New Results Include 25.5 g/t Au over 5.5 m , 11.0 g/t Au over 9.1 m & 17.2 g/t Au over 4.2 m
i-80 Gold Corp. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") is pleased to announce that continued drilling was successful in further delineating a new high-grade horizon, the South Pacific Zone ("SPZ"), at the Company's Granite Creek Property ("Granite Creek" or "the Property") located in Humboldt County, Nevada .
Surface drilling is targeting the expansion of mineralization at depth below, and to the north of, the mine workings at Granite Creek. The high-grade results received to-date from SPZ have exceeded expectations and suggests potential to substantively expand mineral resources on the Property. To-date, results have been received for the first of eleven (11) holes of sixteen (16) drill holes now completed to test the SPZ target with all drill holes that have reached the target returning impressive gold grades and widths of mineralization. Owing to the early success of the expansion drilling, the 2022 program has been expanded to ~30,000m of drilling and additional drill rigs have been added both on surface and underground.
Highlight results from SPZ drilling:
17.2 g/t Au over 3.8 m and 22.0 g/t Au over 3.4 m in hole iGS21-07
10.5 g/t Au over 3.8 and 8.0 g/t Au over 4.8 m in hole iGS21-08
17.2 g/t Au over 4.2 m in hole iGS21-10
25.5 g/t Au over 5.5 m in hole iGS21-11
11.0 g/t over 9.1 m including 15.5 g/t over 5.5 m in hole iGS21-12
Drilling of the SPZ has been elevated to the primary exploration target on the Property with multiple drill rigs completing delineation drilling as well as step-out drilling designed to continue to expand mineralization along strike and at depth where the deposit remains open. It is anticipated that SPZ will be included in a resource update following the 2022 drill campaign. High-grade mineralization occurs at the contact of the Upper and Lower Comus Formation rock units, and also associated with interpreted north to northeast striking splay faults resulting in multiple intercepts in some holes and remains wide open at depth and along strike to the north (see Figures 1 and 2).
"The consistency of high-grade gold mineralization in the South Pacific Zone is truly impressive as the ongoing drill program continues to demonstrate the significant upside opportunity at Granite Creek," stated Ewan Downie , Chief Executive Officer of i-80. "Including programs at Ruby Hill and McCoy-Cove in 2022, we expect to drill in excess of 50,000 metres in 2022 with a goal of expanding our already enviable resource base."
High-grade mineralization at Granite Creek occurs in a near-identical geological setting as that at Nevada Gold Mines' ("NGM"), multi-million-ounce Turquoise Ridge Mine that is located immediately to the north (see Figure 3); proximal to a major regional fault (the Getchell or Range Front fault) on the eastern edge of the large Osgood Mountains intrusive complex. The Granite Creek deposit remains open at depth and along strike from the existing underground workings.
It is expected that refractory mineralization mined from the underground operation at Granite Creek will initially be trucked to Twin Creeks for processing, pursuant to the agreement with NGM, until such time that the Company's Lone Tree facility is operational.
Table 1 – Summary Assay Results from SPZ Drilling
New 2021 Drill Results from SPZ at Granite Creek, estimated true widths 70-80%
Drillhole ID
Type
From
(m)
To
(m)
Length
(m)
Au
(g/t)
iGS21-07
Core
352.0
355.9
3.8
17.2
iGS21-07
Core
368.1
371.6
3.4
22.0
iGS21-08
Core
356.2
360.9
4.8
8.0
iGS21-08
Core
419.7
423.5
3.8
10.5
iGS21-08
Core
517.6
522.1
4.6
6.3
iGS21-08
Core
535.5
537.5
2.0
11.9
iGS21-09
Core
390.1
391.5
1.4
6.2
iGS21-09
Core
422.5
423.5
1.1
5.9
iGS21-10
Core
424.6
428.8
4.2
17.2
iGS21-10
Core
433.1
434.0
0.9
12.6
iGS21-11
Core
416.4
417.6
1.2
9.7
iGS21-11
Core
436.5
442.0
5.5
25.5
iGS21-12
Core
389.5
391.1
1.5
5.4
iGS21-12
Core
441.8
451.0
9.1
11.0
Including
Core
442.6
448.1
5.5
15.5
Previously released 2021 Drill Results from SPZ at Granite Creek, estimated true widths 70-80%
Drillhole ID
Type
From
(m)
To
(m)
Length
(m)
Au
(g/t)
iGS21-01
Core
386.6
392.7
6.1
12.8
iGS21-03
Core
391.4
398.5
7.1
16.3
iGS21-04
Core
288.0
289.6
1.5
37.36
iGS21-04
Core
326.3
329.8
3.4
16.4
iGS21-04
Core
336.7
337.9
1.2
44.14
iGS21-04
Core
468.3
478.5
10.2
14.7
iGS21-05
Core
398.4
403.7
5.3
16.5
iGS21-05
Core
444.7
451.4
6.7
5.1
Table 1a
Collar Coordinates
UTM
Drillhole ID
East m
North m
Elevation m
Azimuth
Dip
NAD83 Zone 11
iGS21-01
478579
4554235
1466
308
-46
iGS21-03
478323
4554119
1556
352
-55
iGS21-04
478323
4554116
1556
340
-64
iGS21-05
478327
4554119
1554
351
-59
iGS21-06
478325
4554119
1554
338
-59
iGS21-07
478541
4554160
1472
315
-46
iGS21-08
478541
4554161
1472
311
-48
iGS21-09
478578
4554235
1466
315
-45
iGS21-10
478579
4554416
1550
280
-67
iGS21-11
478579
4554414
1550
286
-73
iGS21-12
478580
4554411
1549
265
-67
The Granite Creek Property is strategically located proximal to Nevada Gold Mines' Turquoise Ridge and Twin Creeks mines at the north end of the Battle Mountain-Eureka Trend, at its intersection with the Getchell gold belt in Nevada .
QAQC Procedures
All samples were submitted to Paragon Geochemical Assay Laboratories (PAL) of Sparks, NV , which is an ISO 9001 and 17025 certified and accredited laboratory, independent of the Company. Samples submitted through PAL are run through standard prep methods and analyzed using FA-Pb30-ICP (Au; 30g fire assay) and 48MA-MS (48 element Suite; 0.5g 4-acid digestion/ICP-MS) methods. PAL also undertake their own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration. i-80 Gold Corp's QA/QC program includes regular insertion of CRM standards, duplicates, and blanks into the sample stream with a stringent review of all results. Historic holes were assayed by various accredited laboratories. Refer to the November 9 th , 2021 Granite Creek Mine Project Preliminary Economic Assessment NI 43-101 Technical Report for information on historic assays.
Qualified Person
Tim George, PE, is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.
i-80 Gold Corp. is a well-financed, Nevada -focused, mining company with a goal of achieving mid-tier gold producer status through the development of multiple deposits within the Company's advanced-stage property portfolio to complement existing gold production from the Ruby Hill open pit.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, the expansion or mineral resources at Granite Creek and the potential of the Granite Creek project, . Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Including 10.7 g/t Au over 9.4 m , 8.2 g/t Au over 5.6 m & 14.5 g/t Au over 2.7 m
i-80 Gold CORP . (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") is pleased to announce positive assay results from the ongoing underground drill program at the Company's Granite Creek Property (" Granite Creek " or " the Property ") located in Humboldt County, Nevada .
High-grade drill results from the 4790 Level targeting mineralization in the Otto, Adam Peak and Range Front fault horizons proximal to and below existing mine workings are designed to confirm continuity in one of the initial areas being defined for underground mining (see Table 1). The Otto, Adam Peak , and Range Front fault horizons are three of multiple target areas being drilled with several holes intersecting gold mineralization in multiple horizons. The 2022 program has been upsized and is expected to comprise more than 30,000 metres (m) from surface and underground. The Company anticipates providing regular updates throughout the year as assay results are received.
Highlight results from initial underground drilling (ten holes) from Level 4790 include:
20.3 g/t (grams per tonne) Au (gold) over 1.3 m in hole iGU21-15
8.2 g/t Au over 5.6 m in hole iGU21-17
14.5 g/t Au over 1.5 m in hole iGU21-18
24.4 g/t Au over 1.2 m in hole iGU21-22
14.5 g/t Au over 2.7 m & 10.6 g/t over 1.5m & 9.9 g/t over 1.1 m in hole iGU21-23
10.7 g/t Au over 9.4 m in hole iGU21-24
As part of the program targeting development and mining at Granite Creek, definition drilling utilizing two underground Cubex drills has started in areas where encouraging assays results were received in 2021. This drilling is being completed to define initial stoping areas as the Company advances towards a production decision.
The primary goal of the 2022 drill program is to delineate and expand underground mineralization as the Company ramps up mining on the Property. It is expected that refractory mineralization from the underground operation at Granite Creek will initially be trucked to Twin Creeks for processing, pursuant to the agreement entered into with Nevada Gold Mines , until such time that the Company's Lone Tree facility is operational.
Matt Gili , President and Chief Operating Officer of i-80 commented: "These results further confirm the high–grade opportunity that we are developing at Granite Creek. We are focused on bringing these near–mine areas into reserves and then into production."
High-grade mineralization at Granite Creek occurs in a near-identical geological setting as that at the multi–million-ounce Turquoise Ridge Mine located immediately to the north; proximal to a major regional fault (the Getchell or Range Front fault) on the eastern edge of the large Osgood Mountains intrusive complex. The Granite Creek deposit remains open at depth and along strike from the existing underground workings with step-out drilling aimed at expanding resources currently underway with multiple surface drill rigs.
