
June 13, 2022
Pre-Tax NPV5% of USD690 million, Pre-Tax IRR of 26.35% and AISC of USD1,005/oz
2.27Moz gold production over a 14-year mine life, producing 200,000 oz per annum in the first 5 years
Upon filing of the Feasibility Study on SEDAR Pasofino can deliver an Option Satisfaction Notice confirming that it has satisfied the requirements to earn its 49% interest in the project
Pasofino Gold Limited (TSXV: VEIN) (OTCQB: EFRGF) (FSE: N07) ("Pasofino" or the "Company") is pleased to announce the results of the Dugbe Project Feasibility Study (FS), which is located in Southern Liberia. The FS was prepared by the Company's lead engineers, DRA Global (South Africa), in accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
As per NI 43-101 the Feasibility Study will be filed by Pasofino at www.sedar.com within 45 days of this news release. Subject to the filing by Pasofino of the Feasibility Study under Pasofino's profile at www.sedar.com and final administrative documentation, Hummingbird Resources Plc ("Hummingbird") has confirmed that the FS has been carried out to the agreed standards and will satisfy the technical requirements to allow Pasofino to earn its 49% economic interest in the Project (prior to the issuance of the Government of Liberia's 10% carried interest).
HIGHLIGHTS
- Strong financial metrics:
- Pre-tax NPV5% of USD690M (USD530M post-tax), 26.35% IRR (23.6% post-tax) at a base gold price of USD1,700/oz.
- Fast capital payback of approximately 3.5 years from start of production:
- Life of mine (LOM) All In Sustaining Cost (AISC) of USD1,005oz and USD29/t cash cost[1] .
- Pre-production capital requirement of USD397M excluding owners' costs for a 5Mtpa processing plant.
- Large Mineral Reserve with potential for expansion:
- 2.27Moz gold produced over a 14-year LOM.
- Average annual production of 200,000oz for the first 5 years.
- 2.76Moz of Mineral Reserves.
- Additional 67koz of Inferred Mineral Resources within the FS pit and immediate sidewalls which have not been included in the Mineral Reserves.
- Simple project with economies of scale:
- LOM strip ratio of 4.21:1 highlighted by a low 3.56:1 ratio in the first five years.
- Simple (Gravity-CIL) process flow sheet which enhances project economics.
- Low power costs of USD0.175/kWh, with opportunities for long-term savings with alternative renewable energy sources.
PASOFINO EARN-IN UPDATE
Subject to the filing by Pasofino of the FS under Pasofino's profile at www.sedar.com, and final administrative documentation, Hummingbird has confirmed that the FS has been carried out to the agreed standards and will satisfy the technical requirements to allow Pasofino to earn its 49% economic interest in the Project (prior to the issuance of the Government of Liberia's 10% carried interest). Further, both Pasofino and Hummingbird will have the right to exercise the option to consolidate ownership by converting Hummingbird's 51% ownership of the Project for a 51% shareholding in Pasofino, such that Pasofino would own 100% of the Project (prior to the government of Liberia's 10% carried interest), subject to the receipt of all required approvals including the TSX Venture Exchange.
ENVIRONMENT, SOCIAL AND GOVERNANCE
Environmental and social impact assessment (ESIA) process nearing completion with submission to the EPA expected in June 2022.
Build, own, operate and transfer (BOOT) liquified natural gas (LNG) thermal power and owner's photovoltaic (PV)/battery energy storage solution power supply mix. Substantial reduction in predicted greenhouse gas emissions, including approximately 25% fewer tonnes carbon dioxide equivalent (tCO2e) compared to using only a conventional HFO thermal power plant.
Multiple rounds of ESIA stakeholder engagement, along with ongoing relationship building by the Hummingbird Liberia (HBL) team, leading to general acceptance of the project whilst recognising high community expectations.
INFRUSTRUCTURE-READY PROJECT
- Only 76km by road from the Port of Greenville to the Dugbe Project, which was repaired and improved as part of the FS process.
- All build and operational cargo to be transported through the operating Port of Greenville.
- Government supported berthing rights at the Port of Greenville for the Project.
- Tuzon and Dugbe F deposits are 4km apart, serviced by a central processing plant.
- LNG power generation hybridised with solar PV power generation to produce an estimated levelised cost of energy of USD 175.10/MWh.
PASOFINO CEO IAN STALKER COMMENTS
"I am extremely pleased with the outcome of the FS, particularly given the current environment of higher raw material, capital and energy costs as a result of inflation and other global dislocations. We are truly in the 'eye of the storm' on Capex estimations and hence it is reasonable to expect going forward to the FEED Phase that as world-wide business conditions settle down significant savings can be made against this Capital Estimate that will naturally enhance overall Project economics. The Dugbe Gold Project is now a significant, viable and economically robust gold project, with substantial exploration upside potential to improve upon the already large 4Moz Resources base.
LOM. metallurgical recovery for the Study has been set at 83%, leaving significant upside that can be brought to account as gold price rises and Capex cost associated with further process recovery steps reduces. It is worth noting a 2% increase in overall recovery enhances the Project NPV by up to USD52M.
Most importantly, Pasofino is in a position to pursue strategic alternatives to maximise shareholder value now that a key milestone of a detailed and economically robust FS is available."
HUMMINGBIRD RESOURCES PLC CEO DAN BETTS COMMENTS
"We are delighted to receive the results from the robust FS that has been led by Pasofino. The FS has been conducted to a high standard and has seen a complete remodelling of the Resource base, to now showcase a significant 2.76Moz Reserve base, long LOM of 14 years with upside given the material exploration potential available and a low AISC profile of USD1,005/oz to underpin a gold mine of material value. We look forward to now working with Pasofino to conduct a strategic review of our options to best realise the maximum value of Dugbe for all stakeholders."
The FS was prepared in accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
The reader is advised that the FS summarised in this news release is intended to provide only a high-level review of the project potential and design options. The FS mine plan and economic model include numerous assumptions and the use of Measured and Indicated mineral resources only.
PROJECT DESCRIPTION AND LOCATION
The Project is located in south-eastern Liberia, approximately 76km east of Greenville and 240km south-east of the capital Monrovia-Figure 1. The combined Project covers an area of 2,559km2 and is defined within a single Mineral Development Agreement (MDA), effective in April 2019, valid for 25 years. The centre of the Project has an approximate latitude of 5.093º and longitude of -8.502º. The Tuzon and Dugbe F deposits are approximately 4km apart.
Figure 1. Project location in Liberia
The Project is located in an undeveloped area of Liberia, with one main access road, recently upgraded by the mine, and several villages. Most people in the area engage in artisanal and small-scale mining (ASM), hunting and/or small-scale farming. No utilities such as power and water are available.
The area is primarily rainforest over low rolling hills. The region is drained by three major rivers, the Dugbe River in the south-east, the Geebo River that runs between the two deposits, and the Nyenmon River in the west. Sapo National Park is approximately 15km north of the Project area with the Grand Kru - River Gee proposed Protected Area approximately 10-20km to the south-east.
A wide range of plant and animal species that are endemic and/or of conservation importance are present in the forests. The climate is typically tropical, with high humidity, daytime temperatures and rainfall. The nearest town of consequence is Greenville, the Sinoe County capital, which has a basic port and a palm oil processing centre, but no grid-scale utilities.
GEOLOGY AND MINERALISATION
The Project is located just south of the inferred boundary between the Archean Liberian Age Province (3000-2500 Ma) which covers the northern two-thirds of Liberia and the Paleo Proterozoic Birimian aged rocks (2166 ±66 Ma) to the south-east-Figure 2. The regional scale ENE-WSW oriented Dugbe Shear Zone bisects the Project area passing just south of the deposits. The dominant lithologies in the project area are granulite facies gneisses, migmatites and younger crosscutting granitoids and pegmatites.
Mineralogical investigations suggest that the Tuzon and Dugbe F deposits in their current form resulted from the deformation and metamorphism of a single pre-existing gold deposit. Gold pre-dates peak metamorphic conditions and therefore differs from most typical Birimian deposits where mineralisation is largely associated with late transcurrent shearing. The deposits may more appropriately be compared to granulite facies gold deposits, which are found in cratonic regions in Canada, Australia and China.
Tropical weathering has produced a lateritic profile of 1m to approximately 15m thick. The contact between weathered material and fresh rock is abrupt, the transitional layer being poorly developed generally less than 1m thick.
Figure 2. The Dugbe Project and location of the Tuzon and Dugbe F deposits
Tuzon Deposit
The Tuzon deposit has a length of 1,800m and is up to 375m wide with a general strike of 030°. The deposit outcrops at surface over most its strike length and the deepest part of the current Mineral Resource Estimate (MRE) is approximately 390m below surface.
The deposit is hosted by a gently south-west plunging refolded synform as shown in cross-section in Figure 3. Minor zones or selvages of mineralised gneiss are found within the core of the fold in some areas. The rock types and their sequence from footwall upwards are as follows.
- Footwall gneiss: thick orthopyroxene gneiss (OXG) unit mostly without sulphide but with some non-gold bearing orthopyroxene-sulphide gneiss (OSG) layers and with lesser orthopyroxene-garnet gneiss (OGG).
- Mineralised layer: The upper part of the above carries more sulphide and is referred to as orthopyroxene-sulphide gneiss (OSG) and is gold-mineralised.
- Hanging wall gneiss: thick unmineralized interval of OGG, feldspar-biotite gneiss (FBG) and feldspar garnet gneiss (FGG).
The gold mineralized layer at Tuzon is variable in thickness from less than 10m to approximately 100m at the hinge of the main synform. It is comprised of an inner zone with higher grade (>= 0.8-1.0g/t Au) and an outer zone which grades between 0.4 and 0.8g/t Au, as is illustrated in Figure 3. Pegmatites are abundant and maybe concordant with the dominant foliation or cross-cutting.
Figure 3. Cross-section through Tuzon looking north-east showing the block model and drillhole intersections. Cross-cutting pegmatites are shown
Dugbe F Deposit
The Dugbe F deposit has a surface footprint of approximately 3,400 x 1,500m. The deposit is hosted by a single layer with overall gentle (5-20°) SE dip. The sequence of rocks is the same as Tuzon. The mineralized layer has a thickness ranging from less than 1m up to 20m, with an average of 10-12m. It is undulating and affected by relatively localised isoclinal or near-isoclinal recumbent folds which cause thickening and repetition of the mineralisation.
Gold Mineralisation
The gold mineralisation at both deposits is spatially associated with elevated levels of sulphide, principally pyrrhotite and arsenopyrite. Chalcopyrite may be observed. The sulphides are finely disseminated, but also occur as coarser angular blebs, thin folded monomineralic laminae and stringers typically parallel with the dominant S1/S2 foliation. Grade is generally higher at the centre of the mineralised layer. Gold mineralisation is thought to be controlled by the S1 or S2 foliation which was later affected by the D3 event.
Figure 4. Typical orthopyroxene sulphide gneiss (OSG) host rock. All metre lengths in this tray contain between 2 and 3g/t Au
The gold mineralogy consists of four main types: electrum (Au, Ag), gold amalgam (Au, Ag, Hg), native gold and maldonite (Au2Bi). Most of the gold is fine (<10μm with most <5μm) and is at external and internal grain boundaries or lying along alteration patches within the grains.
