Worrying Market Trends Highlight Gold's Appeal

- FinancialBuzz.com News Commentary

NEW YORK, Dec. 1, 2020 /PRNewswire/ -- Gold prices fell more than USD 250 from its summer record highs on Monday, below the USD 1,800 mark, following weak U.S pending home sales numbers. The latest data from the National Association of Realtors (NAR) showed that its pending home sales index for October dropped 1.1% to a reading of 128.9. According to consensus estimates, economists were expecting to see a 1% rise. This is the second consecutive monthly decline after the index dropped 2% in September, according to a report by Kitco News. Lawrence Yun, NAR's Chief Economist, explained in the press release that, while the housing market is still hot, we may be starting to see rising home prices hurting affordability. The rising prices are the result of tight inventories and historically low mortgage rates. "The combination of these factors – scarce housing and low rates – plus very strong demand has pushed home prices to levels that are making it difficult to save for a down payment, particularly among first-time buyers, who don't have the luxury of using housing equity from a sale to use as a down payment," said Yun. "Work-from-home flexibility has also increased the demand for both primary and secondary homes." Clarity Gold Corp. (CSE: CLAR), Coeur Mining, Inc. (NYSE: CDE), Harmony Gold Mining Company Limited (NYSE: HMY), Eldorado Gold Corporation (NYSE: EGO), Gold Fields Limited (NYSE: GFI)

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. Nevertheless, gold prices are often viewed as safe haven in a time of economic and political uncertainties. To reduce the impact of the pandemic on the economy, various measures have been taken, such as near-zero interest rates and economic stimuluses for business and individuals. The impacts of such economic measures taken to fight the pandemic, however, are yet to be fully understood. Such measures also impact the price of precious metals.

Clarity Gold Corp. (CSE: CLAR) announced breaking news yesterday that, "it has entered into an option agreement (the "Option Agreement") dated November 27, 2020 pursuant to which the Company has been granted the sole and exclusive option (the "Option") by Big Ridge Gold Corp. ("Big Ridge") (TSX-V: BRAU), an arm's length company whose common shares are listed on the TSX Venture Exchange, to acquire up to 100% of Big Ridge's right, title and interest in and to certain mineral claims located in the Province of Quebec known as the "Destiny Project" (the "Transaction").

Highlights of the Destiny Project¹

• Located in the historical, mineral rich Abitibi Greenstone Belt.
• Gold mineralization occurs in high-grade quartz veins within shear zones starting at 15 m below surface (drill results include 167g/t Au over 1 m).
• 2011 NI 43-101 indicated resource of 360,000 oz and an inferred resource of 247,000 oz.
• Mineralization is open to depth and along strike.
• The DAC deposit is open along strike with only coarse drilling denoting high grade intercepts outside of 2011 resource area showing expansion potential along strike from the DAC Deposit over approximately 2.5 km to the Darla Zone.
• Excellent infrastructure: ~75 km NNE of Val d'Or with road access.
• Considerable work done to date including over 50,000 m of diamond drilling.

'This is a substantial step forward for Clarity. The acquisition of the Destiny Project will mark a transformational first step for the Company into the prolific Abitibi Greenstone belt,' stated Clarity's CEO, James Rogers. 'Our team at Clarity has reviewed countless projects and we are excited to focus our efforts on a project that has high grade, underground potential with underpinning Indicated and Inferred ounces in the ground. We look forward to working with Big Ridge to complete the Transaction and get to work on advancing this exciting project.' 

The Destiny Project

The Destiny Project is located approximately 75 km northeast of the city of Val d'Or in the prolific Abitibi Greenstone Belt where more than 180 million ounces of gold have been produced historically along major structural breaks within the assemblage of Archean-age volcanic, sedimentary and intrusive rocks. The Destiny Project lies along the approximately 400 km long Chicobi Deformation Zone, a major structural break which is largely underexplored in the Abitibi Greenstone Belt. The 5,013 ha project includes the DAC deposit, one of several gold zones along an approximately 6 km long segment of the Despinassy Shear Zone within the Chicobi Deformation Zone.

Approximately 2.5 km east along strike of the DAC deposit is the Darla zone. In between the Darla and DAC is the coarsely drilled GAP zone where 2012 drilling intercepted anomalous gold in all 12 holes which were spaced 100 m apart.

Exploration of the Destiny Project dates back to the 1930s with the first serious diamond drilling campaign commencing in 1998 by Cameco. Continued exploration and drilling campaigns supported a maiden NI 43-101 resource estimation being authored in 2007 and the most recent NI 43-101 resource estimation in 2011 in the Technical Report, dated March 1, 2011, authored by, Todd McCracken, P. Geo., and filed by Big Ridge on Sedar on March 7, 2011 (the "2011 Technical Report"). Since the publishing of the 2011 Technical Report, only 15 drill holes totaling approximately 3,473 m were completed as well as geochemical surveys and a geophysical compilation targeting VMS mineralization.