Table 1 – Summary Assay Results from Level 4790 Drilling
New 2021 Drill Results from Granite Creek Estimated true widths 50-90%
Drillhole ID
Type
From (m)
To (m)
Length (m)
Au (g/t)
iGU21-15
Core
6.3
7.6
1.3
20.3
iGU21-15
Core
73.1
73.8
0.7
10.9
iGU21-15
Core
98.5
99.2
0.7
10.0
iGU21-15
Core
102.8
105.5
2.7
6.8
iGU21-17
Core
15.8
21.5
5.6
8.2
iGU21-17
Core
27.1
29.9
2.7
5.5
iGU21-18
Core
95.7
97.2
1.5
14.5
iGU21-18
Core
116.4
117.2
0.8
19.0
iGU21-20
Core
34.9
35.9
1.0
12.8
iGU21-20
Core
58.2
61.0
2.7
5.8
iGU21-20
Core
87.8
90.5
2.7
5.6
iGU21-22
Core
48.8
50.0
1.2
24.4
iGU21-22
Core
101.8
103.3
1.5
5.2
iGU21-23
Core
16.8
19.5
2.7
14.5
iGU21-23
Core
27.2
28.7
1.6
10.6
iGU21-23
Core
30.9
32.0
1.1
9.9
iGU21-24
Core
82.9
92.4
9.4
10.7
Holes iGU21-16, iGU21-19, and iGU21-21 contained no significant intercepts
Table 1a Collar Coordinates
UTM
Drillhole ID
East m
North m
Elevation m
Azimuth
Dip
NAD83 Zone 11
iGU21-15
478062
4554228
1460
340
-26
iGU21-16
478062
4554228
1460
328
-35
iGU21-17
478062
4554228
1460
354
-67
iGU21-18
478062
4554228
1460
343
-45
iGU21-19
478062
4554228
1460
312
7
iGU21-20
478062
4554228
1460
300
7
iGU21-21
478062
4554228
1460
291
-22
iGU21-22
478062
4554228
1460
285
-25
iGU21-23
478062
4554228
1460
346
-72
iGU21-24
478062
4554228
1460
329
-28
The Granite Creek Property is strategically located proximal to Nevada Gold Mines' Turquoise Ridge and Twin Creeks mines at the north end of the Battle Mountain-Eureka Trend, at its intersection with the Getchell gold belt in Nevada (See Figure 2).
QAQC Procedures
All samples were submitted to Paragon Geochemical Assay Laboratories (PAL) of Sparks, NV , which is an ISO 9001 and 17025 certified and accredited laboratory, independent of the Company. Samples submitted through PAL are run through standard prep methods and analyzed using FA-Pb30-ICP (Au; 30g fire assay) and 48MA-MS (48 element Suite; 0.5g 4-acid digestion/ICP-MS) methods. PAL also undertake their own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration. i-80 Gold Corp's QA/QC program includes regular insertion of CRM standards, duplicates, and blanks into the sample stream with a stringent review of all results.
Qualified Person
Tim George, PE, Manager of Engineering Services, reviewed the technical and scientific information contained in this press release and is a Qualified Person within the meaning of NI 43-101.
i-80 Gold Corp. is a well-financed, Nevada-focused, mining company with a goal of achieving mid-tier gold producer status through the development of four new open pit and underground mining operations that will ultimately process ore at the Company's central Lone Tree complex that includes an Autoclave.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, completion of refurbishment and development activities at the Long Tree project, commencement of mining operations at the Lone Tree project or the Ruby Hill mine development activities at the Company's projects and resource updates in respect of certain properties, the objectives set out under 2022 Scorecard – Key Goals & Catalysts in this press release and the ESG initiatives. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: failure to obtain the relevant regulatory approvals, material adverse changes, exercise of termination rights by any relevant party, unexpected changes in laws, the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration, refurbishment, development or mining programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Including 10.7 g/t Au over 9.4 m , 8.2 g/t Au over 5.6 m & 14.5 g/t Au over 2.7 m
i-80 Gold CORP . (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") is pleased to announce positive assay results from the ongoing underground drill program at the Company's Granite Creek Property (" Granite Creek " or " the Property ") located in Humboldt County, Nevada .
High-grade drill results from the 4790 Level targeting mineralization in the Otto, Adam Peak and Range Front fault horizons proximal to and below existing mine workings are designed to confirm continuity in one of the initial areas being defined for underground mining (see Table 1). The Otto, Adam Peak , and Range Front fault horizons are three of multiple target areas being drilled with several holes intersecting gold mineralization in multiple horizons. The 2022 program has been upsized and is expected to comprise more than 30,000 metres (m) from surface and underground. The Company anticipates providing regular updates throughout the year as assay results are received.
Highlight results from initial underground drilling (ten holes) from Level 4790 include:
20.3 g/t (grams per tonne) Au (gold) over 1.3 m in hole iGU21-15
8.2 g/t Au over 5.6 m in hole iGU21-17
14.5 g/t Au over 1.5 m in hole iGU21-18
24.4 g/t Au over 1.2 m in hole iGU21-22
14.5 g/t Au over 2.7 m & 10.6 g/t over 1.5m & 9.9 g/t over 1.1 m in hole iGU21-23
10.7 g/t Au over 9.4 m in hole iGU21-24
As part of the program targeting development and mining at Granite Creek, definition drilling utilizing two underground Cubex drills has started in areas where encouraging assays results were received in 2021. This drilling is being completed to define initial stoping areas as the Company advances towards a production decision.
The primary goal of the 2022 drill program is to delineate and expand underground mineralization as the Company ramps up mining on the Property. It is expected that refractory mineralization from the underground operation at Granite Creek will initially be trucked to Twin Creeks for processing, pursuant to the agreement entered into with Nevada Gold Mines , until such time that the Company's Lone Tree facility is operational.
Matt Gili , President and Chief Operating Officer of i-80 commented: "These results further confirm the high–grade opportunity that we are developing at Granite Creek. We are focused on bringing these near–mine areas into reserves and then into production."
High-grade mineralization at Granite Creek occurs in a near-identical geological setting as that at the multi–million-ounce Turquoise Ridge Mine located immediately to the north; proximal to a major regional fault (the Getchell or Range Front fault) on the eastern edge of the large Osgood Mountains intrusive complex. The Granite Creek deposit remains open at depth and along strike from the existing underground workings with step-out drilling aimed at expanding resources currently underway with multiple surface drill rigs.
Table 1 – Summary Assay Results from Level 4790 Drilling
New 2021 Drill Results from Granite Creek Estimated true widths 50-90%
Drillhole ID
Type
From (m)
To (m)
Length (m)
Au (g/t)
iGU21-15
Core
6.3
7.6
1.3
20.3
iGU21-15
Core
73.1
73.8
0.7
10.9
iGU21-15
Core
98.5
99.2
0.7
10.0
iGU21-15
Core
102.8
105.5
2.7
6.8
iGU21-17
Core
15.8
21.5
5.6
8.2
iGU21-17
Core
27.1
29.9
2.7
5.5
iGU21-18
Core
95.7
97.2
1.5
14.5
iGU21-18
Core
116.4
117.2
0.8
19.0
iGU21-20
Core
34.9
35.9
1.0
12.8
iGU21-20
Core
58.2
61.0
2.7
5.8
iGU21-20
Core
87.8
90.5
2.7
5.6
iGU21-22
Core
48.8
50.0
1.2
24.4
iGU21-22
Core
101.8
103.3
1.5
5.2
iGU21-23
Core
16.8
19.5
2.7
14.5
iGU21-23
Core
27.2
28.7
1.6
10.6
iGU21-23
Core
30.9
32.0
1.1
9.9
iGU21-24
Core
82.9
92.4
9.4
10.7
Holes iGU21-16, iGU21-19, and iGU21-21 contained no significant intercepts
Table 1a Collar Coordinates
UTM
Drillhole ID
East m
North m
Elevation m
Azimuth
Dip
NAD83 Zone 11
iGU21-15
478062
4554228
1460
340
-26
iGU21-16
478062
4554228
1460
328
-35
iGU21-17
478062
4554228
1460
354
-67
iGU21-18
478062
4554228
1460
343
-45
iGU21-19
478062
4554228
1460
312
7
iGU21-20
478062
4554228
1460
300
7
iGU21-21
478062
4554228
1460
291
-22
iGU21-22
478062
4554228
1460
285
-25
iGU21-23
478062
4554228
1460
346
-72
iGU21-24
478062
4554228
1460
329
-28
The Granite Creek Property is strategically located proximal to Nevada Gold Mines' Turquoise Ridge and Twin Creeks mines at the north end of the Battle Mountain-Eureka Trend, at its intersection with the Getchell gold belt in Nevada (See Figure 2).
QAQC Procedures
All samples were submitted to Paragon Geochemical Assay Laboratories (PAL) of Sparks, NV , which is an ISO 9001 and 17025 certified and accredited laboratory, independent of the Company. Samples submitted through PAL are run through standard prep methods and analyzed using FA-Pb30-ICP (Au; 30g fire assay) and 48MA-MS (48 element Suite; 0.5g 4-acid digestion/ICP-MS) methods. PAL also undertake their own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration. i-80 Gold Corp's QA/QC program includes regular insertion of CRM standards, duplicates, and blanks into the sample stream with a stringent review of all results.
Qualified Person
Tim George, PE, Manager of Engineering Services, reviewed the technical and scientific information contained in this press release and is a Qualified Person within the meaning of NI 43-101.
i-80 Gold Corp. is a well-financed, Nevada-focused, mining company with a goal of achieving mid-tier gold producer status through the development of four new open pit and underground mining operations that will ultimately process ore at the Company's central Lone Tree complex that includes an Autoclave.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, completion of refurbishment and development activities at the Long Tree project, commencement of mining operations at the Lone Tree project or the Ruby Hill mine development activities at the Company's projects and resource updates in respect of certain properties, the objectives set out under 2022 Scorecard – Key Goals & Catalysts in this press release and the ESG initiatives. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: failure to obtain the relevant regulatory approvals, material adverse changes, exercise of termination rights by any relevant party, unexpected changes in laws, the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration, refurbishment, development or mining programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Bolsters Nevada Operation Team with Multiple Key Hires
i-80 Gold Corp. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") is pleased to announce it has awarded the engineering study for restart of the Lone Tree autoclave to Hatch Ltd. The study will complete a Pre-Feasibility Study ("PFS") level mechanical and operational review of all aspects necessary for the restart of the Company's autoclave processing facility located in northern Nevada. Additionally, as a part of its comprehensive plan to create a Nevada focused gold mining company, i-80 has recently filled multiple key positions continuing to build a tier-one operations team.
