
January 31, 2024
Zodiac Gold Inc. (“Zodiac Gold” or the “Company”) is pleased to announce that the Company has commenced trading on the TSX Venture Exchange under the symbol (TSX-V:ZAU). Zodiac Gold is also pleased to introduce the Company’s executive team and upcoming exploration plans.
Company Overview:
Zodiac Gold is at the forefront of gold exploration in West Africa, showcasing significant exploration potential at its 100% owned Todi Project, located in the Republic of Liberia. The Todi Project encompasses a 2,316 km2 land package that includes geology and structures known to host gold mineralization, situated in a previously underexplored region of West Africa. Management lives and operates on the ground in Liberia with 24 years of West African experience. The Company has strong government and political knowhow and there is a significant U.S. Government presence in Liberia.
Key Highlights:
- District-Scale Discovery 2,316 km land package along the fertile Todi Shear Zone including the 418 km Todi flagship property and one reconnaissance license covering an additional 1,898 km.
- Proximity to Existing Mines Strategically located 20 km SE of Avesoro Resources’ New Liberty gold mine (1.74 M oz resource) and 30 km from the Ndablama gold mine (0.9 M oz resource).1
- Early Exploration Success and Ongoing Initiatives Phase 1 Scout Drill Programs at Arthington and Alasala targets have intersected multiple wide zones of high-grade mineralization in 40 of 47 holes drilled to date, highlighting the potential for the discovery of new gold deposits. A Phase 2 Drilling Program is underway at Arthington with results expected in Q1 2024. A more comprehensive drilling campaign (up to 10,000m) is expected to follow in 2024 subject to the Company securing additional financing.
- Infrastructure Advantage Well-established local and regional infrastructure with year-round road access, drilling and exploration camp facilities, and close proximity to airports and seaports.
- Experienced Leadership A talented, discovery-driven, and capital market savvy management team led by President CEO David Kol (14 years of West African experience), supported by highly accomplished Board members and strategic advisors including Renaud Adams (CEO of IAMGOLD), Doug Cater, Graham Warren, and Mike Demeter.
The Todi Project:
The Todi Project is the cornerstone of Zodiac Gold's exploration endeavors in the prolific Todi Shear Zone of Central Liberia. Positioned within the West African Craton, one of the world’s great gold provinces and the largest Paleoproterozoic gold-producing region hosting numerous world-class gold deposits with an estimated gold endowment of over 450 Moz2, Zodiac Gold believes that the Todi Project offers a compelling investment proposition.
The Todi Project contains numerous prospects, targets and anomalies distributed throughout the land package. These include conceptual geology targets based on known settings of existing greenstone belts, cross cutting shear zones, coherent gold in soil anomalies, stream sediment geochemistry and geophysical discontinuities and anomalies. Additionally, existing artisanal mining sites are assumed to be located on structural trends that continue onto and through the land package forming highly prospective targets for the discovery of significant gold deposits.
- Prospective Geology and District-Scale Potential: The Todi Property is strategically located along the massive Todi Shear Zone extending over 300 km, a gold-rich regional structure known to host many gold occurrences with hundreds of extensive hard rock artisanal mining sites. The project contains an 18.5 km long mineralization trend identified by consistent gold in soil anomalies containing extensive hard rock artisanal gold mining sites, and five primary multi-km drilling targets with visible gold. Similarly, within the reconnaissance license, stream geochemistry defined at least a 40-km long gold corridor for further exploration and target generation. Zodiac Gold believes that the project holds significant geological promise for gold exploration and discovery. It is located 20 km southeast of Avesoro’s New Liberty Gold Mine and 30 km from the Ndablama gold mine.
- Five High-Priority Exploration Targets: Sampling, mapping, trenching and scout drilling programs were completed along the regional trend of the mineralization and identified at least five multi-km targets for mineralization over 18.5 km of strike length in the project area, including Alasala-Mandingo Hill, Alasala South, Arthington, Benben, FehFeh and Youth Camp.
- Successful Historical and Phase 1 Drill Program: Zodiac’s Phase 1 Scout Drilling Program, completed in July 2022, along with earlier drilling carried out on the project, revealed significant gold mineralization in 20 of 22 drill holes with key intercepts including: 6.15 g/t Au over 19.6m, 4.6 g/t Au over 9.0m, and 7.69 g/t Au over 6.0m at Alasala (2015); and 7.5 g/t Au over 9.6m, 10.6 g/t Au over 6.0m, and 4.7 g/t Au over 5.65m at Arthington (2022).
