
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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07 April 2022
Pasofino Gold Limited
Pasofino Gold Ltd is a Canada-based gold exploration company. It is engaged in the business of acquisition, exploration, and development of mineral properties located in Quebec, Canada. The company's projects consist of Roger Gold-Copper Project, located in the Chibougamau Mining District, and Dugbe Gold Project.
2h
Zeus Resources: Unlocking Morocco’s High-grade Antimony in a Tightening Supply Market
Zeus Resources (ASX:ZEU,FSE:ZEU) is a mineral exploration company dedicated to advancing high-grade critical mineral projects in underexplored regions. Its primary focus is the 100-percent-owned Casablanca antimony project in Morocco, while also maintaining exploration interests in uranium, lithium and rare earth elements across Australia.
Targeting Europe’s industrial and defence supply chains, Zeus is leveraging Morocco’s efficient permitting environment to fast-track development. In July 2025, Zeus completed its acquisition of Casablanca and immediately initiated a high-resolution geophysics program. The company aims to progress from reconnaissance to drilling within months, capitalising on record-high antimony prices and tightening Western supply chains. The Casablanca project represents one of the few high-grade antimony exposures outside China.
Zeus also strengthened its Moroccan strategy through a five-year, non-exclusive license agreement with Newmont, covering its Morocco exploration database and regional framework study across the Anti-Atlas and Central Meseta regions. The database integrates geochemical, geophysical and structural datasets, providing Zeus with a competitive advantage in prospectivity analysis and target generation. Key terms include a 1 percent NSR royalty on any properties Zeus acquires in these regions and a 15-year right of first refusal for Newmont on transfers. The agreement streamlines project identification, reduces early-stage risk and positions Zeus to efficiently expand its Moroccan footprint.
Company Highlights
- Casablanca Antimony Project: Six exploration licenses over 79 sq km in central Morocco. Surface sampling during due diligence returned astonishing results: up to 61.9 percent antimony, with additional samples ranging 7.8 to 46.52 percent antimony along a mapped strike exceeding 4 km
- Strategic Location for Supply Security: Morocco is a long-standing antimony producer with historic supply to Europe, ranking 19th globally on the Fraser Institute’s mining jurisdiction index- – on par with Western Australia.
- Rapid Advancement Exploration Model: Geophysics survey underway within weeks of licence acquisition, trenching program planned, and drill commencement targeted for early Q4 2025.
- Favourable Market Dynamics: Antimony prices have quadrupled since early 2024 to ~US$55,000/t amid tightening global supply and rising demand from defence, electronics and renewable energy sectors.
- Strategic Advisory Firepower: Former US Ambassador Christopher Dell has joined as US business and strategic development advisor aiming to leverage his extensive diplomatic experience and proven negotiation skills to facilitate Zeus navigate capital-raising, geopolitical positioning and partnerships aligned with Western critical minerals policy
- Strategic Data Access: Access to Newmont’s Morocco exploration database and framework study strengthens Zeus’s ability to fast-track target generation and expand its Moroccan footprint
- Lean Valuation, Clear Milestones: Market capitalization sits around AU$9 to AU$13 million, offering early-stage leverage if exploration success continues.
This Zeus Resources profile is part of a paid investor education campaign.*
Click here to connect with Zeus Resources (ASX:ZEU) to receive an Investor Presentation
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5h
Discovery to Production: How Juniors are Rewriting the Gold Resource Playbook
Amid a sustained strong gold price, new opportunities are emerging for junior gold explorers to turn their discoveries into cashflow, not through the traditional M&A route, but through pathways to self-production. It’s a shift that is not only reshaping valuations and investor expectations, but the very nature of the junior mining sector.
For decades, the junior gold mining model has been predictable: make a discovery, build a resource, and then sell the project to a major producer. The goal was to de-risk an asset just enough to catch the attention of a larger company with the capital and processing infrastructure needed to bring it into production.