EXPLORATION DATA
A large amount of surface exploration was carried out by Hummingbird across the Project between 2006 and 2014 which led to the discovery of the Dugbe F and Tuzon deposits. From 2009 until 2014 exploration resource drilling was carried out at Dugbe F. After the discovery of Tuzon, exploration resource drilling was carried out there between April 2011 and January 2014. Table 1 and Table 2 summarises the drillholes used for the Dugbe F and Tuzon MRE, all of which were diamond core drillholes (DD).
Table 1. Summary of drilling completed at Tuzon
Drilling Phase | Dates | Holes | Type | NO. holes | Metres |
1 | Aug 2011 - April 2012 | TDC001 - TDC072 | DD | 71 | 15,480 |
2 | July 2012 | TDC073- TDC077 | DD | 5 | 1,253 |
3 | Jan 2013 - July 2013 | TDC078 - TDC140 | DD | 59 | 15,186 |
4 | Aug 2013 - Jan 2014 | TDC141 - TDC157 | DD | 17 | 2,253 |
5 | April 2020 - May 2020 | TDC174 - TDC191 | DD | 23 | 6,675 |
Total | 175 | 40,847 |
Notes:
1. TDC158 to TDC173 are at the tailings area, not within MRE area.
2. Phase 5 excludes the metres belonging to the upper part of five previous holes which were deepened.
Table 2. Summary of drilling completed at Dugbe F
Drilling Phase | Dates | Holes | Type | NO. Holes | Metres |
1 | Feb 2009 - May 2009 | DFDC001 - DFDC007 | DD | 7 | 520 |
2 | Feb 2010 - Oct 2010 | DFDC008 - DFDC093 | DD | 85 | 13,462 |
3 | Feb 2011 - Sep 2011 | DFDC094 - DFDC264 | DD | 168 | 18,343 |
4 | Jun 2012 - Jul 2012 | DFDC265 - DFDC280 | DD | 16 | 1,135 |
5 | Feb 2014 - Mar2014 | DFDC281 - DFDC333 | DD | 53 | 1,200 |
6 | Jan 2021 - May 2021 | DFDC334 - DFDC415 | DD | 84 | 6,938 |
Total | 413 | 41,598 |
Notes:
1. Phase 5 metres excludes the metres belonging to the upper part of two previous holes which were deepened.
Core sampling was undertaken using a nominal 1 to 2m sampling interval. Between 2009 and 2014 samples were either prepared at ALS Monrovia and assayed at ALS Ireland or prepared and assayed at SGS Monrovia. For the drilling 2020 onwards, samples were initially shipped to ALS in Yamoussoukro in Ivory Coast then analysed at ALS Ouagadougou in Burkina Faso or ALS in Kumasi in Ghana. Later, a preparation laboratory in Monrovia, Liberia Geochemical Services (LGS), was used, from which the pulp samples were sent to ALS in Kumasi.
Quality Assurance and Quality Control (QA-QC) measures included the use of certified reference materials (CRMs), blanks, pulp and field duplicates, and umpire laboratory duplicates. One of each of these sample types was inserted into every 20 samples. Site visits have been made by SRK's Independent Qualified Persons. Martin Pittuck observed the drilling and sampling procedures used from 6 to 11 June 2013. SRK's Colin Rawbone visited the Project from 9 to 12 March 2021, to observe the drilling, logging and sampling procedures and to inspect the sample preparation laboratory in Monrovia.
MINERAL RESOURCE ESTIMATE FOR TUZON
SRK constructed wireframe geological models comprising a base of oxide surface, the unmineralised pegmatite bodies and the mineralisation domains. A low-grade (LG) mineralisation wireframe was made based on changes in elevated gold grade (typically coincident at >= 0.3 to 0.4g/t). SRK also modelled an internal high-grade (HG) domain within the LG mineralisation wireframe based on a threshold of >= 0.8 to 1.0g/t. This is illustrated in Figure 5 below. In addition to the main LG and the HG domain within it, models were created for four minor low-grade domains referred to as D, F, G and H.
Figure 5. 3D view of the Tuzon geological wireframes, looking south-east (along the F3 axes)
SRK created 2.0m composites of the drilling data and applied a 15g/t Au cap to the high-grade domain only. Snowdon Supervisor Software was used for geostatistical analysis. Experimental semi-variograms were reviewed for the mineralised domains in the along-strike, down-dip and across-strike orientations. Omni-directional structures were selected for fitting of the final variogram models for the HG and combined LG domain.
Based on 578 density samples for Tuzon, the following bulk densities were determined for use for the MRE: Mineralised gneiss: variable density, whereby the average of 2.78g/cm3 is factored (reduced) according to increasing pegmatite content. Pegmatite: Average density value of 2.62g/cm3. All oxide material: Average density value of 2.20g/cm3.
A block model was created based on UTM coordinates with dimensions of 10 x 10 x 10m (x, y and z). Sub-blocking was allowed along the boundaries. Ordinary Kriging (OK) was used for the grade interpolation of gold and search ellipses were orientated to follow the trend of the mineralisation domain using Leapfrog Geo (Leapfrog) software's Variable Orientation tool. Validation was by use of swath plots, visual inspection and comparative statistics. SRK classified the Tuzon Mineral Resource as:
Indicated where there is reasonable level of geological confidence in well-drilled areas of the model with 80m coverage or better.
Inferred in areas of lower geological confidence, where blocks are typically within 100m of sample data.
MINERAL RESOURCE ESTIMATE FOR DUGBE F
The procedures were mostly the same as those used for Tuzon. Only a single mineralised domain was created using an approximate 0.4g/t Au threshold. Being a relatively thin layer, lower grades were incorporated where required to ensure geological continuity of the layer. A single 5-10m thick late-stage dolerite dyke is present at Dugbe F passing the deposit from south-east to north-west.
Based on log histograms and visual-spatial review of the composite data, no high-grade capping was applied to composite samples. The block model was created with parent block size of 20 x 20 x 2 (x, y and z). Sub-blocking was allowed along the boundaries of the model. As at Tuzon, OK was used for the grade interpolation and Leapfrog's Variable Orientation tool. Figure 6 illustrates the block model for part of the deposit with a recumbent fold.
Figure 6. Cross-section through one of the folds at Dugbe F showing the block model
Within zones of tight re-folding separate fold limbs were assigned variable search ellipse orientations separately (where necessary), to ensure appropriate representation of search ellipses at fold hinges.
A total of some 2,491 density measurements were used to define host and waste densities as follows: Mineralised gneiss variable density, whereby the average of 2.78g/cm3 is factored (reduced) according to increasing pegmatite content. Pegmatite: Average density value of 2.64g/cm3. Dolerite dyke: Average density value of 2.91g/cm3. All oxide material: Average density value of 2.25g/cm3.
Mineral Resources were classified as follows and included a small area of Measured category in an area of close-spaced drilling. Measured: The block grades are based on multiple drillhole intercepts, and there is typically 25-50m drillhole coverage and good continuity shown by both assay grades and geological wireframes. Indicated Mineral Resources were where SRK has a reasonable level of geological confidence in well-drilled areas of the model (with 80m coverage or better) and typically up to 40m beyond these areas. Inferred was applied to areas with lower geological confidence, where blocks are typically within 100m of sample data.
MINERAL RESOURCE STATEMENT
Reasonable Prospects for Eventual Economic Extraction
For both deposits, reasonable prospects for eventual economic extraction were established based on open pit mining satisfied by means of a conceptual pit shell. All blocks outside the pits were excluded from the Mineral Resource Estimate. Key parameters used for the pit shells were: Gold price of USD1700/oz Au, overall slope angle of 55 degrees, dilution of 10%, recovery of 90%, mining costs of USD1.93 per tonne for waste and USD 2.24 and USD 2.84 per tonne for Tuzon and Dugbe F respectively.
Combined Mineral Resource Estimate Statement
The combined statement for both deposits is provided in Table 3 subdivided using a 0.5g/t Au grade category and reported above a lower 'marginal' cut-off grade. Within the 0.5 g/t Au grade category, the Measured and Indicated tonnage is 75.2Mt grading 1.37g/t Au containing 3.31Moz gold plus an Inferred tonnage of 14.9Mt at 1.23g/t Au containing 588 thousand ounces (koz) gold. Although not shown as a grade category in Table 3, above a 1.0g/t Au cut-off, the combined Measured and Indicated part of the MRE is 2.88 million ounces (Moz) of gold contained in 56.6 million tonnes (Mt) grading 1.58 grams per tonne (g/t), mostly hosted within the HG domain at Tuzon.
Table 3. Mineral Resource Estimate effective 17 November 2021
Notes:
1. The effective date of the Mineral Resource Estimate is 17 November 2021.
2. The marginal cut-off grades for Tuzon are 0.34g/t Au for fresh material and 0.39g/t Au for weathered material. The marginal cut-off grades for Dugbe F are 0.36g/t Au for fresh material and 0.40g/t Au for weathered material.
3. Rounding errors may be evident when combining totals in the table but are immaterial.
4. The Qualified Person is Mr. Martin Pittuck (CEng, MIMMM).
5. The Mineral Resource has been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and undertaken within the context of the Canadian Securities Administrators' National Instrument 43-101 (NI 43-101).
6. Mineral Resources are not Mineral Reserves and have no demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing or other relevant issues.
7. Mineral Resource estimates are stated within conceptual pit shells that have been used to define Reasonable Prospects for Eventual Economic Extraction (RPEEE). The pit shells used the following main parameters: (i) Au price of US$1700/ounce; (ii) plant recovery of 90%; and (iii) mean specific gravity of 2.78t/m3 for mineralised gneiss and 2.64t/m-3 for pegmatite in fresh rock and 2.1t/m3 for oxide material.
OPPORTUNITIES TO EXPAND AND DISCOVER ADDITIONAL DEPOSITS
Both deposits extend beyond the MRE pit shell and there is opportunity to expand the high-grade zone at Tuzon beyond its current modelled extent -Figure 7. At Tuzon, the 'SE limb' warrants additional drilling to test the potential for extending this further. The last drillhole on this limb was TDC186 which intersected 17.3m with an average grade of 2.70g/t Au.
Figure 8. Map showing targets along strike from Tuzon
MINERAL RESERVE ESTIMATE
The Mineral Reserve Estimate (MRev) has been prepared as part of the Dugbe FS completed by DRA, using the CIM definitions and guidelines adopted in May 2014 (CIM, 2014) and procedures for classifying the reported Mineral Reserves were undertaken within the context of the Canadian Securities Administrators' National Instrument 43-101 (NI 43-101)-Table 4.
The Mineral Reserves were derived from the MREs and the block models presented in the Mineral Resource section. The Mineral Reserves are based on the Measured and Indicated Mineral Resources that have been identified as being economically extractable and which incorporate mining losses and dilution. A summary of the Mineral Reserves by deposit is shown in the table below.
Though not considered for the Mineral Reserve Estimate there are Inferred Mineral Resources within the FS pit and in immediate proximity to it. This material comprises 1.7 Mt at an average grade of 1.25 g/t Au containing 67 koz and may be converted to Indicated Mineral Resources with a relatively small number of additional drillholes. If this is realised, they may then contribute additional material to future Mineral Reserve Estimates.
