
November 27, 2024
Sitka Gold Corp. (TSXV: SIG) (FSE: 1RF) (OTCQB: SITKF) ("Sitka" or the "Company") is pleased to announce that it has signed an agreement with Kluane Drilling Corp. to complete up to 30,000 metres of diamond drilling in 2025 at its road accessible RC Gold Project ("RC Gold" or the "Project") located in the prolific Tombstone Gold Belt in the Yukon. This will be the largest drilling campaign ever conducted at RC Gold and is anticipated to focus primarily on follow up drilling at the Rhosgobel and Pukelman intrusion targets along with further expansion drilling at the Blackjack gold deposit and drill testing other high-priority targets identified elsewhere on the district-scale, 431 square kilometre property.
Kluane Drilling Ltd., a well established, highly experienced drilling company based in Whitehorse, Yukon with over 30 years of experience diamond drilling in the Yukon and around the world, has been contracted to complete up to 30,000 metres of drilling at the Company's flagship RC Gold Project. Kluane Drilling is dedicated to providing quality drilling services based on technical innovation and human talent and specializes in achieving high drilling production in various drilling environments. Kluane Drilling has proven to be an exceptional contractor for the past two years and Sitka looks forward to continuing to work with them as the Company further advances RC Gold in 2025.
"We are very pleased to have secured the services of Kluane Drilling Ltd. for what will be our largest ever diamond drilling program planned for our RC Gold Project in 2025," said Cor Coe, Director and CEO of Sitka. "Kluane provided Sitka with exceptional drilling services throughout our winter and summer drilling programs at RC Gold in both 2023 and 2024 and we look forward to continuing to develop the project with them in the coming year as we substantially increase the scale and scope of drilling. The 2024 drilling campaign at RC Gold returned excellent assay results from both the Blackjack gold deposit area and the first ever diamond drill holes at the Rhosgobel intrusion, and has identified visible gold in its first two diamond drill holes at the Pukelman intrusion where assay results are still pending (see news releases dated November 25 and October 31, 2024). We are eagerly looking forward to following up on the success we had this past year and, with over $15 million in cash and no debt, the Company is fully funded to complete the planned work program at RC Gold in 2025. We also look forward to receiving the results from the last six diamond drill holes of the 2024 season totalling 2,774 metres that are still pending from RC Gold, with 2 holes from Pukelman and 4 holes from Blackjack."
Stock Option Grant
Sitka Gold Corp. also announces that it has granted an aggregate of 5,500,000 incentive stock options (the "Options") to officers, directors and consultants of the Company. The Options are exercisable at $0.37 per share for a period of three years from the date of grant and are subject to the policies of the TSX Venture Exchange.
Upcoming Events
Sitka Gold will be attending and/or presenting at the following events*:
- American Exploration and Mining Association Conference, Reno, NV: December 1 - 6, 2024
- Metal Investors Forum, Vancouver, BC: January 17 - 18, 2025
- VRIC, Vancouver, BC: January 19 - 20, 2025
- RoundUp, Vancouver, BC: January 20 - 23, 2025
- PDAC, Toronto, ON: March 2 - 5, 2025
- Swiss Mining Institute, Zurich, Switzerland: March 18 - 19, 2025
*All events are subject to change.
About Sitka Gold Corp.
Sitka Gold Corp. is a well-funded mineral exploration company headquartered in Canada with over $15 million in its treasury and no debt. The Company is managed by a team of experienced industry professionals and is focused on exploring for economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka is currently advancing its 100% owned, 431 square kilometre flagship RC Gold Project located within the Tombstone Gold Belt in the Yukon Territory. The Company is also advancing the Alpha Gold Project in Nevada and currently has drill permits for its Burro Creek Gold and Silver Project in Arizona and the Coppermine River Project in Nunavut.
In January 2023, the Company announced an NI 43-101 compliant initial inferred Mineral Resource Estimate of 1,340,000 ounces of gold(1) beginning at surface and grading 0.68 g/t at its RC Gold Project in Yukon (see news release dated January 19, 2023).
(1) Simpson, R. January 19, 2023. Clear Creek Property, RC Gold Project, NI 43-101 Technical Report, Dawson Mining District, Yukon Territory
*For more detailed information on the Company's properties please visit our website at www.sitkagoldcorp.com.