But as the gold price climbs and the competitive landscape tightens, that playbook could be changing — or at least, branching out. Increasingly, juniors are bypassing the “flip” stage and moving directly into production themselves.
Strong case for junior production
Investors typically reward credible paths to near-term cashflow.
In a high price environment, the same ounces can deliver materially higher operating margins, making debt or hybrid financing more attainable and less dilutive than during down-cycles. The World Gold Council notes gold’s standout performance so far in 2025, reinforcing why juniors that are able to convert resources into production more quickly can capture that margin window rather than funding years of pre-production.
While the opportunity for juniors to fast track into production is compelling, the transition is not necessarily straightforward. Crossing the line from explorer to producer brings a new layer of execution risk: commissioning a mill on time and on budget, proving the metallurgy of the ore, ensuring tailings facilities meet regulatory standards and maintaining enough working capital to weather startup hiccups. This is simply the reality that investors must weigh and juniors must contend with in the transition from exploration to production.
For investors, scrutinizing these risks is essential. Juniors with the right combination of a solid resource base, the technical expertise to execute and strategic infrastructure, such as a permitted mill, are likely to excel.
Mill infrastructure: A key advantage
Owning or securing access to a permitted processing facility can shave years off a development path. It reduces permitting unknowns, de-risks metallurgy in familiar circuits, and enables toll milling as a bridge to cashflow while a company ramps its own ore. Current examples in the junior space show how existing plants are being used as regional hubs or as stepping stones to full production:
- i-80 Gold’s (TSX:IAU,NYSEAMERICAN:IAUX) Lone Tree complex in Nevada is being refurbished as a central autoclave hub to treat refractory ore from multiple deposits across the state, explicitly designed as a “hub-and-spoke” strategy.
- West Red Lake Gold Mines (TSXV:WRLG,OTCQB:WRLGF) has moved from bulk sampling to restart at the Madsen mine/mill in Ontario, demonstrating how a built, permitted mill accelerates the path back to production.
- 1911 Gold’s (TSXV:AUMB,OTCQB:AUMBF) True North complex in Manitoba illustrates how a fully permitted 1,300 metric ton per day mill and tailings area can function as a regional asset while the underground mine is optimized; the company has also generated revenue from tailings reprocessing.
- Blue Lagoon Resources (CSE:BLLG,OTCQB:BLAGF,FWB:7BL) secured a toll-milling arrangement with Nicola Mining to process ore from its Dome Mountain project, pairing permitting progress with third-party capacity to bring forward cashflow.
Case Study: LaFleur Minerals
Among the growing list of gold exploration companies transitioning to production, LaFleur Minerals (CSE:LFLR,OTCQB:LFLRF) is an investment case worth considering. The company is advancing the Swanson gold project in Québec’s prolific Abitibi gold belt while preparing to restart its 100 percent owned, fully permitted Beacon gold mill near Val-d’Or.
Beacon gold mill — cornerstone asset. LaFleur’s plan centers on bringing the Beacon facility back online. Permitted and refurbished by the prior owner with roughly C$20 million of upgrades, the mill has over 750 tonne per day nameplate capacity and sits within trucking distance of the company’s Swanson gold project.
Recent updates outline a staged restart, with initial production targeted by late 2025 and full operations by early 2026, supported by advisors engaged to arrange restart debt financing. With a low restart cost of $5 to $6 million and significant upside potential supported by the current rising price of gold and the company’s mill infrastructure valued nearly twice its current market cap, LaFleur is quickly transitioning from exploration to production in a region that desperately needs a producing mill to cater to surrounding deposits.
Swanson gold project — district-scale with updated technical work. Swanson’s NI 43-101 mineral resource estimate (effective September 17, 2024) is disclosed in an updated technical report filed July 29, 2025, while newsflow through mid-2025 details drilling, claim consolidation and bulk sample planning aimed at accelerating feed to Beacon.