For further details regarding the Todi Project, refer to the technical report prepared by ACA Howe titled “Technical Report on the Todi Gold Project in Liberia” and dated November 14, 2023, a copy of which is available under Zodiac Gold’s SEDAR profile at www.sedarplus.com.
Exploration Plans:
Phase 2 Drill Program: A 500 m drilling campaign was completed in 2023 as part of the ongoing Phase 2 Drill Program, primarily focusing on the Arthington target. The campaign aimed to test and extend the mineralization along a 2,400 m strike of the +4km mineralized trend identified by the soil anomalies, trenching and high-grade channel chip samples on the bedrock where the shear zones exposed visible gold. The current drill program will serve as a basis for the next stage of extensive drilling program planned at Arthington with the objected of delineating a maiden resource at the property.
Zodiac Gold also intends to expand its drilling on other targets at the Todi Project. The Alasala target, with a +2 km strike length of mineralization defined by consistent trenching results and encouraging scout drilling results, is expected to be a priority.
As part of Zodiac Gold’s regional exploration and target generation strategy, soil sampling will be planned to follow-up the results of stream geochemistry defining a 40-km gold corridor with priority exploration targets along the greenstone belts to confirm the extension of mineralization into the reconnaissance license and identify additional exploration targets. All drilling and exploration work beyond the initial work program identified in the technical report is subject to the Company securing additional financing to fund such activities.
Senior Management & Advisory Team:
Zodiac Gold has assembled a senior management and advisory team that brings a wealth of experience, drive, and proven track records of success. With the CEO and VP, Exploration on-the-ground full-time in Liberia, the Company’s management is well positioned to execute the Company’s exploration strategy.
David Kol – President, CEO, & Director: David is a highly experienced international business and startup executive with over 20 years of experience in finance, marketing, business development, M&A, and executive management, primarily in the resource sector, media/entertainment, real estate and technology industries. Prior to Zodiac, David held senior management roles in Gem Rocks Mining Resources, Global Media Group Holdings, The Players Network, Global Media Ventures and Interactive Enterprises. David currently serves on the Board of Directors of BluEarth Carbon Development. David attended the University of California, Davis, where he studied managerial economics, and has an A.A. (Criminal Justice) from Diablo Valley College.
Efdal Olcer – VP, Exploration: Efdal Olcer is a highly accomplished and qualified Exploration Geologist with 18 years of experience. Efdal has unique technical skills and experience gained in various mineral categories and diverse geological environments, including Greenstone, Archean, Proterozoic and Tethyan in Africa, the Middle East, and Turkey. He possesses a demonstrable track record in mineral exploration, specifically gold exploration in diverse deposit types including; epithermal, porphyry, orogenic, and within different terrains. He has also gained extensive greenfield and brownfield exploration and project development experience with the majority resulting in discoveries and several converting into profitable gold mines. Before joining Zodiac, Efdal served as Chief Geologist for Summa Gold and Exploration Manager of MNG Gold, a subsidiary of Avesoro Holdings. Efdal also held senior geological positions for KEFI Minerals, Asia Minor Mining Inc., and Stratex Exploration PLC. Efdal holds a B.Sc. Degree in Geological Engineering from Middle East Technical University. He is a member of the Society of Economic Geologists, Geological Society of London, Australian Institute of Geoscientists, Society of Geology Applied to Mineral Deposits, and Turkish Association of Economics Geologists.
Peter Granata – CFO: Peter Granata has more than 18 years of experience in finance and operations management within global organizations. He is a dynamic, results-oriented professional with executive positions in TSXV companies and, prior to these, served as an Audit Manager for PricewaterhouseCoopers. Peter has prepared financial statements, MD&A, news releases, mine permitting applications and project cash flows. With PricewaterhouseCoopers he performed audits for Canadian IFRS, US GAAP reconciliations, Special Purpose Financial Statements and has executed Group reporting under Canadian GAAP. His experience includes CFO for TSXV entities, capital raising, international corporate structures, client engagement, C-suite & directors engagement, M&A, financing, investor relations, related party transactions, and finance transformation. Peter has a B. Bus and is a Chartered Accountant.
