Why Mounting Pandemic And Vaccine Concerns May Create A Surge In Gold Prices
- FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., Jan. 6, 2021 /PRNewswire/ -- Many reports on "The Street" feel that, with the gold price rising to new heights amid the coronavirus pandemic, a shakeout upon the arrival of a vaccine was inevitable. Still, the intermediate-term outlook for gold stocks and the gold price looks reasonably bright, because Fed policy is likely to remain ultra-easy for years to come, while policymakers test their new conviction that inflation is no longer a threat. Yet clarity on the near-term outlook for the gold price and gold stocks may wait until the Fed's Dec. 16 policy update, which could bring a change in its asset-purchase program. The Jan. 5 Senate runoff elections in Georgia also might serve as a positive catalyst for the gold price and help gold stocks regain lost luster. But, depending on the outcomes, they also could serve to deepen negative sentiment. A CNBC article said that Gold's recent rising is affected by: "…increasing coronavirus infections globally re-ignited concerns about the economic toll from the pandemic, while skepticism over the reach of a potential COVID-19 vaccine further boosted the safe-haven metal." Active stocks in the mining markets this week include Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Newmont Corporation (NYSE: NEM) (TSX: NGT), B2Gold Corp. (NYSE: BTG) (TSX: BTO), Eldorado Gold Corporation (NYSE: EGO) (TSX: ELD).
According to Metal Miner, The bulls are predicting a resurgence in the price to U.S. $2,300 per troy ounce in 2021. The article said that: "Goldman Sachs (recently stated) they had a target of $2,300, as recovery from the coronavirus-related recession fuels higher inflation next year. Goldman's economics team sees inflation rising to 3% next year before weakening through year-end. Further fuel could be added from a recovery in demand from India and China… The gold price rose strongly in the first half of 2020, in large part due to the fall in both nominal and real yields. An increase in safe-haven investment demand in the wake of the virus-induced economic slump also contributed, Capital Economics wrote recently. The research house explained the price rise has been strong since the start of 2019, riding an 18-month surge in demand for ETF holdings as a safe-haven investment. That is a process that gathered pace in the face of the pandemic."
Golden Independence Mining Corp. (CSE: IGLD) (OTCQB: GIDMF) BREAKING NEWS: GOLDEN INDEPENDENCE PROVIDES DRILLING UPDATE - Golden Independence (the "Company") is pleased to provide an update on drilling progress at the Company's flagship Independence project located adjacent to Nevada Gold Mines' Phoenix-Fortitude mining operations in the Battle Mountain-Cortez trend of Nevada.
Drill Program Update - Golden Independence has completed its 2020 resource expansion drill program at the Company's Independence project. A total of 23 reverse circulation (RC) holes were drilled with the objective of confirming the historic resource and expanding the areas of known mineralization. Assays from the recently completed drill program are being integrated with data from the 56 recently released historic RC drill holes (see News Releases dated December 9th, 2020 and December 15th, 2020), to produce an NI 43-101 compliant resource estimate for the Independence project anticipated in Q1 2021. Figure 1 provides a plan view of the location of the RC drill hole collars that will be incorporated into the resource update.
Concurrent with the Q1 2021 NI 43-101 resource calculation, drilling is continuing with a 6,000-foot RC drill program targeting the extension of both known oxide and gold skarn mineralization in addition to testing the gold skarn mineralization's depth from surface. The Company also intends to drill three to five diamond core (DC) holes in early 2021 for geotechnical and engineering purposes.
"With the completion of our 2020 drill program, our next step is to table an NI 43-101 compliant resource for the Independence project in early 2021 as we advance to a PEA in the second half of this year" commented Golden Independence CEO Christos Doulis. "We believe the integration of both the 23 holes drilled in 2020 plus the 56 historic holes should result in a significantly expanded resource estimate at the Independence project." Read this entire release for the Golden Independence news at: https://www.financialnewsmedia.com/news-igld/
Other recent developments in the mining markets include:
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) and AngloGold Ashanti Limited (JSE:ANG)(NYSE:AU) recently concluded the sale of their interest in Morila Gold Limited, which owns 80% of the Morila gold mine in Mali, to Firefinch Limited (previously named Mali Lithium Limited) (ASX:FFX) for $28.8 million cash. The state of Mali continues to hold the remaining 20%.