To lead the restart of the Lone Tree processing complex, the Company has secured one of the industry's most qualified project management professionals, Tony Carroll . Mr. Carroll is one of several recent key hires as set out further below.
i-80 acquired the Lone Tree Property and associated infrastructure capable of processing all Nevada ore–types from NGM in 2021. The Lone Tree complex includes an autoclave, floatation circuit, tailings compound, and heap leach facility that will become the hub of i-80's Nevada operations and provide the platform to realize its future production growth plans. The study, combined with an extensive metallurgical program of the mineralization from the Company's Granite Creek, McCoy-Cove and Ruby Hill projects, will allow management to consider a range of restart opportunities and associated capital costs. In the interim period, i-80 has secured processing agreements with Nevada Gold Mines ("NGM") so that it can commence underground development at Granite Creek, seeing material delivered to NGM during the second half of 2022.
"The extensive experience and expertise brought by Hatch Ltd will be one of the crucial elements enabling i-80's success in re-commissioning and operating Nevada's newest refractory processing facility", stated Matt Gili , President and Chief Operating Officer of i-80. "Additionally, few individuals have the demonstrated ability to successfully commission such a program and we are very fortunate to welcome Tony to our growing team."
Building a Tier-One Operations Team
To execute on the Company's goal of becoming one of the most prominent producers in Nevada , i-80 continues to bolster its management and operations teams to facilitate its production growth targets over the next few years. Several key positions have been filled to ensure the Company has the bench strength to execute its development plan.
Lone Tree [Autoclave] Project Director – Tony Carroll
Tony Carroll joins as the Lone Tree Project Director and brings over 30 years' experience in project development, mineral processing, and production. Importantly, Tony previously held the position of Capital Projects Manager with Barrick at its largest gold mining facility, Goldstrike, in the Carlin Trend. Tony has extensive experience managing large capital projects from engineering through construction to a safe operational start-up.
Environmental and Permitting Manager – Mark Miller
Mark Miller comes to i-80 with more than 30 years of environmental management experience. At the start of Mark's career, he spent 20 years in the environmental consulting field with a primary focus on subsurface investigation and remediation of petroleum impacted sites. Mark entered the mining industry with the Environmental team at Freeport-McMoRan's Bagdad, Arizona operations and moved to Nevada in 2010 with Barrick Gold Corporation where he managed Environmental programs at the Turquoise Ridge, Cortez and Goldstrike operations. Following the formation of Nevada Gold Mines , Mark was tapped to manage all environmental aspects for the Carlin Trend footprint which included the Gold Quarry and Goldstrike processing facilities, as well as all surface and underground mining operations.
Senior Resource Geologist – Kelly Lippoth
Kelly Lippoth brings extensive exploration and production experience. Prior to joining i-80, Kelly spent 13 years at Coeur Mining Co. progressing from corporate geologic database manager and geologic modeler to senior resource geologist working on projects located in North and South America , including six years at the Rochester Mine in Nevada . Most recently, Kelly was Senior Resource Geologist at McEwen Mining's Gold Bar Mine.
Granite Creek Project Manager - David Westhoff
David Westhoff has been retained as Project Manager of the Granite Creek Mine. David brings to the Company extensive engineering and underground operational production experience at several Nevada mines. Previously, David held advancing engineering and operations roles over the course of 14 years at the Turquoise Ridge Mine for both Placer Dome and Barrick and served as a senior engineer at NGM's Leeville Mine in the Carlin Trend. David has a Bachelor of Science degree in Mine Engineering from South Dakota School of Mines and Technology (SDSM&T) and is a past recipient of the Nevada Mining Association Safety award for General Supervisor, and SDSM&T's Recent Graduate Award.
Lone Tree Site Superintendent - Kyle Kottwitz
Kyle Kottwitz received a Bachelor of Science in Mining Engineering from the University of Nevada, Reno , and is currently working to receive his MBA at Texas A&M . Kyle is a registered professional engineer in the State of Nevada and joins i-80 from Nevada Gold Mines , and prior to that Newmont, where he held positions in engineering, operations projects, production, and process. Most recently, Kyle was Operations Manager at Lone Tree for Nevada Gold Mines .
i-80 Gold Corp. is a well-financed, Nevada-focused, mining company with a goal of achieving mid-tier gold producer status through the development of four new open pit and underground mining operations that will ultimately process ore at the Company's central Lone Tree complex that includes an Autoclave.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, completion of refurbishment and development activities at the Long Tree project, commencement of mining operations at the Lone Tree project or the Ruby Hill mine development activities at the Company's projects and resource updates in respect of certain properties, the objectives set out under 2022 Scorecard – Key Goals & Catalysts in this press release and the ESG initiatives. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: failure to obtain the relevant regulatory approvals, material adverse changes, exercise of termination rights by any relevant party, unexpected changes in laws, the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration, refurbishment, development or mining programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
All currencies expressed as United States dollars unless otherwise stated
i-80 Gold Corp. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") is pleased to announce its development plans for 2022 - a catalyst-rich year as the Company commences its plans to build a comprehensive Nevada mining complex. i-80 is in the process of developing multiple mining operations to achieve its objective of building a Nevada focused mining company with a goal of ultimately producing more than 500,000 ounces of gold annually.
i-80 completed multiple strategic transactions in 2021, the first year of it being a publicly traded Company, that position the Company to achieve its goal of becoming a prominent, stand alone, gold producer in the state of Nevada. i-80 acquired the Granite Creek, Lone Tree and Ruby Hill properties to become one of the largest holders of gold and silver resources in Nevada (See Table 4).
Importantly, the Company secured the ability to process all types of gold mineralization, including refractory gold bearing mineralization, through the acquisition of the Lone Tree processing complex and also through interim processing agreements with Nevada Gold Mines (" NGM ") that provide the Company with the flexibility to process material from any of the three planned underground operations until the Lone Tree autoclave is restarted. Processing of refractory mineralization remains one of the biggest barriers to entry in Nevada and i-80 is currently one of only three companies with this capability.
To execute its "Hub and Spoke" development plan, i-80 intends to construct four new mining operations over the next three years, complete multiple large-scale drill programs, advance permitting, build a tier-one exploration, development and mining operations team, and restart the Lone Tree autoclave.
Lone Tree will be the "Hub" of i-80's Nevada operations as the central processing facility, operations office, assay lab and warehouse for all sites. Mineralization from Granite Creek, Ruby Hill, and McCoy-Cove will feed the Lone Tree Autoclave, once restarted, and mineralization from the Buffalo Mountain (and Brooks) open pit will be processed at the Lone Tree heap leach facility. So that investors can better understand deliverables, and track execution progress, the Company is adopting a "Scorecard" as presented in Table 1 below.
"With a strong balance sheet, we are concentrated on achieving our goal of becoming one of Nevada's largest gold producers", stated Ewan Downie , Chief Executive Officer of i-80 Gold. "2021 was a highly successful first year for i-80 where we closed multiple strategic acquisitions that position i-80 as one of the largest holders of gold and silver resources in the State."
"Executing our aggressive growth platform is the key focus for 2022 and management is in the process of building a tier-one management team with a track record of operational excellence in Nevada ", stated Matt Gili , President & Chief Operating Officer of i-80 Gold. "We are targeting peer-best production growth through the development of our portfolio of permitted, road accessible deposits. Additionally, the Company has gained a strategic advantage as one of only three companies in the State with infrastructure to process refractory mineral resources, once the facility has been retrofitted to suit the Company's deposits."
Table 1 - 2022 Scorecard – Key Goals & Catalysts
Corporate Growth
Goal
Status
Build Tier-One Management Team
Underway – Several key positions secured
Secure Finances to Execute Growth
Currently ~US$200M in cash and cash equivalents
Align with ICMM Principles
Underway
Lone Tree Complex
Goal
Status
Complete autoclave and metallurgy studies
Underway - Awarding Study Contracts
Place long lead time orders for autoclave refurbishment
To be ordered once appropriate studies are completed
Residual leaching program
Underway – Gold production expected in 2022 1
Granite Creek
Goal
Status
Achieve consistent ramp up mining rate
Ramp up plan underway
Commence delivery of mineralization to NGM for processing
Targeting first delivery in H2-2022
Complete 20,000 m drill program
Underway – drill results throughout the year
Complete updated mineral resource estimate
To be completed after drill program – update plan YE 2022
Targeting H2-2022 start once ramp is sufficiently developed
Complete mine dewatering strategy
Underway – Targeting completion in 2022
Buffalo Mountain (and Brooks)
Goal
Status
Complete permitting of the heap leach open pit operation
Underway – Targeting completion in 2022
Complete resource estimate
Underway – Targeting release in H2-2022
1 See Cautionary Note Below
Lone Tree Processing Facilities and Buffalo Mountain Project
Lone Tree is expected to become the hub of i-80's Nevada operations, and the central processing facility for mineralization from the first four planned mining projects. Importantly, Lone Tree is host to infrastructure that, following successful refurbishment efforts, will allow it to process refractory and oxide mineralization. Currently on care and maintenance, the property hosts existing infrastructure that includes a whole ore autoclave with capacity of 1M Tonnes/year, a flotation circuit with capacity of 1.8M Tonnes/year, a CIC circuit & leach pad with 6.5M Tonnes of remaining capacity, a tailings dam with 1.5M Tonnes of remaining constructed capacity and an additional 10 M Tonnes of designed capacity, a waste dump, along with several buildings useful for the development of all i-80's projects including a warehouse, maintenance shop, administration building and assay lab .