Douglas Cater, P.Geo FGC – Independent Director: Doug Cater is a professional geologist who has worked extensively across Canada and internationally for more than 35 years, with a particular focus on the Abitibi gold belt located in NE Ontario. He has held positions with both senior and intermediate gold producers, including Barrick Gold Corp., Placer Dome Inc. and Kinross Gold Corp. His African exploration experience was obtained while serving as an Exploration Consultant for Barrick Gold Corp. in Tanzania, where he was responsible for the project management of an exploration diamond drill program in the Lake Victoria greenstone belt. His most recent executive position was as Vice President, Exploration (Canada) with Kirkland Lake Gold Ltd. Mr. Cater is also a director of Sierra Metals Inc., Mayfair Gold Corp., Exploits Discovery Corp. and Gowest Gold Ltd. He is a graduate of the ICD-Rotman Directors Education Program.
Graham Warren, CPA, CMA - Director: Graham Warren is a senior financial executive with over 30 years of experience with emerging and established companies primarily in the mining and oil and gas sectors. His expertise spans financings, M&A transactions, and guiding companies through the going public process. Mr. Warren serves as CFO and Director for Goliath Resources, Pangolin Diamonds Corp., and Platinex Inc. Mr. Warren has his B-Comm and is a Chartered Professional Accountant.
Mark Kol – Independent Director: Mark Kol, a Zodiac Gold co-founder, boasts over 30 years in investor relations, venture capital, finance, and investment banking. With a passion for capital raising, Mark has excelled across diverse industries, including real estate, exploration/mining, technology, biotech, and media/entertainment. Currently an Executive Vice President at CBRE, Mark's career includes impactful roles in San Francisco's investment banking scene, specializing in capital raising and preparing companies for Initial Public Offerings.
Renaud Adams - Advisory Board: Mr. Adams is a decorated mining executive and currently serves as the CEO of IAMGOLD Inc. (TSX:IMG) – a $1.6B market cap senior gold producer. Mr. Adams brings extensive experience, having led the strategic repositioning of New Gold Inc. and served in key roles at Richmont Mines and Primero Mining Corporation. His impactful career also includes managing IAMGOLD's Rosebel mine in Suriname and serving as Senior Vice President, Americas Operations.
Michael Demeter - Advisory Board: Michael Demeter, with over 25 years of equity capital markets and mining investment banking experience, serves as a strategic advisor. He is currently a partner at Fort Capital and held previous roles include Managing Director, Head of Institutional Sales at Haywood Securities Inc. and Associate Director, Institutional Equities at Macquarie Group.
About Zodiac Gold
Zodiac Gold stands at the forefront of gold exploration in West Africa, boasting a district-scale discovery in the Todi Project. Guided by a commitment to responsible exploration and led by an experienced leadership team, Zodiac Gold is poised to play a pivotal role in the flourishing gold sector of West Africa. The company's flagship Todi Project, covering an expansive 2,316 km2 land package, is strategically located in a previously underexplored region with close proximity to the renowned New Liberty Gold Mine. With a robust exploration strategy, excellent access to infrastructure, and a focus on sustainable practices, Zodiac Gold is well-positioned for success in unlocking the full potential of its extensive gold exploration assets.
Qualified Person
Efdal Olcer, Vice President of Exploration at Zodiac Gold, is a member of the Society of Economic Geologists, Geological Society of London, Australian Institute of Geoscientists, the Society of Geology Applied to Mineral Deposits, and the Turkish Association of Economics Geologists and a Qualified Person as defined by NI 43-101. He has reviewed and approved the technical and scientific information provided in this release.
On Behalf of Zodiac Gold Inc.
“David Kol”
President & CEO
For further information, please visit the Zodiac-Gold website at www.zodiac-gold.com or contact:
David Kol
President & CEO
info@zodiac-gold.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.
Forward looking information: This news release includes certain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively “forward looking statements”).
Forward-looking statements include predictions, projections, and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Company’s planned exploration programs and drill programs and potential significance of results are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital, and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials, and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events, or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate, and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
The Conversation (0)
18h
Peter Goodburn: Silver "Very Undervalued" vs. Gold — Price Targets and What's Next
WaveTrack International founder Peter Goodburn discusses his outlook for gold and silver.