Table 4. Mineral Reserve Estimate effective 1 May 2022
Notes:
1. The effective date of the Mineral Reserve is 1 May 2022.
2. Mineral Reserves are defined within pit designs guided by pit shells.
3. Mineral Reserves are reported at 0.50g/t cut-off grade and a metal price of US$1,600/oz Au.
4. Figures are rounded to the appropriate level of precision for the reporting of Mineral Reserves. Due to rounding some columns or rows may not compute as shown.
5. The Mineral Reserves are stated as diluted dry metric tonnes. Estimated dilution applied to Dugbe F is 10.1% and Tuzon 6.9%, while estimated losses were 6.3% for Dugbe F and 5.0% for Tuzon.
6. The Qualified Person is Mr Frikkie Fourie (B.Eng, Pr.Eng, MSAIMM).
7. The Mineral Reserves have been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM).
MINING
The mining method for both the Tuzon and Dugbe F deposits will be conventional open pit mining, using a combination of 100t dump trucks and 200t excavators for loading and hauling. Ore blocks will be defined by grade control drilling, after which 12m and 6m benches will be drilled with drill rigs and charged with emulsion for blasting. Ore will be delivered to the crusher or to low-grade stockpiles. A small proportion of oxide ore will be blended into the hard rock ore before being processed.
Waste rock will be placed adjacent to the pits, or in areas of mined out pits in the case of Dugbe F. Waste rock storage facilities will be progressively capped every year, and fully closed as sections are competed.
A small amount of Inferred material is present in the pits and may be sent for processing rather than to the waste rock storage facilities.
Both Dugbe F and Tuzon will be mined concurrently to keep the initial strip ratio low, and a low-grade stockpile will be established to prioritise higher grade ore being fed to the process plant. The first five years will see approximately 28Mtpa of rock mined, increasing to an average of 41Mtpa in the later years. Mining is scheduled to end in Year 11, but stockpiles will then be rehandled and processed until Year 14. This will also enable concurrent mine closure work.
Mining of the Dugbe F deposit will consist of three pits, some of which have a gentle footwall gradient. This will allow for some concurrent backfilling with waste rock, reducing haul distances and environmental impact.
Pasofino Gold intends to use a mining contractor and a number of initial proposals and costs have been received and used in the FS.
MINERAL PROCESSING
As part of the FS, test work was undertaken over the period 2021 to 2022, under the governance of DRA, on samples originating from the Dugbe F and Tuzon deposits. The test work was primarily undertaken at ALS Perth with comparative tests and analysis on select samples at SGS and Mintek in Johannesburg, South Africa as well as Bureau Veritas in Perth to validate the ALS test work findings and analysis.
The FS test work programme included flowsheet development and optimisation test work on master composite samples, followed by variability test work on 15 variability samples. The test work included comparative gold recovery test work for a conventional Gravity-CIL flowsheet and a Gravity-Flotation-CIL flowsheet with results summarised as follows:
Gold recovery ranged from 78.2% to 87.4% averaging 83.6% for Tuzon fresh samples, 71.9% to 84.4% averaging 77.8% for Dugbe F fresh samples with a recovery of 97.2% for the Dugbe F oxide composite for the Gravity-CIL flowsheet.
Gold recovery ranged from 84.2% to 90.9% averaging 88.8% for Tuzon fresh samples, 81.4% to 88.6% averaging 86.0% for Dugbe F fresh samples with a recovery of 97.3% for the Dugbe F oxide composite for the Gravity-Flotation-CIL flowsheet.
The gold recovery for the Gravity-CIL flowsheet is expected to range from 80% to 85%, averaging 83% over LoM at an average process operating cost of US$10.7/t. The gold recovery for the Gravity-Flotation-CIL flowsheet, which includes regrind and CIL of flotation concentrate and CIL on the combined tailings, is expected to range from 86% to 90%, averaging 88% over LoM at a higher average process operating cost of US$16.8/t.
The Gravity-CIL flowsheet was selected as the basis for the FS based on the outcome of a high-level techno-economic assessment which considered the comparative gold recovery, process plant operating cost and capital cost. Further test work will be undertaken once the FS has been completed to assess the potential for recovery improvement and reduced operating cost. The Dugbe Gold Mine Project FS gold processing plant design has been based on a fresh ore throughput rate of 5.0Mtpa.
The flowsheet includes semi-autogenous grinding (SAG milling), secondary ball milling and tertiary Vertimill, followed by a gravity concentration and CIL gold recovery circuit.
This process flowsheet is well known in industry and has historically been proven as a successful processing route for oxide and fresh gold ores. The process plant design includes a tailings counter current decantation thickener circuit (CCD) to maximise cyanide water recovery and reduce the final tailings CNwad concentration to less than 50ppm. Figure 9 summarises the flowsheet for the FS.
Figure 9. Flowsheet for the FS
PROJECT INFRASTRUCTURE
Access
The primary access is a 76km road from the Port of Greenville to the mine site utilising the existing public road infrastructure. The main requirement is to upgrade the existing access roads and tracks to accommodate the anticipated traffic volumes during mining operations, as well as to provide public access to the local villages. The road is split into two defined sections; the 32km road from the Port of Greenville to Plazon Junction and the 44.1km track from Plazon Junction to the mine site. Access along the 30.1km from the Port of Greenville to Plazon Junction consists of gravel roads that are mostly in fair condition. The balance of the primary access road, between Plazon Junction and the mine site, consists of existing gravel roads and tracks. This section will require extensive upgrades to meet the required standards.
Water
Raw water will be supplied from the Geebo River, via a pumping station, in the first year of operation. Treated water returned from the tailings storage facility (TSF) will be utilised as raw water from Year 2 onwards. Based on the outcome of water balance modelling the design includes allowance to treat water being discharged from the TSF ranging from 0.7M - 3.7M m3/annum over the life of mine prior to discharge to the environment in compliance with the globally recognised discharge standards.
Power
The power demand of the Dugbe mining activities has been calculated based on the final mechanical equipment list generated for the FS. A detailed electrical load schedule has been compiled from the equipment list and includes electrical demands from all process-related equipment, lighting and small power demands from supporting infrastructure, and the mine accommodation camp. Where calculated values were not available, typical utilisation and diversity factors were applied in the calculation of the running power demand. The estimated running power demand is anticipated at 28.9MW (30.8MVA), with an annual energy consumption of 228GWh.
Due to the lack of an electrical utility grid in the vicinity of the mine, a local power generation plant will be established to generate electrical power. An LNG-fuelled thermal generation plant consisting of 16 x 2MWe generators, hybridised with a 16MWp solar PV plant, has been determined to produce the lowest levelised cost of energy, supported by various trade-off studies and competitive tenders. The installation of the PV plant will be phased to reduce the initial capital impact. Additionally, the utilisation of LNG fuel as opposed to HFO fuel for thermal power generation has resulted in a substantial reduction in prospective greenhouse gas emissions, which are further reduced through the application of solar power generation.
An LNG supply chain has been outlined and includes the supply of LNG from the LNG terminal in Tema, Ghana, shipped via a leased 7,500m3 floating storage unit (FSU) to the Port of Greenville, and then road freighted via cryogenic road tankers to the mine site. A two-week LNG storage facility has been included at the mine site to provide a buffer for refuelling procedures by the FSU, optimised operation of the road tanker fleet, and to allow for interruptions of the supply chain due to inclement weather conditions.
The 14-year levelised cost of energy for the mine was calculated to be $0.175 per kWh and is based on an LNG price of $7.83GJ, along with other capital, fixed and variable operations and maintenance costs. The LNG price is based on a three-year trailing average Brent crude price of $62.65 per barrel, as of 18 April 2022. Power plant and LNG-related infrastructure is based on a BOOT style contract, with capital costs being repaid over a multi-year period.
TAILINGS MANAGEMENT
A site selection process has been conducted to determine the preferred TSF location. The TSF has been designed to store 65Mt of tailings over a 14-year LoM. The TSF has been split into two phases. TSF 1 operates for the first four years of operations, storing 20Mt, and TSF 2, situated to the west of TSF 1, comes into operation for the remaining nine years storing 45Mt.
TSF 1 and 2 have been designed as HDPE lined, downstream raised, full containment valley dams. The construction of the TSF embankments is a combination of borrow material and selected waste rock provided by the open pit mining operation. A detox plant and associated water dam is constructed near the TSFs to treat and release excess water from the TSFs. Following the operational LoM, the TSFs will be capped allowing for the separation of the tailings body from clean runoff water. Storm water runoff will not require treatment following the capping of the TSF and will be discharged from the TSF by means of a closure spillway. The TSF costing has been determined using tendered rates sourced from local contractors.
ENVIRONMENT, SOCIAL AND GOVERNANCE
An ESIA has been undertaken in accordance with the Environmental Protection and Management Law of Liberia 2003 and the Liberian Environmental Protection Agency's (EPA) Environmental and Social Impact Assessment Procedural Guidelines (2017). It is also aligned with good international industry practice, as represented by the International Finance Corporation's Performance Standards. Additional environmental and social requirements are specified in the MDA. The study included primary environmental and social data collection by a team of Liberian and international specialists, building on the historical data available from the previous ESIA study completed in 2015.
In parallel with the ESIA, a preliminary resettlement policy framework has been completed to set out the future resettlement action plan requirements. There have been five rounds of formal engagement with potentially affected communities and other stakeholders throughout these studies.
Recent feedback sessions on the outcome of the ESIA indicate general acceptance of the Project, with concerns raised over the management of any future resettlement process, maximising local employment opportunities and impacts on and loss of access to forest areas that are important for subsistence, livelihoods and cultural heritage. The outcome of the feedback sessions is being assessed and the final ESIA report is planned to be submitted to the EPA in June 2022.
The sensitive ecological setting and under-developed socio-economic status of the area pose both challenges and opportunities for the Project. Based on the extensive stakeholder engagement, communities in the area are aware of their rights. The key risk areas identified through the ESIA and resettlement study, and the proposed management of these are summarised below.
Several communities in or adjacent to the proposed mine infrastructure will need to be relocated and there will be economic displacement of farmers and artisanal and small-scale miners, few of whom are formally licensed by the Government. There has been extensive engagement with these affected people. A resettlement action plan and ASM action plan are being developed to manage the engagement, relocation, compensation and livelihood restoration required. The aim is to ensure affected parties are better off or at least not disadvantaged as a result of the Project.
As noted above, options to minimise carbon emissions have been considered but the mine will still be carbon net positive. To manage this, help protect and offset sensitive habitats (see below) and provide funds to support community and alternative livelihood development, Pasofino is proposing to initiate a sustainable forestry project. This integrated and novel approach would involve working with a third-party forestry specialist organisation, the Government and local communities to manage a landscape-scale area of forest with the aim of offsetting biodiversity impacts, allowing some sustainable timber harvesting and providing employment opportunities. The carbon credits and value of timber would be used to sustain the project with the aim of it continuing beyond the life of the Project.
The location and size of infrastructure has taken consideration of areas with high biodiversity sensitivity; areas important for ecosystem services; and areas of soils with higher sensitivity (wetlands). However, some critical and natural habitats and some sensitive soils will still be impacted. A Biodiversity Management Plan is being developed to define required offsets as part of the wider sustainable forestry project.