The scientific and technical content of this news release has been reviewed and approved by Cor Coe, P.Geo., Director and CEO of the Company, and a Qualified Person (QP) as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
"Donald Penner"
President and Director
For more information contact:
Donald Penner President & Director 778-212-1950 dpenner@sitkagoldcorp.com | or | Cor Coe CEO & Director 604-817-4753 ccoe@sitkagoldcorp.com |
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary and Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions and the Company's anticipated work programs.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market uncertainty and the results of the Company's anticipated work programs.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
SIG:CA
The Conversation (0)
5h
High-Grade Channel Samples at Antimony Canyon Project - Utah
14h
GMV Minerals Inc. Announces Updated PEA Results at Mexican Hat Gold Project in S.E. Arizona
GMV Minerals Inc. (the "Company" or "GMV") (TSXV:GMV)(OTCQB:GMVMF) is pleased to announce positive results from the updated Preliminary Economic Assessment ("PEA") study of the Mexican Hat Gold Project (the "Mexican Hat Project"), located in Cochise County, southeastern Arizona.
A National Instrument 43-101 -Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report (the "Report") entitled "Updated NI 43-101 Technical Report Preliminary Economic Assessment, Mexican Hat Project" with an effective date of August 8, 2025 will be filed on SEDAR+ at www.sedarplus.ca under the Company's profile within 45 days of this news release. All amounts are stated in second quarter 2025 US dollars (US$).
The Mexican Hat hosts a shallow oxide gold resource with excellent metallurgy and high recoveries, supported by a low strip ratio and minimal pre-stripping. Infrastructure is in place and the Mexican Hat Project demonstrates a robust NPV and IRR. With fast leach kinetics and low reagent consumption, the Company believes the Mexican Hat Project offers exceptional potential economics.
Highlights:
- The Base Case generates a pre-tax Internal Rate of Return ("IRR") of 66.1% (after-tax 50.2%) and a pre-tax net present value ("NPV") at a 5% discount rate of US$390.2 million (after-tax US$268.3 million) with a 1.53 year payback (1.82 year after-tax) of invested capital using a US$2,500 per ounce gold price.
- Based on price sensitivity analysis at approximately the current price of US$3,350 per ounce of gold, the project returns a pre-tax IRR of 106.8% (after-tax 82.5%) and a pre-tax NPV at a 5% discount rate of US$767 million (after-tax US$538.1 million) with a payback period of 1.10 years (1.3 years after-tax).
- Base Case mine life of 10 years with total production of 597,841 ounces, averaging approximately 60,000 ounces per year.
- Crushed mineralized material will be conveyor stacked at a rate of approximately 10,000 tonnes/day on a conventional heap leach pad.
- Capex: US$89,997,000 (including US$15.4 million contingency).
- Opex: US$788 million LOM with Low LOM Strip Ratio of 2.05
- Estimated cash cost of production is US$1,354 per ounce with an all-in-sustaining cost of $1,545 per ounce inclusive of sustaining capital and additional overhead support.
- Engineering design analysis indicates the potential to increase pit size and contained ounces with increased gold prices.
FINANCIAL INDICATORS
The following table summarizes the financial indicators for the Mexican Hat Project for both before and after taxes.
Financial Indicators Before Taxes | Values |
NPV cash flow (undiscounted) | US$537.7M |
NPV @ 5% | US$390.2M |
IRR % | 66.1% |
Payback (years) | 1.53 |
Financial Indicators After Taxes | Values |
NPV cash flow (undiscounted) | US$377.9M |
NPV @ 5% | US$268.3M |
IRR % | 50.2% |
Payback (years) | 1.82 |
GOLD PRICE SENSITIVITY TABLE (US$ MILLIONS)
The following table summarizes the pre-tax and post-tax economic results to gold price sensitivity.