In Q1-2022, the Company plans to award the contract to complete a detailed engineering study for the restart of the autoclave and secure key personnel to execute the restart plan. Additionally, permitting for the development of the Buffalo Mountain open pit mine is underway, where gold mineralization is expected to be processed at the Lone Tree leach pad facility. An initial resource for Buffalo Mountain is expected to be complete in H1-2022.
i-80 considers the Lone Tree infrastructure to be the most strategically located processing facility in Nevada , located on Interstate 80 with the Nevada Railway less than two kilometres to the north, and will be the platform from which i-80 intends to grow its business (see Figure 1 below).
Granite Creek Property
The fully permitted Granite Creek underground represents the Company's most advanced project. Initial rehabilitation of the underground workings was completed in 2021 and additional levels are now being constructed and multiple levels are being prepared for mining. A surface and underground drill program, expected to comprise more than 20,000 metres of drilling, is well underway with positive results. Following the 2022 drill campaign, the Company intends to complete a revised resource estimate focused on the underground mineralized zones.
The Granite Creek Mine Project hosts both open pit and underground resources and is strategically located proximal to Nevada Gold Mines' Twin Creeks and Turquoise Ridge mines at the north end of the Battle Mountain-Eureka Trend at its intersection with the Getchell gold belt in Nevada . The underground deposit at Granite Creek represents one of the highest-grade gold deposits in North America with resource grades in excess of 10 grams per tonne ("g/t) gold (see Table 2 below).
Table 2 – Granite Creek Underground Mineral Resources
Resource Class
Tonnes
(1000's)
Gold Grade
(g/t)
Gold Oz
(000's)
Measured
483
10.07
156
Indicated
525
10.70
181
M&I
1,008
10.40
337
Inferred
741
13.41
319
Notes: 1) Mineral Resources are not Mineral Reserves, and as such, do not have demonstrated economic viability. 2) Cut-off is 5 gpt based on Mining Cost of $100/ton, Process Cost of $106/ton, recovery of 92%, and a gold price of $1600/t. oz. 3) The effective date is May 4, 2021. 4) Figures are rounded and may show apparent errors in subtotals. 5) Preliminary Economic Assessment NI 43-101 Technical Report Granite Creek Mine Project, Humboldt County, Nevada, USA. Effective date - May 4, 2021. Report date – November 9, 2021.
The primary goal of the 2021/2022 drill program is to advance underground drilling and test mining with a target of ramping up to production in H1-2022. Underground drilling will be focused on delineating sufficient resources for near-term mine development and full production, and a cubex drill was recently added to define initial stoping areas. Initially, material mined from Granite Creek will be trucked for processing at the nearby NGM's Twin Creeks processing facility through the interim processing arrangement that was entered into for processing until the Company's Lone Tree facility is operational.
In addition to the underground program at Granite Creek, the surface drilling program testing near-surface mineralization for metallurgical purposes and open pit definition was completed in 2021. This part of the program was competed primarily to advance permitting for open pit mining including heap leach processing on-site. A Preliminary Economic Assessment for the Granite Creek Mine Project was completed in 2021 and a full feasibility study for the open pit project is planned to be completed in the future.
Ruby Hill Project
Ruby Hill includes an open pit mine and related infrastructure (mill / heap leach) and is located immediately west of the town of Eureka proximal to Highway 50. The Ruby Hill Property is host to multiple gold, silver and base metal deposits that collectively comprise one of Nevada's largest mineral endowments that offer substantial upside. In Q4-2021, i-80 launched a multi-drill campaign that will see a minimum of 20,000 metres drilled in 2022 followed by a resource update. All deposits remain open along strike and at depth.
Multiple gold and polymetallic exploration targets exist on the property and i-80 will begin permitting for the construction of a decline to access the high-grade Ruby Deeps deposit and the Blackjack Zone with the intent of trucking refractory mineralization for processing at Lone Tree (see Figure 2). In H1-2022, i-80 will continue with processing of material mined in H2-2021 at the heap leach facility on the property. Ruby Hill also includes crushing and CIL processing infrastructure (see Figure 3).
McCoy-Cove Property
In November 2021 , i-80 announced that it intended to proceed with its planned underground, advanced–exploration, program at the Company's 100%-owned McCoy-Cove Property. The underground plan will include the construction of a decline, and a level that will include multiple drill bays in order to upgrade resources and complete a Feasibility Study. The Cove deposit on the Property represents one of North America's highest grade gold deposits with grades in excess of 10 grams per tonne gold (g/t Au) (see Table 3). The deposit remains open for expansion down-dip.
Table 3 – McCoy Cove Mineral Resources
Resource
Classification
Tonnes
(000's)
Gold Grade
(g/t)
Silver Grade
(g/t)
Gold Ounces
(000's)
Silver Ounces
(000's)
Indicated
1,007
10.9
29.1
351
943
Inferred
3,867
10.9
20.6
1,353
2,565
Notes: 1) Mineral Resources have been estimated at a gold price of $1,500 per troy ounce. 2) Mineral Resources have been estimated using gold metallurgical recoveries of 79.5% and 85.2% for roasting and pressure oxidation, respectively. 3) Mineral Resources have been estimated using a gold equivalent cutoff grade of 0.141 opt. 4) One ounce of gold is equivalent to 98 ounces of silver. 5) The effective date of the Mineral Resource estimate is January 1, 2021. 6) Mineral Resources are not Mineral Reserves, and as such, do not have demonstrated economic viability. 7) Preliminary Economic Assessment for the Cove Project, Lander County, Nevada. Effective date – January 1, 2021. Report date – April 13, 2021
In the coming weeks, the Company will engage contractors to proceed with the initial underground development plan and drilling of approximately 40,000 metres that is expected to commence in the second half of 2022 followed by a Feasibility Study.
The McCoy-Cove Property is strategically located approximately 50 km south of the Company's Lone Tree Complex, and immediately south of Nevada Gold Mines' Phoenix Mine within the Battle Mountain-Eureka Trend. The Property is accessed via all-season road from Highway 55 in Nevada .
ESG Initiative
The Company is focused on achieving industry best ESG practices. Since i-80's inception in April 2021 , the Company completed an ESG Assessment with a third-party consultant which highlighted key areas of focus going forward. The Company intends to grow on this success in 2022 with the goal of aligning with the ICMM Guidelines and has set out a plan to achieve this.
Financial Strength
In 2021, i-80 closed financings that will result in the Company having a strong balance sheet including nearly US$200 Million in cash and cash equivalents following funding of the previously announced financing package.
i-80 Gold Corp. is a well-financed, Nevada-focused, mining company with a goal of achieving mid-tier gold producer status through the development of four new open pit and underground mining operations that will ultimately process ore at the Company's central Lone Tree complex that includes an Autoclave.
Table 4 - i-80 Mineral Resources
Resource
Classification
Tonnes
(000's)
Au Grade
(g/t)
Ag Grade
(g/t)
Au Ounces
(000's)
Ag Ounces
(000)'s
Measured
Granite Creek - Open Pit
20,857
1.47
988
Granite Creek -Underground
483
10.07
156
Lone Tree -Open Pit
McCoy-Cove - Underground
Ruby Hill - Open Pit
Ruby Hill - Underground
Indicated
Granite Creek - Open Pit
7,448
1.27
304
Granite Creek - Underground
525
10.70
181
Lone Tree - Open Pit
7,223
1.77
410
McCoy-Cove - Underground
1,007
10.90
29.1
351
943
Ruby Hill - Open Pit
224,400
0.54
14.3
3,874
103,335
Ruby Hill - Underground
1,200
5.22
0.6
202
22
Measured & Indicated
263,144
0.76
12.33
6,465
104,300
Inferred
Granite Creek - Open Pit
1,531
1.26
62
Granite Creek - Underground
741
13.41
319
Lone Tree - Open Pit
50,734
1.69
2,764
McCoy-Cove - Underground
3,867
10.90
20.6
1,353
2,565
Ruby Hill - Open Pit
162,700
0.39
14.0
2,062
73,472
Ruby Hill - Underground
8,210
6.02
1.7
1,588
439
Inferred
227,783
1.11
10.4
8,148
76,476
Notes: 1) MCOY-COVE: Mineral Resources were calculated at a gold price of US$1500/oz, cut-off grade 0.141 opt Au. and is based on the Preliminary Economic Assessment issued by i-80 on April 13, 2021. Practical Mining LLC, under the supervision of Dagny Odell, P.E., Laura Symmes, SME, and Robert Raponi, P. Eng., each being Qualified Persons within the meaning National Instrument (NI) 43-101, was the lead consultant for the Project PEA. 2) GRANITE CREEK: Mineral Resources have an effective date of May 4, 2021 and are based on the mineral resource technical report issued by i-80 on October 29, 2021. The Qualified Persons for the estimate are Terre Lane QP-MMSA and Hamid Samari QP-MMSA of GRE. Open Pit Mineral resources are reported at a 0.35 g/t cutoff, an assumed gold price of 1,800 $/tr. oz, using variable recovery, a slope angle of 41 degrees, 6% royalty, heap leach processing cost $9.92 per tonne (includes admin), CIL processing cost of $17.63 per tonne (includes admin). Underground mineral resources are reported at a cut-off grade of 5 gpt based on Mining Cost of $100/ton, Process Cost of $106/ton, recovery of 92%, and a gold price of $1600/t. oz. 3) LONE TREE: Mineral Resources were calculated at a gold price of US$1650/oz, cut-off grade of 0.1 g/t Au and are based on the mineral resource technical report issued by i-80 on October 21, 2021. Mr. Abani Samal, Ph.D., CPG, RM- SME, Fellow-SEG a GeoGlobal, LLC Principal is the Qualified Person responsible for the Mineral Resource estimate. 4) RUBY HILL: Mineral Resources were calculated at a gold price of US$1650/oz, cut-off grade 0.1 g/t Au. and are based on the mineral resource technical report issued by i-80 on October 22, 2021. Mr. Christopher Wright, P. Geo, a Wood Canada Ltd. employee, is the Qualified Person responsible for the Mineral Resource estimate. 5) Figures are rounded and may show apparent errors in subtotals. 6) Mineral resources are not mineral reserves and do not demonstrate economic viability.