The Swanson gold project benefits from extensive historical work, over 36,000 meters of drilling and multiple high-grade zones of interest, currently the subject of an ongoing 5,000 meter drill program and upcoming preliminary economic assessment to evaluate the economics of an open-pit mining scenario at Swanson and processing of mineralized material at the Beacon gold mill.
Near-term cashflow strategy — By pairing a permitted gold mill with a growing resource base and an already district-scale 18,000+ hectare footprint, LaFleur’s path to first cashflow can include bulk sample processing and, potentially, third-party material — an approach other juniors have used successfully to de-risk ramp-ups. Company updates emphasize the dual track of Swanson development and Beacon restart to produce gold with minimal new permitting.
LaFleur Minerals, with its combination of the Swanson gold project and the Beacon gold mill, represents one of the clearer examples of how this new playbook can unfold. If it succeeds in delivering near-term production, it will not only validate its own strategy but also underline a broader truth: in today’s gold market, juniors who can produce may well outshine their exploration-focused peers.
Investor checklist
The combination of a strong gold market, investor appetite for near-term producers, and the availability of strategic infrastructure is giving rise to a new breed of juniors. For those prepared to execute, the rewards could be substantial. For investors, the key is to separate those with credible infrastructure, permitting and financing plans from those making aspirational claims.
Junior miners in the gold sector are clearly evolving. Investors are now more likely to reward companies that not only make discoveries but that can process those discoveries and turn them into cashflow.
This INNSpired article is sponsored by LaFleur Minerals (CSE:LFLR,OTCQB:LFLRF). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by LaFleur Minerals in order to help investors learn more about the company. LaFleur Minerals is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with LaFleur Minerals and seek advice from a qualified investment advisor.
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5h
Zeus Resources Limited
Investor Insight
With a targeted, execution-driven strategy, Zeus Resources is positioning itself as an emerging critical minerals explorer with a compelling investment story that leverages a strengthening antimony market and a clear path from discovery to production.
Overview
Zeus Resources (ASX:ZEU,FSE: ZEU) is a dynamic mineral exploration company focused on discovering and advancing early-stage, high-grade critical mineral assets in underexplored jurisdictions. Its primary strategic focus is the 100-percent-owned Casablanca antimony project in Morocco. The company also has exploration interests in uranium, lithium and rare earth elements in Australia.
Antimony, the company’s lead commodity, is designated as a critical mineral by the US, EU, Japan and Australia due to its essential role in defence, energy storage, electronics and renewable technologies. Global supply is heavily concentrated, with more than 60 percent of production originating from China and Russia and limited processing capacity outside China.
This current dynamic makes Morocco’s potential as a secure, alternative source strategically and economically important.
With Europe’s industrial and defence supply chains as its target, Zeus is leveraging Morocco’s efficient permitting environment to fast-track development. In July 2025, the company completed its acquisition of Casablanca and quickly initiated a high-resolution geophysics program. The company aims to move from reconnaissance to drilling within months to capitalise on record-high antimony prices and tightening Western supply chains. The Casablanca project represents one of the rare high-grade antimony exposures outside China.
In parallel, Zeus has strengthened its Moroccan strategy through a five-year non-exclusive license agreement with Newmont, covering its Morocco exploration database and regional framework study across the Anti-Atlas and Central Meseta regions. The database provides integrated geochemical, geophysical and structural datasets, giving Zeus a competitive advantage in prospectivity analysis and target generation. Key terms include a 1 percent NSR royalty on any properties Zeus acquires in these regions and a 15-year right of first refusal for Newmont on transfers. This agreement streamlines project identification, reduces early-stage risk, and positions Zeus to expand its Moroccan footprint efficiently.
Beyond Morocco, Zeus retains royalty-backed lithium exposure through the Mortimer Hills project in Western Australia’s Gascoyne region, situated near Delta Lithium’s substantial Malinda and Jameson deposits. The company also holds the Kalabity project in South Australia, offering multi-commodity optionality including uranium, copper, base metals, lithium and REEs, across a large landholding with geological analogies to both Olympic Dam (IOCG) and Broken Hill mineral systems.