"It's going to be very difficult to really double your money in gold at these price levels — even after a correction, I think it will be difficult ... (but) I think US$70 (per ounce) is a very easy proposition for silver based on the gold-silver ratio," he said.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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21 May
AUE hits 34m @ 2.32g/t gold from 56m @ Boundiali BD tenement
20 May
Sarama Resources
Investor Insight
Sarama Resources offers a compelling investment opportunity driven by a +US$120 million fully-funded arbitration claim and two new belt-scale gold projects encompassing 1,000 km2 of the Cosmo Newbery and Jutson Rocks Greenstone Belts in Western Australia’s prolific Eastern Goldfields.
Overview
Sarama Resources (TSXV:SWA, ASX:SRR) is an Australian gold exploration and development company with two key value drivers: a fully funded, multi-million-dollar arbitration claim and two highly prospective gold projects in Western Australia’s Eastern Goldfields. Each of these presents significant standalone value, while together they offer strong upside and optionality for investors.
Sarama recently secured the Cosmo Newbery and Mt Venn Gold Projects, covering 580km² and 420km² respectively. These projects encompass the majority of the greenstone belts they are located within - regions historically underexplored but geologically similar to the nearby Dorothy Hills belt, host to Gold Fields’ +8Moz Gruyere Gold Mine. Both projects offer a compelling exploration opportunity in one of Australia’s most prolific gold provinces.
In parallel, Sarama is advancing a fully funded arbitration claim against the Government of Burkina Faso, seeking no less than US$120 million in damages. The claim is backed by a non-recourse loan facility, with leading international law firm Boies Schiller Flexner - renowned for securing large settlements - engaged to lead proceedings.
The Company is led by a highly experienced board and management team with a strong track record in gold discovery and development, including the +25Moz Kibali Gold Mine and the +3Moz Sanutura Gold Project.
Sarama’s Regional Exploration Strategy
Sarama’s regional strategy is centred on unlocking value across 1,000km² of contiguous, underexplored greenstone terrane in one of Australia’s most productive gold provinces. With 100% control of the Cosmo Gold Belt and a majority stake in Mt Venn, Sarama is strategically positioned between two of the region’s most prolific gold belts - Yamarna/Dorothy Hills to the east and Laverton to the west.
Both projects share key geological signatures with nearby multi-million-ounce deposits and benefit from existing infrastructure and access. The Company’s exploration efforts will focus on high-priority targets across both belts, with systematic programs planned throughout 2025 to rapidly advance discovery.
Together, Cosmo Newbery and Mt Venn offer a rare opportunity to explore at scale in a region that has delivered some of the largest gold discoveries in recent decades - yet remains largely underexplored.
Company Highlights
- Sarama Resources is advancing two key value drivers: a fully funded, multi-million-dollar arbitration claim and two highly prospective belt-scale gold projects in Western Australia’s Eastern Goldfields.
- The flagship Cosmo Gold Project spans 580km², covering much of the underexplored Cosmo Newbery Greenstone Belt. Complementing this, Sarama holds an 80% interest in the 420km² Mt Venn Project, located just 40km from both its Cosmo Project and Goldfields +8Moz Gruyere Gold Mine. The region has remained largely under-explored due to historical access restrictions, leaving considerable untapped potential.
- The Company is also pursuing a fully funded arbitration claim seeking not less than US$120 million in damages from the Government of Burkina Faso. This claim, related to the Sanutura Project, is supported by a non-recourse funding facility covering all legal costs, with formal proceedings initiated in December 2024.
- Sarama is led by a seasoned team with all members having over 30 years’ experience each and a strong track record in gold discovery and development.
Key Projects
Cosmo Newbery Gold Project
The Cosmo Gold Project is a unique, underexplored, belt-scale gold opportunity in Western Australia's prolific Eastern Goldfields. Sarama holds the entire Cosmo Newbery Greenstone Belt under granted exploration licenses covering approximately 583km². The belt is one of the few remaining greenstone belts in Western Australia to have seen little to no modern exploration.
The project is located approximately 85 km northeast of Laverton and 95 km west of the +8Moz Gruyere Gold Mine, operated by Gold Fields and Gold Road. The surrounding region hosts several world-class gold systems, including the Yamarna and Dorothy Hills belts to the east (home to Gruyere, the 1Moz Golden Highway, and 300koz Gilmore deposits) and the Laverton Belt to the west, with over 35Moz in gold endowment and 12Moz of historic production.
