 0.97 g/t gold and 1.27% copper over 8 metres; 0.36 g/t gold and 0.19% copper over 16 metres; 2.72 g/t gold and 0.25% copper over 4 metres and 3.35 g/t gold and 0.64% copper over 6 metres (see Table 2 for full drilling results); Surface exploration drilling on the Cherry Creek trend returned 21 g/t gold over 1 metre.

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