Geochemical characterisation of the tailings and waste rock has been undertaken and, in consultation with the engineers, the storage facilities designed to minimise seepage and prevent accidental releases to the environment. Due to the net positive rainfall, discharges to the environment from the TSF will occur following treatment to meet effluent standards. Settling of contact water from the waste rock storage facilities will occur prior to discharge. Water and Waste Management Plans are being developed to guide construction and operation of the facilities with the aim of protecting sensitive water resources, and the people and ecosystems that depend on them. The plans include additional studies needed to confirm preliminary assumptions around design, operation and closure of the facilities, particularly those associated with waste rock and pit lakes.
Expectations around what the mine will provide in terms of community development and job opportunities are high, often exceeding the legislated commitments laid out in the MDA. Direct and indirect employment opportunities will be generated by the Project, with the MDA stipulating local content and training requirements.
Building on the management approaches outlined above, the ESIA includes a framework for a Community Development Management Plan that sets out how communities, working with Pasofino and relevant Government departments, will identify, develop, fund and implement projects that target provision of training, infrastructure development, social service delivery and alternative livelihood development. The plan will also help with managing the predicted influx of people and support Government to effectively use its increased revenue to plan and improve social services and infrastructure.
A conceptual closure and rehabilitation plan has been developed, along with a preliminary cost estimate. The plan lays out the progressive rehabilitation requirements, closure approaches and post mining monitoring and maintenance. It identifies further studies needed to confirm final closure approaches taking consideration of the geochemical characterisation of mining wastes, expectations of communities with respect to post mining land uses and sensitivity of soils, habitats and water resources in the area.
Other impacts that have been identified, assessed and had appropriate management plans developed, as part of the ESIA, include those associated with air quality, noise, community health and safety (particularly relating to traffic), cultural heritage, land clearance and soils.
To address the above risks and as required by law, an Environmental and Social Management Plan (ESMP) has been compiled that sets out the management system framework for implementing the measures needed to mitigate the negative impacts and optimise the positive impacts arising from the Project. These measures are contained in various environment, social and health & safety supporting plans appended to the ESMP. The proposed management system and associated plans address requirements for monitoring performance, audits to assess compliance, management review and reporting to internal and external stakeholders. The ESMP will be submitted to the EPA in parallel with the ESIA report.
CAPITAL COST ESTIMATE
The project capital has been derived predominantly from tendered costs and rates from the market, as well as relevant data base costs from recent projects, and is summarised in Table 5. Capital is within the accuracy of a Class 3 Association of the Advancement of Cost Engineering (AACE) estimate of (+20 %/-15%).
Table 5. Capital Summary
DIRECT | TOTAL USD M |
Process Plant | 129 |
Process Plant Infrastructure | 37 |
General Site Infrastructure | 77 |
Tailings Storage Facility | 19 |
Access Road | 36 |
Port Infrastructure | 8 |
Mining | 22 |
Sub-Total: Base Estimate Cost | 32 |
INDIRECT | |
General Indirect Costs | 71 |
SUB TOTAL: PRE PRODUCTION CAPITAL | 397 |
OWNER'S COST | |
Owner's Cost | 37 |
TOTAL COST | 435 |
Note: Rounding may cause totals to differ.
OPERATING COST ESTIMATE
The operating costs over life of Project include mine operations, process plant, TSF and general and administrative (G&A) costs. Total LoM average operational costs are estimated to be approximately USD154 million per annum equivalent to a unit rate of USD31t RoM. An overview of operational costs is presented in Table 6.
Table 6. LOM operating expenditure (columns may not add up due to rounding)
LOM (USD M) | LOM (USD/t) | |
Processing (Incl TSF) | 700 | 10.71 |
Mining | 764 | 11.52 |
G&A | 100 | 1.51 |
Other | 378 | 5.71 |
TOTAL | 1,953 | 29.47 |
ECONOMIC OUTCOMES
Table 7 summarises the robust economics for the Project resulting from detailed engineering across all disciplines.
Table 7. Economic outcomes summary
DESCRIPTION | UNITS | VALUE |
Production Statistics | ||
Production LoM | years | 14 |
Production LoM | months | 159 |
Total Ore Tonnes | M tonnes | 66.27 |
Total Au Ounces Recovered | M Oz | 2.27 |
LoP Average | ||
Throughput | t/a | 5.00 |
Au Grade | g/t | 1.30 |
Au Recovery | % | 83.01 |
Au Ounces Recovered | Oz/a | 171,594 |
Initial Capital Cost | M USD | 435 |
SIB Capital Cost | M USD | 98 |
Operating Cost | ||
LoP Average | M USD/a | 147 |
LoP Unit Cost | USD/t | 29 |
Financial Outcomes (PRE-TAX) | ||
NPV | M USD | 690 |
IRR | % | 26.35 |
Payback Period (undiscounted) | years | 3.3 |
AISC | USD/Oz | 1,005 |
USD/t | 34 | |
Financial Outcomes (POST-TAX) | ||
NPV | M USD | 530 |
IRR | % | 23.6 |
Payback Period (undiscounted) | years | 3.3 |
AISC | USD/Oz | 1,005 |
USD/t | 34 |
NET PRESENT VALUE (NPV) SENSITIVITY TO GOLD PRICE
The impact of flexing gold price and discount rate on NPV (pre-and post-tax) has been assessed and presented in the data tables below.
Table 8. Metal Price and discount rate data tables
DEVELOPMENT TIMETABLE
The Project has a planned duration of 30 months from the start of the design and procurement activities. An initial workstream will be the enabling works which will deal with the maintenance and upgrades of the Port of Greenville and the access road to site. Fuel storage, accommodation and the bulk LNG power supply will be constructed as part of the enabling works which will be timed for the completion of the power supply (in month 26) in time for the start of cold commissioning of the process plant.
Design and procurement of the process plant, TSF and the supporting infrastructure will start in month 3 with commissioning of the process plant planned for month 28. Cold commissioning will be complete in month 30 with the start of ore being fed to the plant in month 31.
QUALIFIED PERSONS STATEMENT
Scientific or technical information in this disclosure (other than information that relates to mining, processing and related infrastructure results) was reviewed by Mr Martin Pittuck, a full-time employee of SRK Consulting UK Ltd. Mr Pittuck is a member in good standing with the Institute of Materials, Minerals and Mining, a Fellow of the Geological Society of London and is a Chartered Engineer; he has sufficient experience that is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that relates to processing and related infrastructure results was reviewed by Mr Robin Welsh, a full-time employee of DRA Global. Mr Welsh is a Professional Engineer in good standing with the Engineering Council of South Africa and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that relates to metallurgy and processing results was reviewed by Mr Marius Phillips, a full-time employee of DRA Global. Mr Phillips is a Chartered Professional Member of the Australasian Institute of Mining & Metallurgy and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that relates to mining results was reviewed by Mr Frikkie Fourie, an independent consultant for DRA Global. Mr Fourie is a Professional Engineer in good standing with the Engineering Council of South Africa, is a Member of the South African Institute of Mining and Metallurgy and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that relates to tailings storage facility results was reviewed by Mr Guy Wiid, a permanent employee for Epoch Resources. Mr Wiid is a Professional Engineer in good standing with the Engineering Council of South Africa, and a Chartered Engineering good standing with the American Society of Civil Engineers and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that relates to environmental, social and governance results was reviewed by Ms Fiona Cessford-Le Roux, a full-time employee of SRK UK. Ms Cessford-Le Roux is a Chartered Environmentalist in good standing with and a fellow of the Institute of Materials, Minerals & Mining of the United Kingdom She has sufficient experience which is relevant to the project under consideration which she is undertaking to qualify as a Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that relates to financial results was reviewed by Mr Juan Kotzee, an independent consultant for DRA Global. Mr Kotzee is a Financial Accountant, and has sufficient experience that is relevant to the project under consideration which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.
ABOUT THE DUGBE GOLD PROJECT
The 2,559 km2 Dugbe Gold Project is in southern Liberia and situated within the southwestern corner of the Birimian Supergroup which is host to the majority of West African gold deposits. To date, two deposits have been identified on the Project; Dugbe F and Tuzon discovered by Hummingbird in 2009 and 2011 respectively. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralization in the area.
A large amount of exploration in the area was conducted by Hummingbird up until 2012 including 74,497 m of diamond coring. Pasofino drilled an additional 14,584 metres at Tuzon and Dugbe during 2021. Both deposits have Mineral Resource Estimates dated 17 November 2021. Following the completion of the Definitive Feasibility Study in June 2022 a Mineral Reserve Estimate was declared, based on the open-pit mining of both deposits over a 14-year Life of Mine.
In addition, there are many gold prospects within the Project including the Bukon Jedeh area acquired in late 2020. Here artisanal mining has extracted gold since the 1930's and includes currently active open pits over 20 m deep working fresh-bedrock. At the DSZ target on the Tuzon-Sackor trend Pasofino has discovered a broad zone of surface gold mineralisation in trench and outcrop along strike from Tuzon. At this and several of the other prospects no drilling has been carried out to date.
In 2019, Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the Government of Liberia providing the necessary long-term framework and stabilization of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50%, and the Government of Liberia is granted a free carried interest of 10% in the Project.
ABOUT PASOFINO GOLD LTD.
Pasofino Gold Ltd. is a Canadian-based mineral exploration company listed on the TSX-V (VEIN).
Pasofino, through its wholly-owned subsidiary, is earning a 49% economic interest (prior to the issuance of the Government of Liberia's 10% carried interest) in the Dugbe Gold Project.
For further information, please visit www.pasofinogold.com or contact:
Ian Stalker, President & CEO
T: 604 367 8110
E: istalker@pasofinogold.com
NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT
A technical report for the Dugbe Gold Project will be prepared in accordance with National Instrument 43-101 and will be filed on SEDAR at www.sedar.com and on the Company's website at www.pasofinogold.com within 45 days of this news release. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarised in this news release. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.
For this reason, information contained in this news release in respect of the Dugbe Gold Project may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "seek", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the ability to raise the funds to finance its ongoing business activities including the acquisition of mineral projects and the exploration and development of its projects. Such 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 be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the results of exploration activities; the ability of the Company to complete further exploration activities; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
NON-IFRS MEASURES
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (IFRS), including cash costs and AISC per payable ounce of gold sold. Non-IFRS measures do not have any standardised meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
[1] Cash costs per payable ounce and AISC per payable ounce are non-IFRS financial measures. Please see "Cautionary Note Regarding Non-IFRS Measures". AISC per payable ounce includes all mining costs, processing costs, mine level G&A, royalties, sustaining capital and closure costs. Cash costs per payable ounce includes all mining costs, processing costs, mine level G&A and royalties.
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24m
Newmont to Exit Toronto Stock Exchange as Cost Cuts Deepen
Newmont (TSX:NGT,NYSE:NEM,ASX:NEM) is preparing to withdraw from the Toronto Stock Exchange later this month, the latest in a string of moves to streamline operations and rein in costs following its US$15 billion takeover of Newcrest Mining in 2023.
The Denver-based miner said Wednesday it has applied for a voluntary delisting of its common shares from the TSX, effective at the close of trading on September 24.
The company cited “low trading volumes” on the Canadian exchange and said the decision is expected to “improve administrative efficiency and reduce costs for the benefit of Newmont’s shareholders.”
Newmont’s shares will continue to trade on the New York Stock Exchange, where it maintains its primary listing, as well as on the Australian Securities Exchange and the Papua New Guinea Stock Exchange under the ticker symbol NEM.