Cosmo shares strong geological and structural similarities with these prolific belts. Key elements of orogenic gold systems are present, including:
- Archaean greenstone lithologies
- Crustal-scale shear zones
- Felsic intrusions
- Localised faulting and shearing
- Historic gold mineralisation and high-grade rock chips (up to 52 g/t Au)
Despite gold first being discovered here in the 1890s, the region has seen virtually no modern exploration or drilling, offering a unique opportunity to unlock value in a highly prospective setting.
Project Highlights
- Proven Gold Terrane: Located in a world-class gold province surrounded by major deposits
- Scale and Control: 100% control of the entire Cosmo-Newbery Belt, spanning +50 km of strike
- Underexplored: Minimal historical exploration; no modern drilling of merit
- Historic Potential: Early gold discoveries in the 1890s with artisanal workings still visible
- Strategic Location: Proximal to major gold operations including the Gruyere Gold Mine and multiple large scale mines in the Laverton gold belt
Mt Venn Gold Project
The Mt Venn Gold Project is a large-scale, underexplored gold exploration asset in Western Australia’s Eastern Goldfields, located approximately 40 km east of Sarama’s Cosmo Newbery Gold Project and 40 km west of the +8Moz Gruyere Gold Mine. Sarama holds an 80% interest in the project, which spans 420km² across a substantial portion of the Jutson Rocks Greenstone Belt - a geologically prospective system with gold first discovered in the 1890s.
Mt Venn shares many geological similarities with the Cosmo Project, and is viewed as a complementary, belt-scale exploration opportunity. The project comprises three contiguous exploration tenements and hosts a 35km gold corridor, defined by semi-continuous gold-in-soil anomalies, historic workings, and encouraging drill intercepts. Historic drilling has returned multiple results of merit, including intercepts up to 8.5 g/t Au, over a 4km trend at the Three Bears Prospect.
Geologically, Mt Venn is highly prospective, featuring:
- Archaean greenstone lithologies
- A major regional shear zone running the full 50km length of the belt (1–3 km wide)
- Favourable structural and lithological settings for orogenic gold mineralisation
Despite early discoveries, the project will benefit from a systematic, project-wide approach to exploration and offers substantial discovery potential in a proven gold district.
Project Highlights
- Proven Gold Terrane: Covers a significant part of the Jutson Rocks Greenstone Belt in a region known for major gold discoveries
- Contiguous Tenure: 420km² across three tenements, including a 35km anomalous gold corridor
- Geological Potential: Hosts a large regional shear zone with associated gold mineralisation and strong structural controls
- Historic Workings: Gold discovered in the 1890s; limited systematic follow-up exploration
- Drill-Ready Targets: Historical drilling includes intercepts up to 8.5 g/t Au at the Three Bears Prospect
- Strategic Location: Positioned 40 km from Gruyere (+8Moz), 20 km from the 1Moz Golden Highway deposit, and 40 km from Sarama’s Cosmo Gold Project
Management Team
Andrew Dinning – Executive Chairman
Andrew Dinning is a founder and the Executive Chairman of Sarama Resources. Dinning has over 35 years of experience in the international mining arena and has worked in Australia, the Democratic Republic of Congo, West Africa, the UK and Russia. He has extensive mine management, operations and capital markets experience and has spent most of his career in the gold sector.
Dinning was a Director and President of the Democratic Republic of Congo-based Moto Goldmines Ltd from 2005 to 2009. He oversaw the development of the company's Moto Gold Project (Kibali Gold) from two million to more than 22 million ounces of gold. Dinning took the project from exploration to pre-development. The Moto Gold project was later taken over by Randgold Resources and AngloGold Ashanti for $600 million in October 2009.
Dinning has an MBA, a First-Class Mine Managers Certificate in Western Australia and South Australia and a Bachelor of Engineering in Mining degree.
John (Jack) Hamilton - Vice-president of Exploration
Jack Hamilton is a founder and the Vice President of Exploration at Sarama Resources. Hamilton has 35 years of experience as a professional geologist. Hamilton has worked around the world for international resource companies. Before Sarama, he was the exploration manager for Moto Goldmines in the Democratic Republic of Congo. At Moto Goldmines, he led the team that discovered the main deposits and resource at the world-class Moto Gold Project (now Kibali Gold) which has a resource of more than 22 million ounces.