Pre-Tax and Post-Tax Sensitivity to Gold Price
-60% | -45% | -30% | -15% | Base | +15% | +34% | +45% | +60% | |
US$/troy oz Gold | 1,000 | 1,375 | 1,750 | 2,125 | 2,500 | 2,875 | 3,350 | 3,625 | 4,000 |
IRR (Pre-Tax) | 18.3% | 45.0% | 66.1% | 85.0% | 106.8% | 118.7% | 134.2% | ||
NPV @ 5% (Pre-Tax) US$M | -274.7 | -108.5 | 57.7 | 224.0 | 390.2 | 556.4 | 767.0 | 888.9 | 1,055.1 |
IRR (Post-Tax) | 11.3% | 33.4% | 50.2% | 65.2% | 82.5% | 91.9% | 104.2% | ||
NPV @ 5% (Post-Tax) US$M | -274.9 | -117.3 | 25.8 | 149.3 | 268.3 | 387.4 | 538.1 | 625.4 | 744.4 |
INITIAL CAPITAL EXPENDITURES (US$ MILLIONS)
Initial capital expenditures are estimated at US$89,997,000 million as detailed below:
OPERATING COSTS
The mine operating costs were calculated to average $3.49 per tonne mined as summarized below.
Mine Operating Cost Center | Unit Cost (US$/t mined) |
Owner Mining Personnel | $0.11 |
Owner Supplies & Misc. | 0.03 |
Contractor Mining | 3.35 |
Total Cost (Rounded) | $3.49 |
The life-of-mine operating costs were calculated to average US$20.44/tonne resource processed as summarized below.
Operating Cost | Cost per Tonne of Crushed Material Processed (US$/t) |
Mining | $10.60 |
Processing | $8.79 |
G&A | $1.05 |
Total Site Operating Cost | $20.44 |
MINERAL RESOURCES
An updated Mineral Resource Estimate prepared by DRW Geological Consultants Ltd., with an effective date of August 8, 2025, was used in the PEA. Details of the Mineral Resource Estimate can be found in the Report to be filed on SEDAR+ within 45 days of this release.
Category | Cut-off (g/t Au) | Grade (Au, g/t) | Tonnes | Gold Oz | Strip Ratio |
Inferred | 0.20 | 0.58 | 36,733,000 | 688,000 | 2.36 |
- The Mineral Resource Estimate has been constrained to a preliminary optimized pit shell, using the following parameters: SG = 2.57 gm/cc based on testwork, mining costs = $3.00/tonne, mining recovery = 98%, mining dilution = 2%, process cost = $5.00 per tonne, G&A = $1.05 per tonne, gold price = $2,500 per troy ounce, throughput at 10,000 tpd., discount rate = 5%. A cost of $0.03 was added per bench to the mining cost below the existing level surface.
- A top cut of 32 gpt gold is applied to all zones except Zone 6 which has a top cut of 50 gpt gold.
- Mineral Resources have been calculated using the Inverse Distance Squared method.
- Mineral Resources constrained to optimized pit shells are not Mineral Reserves and do not have demonstrated economic viability.
- Conforms to NI 43-101, Companion Policy 43-101CP, and the CIM Definition Standards for Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
- All numbers are rounded. Overall numbers may not be exact due to rounding.
- There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
MINE PLAN
The mine plan is conceived as a conventional open pit tuck and shovel/loader operation. There are two independent pits which are developed with five-phase or pushback designs. Pit shells were designed using 6.0-meter benches with a catch bench installed every 18 meters. A bench face angle of 66° was used, resulting in an inner-ramp angle of 45° when catch benches were included. An 88% overall gold recovery has been used in this study, which was based on bottle roll and column leach test results. Base case haulage ramps are 26 meters wide and have a design gradient of 10%. Processing rates are based on a daily crushing rate of approximately 10,000 tonnes per day utilizing two stage crushing
The mine and crushing will be operated by contractors with oversight by GMV mine management. The mine plan produces a nominal tonnage to the crushing and heap leach of 3,500 Ktonnes per year (10,000 tpd) from a total material movement of 93.8 Ktonnes for the life of mine (26,106 tpd LOM average).
The PEA is preliminary in nature; it includes inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. There is no Mineral Reserve at the Mexican Hat Project at this time. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Over the course of the mine life, 38.6 Mtonnes of Mineralized Resource is planned for processing out of a total material movement of 117.8 Mtonnes.
INFRASTRUCTURE & PROCESS PLANT
The Mexican Hat Project is located in the southeastern part of the State of Arizona, approximately 72 miles east-southeast of Tucson, and can be accessed from the Old Ghost Town Road., a gravel road extending south of the Town of Pearce or north from Gleeson Road.