Technical Information
The scientific and technical information contain in this press release has been reviewed by Tim George, PE, Manager of Engineering Services of i-80 and a Qualified Person within the meaning of NI43-101.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, , completion of refurbishment and development activities at the Long Tree project, commencement of mining operations at the Lone Tree project or the Ruby Hill mine development activities at the Company's projects and resource updates in respect of certain properties, the objectives set out under 2022 Scorecard – Key Goals & Catalysts in this press release and the ESG initiatives. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: failure to obtain the relevant regulatory approvals, material adverse changes, exercise of termination rights by any relevant party, unexpected changes in laws, the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration, refurbishment, development or mining programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Cautionary Note to U.S. Investors Concerning Estimates of Resources: This press release uses the term "inferred resources." "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. Information contained in the press release containing descriptions of any mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder that disclose mineral reserves and mineral resources in accordance with Industry Guide 7 or the SEC's new mining disclosure rules in Regulation S-K 1300. SEC Industry Guide 7 does not recognize the existence of resources. Under Regulation S-K 1300, reserve and resource definitions are substantially similar to the corresponding CIM Definition Standards; however, there are differences between NI 43-101 and Regulation S-K 1300 and therefore information contained in the press release may not be comparable to similar information made public by public U.S. companies pursuant to the Regulation S-K 1300 or SEC Industry Guide 7.
Cautionary Statement:
A production decision at each of the Ruby Hill Mine and Lone Tree projects was made by previous operators of the mines, prior to the completion of the acquisition of each such project by the Company and the Company made a decision to continue production subsequent to the acquisitions at each of the projects. This decision by the Company to continue production and, to the knowledge of the Company, the prior production decision at each of the projects were not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, which include increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability. Readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
i-80 Gold Corp. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") notes that that its CEO, Ewan Downie has reported on System for Electronic Disclosure by Insiders (SEDI) recent purchases of common shares of the Company through open market purchases on the Toronto Stock Exchange to increase his share ownership to 5,000,027 or 2.09%.
Since the Company commenced trading on April 14, 2021 , Mr. Downie has purchased more than 1.4 million shares of i-80 to reach an ownership milestone rarely held by executives of publicly traded companies in the mining sector.
"Since the inception of the Company less than one year ago, we have closed multiple major transactions that position i-80 as one of the largest holders of gold and silver resources in Nevada ", stated Ewan Downie , Chief Executive Officer of i-80. "We have secured a strong balance sheet including nearly US$200 Million in cash and cash equivalents following funding of the previously announced financing package and have embarked on a peer-best production growth initiative in the world's most favorable mining jurisdiction".
i-80 Gold Corp. is a well-financed, Nevada -focused, mining company with a goal of achieving mid-tier gold producer status through the development of four new open pit and underground mining operations that will ultimately process ore at the Company's centrally located Lone Tree complex that includes an Autoclave.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, commencement of trading of i-80 Gold on the Toronto Stock Exchange and completion of the acquisition of the Getchell Project. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Gold began the final month of the year auspiciously, hitting a fresh all-time high.
February gold futures ended Friday (December 1) at US$2,091.70 per ounce, but as Lobo Tiggre of IndependentSpeculator.com pointed out, the yellow metal closed at its highest level ever regardless of the contract.
The move has generated excitement among market participants, but whether gold keeps rising remains to be seen.
I heard recently from David Morgan of the Morgan Report, who said it's tough to say whether it's finally gold's time to break out or just another "fake out" from the precious metal. Here's how he explained it:
"We set a line, and gold has to achieve above that price, and it has to maintain it for three days in a row. And it also needs to be on above-average volumes. And if that occurs then we are about 80 percent assured that it is a breakout and not a fake out. We'll see — I lean toward unfortunately I think it's going to come down again, but I could be wrong" — David Morgan, the Morgan Report
We'll be posting the full interview with Morgan in the coming days. I'll also be speaking about gold and other topics next week with Gareth Soloway of InTheMoneyStocks.com and Chris Vermeulen of TheTechnicalTraders.com, so email me at cmcleod@investingnews.com if you have a question for either of them.
I'd also love to know if there's anyone else you'd like to hear from before the end of 2023.
First Quantum pursues arbitration in Cobre Panama dispute
Major miner First Quantum Minerals (TSX:FM,OTC Pink:FQVLF) was in the headlines this week after Panama's Supreme Court of Justice ruled on Tuesday (November 28) that Law 406 is unconstitutional. The move has created uncertainty for the company's Cobre Panama copper mine, which was approved under that legislation.
Cobre Panama's mining contract was okayed on October 20, but since then locals have turned out en masse to protest the mine — they're concerned about Cobre Panama's environmental impact, and believe First Quantum's deal to operate the asset doesn't provide adequate compensation for Panama. The unrest has even attracted attention on a global scale, with actor Leonardo Dicaprio sharing his support for the protestors in an Instagram post.
Laurentino Cortizo, president of Panama, said on social media platform X that Cobre Panama will be shut down once the ruling on Law 406 has been formally communicated, but First Quantum looks set to put up a fight. The company said in a Friday press release that it has started arbitration proceedings in two different jurisdictions, and pointed out that the court's decision "does not take into account a planned and managed closure scenario."
A key question for investors is how this news could affect copper supply. However, at the moment it's not clear — as Macquarie's Alice Fox told Reuters, the impact really depends on how long Cobre Panama is out of production.
We'll keep you posted on how the situation plays out, so stay tuned.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Franco-Nevada Corporation (" Franco- Nevada " or the " Company ") (TSX: FNV) (NYSE: FNV) notes that its partner, First Quantum Minerals Ltd. (" First Quantum "), has provided a further update in respect of recent comments made by the President of Panama Laurentino Cortizo regarding a transition process for the closure of the Cobre Panama mine.
For more detailed information, please refer to First Quantum's news release dated December 1, 2023 .
Franco- Nevada also reports that, on November 23, 2023 , the Company notified the Ministry of Commerce and Industry of Panama of its intent to initiate arbitration to enforce its rights under international law pursuant to the Canada-Panama Free Trade Agreement. Similar to the notice filed by First Quantum on November 14, 2023 , the Company's notice facilitates consultations between the Government of Panama and the Company under the Free Trade Agreement in order to avoid the need to file any such arbitration.
Forward- Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to the transition process for the closure of the Cobre Panama mine and potential international arbitration under the Canada-Panama Free Trade Agreement. The outcome of these matters, the failure to restart production from the mine, the inability to achieve agreement on appropriate mining concession arrangements, and further steps in respect thereof by the Panamanian government and courts could have a material adverse impact on the revenue Franco-Nevada derives from its streaming arrangements relating to Cobre Panama and on Franco-Nevada's results of operations and financial condition. There can be no assurance that such forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions relating to Franco-Nevada's business and assets, please refer to Franco-Nevada's most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov . The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
Gold is above US$2,000 per ounce again, and John Feneck of Feneck Consulting believes it's set to move higher.
"I think the gold setup here is beautiful ... I've been very guarded on the price of gold — I've never talked new highs ever, I've never said US$2,500 this or US$5,000 that," he told the Investing News Network. "(But) we are saying as a result of what happened October 7 that you are going to see a new all-time high in gold next year, which is new for us."
Feneck noted that the banking crisis earlier this year added a new floor for the yellow metal; since then, the Israel-Hamas war, which broke out almost two months ago, has created even more safe-haven demand for gold.
"If it wasn't for Bitcoin doing so well, (artificial intelligence) doing so well, tech doing so well, in general you'd have an all-time high probably already in our view," he said. "But it'll just happen next year. We get more time to build positions."
In terms of gold, he mentioned Cartier Resources (TSXV:ECR) and US Gold (NASDAQ:USAU) as companies he's interested in, as well as Silver Tiger (TSXV:SLVR,OTCQX:SLVTF) on the silver side. Feneck is also looking outside the precious metals sector — his uranium holdings include Denison Mines (TSX:DML,NYSEAMERICAN:DNN), Uranium Royalty (TSX:URC,NASDAQ:UROY), Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF) and the Global X Uranium ETF (ARCA:URA)
Watch the interview above for more from Feneck on gold, silver and uranium, as well as thoughts on First Tellurium (CSE:FTEL,OTCQB:FSTTF), Golden Metal Resources (LSE:GMET,OTCQB:GMTLF), Power Nickel (TSXV:PNPN,OTCQB:PNPNF) and Thunder Mountain Gold (TSXV:THM,OTCQB:THMG).
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Forum Energy Metals is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA: 29W) (the " Company ") is pleased to announce a non-brokered private placement of: (i) flow-through common shares at a price of C$0.33 per share (each a "FT Share "); and (ii) common shares in the capital of the Company at a price of C$0.30 per common share (each a " Common Share "), and for total gross proceeds of approximately C$5,116,000 (the " Offering ").
"We are very appreciative for the continued support for our exciting and impactful exploration activities to advance our significant gold deposit and other recent high-grade gold discoveries on our district scale land package in the prolific and under explored White Gold District." stated David D'Onofrio, Chief Executive Officer.