Hamilton specializes in precious metal exploration in Birimian, Archean and Proterozoic greenstone belts. He has worked and consulted in West, Central and East Africa for the past 30 years with various companies, including Barrick Gold Corporation, Echo Bay Mines, Etruscan Resources Inc, Anglo American, Geo Services International and Moto Goldmines. Whilst at Moto Goldmines, he led the exploration team that took the Moto gold deposit from discovery to bankable feasibility. The Moto gold deposit was later sold to Randgold Resources and AngloGold Ashanti in October 2009.
Paul Schmiede - Vice-president of Corporate Development
Paul Schmiede is a major shareholder and the Vice President of Corporate Development at Sarama Resources. He is a mining engineer with over 30 years of experience in mining and exploration. Before joining Sarama Resources in 2010, Schmiede was Vice President of Operations and Project Development at Moto Goldmines. At Moto Goldmines, he managed the pre-feasibility, bankable and definitive feasibility study for the more than 22 million-ounce Democratic Republic of Congo-based Moto Gold Project (now Kibali Gold). Whilst at Moto Goldmines, he also managed the in-country environment, community studies and pre-construction activities. Before joining Moto Goldmines, he held senior operational and management positions with Goldfields and WMC Resources. At these companies, Schmiede was responsible for underground and open-pit operations as well as project development and planning.
Schmiede holds a first-class mine managers certificate in Western Australia and a Bachelor of Engineering in Mining degree. He is also a fellow of the Australasian Institute of Mining and Metallurgy.
Lui Evangelista - Chief Financial Officer
Lui Evangelista is Sarama's chief financial officer with 35 years of experience in accounting, finance and corporate governance with public companies. He has more than 20 years of experience in the mining industry - 10 years of which have been at the operational and corporate level with companies operating in Francophone Africa.
Evangelista held the positions of group financial controller and acting CFO at Anvil Mining which operated 3 mines in the DRC. He was an integral part of the senior management team that saw Anvil's market capitalization grow from C$100 million in 2005 to C$1.3 billion upon takeover by Minmetals in 2012.
Evangelista holds a Bachelor of Business in Accounting degree, a graduate diploma in business administration and a graduate diploma in applied corporate governance.
Simon Jackson - Non-executive Director
Simon Jackson is a founder, shareholder and non-executive chairman of Sarama Resources. Jackson is a Chartered Accountant with over 30 years of experience in the mining sector. He is the Chairman of Predictive Discovery and Non-Executive Director of African gold producer Resolute Mining. He has previously held senior management positions at Red Back Mining, Orca Gold and Beadell Resources.
Jackson specializes in M&A, public equity capital markets, management and corporate finance. His career has included corporate transactions in Canada, Australia, Africa and Indonesia. He holds a Bachelor of Commerce degree from the University of Western Australia and is a fellow of the Institute of Chartered Accountants in Australia.
Adrian Byass - Non-executive Director
Adrian Byass has more than 30 years of experience in the mining industry. He has focused his career on the economic development of mineral resources. He is skilled in economic and resource geology. Byass has experience ranging from production in gold and nickel mines to the evaluation and development of mining projects with listed and unlisted entities in multiple countries. He has also held executive and non-executive board roles on both ASX and AIM-listed companies.
Byass presently operates in a corporate and market-focused capacity on a national and international basis. He has board-level experience in mine development, capital raising and M&A in Australia and on overseas stock exchanges. Byass has played key roles in a range of exploration and mining projects in Australia, Africa, North America and Europe. These projects were based on a suite of commodities including gold, base and specialty metals.
He holds a Bachelor of Science in Geology and a Bachelor of Economics. Byass is a member of the Australian Institute of Geoscientists, a fellow of the Society of Economic Geology and a competent person for the reporting of mineral resources (JORC 2012).
Michael Bohm - Non-executive Director
Michael Bohm is a seasoned director and mining engineer in the resources industry. His career spans roles as a mining engineer, mine manager, study manager, project manager, project director, and managing director.