Previous work on the property can be summarized as follows:

• 172 Diamond drill holes comprising approximately 50,400 m
• Reconnaissance till sampling from 11 Sonic drill holes
• 2,430 MMI geochemical samples
• 982 line km of airborne VTEM surveys
• 171 line km of ground magnetics surveys
• 128 line km of IP

Salient results from previous drill programs on the Destiny Project:

The DAC Deposit

The 2011 Technical Report entitled "NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property, Quebec" included the following estimates:

Notes:

• The 2011 Technical Report was prepared for Alto Ventures Ltd. (now Big Ridge) and Pacific Northwest Capital Corp.
• Values rounded to reflect summary nature of the estimate
• Cut-off grade 0.5 g/t Au
• Au price of US$973/Oz
• US$ to CAD$ conversion of 1.02
• Au recovery 94%
• 4:1 Strip ratio
• Operating cost of $14.30/t at 10,000 tpd

Michel Robert, Advisor to Clarity stated: 'The Abitibi is known for its high mineral potential, it's a recognized region in Canada and internationally. I have previously worked in several active projects in the region, now I am excited to return to this highly prospective area with solid infrastructure and formidable local support for resource development. Destiny is in an advanced exploratory stage with an NI 43-101 indicated resource, and with multiple underexplored zones which makes for untapped exploration potential. At Clarity, we look forward to starting work and further defining this resource to become another success in the region.'…

Qualified Person

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 Destiny Project and approves the technical contents of this news release."

^[1] Information extracted from the Technical Report, dated March 1, 2011, authored by, Todd McCracken, P. Geo., and filed by Big Ridge on Sedar on March 7, 2011. 

For our latest "Buzz on the Street" Show featuring Clarity Gold Corp. recent corporate news, please head over to: https://www.youtube.com/watch?v=x0d4C2BH_4A

Coeur Mining, Inc. (NYSE: CDE) reported back in August an update on its 2020 exploration program, which is the largest campaign in the Company's history. The primary focus of the program is resource expansion and new discoveries, including prospective step-out drilling on certain targets designed to test known boundaries of existing mineralization. Drilling was active at six of the Company's sites during the first half of 2020 with each program delivering positive results, including two new gold discoveries at the Sterling and Crown exploration properties in southern Nevada. New, significant discoveries in Nevada of oxide gold at Sterling and Crown – Step-out drilling at both Sterling and Crown has discovered new mineralized zones: (i) El Portón, located to the northeast of the historic Sterling mining area and (ii) C-Horst, located in the northernmost portion of the Crown Block.

Harmony Gold Mining Company Limited (NYSE: HMY) announced back in October third quarter 2020 financial results, including revenue of $229.7 million, cash flow from operating activities of $79.5 million and GAAP net income from continuing operations of $26.9 million, or $0.11 per share. On an adjusted basis, the Company reported EBITDA of $90.8 million, cash flow from operating activities prior to changes in working capital of $57.4 million and net income from continuing operations of $38.2 million, or $0.16 per share. Gold production increased 23% to 95,995 ounces driven by improved operational performance at Palmarejo, Rochester and Wharf, while silver production of 2.6 million ounces was 58% higher largely due to positive results at Palmarejo

Eldorado Gold Corporation (NYSE: EGO) reported last month results from brownfields exploration drilling programs in Quebec, Greece, and Turkey, including an update on the newly-discovered Ormaque zone at Lamaque. Additionally, the Company is providing a brief update on COVID-19. At Efemcukuru, drill results have confirmed continuity of high gold grades within mineralized shoots at the Kokarpinar Middle and Kokarpinar South target areas, advancing this vein system to resource conversion drilling stage. "These results from our brownfields programs continue to demonstrate the outstanding exploration potential at our operations", said George Burns, President and CEO. "I am particularly pleased with the outcome of the step out drilling at C2, C6 and C7, which highlight the potential for further expansion of the Triangle deposit, and with the new results from the Ormaque zone. In Turkey, we had solid results at Efemcukuru and we continue to focus on extending the life of that asset through further exploration."

Gold Fields Limited (NYSE: GFI) reported last month that has again been ranked the top South African mining company in the prestigious Dow Jones Sustainability Index (DJSI). Gold Fields was ranked 4th among 75 mining companies and 2nd among gold mining companies. Canada's Teck Resources was the metals and mining industry leader based on its score of 90. Gold Fields' score was 80, more than double the industry average of 39. Gold Fields has consistently achieved a Top 5 metals and mining ranking in the DJSI since it started participating in 2011. "Our continued strong showing on the DJSI illustrates that we have fully integrated ESG practices into our business. This is critical because we are no long only assessed on our operational and financial performance, but that we are doing so responsibly and to the benefit of all our stakeholders," says Gold Fields CEO Nick Holland.

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