Pursuant to an investor rights agreement between the Company and Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) (" Agnico ") dated December 13, 2016, Agnico has indicated that it intends to maintain its pro rata interest in the Company at 19.85% on a post-offering basis through the acquisition of Common Shares.
The gross proceeds received from the sale of the FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) (the " Tax Act ") on the Company's properties in the White Gold District of the Yukon Territory, and renounced to subscribers in the Offering with an effective date no later than December 31, 2023. Such Canadian exploration expenses will also qualify as "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act. The net proceeds from the sale of the Common Shares will be used for working capital and other general corporate purposes.
Participation by Agnico in the Offering will be considered a "related party transaction" pursuant to Multilateral Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions (" MI 61-101 "). The Company will be exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Agnico's participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report will be filed in connection with the participation of Agnico in the Offering less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
Closing of the Offering is expected to occur on or about December 8, 2023 and is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange (the " TSXV "). The securities issued pursuant to the Offering will be subject to a statutory hold period of four months plus one day from the closing date of the Offering in accordance with applicable securities legislation.
About White Gold Corp. The Company owns a portfolio of 17,584 quartz claims across 30 properties covering approximately 350,000 hectares representing over 40% of the Yukon's emerging White Gold District. The Company's flagship White Gold project hosts four near-surface gold deposits which collectively contain an estimated 1,152,900 ounces of gold in Indicated Resources and 942,400 ounces of gold in Inferred Resources ( 1) . Regional exploration work has also produced several other new discoveries and prospective targets on the Company's claim packages which border sizable gold discoveries including the Coffee project owned by Newmont Corporation with Indicated Resources of 2.14 Moz at 1.23 g/t Au, and Inferred Resources of 0.23 Moz at 1.01 g/t Au (2) , and Western Copper and Gold Corporation's Casino project which has Measured and Indicated Resources of 7.6 Blb Cu and 14.5 Moz Au and Inferred Resources of 3.3 Blb Cu and 6.6 Moz Au (3) . For more information visit www.whitegoldcorp.ca.
(1) See White Gold Corp. technical report titled "2023 Technical Report for the White Gold Project, Dawson Range, Yukon, Canada ", Effective Date April 15, 2023, Report Date May 30, 2023, NI 43-101 Compliant Technical Report prepared by Dr. Gilles Arseneau, P.Geo., available on SEDAR+. (2) See Newmont Corporation 10-K: Annual report for the year ending December 31, 2022, in the Measured, Indicated, and Inferred Resources section, dated February 23, 2023, available on EDGAR. Reserves and resources disclosed in this Form 10-K have been prepared in accordance with the Regulation S-K 1300, and do not indicate NI43-101 compliance. (3) See Western Copper and Gold Corporation technical report titled "Casino project, Form 43-101F1 Technical Report Feasibility Study, Yukon Canada", Effective Date June 13, 2022, Issue Date August 8, 2022, NI 43-101 Compliant Technical Report prepared by Daniel Roth, PE, P.Eng., Mike Hester, F Aus IMM, John M. Marek, P.E., Laurie M. Tahija, MMSA-QP, Carl Schulze, P.Geo., Daniel Friedman, P.Eng., Scott Weston, P.Geo., available on SEDAR+.
Cautionary Note Regarding Forward Looking Information This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "proposed", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, the Offering, including all regulatory approvals; the use of proceeds from the Offering; the Company's objectives, goals and exploration activities conducted and proposed to be conducted at the Company's properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company's properties will be successful; exploration results; and future exploration plans and costs and financing availability.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the White Gold properties; the receipt of all applicable regulatory approvals for the Offering; the completion of the Offering on the terms described herein, or at all; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company's properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management's discussion and analysis of the Company. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Contact Information: David D'Onofrio Chief Executive Officer White Gold Corp. (647) 930-1880 ir@whitegoldcorp.ca
Franco-Nevada Corporation (" Franco- Nevada ") (TSX: FNV) (NYSE: FNV) notes that its partner, First Quantum Minerals Ltd. (" First Quantum "), has issued an update reporting that due to the continued illegal blockades at the Punta Rincon port and roads to the site, the Cobre Panama mine has suspended commercial production and is applying a program of preservation and safe maintenance of the plant and facilities.
For more detailed information, please refer to First Quantum's news release dated November 28, 2023 .
Franco- Nevada further notes that its revised 2023 GEO guidance issued on November 20, 2023 , remains unchanged as it assumed no further contributions from Cobre Panama from such date.
Forward- Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to the safe maintenance and preservation of facilities at Cobre Panama, and Franco-Nevada's revised guidance for 2023. The outcome of these matters could have a material adverse impact on the revenue Franco-Nevada derives from its streaming arrangements relating to Cobre Panama and on Franco-Nevada's results of operations and financial condition. There can be no assurance that such forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions relating to Franco-Nevada's business and assets, please refer to Franco-Nevada's most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov . The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
Strike Gold: A Comprehensive Guide for Savvy Investors
The Investing News Network (INN) spoke with analysts, market watchers and insiders about which trends will
impact gold in the coming months.
✓ Trends
✓ Forecasts
✓ Top Stocks
Table of Contents:
Gold Price Update: Q1 2023 in Review
Gold Price Update: Q2 2023 in Review
Gold Price Update: Q3 2023 in Review
Lobo Tiggre: Gold Stocks are My Highest-Conviction Trade for 2024
Tavi Costa: Gold Price Breakout is "Inevitable," Don't Lose Focus Now
Top 10 Gold-mining Companies
A Sneak Peek At What The Insiders Are Saying
“When gold turns, it can turn very, very dramatically, this time in particular because so many people are underinvested in gold and gold stocks.”
— Adrian Day, Adrian Day Asset Management
"My guess is that as the world descends into chaos — and I think that's true, we are going to see chaos later this year and throughout this decade — there's going to be a panic into gold, because it's the only financial asset that's not simultaneously someone else's liability"
— Doug Casey, InternationalMan.com
“Gold is in a bull market in every currency in the world except the US dollar.”
— Rick Rule, Rule Investment Media
Who We Are
The Investing News Network is a growing network of authoritative publications delivering independent,
unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety
of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from
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Gold has seen a thunderous start to 2023 — thanks to significant economic disruptions, it's jumped in value while continuing to play a key role as a safe haven.
The precious metal's run has created tremendous opportunities for gold bulls, especially as it appears to be stabilizing above the US$2,000 per ounce mark, with experts pointing to potentially higher points this year.
Here the Investing News Network (INN) provides a recap of what happened in the gold market in the first three months of 2023.
Narrative changing after disappointing 2022
Greg Taylor, chief investment officer at Purpose Investments, told INN that many investors were disappointed with gold last year due to its flat performance, even with high levels of inflation.
“(Investors) just got really frustrated with it and it hadn't really worked. Now it's starting to work and people are taking another look at it,” Taylor said.
The expert added that since the US dollar was up and enjoyed a strong period last year, it “offset a lot of the inflation reasons for people to own gold.”
But heading into this year, Taylor said, the gold investment cycle has seen new life.
The financial expert explained that even as central banks prepare to pause or slow the pace of their rate hikes, inflation remains higher than they would like.
“We're starting to hear more and more concerns that there's potential stagflation,” Taylor said. “When you get stagflation, that's the perfect snare for gold.”
More investors appreciating gold in 2023
Shree Kargutkar, managing partner at Sprott (TSX:SII,NYSE:SII), told INN that despite gold's success so far in 2023, he still doesn’t think most investors have exposure to the yellow metal.
“I would say the average investor today is not really invested in gold. Rather, the average investor today is a speculator as far as the bullion is concerned,” Kargutkar said.
The Sprott expert explained that holdings in precious metals bullion exchange-traded funds have declined approximately 15 percent from their peak in the second half of 2020.
“People have actually been reducing their allocation to gold. And the average investor has been spectating for admission,” Kargutkar said.
When discussing the role of gold in an investor’s portfolio, Taylor cautioned that he doesn’t think gold should take a dominant role. “But having a sleeve of real asset exposure in the 5 to 10 percent range is probably not a bad, bad percentage to look at,” he said.
For his part, Kargutkar said the recent move in gold could create a bigger spotlight for the asset class. “My guess is it will probably make people want to perhaps take a second look at the metal as an important constituent of a portfolio,” he said.
US banking crisis boosts gold's safe-haven appeal
Gold’s tremendous rise can be attributed to a variety of factors in the global economic spectrum, but a major driver has been the fallout from US banking issues.
Silicon Valley Bank and Signature Bank faced serious bank runs after losing the confidence of their users, leading to two of the biggest bank collapses in US history.
This chaos was accompanied by the emergency rescue acquisition of Credit Suisse (NYSE:CS) by UBS (NYSE:UBS), which was in part organized by Swiss authorities.
The pressure points these events created caused panic to settle into the economic landscape, allowing gold to fulfill its role as a safe haven for the investing class.
Gold first crossed the US$2,000 level in March, and has found some stability above the coveted price mark.
Gold price chart, January 1, 2023, to April 20, 2023.
Aside from banking issues, gold continues to be affected by moves from the US Federal Reserve.
Following its meeting in March, the central bank announced a 25 basis point rate hike, saying it remains committed to its goal of curbing inflation. Investors are now watching closely to see what it will do at its next meeting in May.
Economists polled by Reuters are expecting to see another 25 basis point interest rate increase from the central bank, despite recent data points from the consumer price index and the producer price index.
Both price markers show inflationary pressures are easing — in fact, the March drop in the producer price index was the biggest decline since the start of the pandemic in early 2020. Even so, inflation is still far from the Fed's target of 2 percent.
At the same time, the Fed may not be able to hike much further. Its latest meeting minutes indicate that it expects a “mild recession” in the second half of 2023, spurred by the banking crisis outlined earlier.
“Given their assessment of the potential economic effects of the recent banking-sector developments, the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years,” the central bank states in its meeting recap.