Company Highlights
- Casablanca Antimony Project: Six exploration licenses over 79 sq km in central Morocco. Surface sampling during due diligence returned astonishing results: up to 61.9 percent antimony, with additional samples ranging 7.8 to 46.52 percent antimony along a mapped strike exceeding 4 km
- Strategic Location for Supply Security: Morocco is a long-standing antimony producer with historic supply to Europe, ranking 19th globally on the Fraser Institute’s mining jurisdiction index- – on par with Western Australia.
- Rapid Advancement Exploration Model: Geophysics survey underway within weeks of licence acquisition, trenching program planned, and drill commencement targeted for early Q4 2025.
- Favourable Market Dynamics: Antimony prices have quadrupled since early 2024 to ~US$55,000/t amid tightening global supply and rising demand from defence, electronics and renewable energy sectors.
- Strategic Advisory Firepower: Former US Ambassador Christopher Dell has joined as US business and strategic development advisor aiming to leverage his extensive diplomatic experience and proven negotiation skills to facilitate Zeus navigate capital-raising, geopolitical positioning and partnerships aligned with Western critical minerals policy
- Strategic Data Access: Access to Newmont’s Morocco exploration database and framework study strengthens Zeus’s ability to fast-track target generation and expand its Moroccan footprint
- Lean Valuation, Clear Milestones: Market capitalization sits around AU$9 to AU$13 million, offering early-stage leverage if exploration success continues.
Key Projects
Casablanca Antimony Project
Located in central Morocco, the Casablanca antimony project spans 79 sq km under six granted exploration licences in a historically productive mining district. Situated along the regional NNE-striking Smaala-Oulmes fault, the project benefits from structural dilation and quartz vein networks hosting high-grade stibnite mineralisation.
Multiple historical and recent artisanal workings are present across the tenure, with extensive surface mineralisation mapped over more than 4 km of strike. Rock chip sampling during due diligence returned exceptional antimony grades, peaking at 61.9 percent antimony, with additional assays of 44.5 percent and 39.4 percent, and a broader range of samples between 7.8 percent and 46.52 percent antimony across 20 locations. These results rank among the highest reported for any early-stage antimony discovery globally, underscoring the strong potential for defining a resource. The licences are drill-ready, and Zeus has rapidly commenced a high-resolution induced polarisation (HRIP) geophysical program comprising 23 dipole-dipole profiles over 16 km to delineate subsurface conductive zones and key structural controls.
The work is supported on the ground by Ashgill Morocco, whose in-country geological team brings deep expertise in North African mineral systems and manages permitting, mapping and logistics. Upon completion of the geophysics, a trenching program, selected for its speed and cost efficiency given the project’s grade profile, will test surface veins and inform drill targeting. Drilling is anticipated to start in early Q4 2025. Morocco’s modern mining code, stable political environment and strategic proximity to European markets present a clear pathway to fast-track the project from exploration to development, should drilling confirm significant resources.
Mortimer Hills
The Mortimer Hills project (E09/2147), located in the Gascoyne region, lies ~5 km along strike from Delta Lithium’s Malinda project. It is situated within the Leake Springs Metasediment unit, which collectively hosts 21.9 Mt of lithium resources (Malinda + Jameson deposits). The project was sold to Delta Lithium’s subsidiary, but Zeus retains a structured royalty interest, providing leveraged exposure to a rapidly advancing lithium district without ongoing capital commitments.
Kalabity Project
Kalabity is Zeus’ South Australian exploration initiative, targeting uranium, copper, base metals, lithium and REE within the Curnamona Tectonic Province. The project spans four granted exploration licences (EL7008, EL7039, EL7048 and EL7058) and is strategically located near historic deposits such as Kalabity and Crocker Well. The district’s geological setting is analogous to Olympic Dam (IOCG) and Broken Hill (zinc-lead-silver) systems, offering large-scale polymetallic potential. The recent granting of EL7058 further consolidates Zeus’ position in this prospective province.