Noting that all Morila employees had been re-employed by Firefinch, Barrick president and chief executive Mark Bristow said the transaction would benefit the mine's Malian stakeholders by giving Firefinch the opportunity to extend its life by accessing satellite resources and adapting the infrastructure. The mine had been scheduled for closure in 2021. Barrick has been the operator of the mine and the sale is in line.
Newmont Corporation (NYSE: NEM) (TSX: NGT) and its joint venture partners recently announced the successful integration of the Alumbrera mine, plant and infrastructure with Yamana Gold's Agua Rica project to create the integrated MARA project. The integration of these two assets finalizes the joint venture between Newmont (18.75%), Glencore International AG (25%) and Yamana Gold (56.25%).
"I am pleased to see this partnership complete the integration of the projects. Joining the Agua Rica ore body with the high-quality infrastructure from Alumbrera will ensure the sustainability of both sites' resources," said Newmont's President and CEO Tom Palmer. "Newmont looks forward to the MARA project adding value to our world-class portfolio."
Under the MARA Project, Agua Rica will be developed and operated using the existing infrastructure and facilities from the Alumbrera mine, approximately 35 kilometers away. The integration unlocks significant value by leveraging Alumbrera's infrastructure including the plant, tailings storage facility, pipeline and other infrastructure to be used for processing ore from Agua Rica.
B2Gold Corp. (NYSE AMERICAN: BTG) (TSX: BTO) recently announced that the Company is providing further financial support to community organizations in Metro Vancouver, Canada, which are on the frontlines in assisting local communities impacted by the increasing spread of COVID-19. Through its Canadian CSR Fund, this year, B2Gold has donated a total of CDN$1,000,000 to organizations that are supporting some of Metro Vancouver's most vulnerable during the pandemic. B2Gold is allocating a further CDN$500,000 to provide financial support to four community organizations in Metro Vancouver in their continued response plan to address the social impacts, issues and risks posed by the increasing spread of COVID-19.
"Once again, we are amazed by B2Gold's generosity. This donation will cover significant expenses for several months and will keep the food bank running as we distribute close to 675,000 pounds of nutritious food each month for our clients and partners," said Cynthia Boulter, Chief Operating Officer at the Greater Vancouver Food Bank. "We have seen a steady flow of new clients since March, and B2Gold's donation earlier on this year has helped us distribute over half a million pounds of healthy food and thousands of pre-packed groceries each month during the pandemic, allowing us to feed over 20,000 people monthly in the communities that we serve, including in the critical areas where we needed to expand."
Eldorado Gold Corporation (NYSE: EGO) (TSX: ELD.TO) recently released its updated Reserve and Resource estimates as of September 30, 2020. The Company's Proven and Probable gold Reserves totaled 17.7 million ounces as of September 30, 20201, compared to 17.5 million ounces as of December 31, 2019, an increase of 1.3%. The complete Mineral Reserve and Resource listing can be found at the end of this release and includes the data for tonnes, grades and contained metal.
The slight increase in overall Proven and Probable Reserves was attributable to increases at Kisladag, Lamaque and Perama Hill, offset by decreases at Olympias and Efemcukuru.
At Kisladag, Mineral Reserves increased due to a combination of a higher long-term gold price assumption ($1,300/oz vs $1,250/oz) and an improved leach recovery model. The latter was derived from additional metallurgical testwork completed in 2020 on gold mineralized material from the south east sector of the planned open pit. The increase at Lamaque was primarily the result of ongoing successful conversion drilling. Perama Hill's Reserve increase resulted from a revised and expanded open pit design which will allow more of the known orebody to be mined.
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