Rising costs and restructuring plans
Newmont’s all-in sustaining costs reached record levels earlier this year, eroding profits even as bullion prices hit all-time highs above US$3,500 an ounce in April and remained above US$3,300 through most of the summer.
The company has acknowledged that its cost base has outpaced peers. In the second quarter, Newmont’s costs were nearly 25 percent higher than those of Agnico Eagle Mines, a Canadian rival considered one of the industry’s leanest producers.
Costs have also risen more than 50 percent over the past five years, driven by higher energy, labor, and material prices, as well as integration expenses tied to Newcrest’s operations.
Chief Executive Officer Tom Palmer told investors in July that Newmont was pursuing additional measures to lower its expenses.
Behind the scenes, Newmont has been preparing for more aggressive measures.
People familiar with the matter told Bloomberg News that management has set an internal target to lower costs by as much as US$300 per ounce, or roughly 20 percent.
Meeting that benchmark could require thousands of layoffs across the company’s global workforce of about 22,000, excluding contractors.
While Newmont has not disclosed the scope of planned reductions, some employees have already been informed of redundancies, according to the report. Managers have also been briefed on potential curbs to long-term incentive programs as part of a broader restructuring.
A company spokesperson confirmed earlier this year that Newmont launched a cost and productivity improvement program in February.
Alongside cost cutting, Newmont has moved swiftly to divest non-core assets acquired in the Newcrest deal.
Since late 2024, the company has sold multiple Canadian operations: the Eleonore mine for about US$795 million, the Musselwhite mine in Ontario for $850 million, and its stake in the Porcupine operations for US$425 million.
The asset sales are intended not only to cut debt but also to sharpen focus on higher-margin operations, particularly in North America and Australia.
Despite higher costs, Newmont shares have surged 95 percent this year, followed by also announcing a US$3 billion share repurchase program in July.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Clem Chambers: Gold's Top Driver Now, Silver's Coming Boom Phase
Clem Chambers, CEO of aNewFN.com, shares his outlook for gold and silver.
He also shares his thoughts on the broader US economy.
"We're in an elevated inflationary situation, QE is coming, interest rates are coming down, the dollar's going to fall hard and precious metals are going to go up," Chambers emphasized.
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.
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10 September
What Was the Highest Price for Gold?
Gold has long been considered a store of wealth, and the price of gold often makes its biggest gains during turbulent times as investors look for cover in this safe-haven asset.
The 21st century has so far been heavily marked by episodes of economic and sociopolitical upheaval. Uncertainty has pushed the precious metal to record highs as market participants seek its perceived security.
And each time the gold price rises, there are calls for even higher record-breaking levels.
Gold market gurus from Lynette Zang to Chris Blasi to Jordan Roy-Byrne have shared eye-popping predictions on the gold price that would intrigue any investor — gold bug or not.
Some have posited that the gold price may rise as high as US$4,000 or US$5,000 per ounce, and there are those who believe that US$10,000 gold or even US$40,000 gold could become a reality.
These impressive price predictions have investors wondering, what is gold's all-time high (ATH)?
In the past year, gold has reached new all-time highs dozens of times. Find out what has driven it to these levels, plus how the gold price has moved historically and what has impacted its performance in recent years.
In this article
How is gold traded?
Before discovering what the highest gold price ever was, it’s worth looking at how the precious metal is traded. Knowing the mechanics behind gold's historical moves can help illuminate why and how its price changes.
Gold bullion is traded in dollars and cents per ounce, with activity taking place worldwide at all hours, resulting in a live price. Investors trade gold in major commodities markets such as New York, London, Tokyo and Hong Kong.
London is seen as the center of physical precious metals trading, including for silver. The COMEX division of the New York Mercantile Exchange is home to most paper trading.
There are many popular ways to invest in gold. The first is through purchasing gold bullion products such as bullion bars, bullion coins and rounds. Physical gold is sold on the spot market, meaning that buyers pay a specific price per ounce for the metal and then have it delivered or stored in a secure facility. In some parts of the world, such as India, buying gold in the form of jewelry is the largest and most traditional route to investing in gold.
Another path to gold investment is paper trading, which is done through the gold futures market. Participants enter into gold futures contracts for the delivery of gold in the future at an agreed-upon price.
In such contracts, two positions can be taken: a long position under which delivery of the metal is accepted or a short position to provide delivery of the metal. Paper trading as a means to invest in gold can provide investors with the flexibility to liquidate assets that aren’t available to those who possess physical gold bullion.
One significant long-term advantage of trading in the paper market is that investors can benefit from gold’s safe-haven status without needing to store it. Furthermore, gold futures trading can offer more financial leverage in that it requires less capital than trading in the physical market. Investors can also purchase physical gold via the futures market, but the process is complicated and lengthy and comes with a large investment and additional costs.
Aside from those options, market participants can invest in gold through exchange-traded funds (ETFs). Investing in a gold ETF is similar to trading a gold stock on an exchange, and there are numerous gold ETF options to choose from depending on your preference. For instance, some ETFs focus solely on physical gold bullion, while others focus on gold futures contracts. Other gold ETFs center on gold-mining stocks or follow the gold spot price.
It is important to understand that you will not own any physical gold when investing in an ETF — in general, even a gold ETF that tracks physical gold cannot be redeemed for tangible metal.
Gold has an interesting relationship with the stock market. The two often move in sync during “risk-on periods” when investors are bullish. On the flip side, they tend to become inversely correlated in times of volatility.
According to the World Gold Council, gold's ability to decouple from the stock market during periods of stress makes it “unique amongst most hedges in the marketplace.” It is often during these times that gold outperforms the stock market. For that reason, it is often used as a portfolio diversifier to hedge against uncertainty.
There are a variety of options for investing in gold stocks, including gold-mining stocks on the TSX and ASX, gold juniors, precious metals royalty companies and gold stocks that pay dividends.
What was the highest gold price ever?
The gold price peaked at US$3,667.06, its all-time high, during trading on September 9, 2025.
What drove it to this new ATH? Gold reached its new highest price as momentum continued from the previous week, which brought the release of unexpectedly weak US jobs data.
Following the jobs report, CME Group's (NASDAQ:CME) FedWatch tool showed that the odds for a 25 basis point rate cut at the upcoming US Federal Reserve meeting had dropped from 99 to 90.2 percent, while the odds of a 50 point drop jumped to 9.8 percent. The meeting will take place from September 16 to 17.
While gold's fresh ATH came on September 8, it set multiple news highs in the two preceding weeks amid significant uncertainty in the US and global economies and surging gold ETF purchases.
One key driver came on August 29, when a US federal appeals court ruled that US President Donald Trump's "Liberation Day" tariffs, announced in April, are illegal, stating that only Congress has the power to enact widespread tariffs. The Trump administration is expected to appeal the ruling, which will go into effect on October 14.
Bond market turmoil in the US and abroad on September 2 also provided tailwinds for the gold price.
Why is the gold price setting new highs in 2025?
Gold's record-setting activity extends beyond the last two weeks as well.
Increased economic and geopolitical turmoil caused by the Trump administration has been a tailwind for gold this year, as well as a weakening US dollar, sticky inflation in the country and increased safe-haven gold demand.
Since coming into office in late January, Trump has threatened or enacted tariffs on many countries, including blanket tariffs on longtime US allies Canada and Mexico and tariffs on the EU.
Trump has also implemented 25 percent tariffs on all steel and aluminum imports.
The gold price set a string of new highs in the month of April amid high market volatility as markets reacted to tariff decisions from Trump and the escalating trade war between the US and China. By April 11, Trump had raised US tariffs on Chinese imports to 145 percent and China had raised its tariffs on US products to 125 percent. Trump has reiterated that the US may need to go through a period of economic pain to enter a new "golden age" of economic prosperity.
Falling markets and a declining US dollar have supported gold too, as well as increased buying from China. Elon Musk's call to audit the gold holdings in Fort Knox has also brought attention to the yellow metal.
What factors have driven the gold price in the last five years?
Despite these recent runs, gold has seen its share of both peaks and troughs over the last decade. After remaining rangebound between US$1,100 and US$1,300 from 2014 to early 2019, gold pushed above US$1,500 in the second half of 2019 on a softer US dollar, rising geopolitical issues and a slowdown in economic growth.
Gold’s first breach of the significant US$2,000 price level in mid-2020 was due in large part to economic uncertainty caused by the COVID-19 pandemic. To break through that barrier and reach what was then a record high, the yellow metal added more than US$500, or 32 percent, to its value in the first eight months of 2020.
Gold price chart, August 31, 2020, to September 1, 2025.
Chart via the Investing News Network.
The gold price surpassed that level again in early 2022 as Russia's invasion of Ukraine collided with rising inflation around the world, increasing the allure of safe-haven assets and pulling the yellow metal up to a price of US$2,074.60 on March 8. However, it fell throughout the rest of 2022, dropping below US$1,650 in October.
Although it didn't quite reach the level of volatility as the previous year, the gold price experienced drastic price changes in 2023 on the back of banking instability, high interest rates and the breakout of war in the Middle East.
After central bank buying pushed the gold price up to the US$1,950.17 mark by the end of January, the Fed's 0.25 percent rate hike on February 1 sparked a retreat as the dollar and treasury yields saw gains. The precious metal went on to fall to its lowest price level of the year at US$1,809.87 on February 23.
The banking crisis that hit the US in early March caused a domino effect through the global financial system and led to the mid-March collapse of Credit Suisse, Switzerland’s second-largest bank. The gold price had jumped to US$1,989.13 by March 15. The continued fallout in the global banking system throughout the second quarter of the year allowed gold to break above US$2,000 on April 3, and go on to flirt with a near-record high of US$2,049.92 on May 3.
Those gains were tempered by the Fed’s ongoing rate hikes and improvements in the banking sector, resulting in a downward trend in the gold price throughout the remainder of the second quarter and throughout Q3. By October 4, gold had fallen to a low of US$1,820.01 and analysts expected the precious metal to drop below US$1,800.
That was before the October 7 attacks by Hamas on Israel ignited legitimate fears of a much larger conflict erupting in the Middle East. Reacting to those fears, and to rising expectations that the Fed would begin to reverse course on interest rates, gold broke through the important psychological level of US$2,000 and closed at US$2,007.08 on October 27. As the fighting intensified, gold reached a then-new high of US$2,152.30 in intraday trading on December 3.
That robust momentum in the spot gold price continued into 2024, chasing new highs on fears of a looming US recession, the promise of Fed rate cuts on the horizon, the worsening conflict in the Middle East and the tumultuous US presidential election year. By mid-March, gold was pushing up against the US$2,200 level.
That record-setting momentum continued into the second quarter of 2024, when gold broke through US$2,400 in mid-April on strong central bank buying, sovereign debt concerns in China and investors expecting the Fed to start cutting interest rates. The precious metal went on to hit US$2,450.05 on May 20.
Throughout the summer, the hits kept on coming.
The global macro environment was highly bullish for gold leading up to the US election. Following the failed assassination attempt on Trump and a statement about coming rate cuts by Fed Chair Jerome Powell, the gold spot price hit a then new all-time high on July 16 at US$2,469.30. One week later, news that then-President Joe Biden would not seek re-election and would instead pass the baton to Vice President Kamala Harris eased some of the tension in the stock market and strengthened the US dollar. This also pushed the price of gold down to US$2,387.99 on July 22, 2024.