Management Team
Alvin Tan – Executive Chairman
With nearly three decades of corporate experience across ASX-listed and global companies, Alvin Tan has a track record in mergers, acquisitions and capital raising. He currently serves as a director of LSE and NSX-listed PYX Resources and was formerly a director of ASX-listed Advanced Share Registry prior to its acquisition.
Hugh Pilgrim – Executive Director
Founding partner of Caravel Securities, Hugh Pilgrim has extensive experience in capital raising, mineral project acquisition and structuring corporate transactions on the ASX. He is leading Zeus’ corporate development strategy, with a focus on accelerating the Casablanca project’s exploration and development.
Robert Marusco – Executive Director and Company Secretary
A corporate strategist with over 25 years of experience, Robert Marusco has held senior roles in private and ASX-listed companies. He specialises in corporate governance, financial planning and compliance, with a background in advising on ASX listings, M&A and restructures.
Christopher Dell – US Business and Strategic Development Advisor
Christopher Dell is a former US Ambassador to Angola, Zimbabwe and Kosovo, and senior executive at Bechtel and Fieldstone Africa. His appointment strengthens Zeus’ ability to engage Western governments, companies and strategic funders in the antimony supply chain context
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5h
Gold Price Breaks US$3,700, Then Falls as Fed Cuts Rates
The US Federal Reserve held its sixth meeting of 2025 from Tuesday (September 16) to Wednesday (September 17) amid slowing growth in the country's jobs market.
The central bank met analysts’ expectations by lowering the federal funds rate by 25 basis points to the 4 to 4.25 percent range. It marks the first cut of 2025, after holding at the 4.25 to 4.5 percent range since December 2024.
Despite August consumer price index (CPI) data showing inflation rose to 2.9 percent from 2.7 percent in July, a weakening labor market became the focus of the Fed’s dual mandate of stable prices and maximum employment.
“The case for a persistent inflation outbreak is less, and that’s why we think it’s time for us to acknowledge the risks to the other mandate have grown, and we should move in the direction of neutral,” said Chair Jerome Powell.
The most recent US jobs report indicates that August brought an increase of just 22,000 new workers, while the unemployment rate ticked up to 4.3 percent from 4.2 percent in July. Additionally, the Bureau of Labor Statistics, which produced the report, announced a downward revision to June’s figures, showing a loss of 13,000 jobs.
Similarly, July’s report, released on August 1, marked a significant weakening in the labor force, bringing the three month average to just 28,000 new jobs after growth of 192,000 in the February to April period.
Following that report, US President Donald Trump fired the head of the Bureau of Labor Statistics, suggesting the jobs data was “rigged” to make his administration look bad. Both the slowing American labor market and rising inflation over the past few months have been blamed on the effects of Trump’s tariffs trickling into the economy.
Trump has been critical of the Fed and Powell in particular, saying they haven't moved quickly enough to lower rates.
While he is unable to remove Powell, in August Trump attempted to fire Fed Governor Lisa Cook over alleged mortgage fraud stemming from mortgage applications where she listed two homes as principal residences. Recent documents have shown those allegations to be false, and that Cook listed one of the homes as a vacation property.
On Monday (September 15), an appeals court blocked Cook's removal from the Fed's Board of Governors, allowing her to participate in this week’s meeting. Also this week, the Senate confirmed Stephen Miran to the board in a 48 to 47 decision along party lines. He will be replacing Adriana Kugler, who resigned in August.
Miran is on leave from his position at the White House’s Council of Economic Advisers and increases Trump’s influence over the seven member board. The nomination process for a new board member usually lasts months, but Miran’s appointment took just six weeks, allowing him to participate in this week’s meeting.
The gold price rose to a record high of US$3,707.34 per ounce shortly after the decision, but quickly fell back to the US$3,650 level. Silver spiked as high as US$42.24 per ounce following the meeting, still trading near 14 year highs.