Groundwater will be used as the source of water for mining operations. No permitting restrictions or quantity issues are anticipated.
A 69 kV powerline to site will be supplied by Sulphur Springs Valley Electric Cooperative from their power plant located 30 km north of the project site.
The crushing plant will be operated by a contractor to produce a crushed product for heap leaching with a 25 mm top size. Pregnant solution from the heap leach will be processed in a conventional adsorption desorption recovery (ADR) plant. The process plant will produce doré gold bars.
TECHNICAL REPORT AND QUALIFIED PERSONS
The Report entitled Updated Preliminary Economic Assessment, Mexican Hat Project", with an effective date of August 8, 2025 and which was prepared by the following Qualified Persons (as defined under NI 43-101), all of whom are independent of the Company, will be filed by the Company within 45 days of this release on www.sedarplus.com:
- Mr. Brian Olson, Q.P., Samuel Engineering, Inc. (Metallurgical Test Work and Recovery, Process Plant and Process Operating Costs)
- Mr. Steven Pozder, P.E., Samuel Engineering, Inc. (Project Economics and Infrastructure)
- Dr. Dave Webb, Ph.D., P.Eng., P.Geo., DRW Geological Consultants Ltd. (Mineral Resource Estimate, Property Description and Location, Accessibility, Climate, Local Resource, Infrastructure and Physiography, History, Geological Setting and Mineralization, Deposit Types, Exploration, Drilling, Sample Preparation, Analysis and Security, Data Verification).
- Mr. Thomas L. Dyer, P.E., RESPEC LLC. (Mine Design, Production Schedule, Capital and Operating Costs)
- Mr. Francisco J. Barrios, P.E., BBA Consultants International LP (Pad Design and Loading)
- Ms. Dawn Garcia, CPG, PG, Stantec Consulting Services Inc. (Environmental)
All Qualified Persons have contributed to their corresponding sections in Interpretation, and Recommendations. The Qualified Persons have reviewed and approved the scientific, technical, and economic information obtained in this news release.
For a description of the data verification process and limitations, underlying assumptions and the results of surveys and quality assurance program regarding exploration information, please refer to the Company's existing NI 43-101 Technical Report filed on SEDAR+ entitled "Preliminary Economic Assessment, Mexican Hat Project" with an effective date of October 20, 2020.
Ian Klassen, President & CEO remarked that "The robust PEA confirms our contention that the project's strong economic potential de-risks the development pathway, providing a solid foundation for advancement. The results validate the open-pit, heap-leach concept, demonstrate excellent metallurgy and recoveries, and outline a simple mining and processing strategy. With high margins, rapid payback, and straightforward engineering, the PEA positions the project well for the future, where detailed design, capital optimization, and permitting can advance with confidence."
2025-2026 Forward Looking Plan
The Mexican Hat Project PEA economics justify continued investment in project development. The forward-looking plan for Mexican Hat includes work required to advance the project through Feasibility Study and into the permitting process.
These tasks include:
- Approx. 7000 meters of in-fill drilling to increase confidence in the current geological understanding and mineral resource estimation to sufficient level to support mineral reserve development
- Metallurgical column, hardness, and grinding tests to further optimize and improve heap leach gold recovery, and to provide information for feasibility design work
- Performing a trade-off study for self-mining and crushing versus contract mining and crushing
- Geotechnical drilling and analysis to optimize pit slope design parameters
- Conduct base-line water sampling, and update of hydrologic, cultural, and environmental studies for permitting
About GMV Minerals Inc.
GMV Minerals Inc. is a publicly traded exploration company focused on developing precious metal assets in Arizona. GMV, through its 100% owned subsidiary, has a 100% interest in a Mining Property Lease commonly referred to as the Mexican Hat Project, located in Cochise County, Arizona, USA. The project was initially explored by Placer Dome (USA) in the late 1980's to early 1990's. GMV is focused on developing the asset and realizing the full mineral potential of the property through near term gold production.