However, the bullish factors supporting gold remained in play, and the spot price for gold went on to breach US$2,500 on August 2 that year on a less-than-stellar US jobs report; it closed just above the US$2,440 level. A few weeks later, gold pushed past US$2,500 once again on August 16, closing above that level for the first time ever after the US Department of Commerce released data showing a fifth consecutive monthly decrease in a row for homebuilding.
The news that the Chinese government issued new gold import quotas to banks in the country following a two month pause also helped fuel the gold price rally. Central bank gold buying has been a significant tailwind for the gold price this year, and China's central bank has been one of the strongest buyers.
Market watchers expected the Fed to cut interest rates by a quarter point at its September 2024 meeting, but news on September 12 that the regulators were still deciding between the expected cut or a larger half-point cut led the gold price on a rally that carried through into the next day, bringing the metal near US$2,600.
At the September 18 Fed meeting, the committee ultimately made the decision to cut rates by half a point, news that sent gold even higher. By September 20, it had moved above US$2,600 and was holding above US$2,620.
In October 2024, gold first breached the US$2,700 level and continued to higher on a variety of factors, including further rate cuts and economic data anticipation, the escalating conflict in the Middle East between Israel and Hezbollah, and economic stimulus in China — not to mention the very close race between the US presidential candidates.
While the gold price fell following Trump's win in early November and largely held under US$2,700 through the end of the year, it began trending upward in 2025 to the new all-time high discussed earlier in the article.
What's next for the gold price?
What's next for the gold price is never an easy call to make. There are many factors to consider, but some of the most prevalent long-term drivers include economic expansion, market risk, opportunity cost and momentum.
Economic expansion is one of the primary gold price contributors as it facilitates demand growth in several categories, including jewelry, technology and investment. As the World Gold Council explains, “This is particularly true in developing economies where gold is often used as a luxury item and a means to preserve wealth.”
Market risk is also a prime catalyst for gold values as investors view the precious metal as the “ultimate safe haven,” and a hedge against currency depreciation, inflation and other systemic risks.
Going forward, in addition to the Fed, inflation and geopolitical events, experts will be looking for cues from factors like supply and demand. In terms of supply, the world’s five top gold producers are China, Australia, Russia, Canada and the US. The consensus in the gold market is that major miners have not spent enough on gold exploration in recent years. Gold mine production has fallen from around 3,200 to 3,300 metric tons (MT) each year between 2018 and 2020 to around 3,000 to 3,100 MT each year between 2021 and 2023.
On the demand side, China and India are the biggest buyers of physical gold, and are in a perpetual fight for the title of world’s largest gold consumer. That said, it's worth noting that the last few years have brought a big rebound in central bank gold buying, which dropped to a record low in 2020, but reached a 55 year high of 1,136 MT in 2022.
World Gold Council data shows 2024 central bank gold purchases came to 1,044.6 MT, marking the third year in a row above 1,000 MT. In H1 2025, the organization says gold purchases from central banks reached 415.1 MT.
“I expect the Fed’s rate-cutting cycle to be good for gold, but central bank buying has been and remains a major factor," Lobo Tiggre, CEO of IndependentSpeculator.com, told the Investing News Network (INN) at the start of Q4 2024.
David Barrett, CEO of the UK division of global brokerage firm EBC Financial Group, is also keeping an eye on central bank purchases of gold. “I still see the global central bank buying as the main driver — as it has been over the last 15 years,” the expert said in an email to INN. "This demand removes supply from the market. They are the ultimate buy-and-hold participants and they have been buying massive amounts."
In addition to central bank moves, analysts are also watching escalating tensions in the Middle East, a weakening US dollar, declining bond yields and further interest rate cuts as factors that could push gold higher as investors look to secure their portfolios. “When it comes to outside factors that affect the market, it’s just tailwind after tailwind after tailwind. So I don’t really see the trend changing,” said Eric Coffin of Hard Rock Analyst.
Randy Smallwood of Wheaton Precious Metals (TSX:WPM,NYSE:WPM) told INN in March 2025 that gold is seeing support from many factors, including central bank buying, nervousness around the US dollar and stronger institutional interest. Smallwood is seeing an influx of fund managers wanting to learn about precious metals.
Joe Cavatoni, senior market strategist, Americas, at the World Gold Council, believes that market risk and uncertainty surrounding tariffs and continued demand from central banks are the main drivers of gold.
"Market risk in particular is a key strategic driver for the gold price and performance," Cavatoni told INN in a July 2025 interview. "Think strategically when you think about gold, and keep that allocation in mind."
Check out more of INN's interviews to find out what experts have said about the gold price during its 2025 bull run and where it could go next.
Should you beware of gold price manipulation?
It’s important for investors to be aware that gold price manipulation is a hot topic in the industry.
In 2011, when gold hit what was then a record high, it dropped swiftly in just a few short years. This decline after three years of impressive gains led many in the gold sector to cry foul and point to manipulation.
Early in 2015, 10 banks were hit in a US probe on precious metals manipulation.
Evidence provided by Deutsche Bank (NYSE:DB) showed “smoking gun” proof that UBS Group (NYSE:UBS), HSBC Holdings (NYSE:HSBC), the Bank of Nova Scotia (TSX:BNS,NYSE:BNS and other firms were involved in rigging gold and silver rates in the market from 2007 to 2013. Not long after, the long-running London gold fix was replaced by the LBMA gold price in a bid to increase gold price transparency. The twice-a-day process, operated by the ICE Benchmark Administration, still involves a variety of banks collaborating to set the gold price, but the system is now electronic.
Still, manipulation has by no means been eradicated, as a 2020 fine on JPMorgan Chase & Co. (NYSE:JPM) shows. The next year, chat logs were released in a spoofing trial for two former precious metals traders from the Bank of America's (NYSE:BAC) Merrill Lynch unit. They show a trader bragging about how easy it is to manipulate the gold price.
Gold market participants have consistently spoken out about manipulation. In mid-2020, Chris Marcus, founder of Arcadia Economics and author of the book “The Big Silver Short,” said that when gold fell back below the US$2,000 mark after hitting close to US$2,070, he saw similarities to what happened with the gold price in 2011.
Marcus has been following the gold and silver markets with a focus specifically on price manipulation for nearly a decade. His advice? “Trust your gut. I believe we’re witnessing the ultimate ’emperor’s really naked’ moment. This isn’t complex financial analysis. Sometimes I think of it as the greatest hypnotic thought experiment in history.”
Investor takeaway
While we have the answer to what the highest gold price ever is as of now, it remains to be seen how high gold can climb, and if the precious metal can reach as high as US$5,000, US$10,000 or even US$40,000.
Even so, many market participants believe gold is a must have in any investment profile, and there is little doubt investors will continue to see gold price action making headlines this year and beyond.
This is an updated version of an article first published by the Investing News Network in 2020.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Lauren Kelly, 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.
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10 September
How Would a New BRICS Currency Affect the US Dollar?
The BRICS nations, originally composed of Brazil, Russia, India, China and South Africa, have had many discussions about establishing a new reserve currency backed by a basket of their respective currencies.
A BRICS currency was a topic at the 2024 BRICS Summit that took place October 22 to 24 in Kazan, Russia. At the summit, the BRICS nations continued their discussions of creating a potentially gold-backed currency, known as the "Unit," as an alternative to the US dollar.
At the 2024 BRICS summit, Russian President Vladimir Putin appeared on stage holding what appeared as a prototype of a possible BRICS banknote. However, he seemed to back away from previous aggressive calls for de-dollarization, stating the goal of the BRICS member nations is not to move away from the US dollar-dominated SWIFT platform, but rather to deter the "weaponization" of the US dollar by developing alternative systems for using local currencies in financial transactions between BRICS countries and with trading partners.
"We are not refusing, not fighting the dollar, but if they don't let us work with it, what can we do? We then have to look for other alternatives, which is happening," he stated.
The potential BRICS currency would allow these nations to assert their economic independence while competing with the existing international financial system. The current system is dominated by the US dollar, which accounts for about 90 percent of all currency trading. Until recently, nearly 100 percent of oil trading was conducted in US dollars; however, in 2023, one-fifth of oil trades were reportedly made using non-US dollar currencies.
Central to this ongoing situation is the US trade war with China, as well as US sanctions on China and Russia. Should the BRICS nations establish a new reserve currency, it would likely significantly impact the US dollar, potentially leading to a decline in demand, or what's known as de-dollarization. In turn, this would have implications for the United States and global economies.
Another factor is former US president Donald Trump returning for a second term beginning on January 20. Trump's America-first policies are expected to drive up the value of the dollar compared to its global counterparts, as was already on display the day following his election win on November 5 as China's yuan, Russia's ruble, Brazil's real, India's rupee and South Africa's rand all fell. This could in turn push these BRICS member nations to look for new paths to move away from the US dollar.
If BRICS watchers were hoping for more fireworks at the 2025 BRICS meeting held in Brazil this July, they were sorely disappointed. Russian President Vladimir Putin and Chinese President Xi Jinping were not in attendance, and talk of a BRICS currency was much more muted. On top of this, according to Modern Diplomacy, that topic may be even less of a concern at next year's BRICS meeting to be held in India, which has sought to distance itself from a move away from the US dollar toward a BRICS common currency.
It's still too hard to predict if and when a BRICS currency will be released, but it's a good time to look at the potential for a BRICS currency and its possible implications for investors.
In this article
- Why do the BRICS nations want to create a new currency?
- When will a BRICS currency be released?
- Which nations are members of BRICS?
- What would the advantages of a BRICS currency be?
- What is Donald Trump's stance on a BRICS currency?
- How will Trump's tariffs affect BRICS nations?
- How are BRICS nations responding to US Tariffs?
- How would a new BRICS currency affect the US dollar?
- Will BRICS have a digital currency?
- How would a BRICS currency impact the economy?
- How can investors prepare for a new BRICS currency?
- Investor takeaway
- Is a BRICS currency possible?
- Would a BRICS currency be backed by gold?
- How much gold do the BRICS nations have?
Why do the BRICS nations want to create a new currency?
The BRICS nations have a slew of reasons for wanting to set up a new currency, including recent global financial challenges and aggressive US foreign policies. They want to better serve their own economic interests while reducing global dependence on the US dollar and the euro.
In recent years, the US has placed numerous sanctions on Russia and Iran. The two countries are working together to bring about a BRICS currency that would negate the economic impacts of such restrictions, according to Iranian Ambassador to Russia Kazem Jalal, speaking at a press conference during the Russia–Islamic World: KazanForum in May 2024.
Some experts believe that a BRICS currency is a flawed idea, as it would unite countries with very different economies. There are also concerns that non-Chinese members might increase their dependence on China's yuan instead. That said, when Russia demanded in October 2023 that India pay for oil in yuan as Russia is struggling to use its excess supply of rupees, India refused to use anything other than the US dollar or rupees to pay.
When will a BRICS currency be released?
There's no definitive launch date as of yet, but the countries' leaders have discussed the possibility at length.
Looking back at the timeline of BRICS currency discussions, during the 14th BRICS Summit, held in mid-2022, Russian President Vladimir Putin said the BRICS countries plan to issue a "new global reserve currency," and are ready to work openly with all fair trade partners.