The Fed's next meeting runs from May 2 to 3.
Investor takeaway
After what many deemed a weaker year for gold in 2022, 2023 has been incredibly bullish for the precious metal.
EY's Theo Yameogo told INN it’s important to remember the nature of the market, and how these jumps have come and gone in the past. “It's just a reminder that this is cyclical,” he said.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Gold remained at historically high levels in the second quarter, although it fell below US$2,000 per ounce.
The US Federal Reserve was in focus during Q2, with investors closely watching the American economy for hints on the central bank's next move. While the summer is often a slower time, some experts believe it's a good chance to position.
Here the Investing News Network (INN) presents a recap of the Q2 period for the gold market.
How did the gold price perform in Q2?
The gold price spent a decent amount of time above US$2,000 in Q2, but has since pulled back.
The yellow metal remained near or above that level through April and May, but in June its price strength began to decline. It finished the second quarter around US$1,920, although by mid-July it was back up around US$1,970.
Gold price chart, January 1, 2023, to July 20, 2023.
Actions from the US Federal Reserve continue to impact gold, and at its June meeting it left interest rates unchanged at 5 to 5.25 percent. The decision came after 10 consecutive increases from the central bank.
Fed officials have said the goal is to take time to review the effects of its aggressive hiking strategy.
Since the June meeting, experts have been debating what the Fed will do next. While some market watchers are surprised the Fed has been able to raise rates as far as it has and don't think it will be able to go much further, the latest "dot plot" projections from Fed officials tell another story — they show two more hikes of 25 basis points each are possible in 2023.
In the gold space, there's a broad consensus that a change in tactics from the Fed could provide a price boost.
As part of its half-year update, the World Gold Council said global economies appear to be nearing the end of their tightening cycles. “As monetary policy likely transitions from tightening to on-hold, market consensus is for a mild contraction in the US this year, and slow growth in developed markets,” the organization states in its report.
“In this context and following gold’s positive returns in H1, we expect gold to remain supported on the back of range bound bond yields and a weaker dollar,” the World Gold Council also notes.
According to the association, gold has been one of the only true positive investment assets so far in 2023, especially as the economy was hit with uncertainty in North America from several staggering bank runs.
Gold ETF inflow streak ends in June
In another report, the World Gold Council states that June brought the end of a three month streak for inflows into gold-backed exchange-traded funds (ETFs), which are often seen as a safer way to get exposure to the market.
Gold ETFs saw outflows of US$3.7 billion in June, concentrated in Europe and in North America.
“The early June strong equity market performance in key markets likely shifted focus away from risk-off assets such as gold,” the World Global Council said, noting that global gold ETF holdings fell 56 metric tons to 3,422 metric tons.
“And the majority of outflows occurred when the gold price dropped during the second half of the month amid hawkishness from major central banks in the face of obstinate inflationary pressure.”
Summer offers gold investors time to position
John Feneck, portfolio manager and consultant at Feneck Consulting, recently told INN that investors should take advantage of the summer doldrum months to better position themselves in the gold space.
"Summertime and in December as well, when people aren't doing their homework, is when we're doing most of our work, because this is when you can pick up some huge bargains. If you feel like doing something with them and disposing of them later next year or the year after, you're going to make some considerable money we think," he said.
Watch the full interview with Feneck above.
Investor takeaway
The Q2 period offered a bit of a stopping point for gold as the Fed broke off from its rate hike strategy. Now investors are looking ahead at the second half of the year for catalysts that could push it above US$2,000 once again.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
The gold price began Q3 on a relatively high note, but was approaching US$1,800 per ounce by its end.
The yellow metal was pushing back toward the US$2,000 mark at the start of the period, but wasn't able to maintain that level. The quarter culminated in a precipitous decline that saw gold break through support.
What has caused gold to retreat so quickly? Read on to learn more about what factors have affected its price over the last three months, and about significant gold-related news released during that time.
How did the gold price perform in Q3?
Gold tends to underperform in when interest rates are high, which was the case in Q3. At its July meeting, the US Federal Reserve raised rates for the 11th time since March 2022, adding 25 basis points for a range of 5.25 to 5.5 percent — the highest in 22 years. The gold price fell steadily in the two weeks after the decision, slumping to US$1,885.70 on August 17.
After seeing some support from mid-August to mid-September, gold went into a tailspin to close the quarter at US$1,848.80. The drop came as the Fed announced on September 20 that it would hold rates steady, and as Chair Jerome Powell suggested the central bank is in a good position to deliver a “soft enough” landing.
Central banks continue buying gold
While higher rates continued to put pressure on gold this past quarter, global central bank buying has helped maintain the precious metal's price level. July and August saw central banks pick up 55 metric tons (MT) and 77 MT of gold respectively, bringing the total to 219 MT for the three months ended in August.
Leading the way is China, which has purchased 155 MT of the yellow metal since the start of the year as it tries to minimize its US dollar exposure. Its central bank currently holds gold reserves of 2,165 MT, accounting for 4 percent of global reserves.
With the Russia-Ukraine war on its doorstep, Poland has also been a significant buyer of gold, adding another 18 MT in August and bringing its yearly total to 88 MT. That moves it closer to its intended buying target of 100 MT for the year.
Sanctions imposed on Russia following its invasion of Ukraine in February 2022 have renewed the BRICS nations' interest in finding an alternative to the US dollar as the global reserve currency.
Member nations Brazil, Russia, India and South Africa are keen to break from the US dollar, but it’s China in particular that has been working for several years to establish its own currency as an alternative, with increasing uptake. When the BRICS countries met from August 22 to 24, some market participants believed they might announce a new BRICS currency — perhaps one backed by gold or another commodity. But ultimately no such announcement was made at the meeting.
Many analysts believe the idea is untenable unless China and India are able to find common ground and resolve long-standing differences — and even if they did so, a BRICS currency wouldn't necessarily be backed by gold.
“The lack of information out there is extremely important in understanding what you’re looking at. There’s a lack of information because there is a lack of development,” Jeffrey Christian, managing partner at CPM Group, explained to the Investing News Network (INN) in the lead-up to the BRICS meeting.
“They do see a desire to cooperate among themselves to counter decades of hegemonic activity by the US and to a lesser extent Europe,” he continued. “But the idea of a central currency makes no sense. None of the countries really want to tie their currencies to Russia. The idea of a different currency backed by gold is a non-starter.”
M&A activity makes headlines
The massive deal between gold giants Newmont (TSX:NGT,NYSE:NEM) and Newcrest Mining (ASX:NCM,TSX:NCM) inched closer to completion through the third quarter. The deal, which will see Newmont acquire 100 percent of Newcrest, reached significant milestones as the companies received key approvals from Australia, Japan and Papua New Guinea.
Newmont shareholders met on October 11 to vote, with 96 percent of them voting in favor of the transaction. Newcrest shareholders are set to vote on October 13. Newmont has been trading lower since it announced its intention to acquire Newcrest on February 5, while Newcrest's share price has reacted more favorably.
Though this may be the biggest gold deal of the year, 2023 continues to be hot and is on track to bring in the highest level of mergers and acquisitions for the mining sector in a decade.
Other notable M&A announcements in the sector during Q3 include the completion of a merger between GCM Mining and Aris Gold on September 26 to create Aris Mining (TSX:ARIS,NYSE:ARMN). The resultant company has operations in Colombia and produced 60,193 ounces of gold in its most recent quarter.
Aside from that, Canada’s Silvercorp Metals (TSX:SVM,NYSEAMERICAN:SVM) announced on August 6 that it has entered into a binding scheme implementation deed to acquire Australia’s OreCorp (ASX:ORR). The acquisition would give Silvercorp a US$630 million market cap and access to OreCorp’s multimillion-ounce Nyanzaga gold project in Northwest Tanzania. The project is expected to produce 240,000 ounces of gold per year once complete.
David Erfle, editor and founder of Junior Miner Junky, told INN at the end of Q3 that he sees growth potential in gold stocks, but with limited interest from retail investors, more M&A activity is necessary to bring interest to the market.
“A lot of (companies) are at the feasibility stage, or the construction stage or the finance stage, and their market cap is two or three or sometimes four times less than the equity it would take to build the mine,” he said. “What I'd like to see is several of these companies merge, so you have one company with a handful of these projects — maybe $150 million, $200 million in the bank, access to capital and also tack on a big board US listing. Then you're more liquid, you're more attractive."
Biggest IPO of the year is golden
July 7 brought Indonesia’s biggest initial public offering (IPO) this year and one of the world’s best-performing IPOs so far in 2023: PT Amman Mineral Internasional (IDX:AMMN). The company raised the equivalent of over US$713 million in its IPO, and shares have since surged 250 percent in value, giving the firm a market cap of US$29 billion.
The company's most significant asset, Amman Mineral Nusa Tenggara — which includes the Batu Hijau mine, the second largest gold mine in Indonesia — was purchased from Newmont in 2016. The copper-gold mine produced 172,000 ounces of the yellow metal during the first half of the year.
So, why has gold retreated?
Even though there have been strong gold sector developments over the past three months, larger economic trends have made investments like Treasuries more attractive and have dulled gold's luster. The yellow metal's relatively flat growth over the past few years has also prompted investors to look for more immediate gains elsewhere.
With the US economy and dollar staying strong and no relief from high interest rates until at least 2024, it's not looking good for investors who hope gold will break through US$2,000 in the coming months.
However, the Fed has indicated that it's tracking the economy closely and has acknowledged that a recession hasn't been completely avoided. The central bank will meet again from October 31 to November 1 to determine whether another hike will be needed and to outline its steps for the beginning of next year.
Investor takeaway
Following a solid start to the year for gold, the third quarter brought setbacks for the metal, which is subject to both broad market forces and investor appetites. While retail and institutional investors may continue to shy away from gold for interest-bearing assets, central bank buying looks set to persist and may be a factor in price stabilization in Q4.