PEA Information and Cautionary Note Regarding Inferred Mineral Resources
The mine plan evaluated in the PEA is preliminary in nature and includes Inferred Mineral Resources, as defined by NI 43-101 that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be converted to Mineral Reserves. Additional drilling and technical studies will need to be completed in order to fully assess its viability. There is no certainty that a production decision will be made to develop the Mexican Hat Project or that the economic results described in the PEA will be realized. Mine design and mining schedules, metallurgical flow sheets and process plant designs will require additional detailed work and economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this report, such as "measured," "indicated," "inferred," and "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking information" under applicable Canadian securities legislation. Forward-looking information include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking information may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Forward-looking information contained in this news release include, but are not limited to, statements or information with respect to: the results of the PEA, including the IRR and NPV, life of mine and production, capital and operating expenditures, cost estimates; permitting restrictions, and the mine plan, including infrastructure requirements and future plans; the filing of the PEA, including timing thereof, mineral resources; and future gold prices. Since forward-looking information are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties as described in the Company's filings with Canadian securities regulators. Assumptions upon which forward-looking information contained in this news release is based, without limitation, include: results of future exploration; gold prices; accuracy of the results of the PEA, including key assumptions and methods used to determine mineral resources and the results of the PEA; the ability to obtain required permits and approvals; the ability to execute future plans; exchange rates; ability to obtain funding; and changes in regulatory or community environment; Risks, and uncertainties include: results of further exploration; risks related to mineral tenure, permits and approvals; risks related to the execution of future plans; changes in gold price and exchange rates; risks related to obtaining financing; foreign country risks; regulatory risks and liabilities; and those risks and uncertainties as further described in the Company's filings with Canadian securities regulators which can be found on SEDAR+ at www.sedarplus.ca under the Company's profile. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Dr. D.R. Webb, Ph.D., P.Geo., P.Eng. is the Q.P. responsible for this release within the meaning of NI 43-101 and has reviewed the technical content of this release and has approved its content.
ON BEHALF OF THE BOARD OF DIRECTORS
Ian Klassen, President
For further information please contact:
GMV Minerals Inc.
Ian Klassen
Tel: (604) 899-0106
Email: info@gmvminerals.com
Neither 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.
Keep reading...Show less
12 August
Keith Weiner: Gold, Silver in Bull Markets — Here's What's Different This Time
Keith Weiner, founder and CEO of Monetary Metals, discusses gold and silver's performance so far this year and shares his outlook for the rest of 2025.
He also explains what makes today's gold bull market different than those seen in prior years.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
12 August
China-Linked Gold Syndicates Driving Toxic Mining Boom in Indonesia: Report
Remote hillsides in Indonesia are being stripped bare and villages are grappling with poisoned soil, all due to a growing illicit gold trade that investigators say is being driven in large part by Chinese syndicates.
A Washington Post exposé based on satellite imagery, trade data, public records and interviews across three continents, found that these operations, which are being bankrolled by private Chinese investors, are far beyond the reach of local authorities, often running without interference from local police.
In Indonesia’s Lantung region, gold trader Heru Hairuddin expressed concern, telling the news outlet, “We don’t know where they take it. We only know it doesn’t stay here.”
Villagers say cyanide runoff from nearby pits has killed crops and cattle. Locals who mine with hand tools are dwarfed by the scale of Chinese-operated sites, where zinc-roofed dormitories house workers guarding the perimeter.
Protests, residents say, have been ignored.
While Indonesian authorities have stepped up enforcement by creating a special law enforcement arm in the minerals ministry and cracking down on cyanide smuggling rings, prosecutions remain rare and bribery has hampered cases.
In one instance, a large Chinese-run mine in Kalimantan employing 80 workers led to trials, but all of the defendants were acquitted in a decision later linked to judicial misconduct.
The investigation further revealed that shadow networks span from Southeast Asia to South America and across Africa. Operators are stepping into artisanal and small-scale gold mining (ASGM) with industrial equipment, advanced geological data and cash, and in many cases, they are extracting gold without permits and ignoring environmental rules.
Experts say the surge in illicit gold mining is linked to China’s long-term strategy to reduce reliance on the US dollar, shield itself from possible sanctions and secure commodities it views as strategically vital.