He has been directly involved in the development of multiple mines in the gold, nickel, and diamond industries, and made significant contributions to Ramelius Resources during its formative years. This experience is particularly important as Sarama is currently in the process of rebuilding its operations in the Eastern Goldfields region of Western Australia.
He is a current director of ASX-listed Riedel Resources and has previously been a director of ASX listed Perseus Mining, Ramelius Resources, Mincor Resources NL and Cygnus Metals.
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20 May
Fund Manager: Gold Stocks a Strategic Opportunity for Investors
Over the last several years, gold has reasserted itself as a safe-haven investment against a backdrop of inflation, geopolitical turmoil and growing distrust of traditional fiat currencies.
Since the pandemic, gold has surged from lows around the US$1,600 per ounce mark to nearly US$3,500.
A significant portion of the gains have been attributed to unprecedented purchases from central banks, particularly China, with western investment only recently adding momentum.
Yet despite gold's phenomenal price rise, gold equities haven't followed suit.
Tom Winmill, portfolio manager at Midas Funds, spoke with the Investing News Network about why that hasn’t happened and how the current setup presents a perfect opportunity for investors.
Why did gold stocks stall?
Up until mid-2024, many gold producers were facing structural challenges, and balance sheet issues were one of the primary factors holding investors back from putting money into gold equities.
Between 2020 and 2023, average all-in sustaining costs rose from US$950 to US$1,300 per ounce. The increase was driven by rising prices for energy and other essential materials needed in the mining process.
Additionally, supply chain disruptions caused delays in shipping equipment to mining sites, and in delivering mined materials to refiners and vendors. On a similar note, increasing travel and accommodation costs, along with challenges due to new on-site health and safety protocols, impacted the labor force.
A sharp increase in worker shortages due to lockdowns and illnesses also contributed to higher costs, as operators were forced to raise wages to attract and retain skilled workers throughout the pandemic. Aside from that, recent decades have brought greater reliance on computer-controlled equipment and autonomous fleets. A shortage of semiconductors provided further challenges for operators as prices for new components became more costly.
Essentially, costs rose more rapidly than the price of gold, dramatically reducing the profitability of producers.
“The thing about commodities is that the producers of the commodities are price takers," Winmill said.
"So whatever the price is, that’s what they get. They can’t really add something special to their ounce of gold or their ounce of silver. They take whatever the market will give them for that ounce."
Is now the time to invest in gold stocks?
As mentioned, gold has been on a record-setting run, with central banks playing a key role in its move.
China has increased its gold holdings by more than 1,000 metric tons in recent years in response to global sanctions following Russia’s invasion of Ukraine in February 2022. The US provided further impetus in this direction by cutting Russia off from the SWIFT money transfer system and seizing dollar-denominated assets.
“We think central banks around the world are saying, 'Hey, we want to buy gold now, because for 3,000 years, there’s always been a buyer. We won’t depend on another party to redeem our bond or buy our asset,'" Winmill said.
Central banks have also been adding gold to minimize risks associated with political whims, currency devaluation and growing deficits, particularly in countries like the US, where the federal debt has ballooned to US$34 trillion.
Gold purchases from central banks have resulted in incredible momentum, helping to set new records in 2024. Support during that time came from investment inflows from Asian investors, while western investors remained on the sidelines until late 2024 to early 2025. Coinciding with their return was considerable uncertainty, as the Trump administration's trade policy had investors looking to gold as a hedge, pushing the price toward the US$3,500 mark in April.
A higher gold price means higher profit margins for producers, making equities more attractive.
“In the 25 years I’ve been managing a gold fund, I’ve never seen these kinds of profit margins in the offing, and it’s really exciting," Winmill said during the conversation. "I mean, Canada has 2.6 percent inflation, but that really doesn’t make much difference when the gold price is up over 40 percent and going higher."
He described a situation where production costs have plateaued between US$1,600 and US$1,800 per ounce, while gold has surged to US$3,400. “All that difference between … that’s all pure profit,” Winmill said.
What qualities to look for in a gold stock?
Before investing in a gold stocks it's important to understand company risks and how they are being minimized.
Among the more unpredictable risks is jurisdiction. Gold companies often do not have the luxury of operating in low-risk regions like Canada or the US, and may have to contend with unstable regimes.
According to Winmill, companies are turning to sovereignty risk insurance as a means of derisking their investments.