At the same time, Q4 has already brought a great deal of geopolitical instability. The invasion of Ukraine remains an issue for investors and, if it worsens, it could push the price of gold higher. Additionally, a burgeoning conflict in Israel has already pushed the price of the yellow metal up nearly 1 percent since hostilities began on October 7.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lobo Tiggre: Gold Stocks are My Highest-Conviction Trade for 2024
In a recent interview, Lobo Tiggre, editor and founder of IndependentSpeculator.com, shared his highest-conviction trade for 2024. While he's still a uranium bull, he sees the most opportunity in gold stocks next year.
Back in July, Tiggre's focus had narrowed to uranium and he was feeling bearish on gold in the near term. But now he sees various factors lining up for gold, including a US recession, geopolitical concerns, inflation and central bank buying.
"Maybe it means a little bit more for me to say I'm looking at (gold)," he told the Investing News Network. "I'm looking at the recession — it's here on a global level and I think it's here in disguise in the US. But I think the disguise falls."
Watch the interview above for more from Tiggre on gold, as well as uranium and silver. You can also click here for the Investing News Network's full New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Tavi Costa: Gold Price Breakout is "Inevitable," Don't Lose Focus Now
Speaking at the New Orleans Investment Conference, Tavi Costa, partner and portfolio manager at Crescat Capital, discussed sentiment in the resource sector, including where he sees opportunity today.
"Everyone is sort of waiting for this breakout in gold, otherwise there's no party," he said on the sidelines of the event. "Everyone is just waiting patiently, and in my view it's going to happen — it's inevitable that we're going to see a breakout. Then other commodities should follow, and then the valuations of companies should be rerated."
In terms of timing, Costa said that back in 2018 he started looking closely at CAPEX trends among mining companies. "You can kind of see when that bottoms out you tend to see a bull market in commodities. You just don't know on the macro side what the trigger is going to be, but the foundation of the thesis is there," he explained.
"I feel like everything is really coming together right now, (but) the sentiment is really bearish," Costa continued. "I am not that way at all. I'm extremely bullish, I'm really focused right now ... you don't want to lose focus at the wrong time."
Moving forward, he expects to see the traditional 60/40 portfolio fall by the wayside. "Those two allocations need to be redefined," he said. "I think commodities are going to play a role there. I think gold is going to be one of those assets that is going to be competing with Treasuries, just like central banks have been changing their allocation." Notably, he pointed out that recent research shows 70 percent of advisors have portfolios with less than 1 percent gold.
"I think (gold is) going to be one side. And then a basket of commodities will probably take the other side. And I would say emerging markets, especially rich resource economies like Brazil, will probably take a part of the equity market portion."
Watch the interview above for more of Costa's thoughts on gold and the resource sector. You can also click here for the Investing News Network's full New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Regardless of how the gold price is doing in any given year, the top gold-mining companies are always making moves.
Right now, the yellow metal is in the limelight — stimulated by increasing global inflation, geopolitical turmoil and recession fears, the price of gold has broken past the US$2,000 per ounce level multiple times in 2023.
Rising demand for gold alongside concerns over gold mine supply have pushed the metal to record highs in recent years, and market watchers are eyeing world's top gold-mining companies to see how they respond to current market dynamics.
According to the most recent US Geological Survey data, gold production increased by approximately 2 percent in 2021, and by a mere 0.32 percent in 2022. China, Australia and Russia were the top three countries to produce gold last year.
But what were the top gold-mining companies by production in 2022? The list below was compiled by the team at Refinitiv, a leading financial markets data provider. Read on to find out which companies produced the most gold last year.
Newmont was the largest of the top gold-mining companies in 2022. The firm holds significant operations in North and South America, as well as Asia, Australia and Africa. Newmont produced 185.3 metric tons (MT) of gold in 2022.
In early 2019, the miner acquired Goldcorp in a US$10 billion deal; it followed that up by starting a joint venture with Barrick Gold (TSX:ABX,NYSE:GOLD) called Nevada Gold Mines; is 38.5 percent owned by Newmont and 61.5 percent owned by Barrick, which is also the operator. Considered the world’s biggest gold complex, Nevada Gold Mines was the top-producing gold operation in 2022 with output of 94.2 MT.
Newmont’s gold production guidance for 2023 is set at 5.7 million to 6.3 million ounces (161.59 to 178.6 MT).
Barrick Gold lands in second place on this list of top gold producers. The company has been active on the M&A front in the last five years — in addition to merging its Nevada assets with Newmont in 2019, the company closed its acquisition of Randgold Resources the prior year.
Nevada Gold Mines is not Barrick's only asset that is a top-producing gold operation. The major gold company also holds the Pueblo Viejo mine in the Dominican Republican and the Loulo-Gounkoto mine in Mali, which produced 22.2 MT and 21.3 MT, respectively, of the yellow metal in 2022.
In its annual report for 2022, Barrick notes that its full-year gold production was slightly less than its stated guidance for the year, rising a little over 7 percent from the previous year’s level. The company has attributed this shortfall to lower production at Turquoise Ridge due to unplanned maintenance events, and at Hemlo due to the temporary water inflows that impacted mining productivity. Barrick has set its 2023 production guidance at 4.2 million to 4.6 million ounces (119.1 to 130.4 MT).
Agnico Eagle Mines produced 97.5 MT of gold in 2022 to take the third spot on this top 10 gold companies list. The company has 11 operating mines in Canada, Australia, Finland and Mexico, including 100 percent ownership of two of the world's top gold-producing mines — the Canadian Malartic mine in Quebec and the Detour Lake mine in Ontario — which it acquired from Yamana Gold (TSX:YRI,NYSE:AUY) in early 2023.
The Canadian gold miner achieved record annual production in 2022, and also increased its gold mineral reserves by 9 percent to 48.7 million ounces of gold (1.19 million MT grading 1.28 grams per MT gold). Its gold production for 2023 is expected to reach 3.24 million to 3.44 million ounces (91.8 to 97.5 MT). Based on its near-term expansion plans, Agnico Eagle is forecasting production levels of 3.4 million to 3.6 million ounces (96.4 to 102.05 MT) in 2025.
Coming in fourth on this top gold-mining companies list is AngloGold Ashanti, which produced 85.3 MT of gold in 2022. The South African company has nine gold operations in seven countries across three continents, as well as numerous exploration projects around the world. AngloGold's Kibali gold mine (a joint venture with Barrick as the operator) in the Democratic Republic of Congo is the fifth largest gold mine in the world, having produced 23.3 MT of gold in 2022.
In 2022, the company increased its gold production by 11 percent over 2021, coming in at the top end of its guidance for the year. Its production guidance for 2023 is set at 2.45 million to 2.61 million ounces (69.46 to 74 MT).
Polyus produced 79 MT of gold in 2022 to take fifth place among the top 10 gold-mining companies. It is the largest gold producer in Russia and holds the highest proven and probable gold reserves globally at more than 101 million ounces.
Polyus has six operating mines located in Eastern Siberia and the Russian Far East, including Olimpiada, which ranks as the world's third largest gold mine by production. The company expects to produce approximately 2.8 million to 2.9 million ounces (79.37 to 82.21 MT) of gold in 2023.
Gold Fields comes in at number six for 2022 with gold production for the year totaling 74.6 MT. The company is a globally diversified gold producer with nine operating mines in Australia, Chile, Peru, West Africa and South Africa.
Gold Fields and AngloGold Ashanti recently joined forces to combine their Ghana exploration holdings and create what the companies claim will be Africa's biggest gold mine. The joint venture has the potential to produce an annual average of 900,000 ounces (or 25.51 MT) of gold over the first five years.
The company’s production guidance for 2023 is in the range of 2.25 million to 2.3 million ounces (63.79 to 65.2 MT). This figure excludes production from Gold Fields' Asanko joint venture in Ghana.
Kinross Gold has six mining operations across the Americas (Brazil, Chile, Canada and the US) and East Africa (Mauritania). Its largest producing mines are the Tasiast gold mine in Mauritania and the Paracatu gold mine in Brazil.
In 2022, Kinross produced 68.4 MT of gold, which was a 35 percent year-on-year increase from its 2021 production level. The company attributed this increase to the restart and ramp-up of production at the La Coipa mine in Chile, as well as to higher production at Tasiast after the resumption of milling operations that were temporarily suspended in the prior year.
Newcrest Mining produced 67.3 MT of gold in 2022. The Australian company operates a total of five mines across Australia, Papua New Guinea and Canada. Its Lihir gold mine in Papua New Guinea is the world's seventh largest gold mine by production.
According to Newcrest, it has one of the largest group gold ore reserves in the world. With an estimated 52 million ounces of gold ore reserves, its reserve life is approximately 27 years. The number one gold-producing company on this list, Newmont, made a proposal to combine with Newcrest in February; the deal closed successfully in November.
Better known for its copper production, Freeport-McMoRan produced 56.3 MT of gold in 2022. The vast majority of that production originates from the company's Grasberg mine in Indonesia, which ranks as the world's second largest gold mine by production.
In its Q3 results for this year, Freeport-McMoRan states that long-term mine development activities are underway at Grasberg's Kucing Liar deposit. The company anticipates that the deposit will ultimately produce more than 6 billion pounds of copper and 6 million ounces of gold (or 170.1 MT) between 2028 and the end of 2041.
Zijin Mining Group rounds out this top 10 gold companies list with production of 55.9 MT of gold in 2022. The company's diverse metals portfolio includes seven gold-producing assets in China, and several others in gold-rich jurisdictions such as Papua New Guinea and Australia.
In 2023, Zijin presented its revised three year plan through 2025, as well as its 2030 development goals, one of which is to move up the ranks to become a top three to five producer of gold and copper.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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