A growing criminal nexus
The United Nations Office on Drugs and Crime warned in May that organized crime is embedding itself so deeply in gold supply chains that the trade now poses a “serious global threat.” Criminal groups, including drug cartels, terrorist networks and mercenary outfits, are increasingly getting involved, often in partnership with Chinese-linked operators that have the resources and connections to penetrate previously untapped deposits.
Unlike traditional artisanal miners, the Post indicates that these syndicates operate at near-industrial scale, but without environmental or safety safeguards. In many regions, they are shifting from mercury to cyanide in gold processing, a more efficient method, but one that is even more hazardous to surrounding communities if left unchecked.
China has been among the world’s top gold buyers for over a decade, but analysts speculate that the true size of its reserves remains a mystery and may be far higher than reported publicly.
Jan Nieuwenhuijs, a gold analyst at Money Metals, estimates that in 2024 alone, the Chinese central bank covertly purchased 570 metric tons— more than double its declared figure. The scale of buying, Nieuwenhuijs told the Post, is changing the gold market because Beijing sees the metal as an “alternative to the dollar.”
While Chinese officials insist their gold import and export data is “open and transparent,” researchers warn that secrecy surrounding state holdings makes it easier for illicitly mined gold to enter the system undetected.
Globally, the illicit gold sector is valued at more than US$30 billion a year, according to conservative estimates. A 2024 study by nonprofit Swissaid found gold smuggling out of Africa doubled between 2012 and 2022.
Once refined, illegal gold is virtually indistinguishable from legally mined metal, making it attractive to major buyers.
A global pattern and calls for coordinated action
As mentioned, the same dynamics are playing out far from Indonesia.
In Brazil, President Luiz Inácio Lula da Silva has made eliminating illegal mining from Indigenous lands a central pledge since returning to office in 2023. Raids by environmental agency Ibama have targeted the Yanomami and Munduruku territories, where mining has caused severe deforestation, mercury contamination and health crises.
New regulations now require electronic invoices for gold trades in an attempt to reduce laundering of illegal metal.
Yet the profits remain irresistible. The World Gold Council estimates that ASGM now accounts for about 20 percent of global gold production, up from around 4 percent in the 1990s, when the price was near US$250 an ounce. The gold price has risen as high as US$3,500 this year, and is currently priced at the US$3,350 level.
Dominic Raab, former UK deputy prime minister and now head of global affairs for Appian Capital Advisory, told S&P Global that a high gold price is tempting for illegal operators. “If the price goes up … criminal organizations have looked at diversifying into gold. It’s easy to melt down. It’s easy to smuggle. It’s pretty tough to track," he said.
In November 2024, Raab partnered with the World Gold Council to publish "Silence is Golden," a report on how criminal gangs, armed groups and corrupt officials exploit ASGM to fund wars, terrorism and organized crime.
The report identifies three fundamental challenges: lack of transparency in business and government compliance with legal standards; failures of accountability; and disjointed enforcement across jurisdictions.
It then outlines 24 practical actions for governments, international organizations, NGOs and the mining sector, ranging from prosecuting offenders to sustaining a coordinated G7 and G20 response.
However, not all ASGM is illegal, as some miners are seeking to adopt safer, mercury-free techniques.
As the gold price remains high, demand from buyers like China will keep fueling the trade.
The challenge, according to market participants, is to channel ASGM into regulated, sustainable frameworks before criminal networks entrench themselves further.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
12 August
Grande Portage Submits Special Use Permit Application for Environmental Infrastructure at the New Amalga Gold Project
Grande Portage Resources Ltd. (TSXV:GPG)(OTCQB:GPTRF)(FSE:GPB) ("Grande Portage" or the "Company") is pleased to announce that it has applied to the US Forest Service (USFS) for a Special Use Permit related to its New Amalga Gold project in Southeast Alaska.
The application covers the installation of infrastructure & equipment related to environmental studies and monitoring, including:
- An environmental data collection station at the potential location of the mine's surface facilities to collect key meteorological data and inform project development decisions as well as future application for an Alaska Department of Conservation Air Quality Control permit and Alaska Pollutant Discharge Elimination System (APDES) permit.
- Additional meteorological monitoring equipment above the potential future location of underground workings.
- Stream gauging sensors to understand seasonal fluctuations in river levels and support design of a mine water treatment and handling system which is protective of fish habitat.