“If the local government seizes all of your mines and a US$100 million investment goes up in smoke ... if you have sovereignty risk insurance, you can go to the insurance company and say, ‘Hey, we were expropriated, pay us US$100 million so we can pay off our bank,’” the expert explained.
On a more fundamental level, Winmill suggested avoiding companies without free cashflow.
“I would stay away, in my opinion, from any company that does not have free cashflow, because if you have free cashflow, time is on your side. If you don’t have free cashflow, every day that goes by you are getting poorer," he said.
Winmill also advised looking to companies led by individuals with a strong track record in the industry.
He said he doesn’t prefer companies managed by geologists, who tend to get overly enthusiastic about chasing discoveries, or by accountants, who can get too absorbed in the costs.
“You need a balanced approach,” Winmill stated, adding that it takes a team to develop a mining company and deal with deposits that can be very complicated.
When he reviews the industry, he is able to find only a handful of investible companies that meet the parameters of having free cashflow, quality management, great deposits and less political risk.
How can investors avoid risk?
Winmill also noted that mutual funds, like the fund he manages, can be helpful in reducing risk.
“They tend to have many, many holdings. So you buy one fund and you get the benefit of a diversified strategy,” Winmill said. He manages the Midas Discovery fund, whose top holding is Agnico Eagle (TSX:AEM,NYSE:AEM). Rounding out the top three are Lundin Gold (TSX:LUG,OTCQX:LUGDF) and Northern Star Resources (ASX:NST,OTC Pink:NESRF).
Other benefits of funds include professional, continuous management. Fund managers spend their days researching companies and projects, which individual investors may not have the time for.
Another suggestion that Winmill gave for those looking to benefit as the gold price and gold equities rise is to look at royalty companies, which tend to maintain greater upside potential while minimizing risk.
Royal Gold (NASDAQ:RGLD) is one of the Midas Discovery fund's top 10 holdings.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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20 May
TSX Hits Record High Amid Gold Price Surge and Easing Trade Tensions
The S&P/TSX Composite Index (INDEXTSI:JX)reached a new all-time high of 26,105.67 as markets opened on Tuesday (May 20), representing a 4.88 percent uptick since January.
The milestone extends the index's five week rally, which has been fueled by strong performances in the mining and financial sectors, as well as easing global trade tensions.
Gold has been a significant contributor to the TSX's ascent as well. After peaking at US$3,500.05 per ounce in April, the metal has experienced some volatility, but remains up about 25 percent year-to-date.
Last week's downgrade of US debt from Moody’s (NYSE:MCO) has intensified interest in gold as a safe-haven asset. The downgrade from AAA to AA1 was attributed to the nation's growing debt levels and rising interest costs.
The firm's move marks the first time all three major credit rating agencies — Moody’s, S&P Global (NYSE:SPGI) and Fitch Ratings — have rated US government debt below the top tier. The downgrade reflects concerns over the US government's fiscal trajectory, with Moody’s stating in a May 16 release that "successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs."
This fiscal uncertainty has led investors to seek the stability of gold, a traditional hedge against economic instability.
Gold’s strong performance is also benefiting gold-mining equities. Gold miners across the board are reaping the rewards of record-high bullion prices, with many major producers recently reporting robust Q1 results.
Despite these results, many analysts argue gold equities remain undervalued.
There's also a widespread belief that the gold price can keep rising.
Earlier this month, analysts at JPMorgan Chase (NYSE:JPM) laid out a scenario where the yellow metal could rise to US$6,000 on the back of a 0.5 percent reallocation of foreign-held US assets to gold.
The bank estimates this shift could amount to US$273.6 billion — or 2,500 metric tons — over four years. With gold supply relatively fixed, JPMorgan notes that "even a slight increase in demand can have a dramatic impact on prices."
Beyond the mining sector, easing global trade tensions have also contributed to the TSX's record performance. Recent developments, including a truce in US-China tariffs, have alleviated concerns and bolstered market confidence.
Moving forward, market participants will be closely watching the Bank of Canada's interest rate decision in the coming weeks. Tuesday's mixed inflation data has created some uncertainty about what's next.
As the TSX continues its upward trajectory, investors are optimistic about the sustained growth, supported by strong commodities prices and improving global economic conditions.
As of 11:10 a.m. EST on Tuesday, the TSX was holding above 26,000.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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