Equities were mixed on Wednesday, with the S&P 500 (INDEXSP:INX) losing 0.31 percent to reach 6,586. Meanwhile, the Nasdaq-100 (INDEXNASDAQ:NDX) shed 1.03 percent to come in at 24,036, and the Dow Jones Industrial Average (INDEXDJX:DJI) gained 0.5 percent, coming to 45,084.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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5h
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$3,707.34, its all-time high, during trading on September 17, 2025.
What drove it to this new ATH? Gold reached its new highest price just after the US Federal Reserve announced a widely anticipated interest rate reduction of 25 basis points. Rate cut expectations had been heavily fueled in the preceding weeks by the release of US consumer price index data, as well as jobs numbers.
Additionally, the US dollar index continued a downtrend that started in mid-January, falling to a year-to-date low 96.56 on September 16. Traditionally, gold trades higher when the US dollar is weak, making it a popular hedge.
Bond market turmoil in the US and abroad on September 2 also provided tailwinds for gold, which has set multiple new highs throughout 2025 and in recent weeks amid significant uncertainty.
While gold's fresh ATH came on September 17, on September 7 gold's record-breaking run officially took it past its inflation adjusted all-time high of US$850 per ounce set in January 1980.
Why is the gold price setting new highs in 2025?
Gold's record-setting activity extends beyond the last several 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, September 14, 2020, to September 15, 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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8h
Prince Silver Commences Fully Funded Drill Program at the Prince Silver Project in Nevada
Prince Silver Corp. (formerly Hawthorn Resources Corp.) (CSE:PRNC)(OTC:PRNCF) ("Prince Silver" or the "Company") is pleased to announce the commencement of a fully funded, 6,500-meter exploration drill program at its flagship Prince Silver Project, a past-producing silver-zinc-gold-lead property. The program is designed to expand known high-grade zones, validate historical drilling, and define the broader mineralized system across the property.
Key Highlights:
- 31 RC holes totaling approximately 6,500 meters are planned in this first phase drilling,
- 129 historical holes (16,607 meters) confirm widespread mineralization and high-grade zones.
- The drill program is fully funded following the closing of two recent financings, totalling over $5.25M CAD
Ralph Shearing, President & Director "We're excited to launch this fully funded drill program at the Prince Silver Project, which we believe holds significant untapped potential. Our work will focus on expanding known high-grade zones, testing new areas and validating historical drilling. With approximately 6,500 meters of drilling planned, and mineralization open in all directions, this program marks a key step in defining the broader mineralized system and positioning Prince Silver as a standout silver explorer in Nevada."
2025 Drill Program
The program will consist of approximately 6,500 meters of RC drilling across 31 holes. It is designed to validate historical results, increase confidence in historic unpublished resources estimates, and complete infill and step-out drilling within and surrounding the historic resource area. The goal is to advance the project toward a maiden 43-101 resource estimate by testing potential extensions to know mineralization along strike and to depth. The drill program is being conducted by O'Keefe Drilling Company, headquartered in Butte, MT.
The Prince Silver Project hosts a significant polymetallic carbonate replacement deposit (CRD) and a sediment-hosted gold system, with mineralization that is open in all directions and amenable to open-pit mining and deeper underground mining. The project benefits from shallow, high-grade zones and holds potential for valuable manganese by-products.
Initial assay results from the program will be published as they become available from the laboratories, with ongoing results as the drill program progresses into winter.

Figure 1: First drill set up for start of 2025 drill program - Historic Prince Mine headframe in background

Figure 2: Location of the Prince Silver Project, Nevada
PRINCE SILVER PROJECT HISTORIC EXPLORATION
To evaluate the mineral potential of the Prince Project, an exploration target (the "Exploration Target") was outlined in a 2024 independent report prepared following JORC guidelines (JORC standards for the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.) by OmniGeoX Exploration Consultants of Perth, Australia based on historical surface and underground drilling.