In April 2023, Brazilian President Luiz Inacio Lula da Silva showed support for a BRICS currency, commenting, “Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries? Who decided that the dollar was the (trade) currency after the end of gold parity?”
In the lead up to the 2023 BRICS Summit, there was speculation that an announcement of such a currency could be on the table. This proved to be wishful thinking, however.
"The development of anything alternative is more a medium to long term ambition. There is no suggestion right now to creates a BRICS currency," Leslie Maasdorp, CFO of the New Development Bank, told Bloomberg at the time. The bank represents the BRICS bloc.
Government officials in Brazil, which took the rotating presidency of the BRICS group for 2025, have said there are no plans to take any significant steps toward a BRICS currency. However, measures to reduce the reliance on the US dollar are very much on the table with cross-border payment systems, including exploring blockchain technology, a major theme at the 2025 BRICS summit, reported Reuters.
As for 2026, the BRICS Summit will be held in India, which earlier this year distanced itself from the idea of a move away from the US dollar.
Speaking at an event in London in March 2025, India's External Affairs Minister S. Jaishankar stated, "I don't think there's any policy on our part to replace the dollar. The dollar as the reserve currency is the source of global economic stability, and right now what we want in the world is more economic stability, not less. I don't think there's a unified BRICS position on this. I think BRICS members, and now that we have more members, have very diverse positions on this matter."
Which nations are members of BRICS?
As of 2025, there are 10 BRICS member nations: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
The group was originally composed of the four nations Brazil, Russia, India and China and named BRIC, which it changed to BRICS when South Africa joined in 2010.
At the 2023 BRICS Summit, six countries were invited to become BRICS members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE). All but Argentina and Saudi Arabia officially joined the alliance in January 2024, and in 2025, Indonesia became the 10th full member of BRICS.
Additionally, at the 2024 BRICS Summit, 13 nations signed on as BRICS partner countries, which are not yet full-fledged members: Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Vietnam and Uzbekistan.
The expanded group of 10 full member countries is sometimes referred to as BRICS+, although BRICS's name hasn't officially changed.
What would the advantages of a BRICS currency be?
A new currency could have several benefits for the BRICS countries, including more efficient cross-border transactions and increased financial inclusion. By leveraging blockchain technology, digital currencies and smart contracts, the currency could revolutionize the global financial system. Thanks to seamless cross-border payments, it could also promote trade and economic integration among the BRICS nations and beyond.
A new BRICS currency would also:
- Strengthen economic integration within the BRICS countries
- Reduce the influence of the US on the global stage
- Weaken the standing of the US dollar as a global reserve currency
- Encourage other countries to form alliances to develop regional currencies
- Mitigate risks associated with global volatility due to unilateral measures and the diminution of dollar dependence
What is Donald Trump's stance on a BRICS currency?
US President Donald Trump has not been shy about upping the ante on American protectionism with his plans to slap tariffs on imported goods beginning this year. During the first US Presidential Debate between him and Vice President Kamala Harris on September 10 last year, Trump doubled down on his pledge to punish BRICS nations with strict tariffs if they seek to move away from the US dollar as the global currency.
He originally took a particularly strong stance against China, threatening to implement 60 percent to 100 percent tariffs on Chinese imports, although these hefty tariffs would be paid by American companies and consumers purchasing Chinese products, not by China itself.
In early December, Trump posted an even more direct threat to BRICS nations on the social media platform Truth Social. “We require a commitment from these countries that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy,” he wrote.
In response to Trump demanding a "commitment" from BRICS nations not to challenge the supremacy of the US dollar, Kremlin spokesperson Dmitry Peskov sounded less than threatened.
"More and more countries are switching to the use of national currencies in their trade and foreign economic activities," Peskov said, per Reuters. "If the U.S. uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies (in international trade)."
How will Trump's tariffs affect BRICS nations?
If US President Donald Trump were to come through on his promise to enact 100 percent tariffs on BRICS nations the outcome could prove costly for all parties involved. “The action would result in slower growth and higher inflation than otherwise in the US and most of the targeted economies,” according to analysis by the Peterson Institute for International Economics.
Of all the BRICS member nations, China would likely experience the worst slowing of its GDP growth as the United States is its largest trading partner. One silver lining for China is that its disciplined central bank will help to save it from accelerated inflation.
Trump’s 50 percent tariffs on steel and aluminum imports set on June 3, 2025, will impact Brazil and China as well as the UAE. Brazil ranks in the top three sources for US steel imports, while China and the UAE represent significant sources of US aluminum imports.
In late July, Brazil was also saddled with a 50 percent tariff on a broader range of goods, which US President Donald Trump inflicted on the nation in response to the trial of former President Jair Bolsonaro for his alleged coup attempt.
Trump’s tariffs could have a significant impact on Brazil’s economy, the largest in Latin America. However, most of the key trading sectors between the two nations are exempt from the tariff, including “civil aircraft, pig iron, precious metals, wood pulp, energy and fertilizers,” states Reuters.
India is another BRICS nation facing 50 percent tariffs. The sectors targeted span from textiles, garments and footwear to food, leather goods, gems and automobiles. Key industries such as pharmaceuticals and computer chips.
One of the major sticking points for the Trump administration is India continuing to purchase Russian oil. India and China represent the two largest buyers of Russian oil; however, the US has yet to punish China for purchasing oil from the Russian Federation.
Although China represents the United States’ biggest economic rival on the global stage, Trump hit the pause button on the escalating tariff war between the two nations until November 10, 2025. In the meantime, the US's 30 percent tariff on Chinese goods remains in place. Negotiations are underway, including on a proposed 245 percent tariff on Chinese electric vehicle imports.
In July, the Trump Administration imposed 30 percent tariffs on South Africa, the United States’ second biggest trading partner. The African nation's agriculture, mining and manufacturing sector are at significant risk from the tariffs, but there are exceptions in place for “copper, pharmaceuticals, semiconductors, some critical minerals, stainless steel scrap and energy products,” reports the BBC.
How are BRICS nations responding to US Tariffs?
Brazil President Luiz Inacio Lula da Silva convened an online BRICS summit on September 8, 2025, to address the threat of US trade policies and tariffs to member nations.
“Tariff blackmail is being normalized as an instrument to seize markets and interfere in domestic affairs,” stated President Lula, according to a prepared statement from the Brazilian government, Bloomberg reported. “Our countries have become victims of unjustified and illegal trade practices.”
Both Lula and China President Xi Jinping called upon their BRICS peers to stand together and push back against unfair trade practices, and strengthen trade and cooperation between member nations.
However, the South China Morning Post reports that summit attendees fell short of directly criticizing US President Donald Trump in a bid not to further stoke his ire. That may also be why most BRICS members are trying to negotiate with the US rather than fight back with retaliatory tariffs.
Critics have suggested Trump’s tariffs are having the undesirable effect of driving major trading partners like Brazil, India and South Africa further into the arms of US rivals China and Russia.
While currently only 9 percent of China’s exports are to other BRICS members, according to Reuters, trade between China and Russia reached a record US$244.8 billion in 2024. In addition, China is Brazil’s largest trading partner, importing 70 percent of its soybeans from the Latin American country. In fact, 28 percent of Brazil’s total exports go to China and 24 percent of its imports are from China.
Trade relations between the BRICS nations may grow stronger as they seek to mitigate the economic impact of US tariffs.
How would a new BRICS currency affect the US dollar?
RomanR / Shutterstock
For decades, the US dollar has enjoyed unparalleled dominance as the world's leading reserve currency. According to the US Federal Reserve, between 1999 and 2019, the dollar was used in 96 percent of international trade invoicing in the Americas, 74 percent in the Asia-Pacific region and 79 percent in the rest of the world.
According to the Atlantic Council, the US dollar is used in approximately 88 percent of currency exchanges, and 59 percent of all foreign currency reserves held by central banks. Due to its status as the most widely used currency for conversion and its use as a benchmark in the forex market, almost all central banks worldwide hold dollars. Additionally, the dollar is used for the vast majority of oil trades.
Although the dollar's reserve currency share has decreased as the euro and yen have gained popularity, the dollar is still the most widely used reserve currency, followed by the euro, the yen, the pound and the yuan.
The potential impact of a new BRICS currency on the US dollar remains uncertain, with experts debating its potential to challenge the dollar's dominance. However, if a new BRICS currency was to stabilize against the dollar, it could weaken the power of US sanctions, leading to a further decline in the dollar's value. It could also cause an economic crisis affecting American households. Aside from that, this new currency could accelerate the trend toward de-dollarization.
Nations worldwide are seeking alternatives to the US dollar, with examples being China and Russia trading in their own currencies, and countries like India, Kenya and Malaysia advocating for de-dollarization or signing agreements with other nations to trade in local currencies or alternative benchmarks.
While it is unclear whether a new BRICS currency would inspire the creation of other US dollar alternatives, the possibility of challenging the dollar's dominance as a reserve currency remains. And as countries continue to diversify their reserve holdings, the US dollar could face increasing competition from emerging currencies, potentially altering the balance of power in global markets.
However, a study by the Atlantic Council's GeoEconomics Center released in June 2024 shows that the US dollar is far from being dethroned as the world's primary reserve currency.
"The group's 'Dollar Dominance Monitor' said the dollar continued to dominate foreign reserve holdings, trade invoicing, and currency transactions globally and its role as the primary global reserve currency was secure in the near and medium term," Reuters reported.
Warwick J. McKibbin and Marcus Noland of the Peterson Institute for International Economics agree with this sentiment, writing in their analysis of the impacts of US tariffs on BRICS nations that "the BRICS pose no serious threat to the dollar’s dominance."
Ultimately, the impact of a new BRICS currency on the US dollar will depend on its adoption, its perceived stability and the extent to which it can offer a viable alternative to the dollar's longstanding hegemony.
Will BRICS have a digital currency?
BRICS nations do not as of yet have their own specific digital currency, but a BRICS blockchain-based payment system is in the works, according to Kremlin aide Yury Ushakov in March 2024. Known as the BRICS Bridge multisided payment platform, it would connect member states' financial systems using payment gateways for settlements in central bank digital currencies.
The planned system would serve as an alternative to the current international cross-border payment platform, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, which is dominated by US dollars.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,” Ushakov said in an interview with Russian news agency TASS.
Another dollar-alternative digital currency cross-border payment system in the works is Project mBridge, under development via a collaboration between the Hong Kong Monetary Authority, the Bank of Thailand, the Digital Currency Institute of the People's Bank of China and the Central Bank of the UAE. Saudi Arabia has also recently decided to join the project. The central bank digital currencies traded on the platform would be backed by gold and local currencies minted in member nations.
In June 2024, Forbes reported that the mBridge platform had reached a significant milestone by completing its minimal viable product stage (MVP). The MVP platform can undertake real-value transactions (subject to jurisdictional preparedness) and is compatible with the Ethereum Virtual Machine (EVM), a decentralized virtual environment that executes code consistently and securely across all Ethereum nodes," stated the publication. "MVP thus is suitable as a testbed for new use cases and interoperability with other platforms."
In a recent interview with the Investing News Network, Andy Schectman, president of Miles Franklin, explained how Project mBridge relates to the BRICS Unit.
Watch the full interview with Schectman.