- Satellite uplink communications and power infrastructure necessary for system operation.
This infrastructure is intended to be utilized not only for preliminary environmental studies but also for ongoing monitoring during construction, operations, and closure of the potential mine facility.
Ian Klassen, President and CEO comments: "The submission of the Special Use Permit application is a key step towards gathering all the data necessary to design and permit a low-footprint mining operation which is protective of the surrounding environment. Installation of this equipment is also a milestone as the first instance of developing long-term infrastructure at the project site that could be utilized throughout construction, operation and closure of a future mine."
The Company has also conducted contracted fieldwork over the preceding two months which includes identification of fish-habitat streams and mapping of aquatic resources in the project vicinity as well as delineation of wetlands around the potential areas of mine surface infrastructure development. This new data is now being incorporated into the design and layout of the mine facilities to ensure protection of fish habitat, maintain integrity of wetlands, and minimize overall ecological footprint which will help facilitate the future environmental review and permitting process for the project.
The facilities at the project site are not planned to include an ore processing plant. Due to the resource location near tidewater and less than 4 miles (6.5km) from existing paved highway (Fig. 1), the Company considers off-site processing by a third party to be the most favorable configuration for the project. This setup provides several potential benefits:
- Eliminates the need to build a concentrator, minimizing mine footprint, power requirements and reducing project construction CAPEX.
- Eliminates the need to develop a tailings disposal facility at the site, as no tailings would be generated.
- No permanent waste rock storage facilities. Waste rock generated from mine development would be returned to the underground workings for permanent disposal as stope backfill.
- No use of chemical reagents for gold processing at the site.
- Dramatically reduces land usage and overall environmental footprint.
- Greatly facilitates post-mining closure and reclamation.
- Simplifies the environmental review and permitting process.
Fig. 1: Location of the New Amalga Gold Project
Kyle Mehalek, P.E.., is the QP within the meaning of NI 43-101 and has reviewed and approved the technical disclosure in this release. Mr. Mehalek is independent of Grande Portage within the meaning of NI 43-101.
About Grande Portage:
Grande Portage Resources Ltd. is a publicly traded mineral exploration company focused on advancing the New Amalga Mine project, the outgrowth of the Herbert Gold discovery situated approximately 25 km north of Juneau, Alaska. The Company holds a 100% interest in the New Amalga property. The New Amalga gold system is open to length and depth and is host to at least six main composite vein-fault structures that contain ribbon structure quartz-sulfide veins. The project lies prominently within the 160km long Juneau Gold Belt, which has produced over eight million ounces of gold.
The Company's updated NI#43-101 Mineral Resource Estimate (MRE) reported at a base case mineral resources cut-off grade of 2.5 grams per tonne gold (g/t Au) and consists of: an Indicated Resource of 1,438,500 ounces of gold at an average grade of 9.47 g/t Au (4,726,000 tonnes); and an Inferred Resource of 515,700 ounces of gold at an average grade of 8.85 g/t Au (1,813,000 tonnes), as well as an Indicated Resource of 891,600 ounces of silver at an average grade of 5.86 g/t Ag (4,726,000 tonnes); and an Inferred Resource of 390,600 ounces of silver at an average grade of 7.33 g/t silver (1,813,000 tonnes). The MRE was prepared by Dr. David R. Webb, Ph.D., P.Geol., P.Eng. (DRW Geological Consultants Ltd.) with an effective date of July 17, 2024.
ON BEHALF OF THE BOARD
"Ian Klassen"
Ian M. Klassen
President & Chief Executive Officer
Tel: (604) 899-0106
Email: Ian@grandeportage.com
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties as described in the Company's filings with Canadian securities regulators. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Please note that under National Instrument 43-101, the Company is required to disclose that it has not based any production decision on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically production decisions made without such reports have increased uncertainty and higher technical and economic risks of failure. These risks include, among others, areas that are analyzed in more detail in a feasibility study or preliminary economic assessment, such as the application of economic analysis to mineral resources, more detailed metallurgical and other specialized studies in areas such as mining and recovery methods, market analysis, and environmental, social, and community impacts. Any decision to place the New Amalga Mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations would be largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED UNDER THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Keep reading...Show less
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00