The Exploration Target was based on 129 historic drill holes drilled through mineralized carbonate replacement beds and host Pioche Shale up to 500M depth. Mineralized polymetallic intersections based on historical block modelling suggests the immediate Exploration Target is between 25-43Mt with grades ranging as 1.44-1.57% Zn, 0.78-0.87% Pb, 0.003-0.005% Cu, 0.28-0.40g/t Au, 37-40g/t Ag and 3.62 4.30% Mn. The mineralization is open in all directions.
Readers are cautioned that the Exploration Target is not an "inferred", "indicated" or "measured" mineral resource compliant with National Instrument 43-101 ("NI 43-101"). The Exploration Target has been determined based upon 129 historic drill holes totaling 16,606 meters, historic production records including mine level plans and 3D modelling of mineralization and geology. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource.
Previous Drilling & Results
Historical exploration includes 129 drill holes totaling 16,607 meters. Results confirm widespread mineralization and multiple high-grade zones.
*Notable 2014 intercepts:
- 40.8 m @ 0.63 g/t Au, 65 g/t Ag, 1.64% Zn, 3.51% Pb (from 26 m, UDH-55),
- 24.4 m @ 0.47 g/t Au, 80 g/t Ag, 1.64% Zn, 3.52% Pb, (from 87 m, PRC-11)
- 2.4 m @ 11.1 g/t Au, 377 g/t Ag, 26.1% Zn, 4.3% Pb (from 14 m, UDH-53)
Importantly, earlier programs only sporadically assayed the Pioche Shale unit however, where assayed the Pioche Shale returned a number of highly prospective historic results such as,
- 61 m @ 2.1 g/t Au, 38 g/t Ag for (from 69 m, CDH-36)
- 41 m @ 0.7 g/t Au, 68 g/t Ag, 3.3% Zn, 0.61% Pb for (from 26 m, UDH-55)
- 71 m @ 1.4 g/t Au, 51 g/t Ag for (from 192 m, PRC-10)
Marketing Agreement
Prince Silver Corp. has entered into an advertising and investor awareness campaign with Dig Media Inc. dba Investing News Network (INN). INN is a private arm's length company dedicated to providing independent news and education to investors since 2007. For the 12-month term of the agreement with advertising commencing on, or before September 30, 2025, INN will provide advertising on its website to increase awareness of the issuer. The cost of the annual campaign is $54,000. INN is headquartered at 1200 - 736 Granville Street, Vancouver, BC, Canada, V6Z 1G3 and can be reached at info@investingnewsnetwork.com or by telephone at 1 604 688 8231.
This agreement is subject to the approval of the CSE.
Qualified Person
Ralph Shearing, PGeol. (Alberta) a qualified person under NI 43-101 and, Director and President of the Company, has reviewed and approved the technical disclosure contained in this news release.
About Prince Silver Corp.
Prince Silver Corp is a silver exploration company focused on advancing the Prince Silver Project in Nevada, USA. The known deposit identified with historic drilling is open in all directions and is near surface. Prince Silver Corp also holds interest in the Stampede Gap Project, a district scale copper-gold-moly porphyry system located ~15km NNM of the Prince Silver Project.
On Behalf of the Board of Directors
Ralph Shearing, Director, President
Email: rshearing@princesilvercorp.com
Tel: 604-764-0965
Website: www.princesilvercorp.com
Forward-Looking Information
Certain statements in this news release are forward-looking statements, including with respect to future plans, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Some of the specific forward-looking information in this news release includes, but is not limited to, statements with respect to: proposed drill programs, amendments to the Company's website, property option payments and regulatory and corporate approvals. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions, the ability to manage operating expenses, dependence on key personnel, completion of satisfactory due diligence in respect of the Acquisition and related transactions, and compliance with property option agreements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, the continued availability of capital and financing, litigation, failure of counterparties to perform their contractual obligations, failure to obtain regulatory or corporate approvals, exploration results, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The CSE has neither approved nor disapproved the contents of this press release and the CSE does not accept responsibility for the adequacy or accuracy of this news release.
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