"(New Development Bank President Dilma Rousseff) came out and publicly said that there has been an agreement in principle to use a new settlement currency called the Unit, which will be backed 40 percent by gold and 60 percent by the local currencies in the BRICS union — the BRICS+ countries. That gold will be in the form of kilo bars and will be deliverable or redeemable for those entities," Schectman said.
"The basket of gold and the basket of currencies will be minted in the member countries ... it will be put into an escrow account, taken off the ledger so to speak — off of their balance sheet and put onto the mBridge ledger, and held in an escrow account in their own borders. It doesn't need to be sent to a central authority."
How would a BRICS currency impact the economy?
A potential shift toward a new BRICS currency could have significant implications for the North American economy and investors operating within it. Some of the most affected sectors and industries would include:
- Oil and gas
- Banking and finance
- Commodities
- International trade
- Technology
- Tourism and travel
- The foreign exchange market
A new BRICS currency would also introduce new trading pairs, alter currency correlations and increase market volatility, requiring investors to adapt their strategies accordingly.
How can investors prepare for a new BRICS currency?
Adjusting a portfolio in response to emerging BRICS currency trends may be a challenge for investors. While it does not currently seem like a BRICS currency is on the immediate horizon, Trump's aggressive trade tactics have pushed allies away from the US, making diversification important.
Several strategies can be adopted to capitalize on these trends and diversify your portfolio:
- Diversify currency exposure by investing in assets such as bonds, mutual funds exchange-traded funds (ETFs) that are denominated in currencies other than the US dollar.
- Gain exposure to BRICS equity markets through stocks and ETFs that track BRICS market indexes.
- Invest a portion of your portfolio in precious metals gold and silver as a hedge against currency risk.
- Consider alternative investments such as real estate or private equity in the BRICS countries.
Prudent investors will also weigh these strategies against their exposure to market, political and currency fluctuations.
In terms of investment vehicles, investors could consider ETFs such as the iShares MSCI BIC ETF (ARCA:BKF) or the Pacer Emerging Markets Cash COW 100 ETF (NASDAQ:ECOW). They could also invest in mutual funds such as the T. Rowe Price Emerging Markets Equity Fund, or in individual companies within the BRICS countries.
Simply put, preparing for a new BRICS currency or potential de-dollarization requires careful research and due diligence by investors. Diversifying currency exposure, and investing in commodities, equity markets or alternative investments are possible options to consider while being mindful of the associated risks.
Investor takeaway
While it is not certain whether the creation of a BRICS reserve currency will come to pass, its emergence would pose significant implications for the global economy and potentially challenge the US dollar's dominance as the primary reserve currency. This development would present unique investment opportunities, while introducing risks to existing investments as the shifting landscape alters monetary policy and exacerbates geopolitical tensions.
For those reasons, investors should closely monitor the progress of a possible BRICS currency. And, if the bloc does eventually create one, it will be important watch the currency's impact on BRICS member economies and the broader global market. Staying vigilant will help investors to capitalize on growth prospects and hedge against potential risks.
FAQs for a new BRICS currency
Is a BRICS currency possible?
Some financial analysts point to the creation of the euro in 1999 as proof that a BRICS currency may be possible. However, this would require years of preparation, the establishment of a new central bank and an agreement between the five nations to phase out their own sovereign currencies; it would most likely also need the support of the International Monetary Fund to be successful internationally.
The impact of its war on Ukraine will continue to weaken Russia's economy and the value of the ruble, and China is intent on raising the power of the yuan internationally. There is also a wide chasm of economic disparity between China and other BRICS nations. These are no small obstacles to overcome.
Would a new BRICS currency be backed by gold?
While Russian President Vladimir Putin has suggested hard assets such as gold or oil, a new BRICS currency would likely be backed by a basket of the bloc's currencies. However, this basket could potentially contain gold as well, as Andy Schectman explained to INN.
Additionally, speaking at this year's New Orleans Investment Conference, well-known author Jim Rickards gave a detailed talk on how a gold-backed BRICS currency could work. He suggested that if a BRICS currency unit is worth 1 ounce of gold and the gold price goes to US$3,000 per ounce, the BRICS currency unit would be worth US$3,000, while the dollar would lose value compared to the BRICS currency as measured by the weight of gold.
Importantly though, he doesn't see this as a new gold standard, or the end of the US dollar or the euro.
“(With) a real gold standard, you can take the currency and go to any one of the central banks and get some gold,” Rickards said at the event. “With BRICS they don’t have to own any gold, they don’t have to buy any gold, they don’t have to prop up the price. They can just rise on the dollar gold market."
How much gold do the BRICS nations have?
The combined central bank gold holdings of the original BRICS nations plus Egypt (the only nation of the five new additions to have central bank gold reserves) accounts for more than 20 percent of all the gold held in the world's central banks. Russia, India and China rank in the top 10 for central bank gold holdings.
Russia controls 2,335.85 metric tons (MT) of the yellow metal, making it the fifth largest for central bank gold reserves. China follows in the sixth spot with 2,298.53 MT of gold and India places eighth with 879.98 MT. Brazil and South Africa's central bank gold holdings are much smaller, coming in at 129.65 MT and 125.47 MT, respectively. New BRICS member Egypt's gold holdings are equally small, at 128.54 MT.
This is an updated version of an article originally published by the Investing News Network in 2023.
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.
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.
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10 September
Executing WA Gold Strategy
Metal Bank Limited (ASX:MBK) (‘MBK’ or ‘the Company’) advises that it has signed a non-binding term sheet (Term Sheet) with Hastings Technology Metals Ltd (ASX:HAS) (HAS) for the acquisition of the gold assets of HAS, (subject to due diligence, binding documentation and other conditions precedent including MBK shareholder approval) (Proposed Acquisition), and has commenced a scoping study for the Kingsley and Homestead deposits at the Livingstone Project, furthering its Western Australian focussed gold strategy to expand MBK’s WA gold portfolio and move to production.
- Terms agreed to acquire the gold assets of Hastings Technology Metals Ltd (HAS), including the Whiteheads Project, for MBK shares, subject to binding documentation and other conditions precedent
- Livingstone Scoping Study for the Kingsley and Homestead deposits is underway
- Livingstone and HAS’ Whiteheads projects well placed for further exploration and fast-tracking to production
Expanding MBK’s WA gold portfolio – HAS to vend its WA gold assets into MBK for shares*
In accordance with the Term Sheet, MBK is to acquire:
- Great Western Gold Pty Ltd (GWG), the holder of a 75% interest in the Whiteheads Gold Project JV tenements and other tenements 100% held by GWG (refer Appendix 1), covering ~380km2 located approximately 80km NE of Kalgoorlie (Whiteheads Project);
- Ark Gold Pty Ltd (Ark), the holder of the Ark gold project, comprising two exploration licences located approx. 40km southeast of HAS’ Yangibana Project, 250 km northeast of Carnarvon in Western Australia (Ark Project); and
- The Darcy’s gold project comprising 3 exploration licenses covering an area of ~ 100km2 situated adjacent to HAS’ Brockman Niobium and Heavy Rare Earths Project in the East Kimberley region of Western Australia (Darcy Project).
*The Proposed Acquisition is subject to satisfactory completion of mutual due diligence, which is currently in progress, signing of binding documentation, MBK shareholder approval under Listing Rule 7.1 and other necessary approvals, including ASX review pursuant to Listing Rule 11.1.
As consideration for the Proposed Acquisition, MBK will issue to HAS MBK Shares (Consideration Shares) for a total value of $2,300,000, at a share price of $0.014373, being the 10 day VWAP at the date of signing the term sheet. The consideration comprises $2,000,000 for the HAS Gold Assets plus $300,000 for the cash balance to be held by GWG at Completion.
A deferred consideration of $800,000 to the vendors of Whiteheads and subject to defined resource milestones being achieved remains payable by HAS over the next five years1.
It is the intention of HAS to seek approval of its shareholders to the distribution of the Consideration Shares in-specie to its shareholders, following completion of the acquisition.
Charles Lew will join the board of MBK as a non-executive director and the Board has agreed to appoint Tim Gilbert, currently Chief Operating Officer with HAS, as MBK’s new CEO following completion. Ines Scotland will remain as MBK’s Chair in a non-executive role.
Mr Gilbert is a mining engineer with more than four decades of experience in a range of senior roles in the resources sector across multiple commodities, including battery and base metals, diamonds and gold. His expertise covers a range of strategic, operational, construction and technical roles for major contractors including Theiss, as well as global mining companies including Rio Tinto, Newmont and Gold Field Australia where he was VP Operations and previously General Manager, Agnew Gold Mine.
A summary of the agreed terms for the Proposed Acquisition is set out later in this release.
Fast-tracking Livingstone and Whiteheads to production.
MBK has commenced a scoping study for the Homestead and Kingsley deposits at Livingstone. These projects hold JORC 2012 Mineral Resource Estimates2 from surface of:
- 1.68Mt @ 1.35g/t Au for 73.0koz Au, 100% Inferred at Kingsley;
- a total of 1.00Mt @ 1.35g/t Au for 43.4koz Au at Homestead, comprising 83% Indicated – 821Kt @1.37g/t Au for 36.2koz Au and 17% Inferred – 183Kt @1.22 g/t Au for 7.2koz Au;
Mark Cossom and Peter Lester are managing the scoping study for MBK and a mine services group has been engaged to undertake the necessary pit design and technical work. Mark is a consultant geologist and was formerly managing director of Gateway Mining Ltd and prior to that General Manager – Geology and Exploration with Doray Minerals Ltd. Peter Lester is a consultant mining engineer to MBK with over 40 years’ experience in the mining industry.
In addition, MBK has engaged the services of Stuart Stephens to provide exploration management services for the Livingstone project, including progressing mining proposals and necessary approvals required to proceed to production. Stuart is a geologist and former Exploration Manager at Gateway Mining with extensive experience in the WA mining and environmental regulatory framework.
Since acquiring Whiteheads earlier this year, HAS has developed a strategy of fast-tracking the Seven Leaders and Blue Poles deposits to open pit. HAS will commence drilling at Whiteheads in the coming weeks for a maiden JORC Resource and small mining proposals and associated approvals will follow.
MBK’s Chair Ines Scotland commented: “Adding the HAS gold assets plus experienced management to MBK provides MBK with scale for future gold production. The HAS gold projects complement our strategy for the Kingsley and Homestead projects at Livingstone that we are now advancing to Scoping Study stage. The HAS acquisition furthers our strategy of building a gold portfolio in WA with assets that have the potential for near term production utilising nearby third- party processing infrastructure, as well as significant exploration upside. We are looking forward to welcoming Charles Lew to the Board and Tim Gilbert joining as CEO to assist us in implementing our strategy.”
Commenting on the Term Sheet for sale of Hastings’ gold assets, Hastings Executive Chairman, Mr Charles Lew said:
“I am pleased to see the strategic integration of our Whiteheads Project with Metal Bank’s Livingstone Project, creating a promising pathway toward early cash flow through the Seven Leaders deposit. The addition of Hastings gold assets, complemented by experienced management and a clear focus on near-term production opportunities in WA, positions the enlarged company well for future growth. Capitalising on the strong gold price and a talented management team, we aim to realize the full potential of these assets and to advancing our shared strategy for building a robust gold portfolio."
Click here for the full ASX Release
This article includes content from Metal Bank Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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