Gold prices could rally well above $2,500 this year, says Goldman Sachs. Analyst Jeff Currie sees the perfect storm for gold based strong investor demand for gold with fears of inflation and recession, central bank demand for gold at all-time records, and strong physical demand for gold from countries around the world. In fact, “This is the strongest demand from all three channels that we’ve ever seen. The last time we saw this type of demand strength was from 2010 – 2011 where gold rallied 70%.” In addition, “Conditions for gold are perfect, with high inflation plus collapsing stock and bond markets together sowing the seeds of panic,” says Will Rhind, founder and CEO of ETF provider Granite Shares,” as noted by Barron’s. That could be a strong catalyst for Calibre Mining Corp. (TSXV: CXB) (OTCQX: CXBMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Kinross Gold (TSX: K) (NYSE: KGC), Newmont Corp. (TSX: NGT) (NYSE: NEM), and Royal Gold Inc. (NASDAQ: RGLD).
Look at Calibre Mining Corp. (TSXV: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. provided this update to the ongoing 35,000-metre drilling program at its 100% owned Gold Rock project located in the Battle Mountain - Eureka gold trend, Nevada. The Federally permitted project is located within a prospective 78 km2 land package with numerous high-priority targets open for discovery and resource expansion.
Highlight Results from the Ongoing Multi-Rig Drill Program
North Pit Zone
- 2.01 g/t Au over 45.7 m in hole GR21-002; 0.99 g/t Au over 18.3 m in hole GR21-001;
- 1.45 g/t Au over 38.1 m in hole GR21-008; 1.75 g/t Au over 19.8 m in hole GR22-037;
- 1.74 g/t Au over 35.7 m in hole GCM21-001; 0.71 g/t Au over 16.8 m in hole GR22-038.
- 2.94 g/t Au over 18.0 m in hole GCM21-002; 0.64 g/t Au over 35.1 m in hole GR21-027;
- 1.26 g/t Au over 35.1 m in hole GR22-031, 2.19 g/t Au over 44.2 m in hole GR21-021;
- 1.53 g/t Au over 18.3 m in hole GR22-001; 1.64 g/t Au over 19.8 m in hole GR22-024;
- 1.00 g/t Au over 24.4 m in hole GR22-025; 0.90 g/t Au over 18.3 m in hole GR22-030;
South Pit Zone
- 3.10 g/t Au over 18.3 m in hole GR22-005; 3.36 g/t Au over 22.9 m in hole GR22-007;
- 1.40 g/t Au over 27.4 m in hole GR21-025; 1.61 g/t Au over 35.1 m in hole GR21-029.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “It is exciting to see continued high grade intercepts over significant widths across the primary project areas, in addition to significant potential across the 16.5 km mineralized trend. Drill results from 2021 and to date 2022 have intercepted grades higher than the reported indicated mineral resource average grade of 0.66 g/t gold. Encouraging metallurgical results demonstrate the mineralization is amenable to heap leaching with favorable recoveries and leach cycles. We continue to advance infill drilling and technical studies to support permit applications in the near term and enable reserve declaration at the end of 2022. Gold Rock was not included in our recently released multi-year outlook of forecast gold production (see news release dated June 22, 2022).”
Technical Study Highlights
Calibre recently completed a comprehensive metallurgical characterization and testing program of 15 PQ core holes, key results include:
- The Joanna limestone formation is the primary Carlin-style gold mineralization host;
- Joanna oxide material crushed to 80% minus ½ inch produced a minimum column leach recovery of 86% with Joanna decarbonitized material producing 96% recoveries;
- Test results demonstrate fast leaching with a projected commercial primary leach cycle of 30 days;
- The oxide material percolates well and has high rock strength requiring no agglomeration;
- Cyanide consumption is projected to be low at 1 pound/ton and lime to be 3 pounds/ton;
- Based on the data, a process facility consisting of standard open circuit three stage crushing, heap leaching and gold recovery in a typical ADR plant is under design;
- Geotechnical drilling is complete for this phase of the project;
- Permit level design of the heap leach pad and associated ponds is nearing completion;
- Calibre expects Mineral Reserves to be included in a year end 2022 technical report.
Gold Rock is a federally approved project and technical work is ongoing in support of state permitting which is anticipated to take between 12-18 months which is expected to commence in Q3 2022.
Link 1 – Figures
Link 2 – Drilling Tables
Other related developments from around the markets include:
Barrick Gold Corporation announced a $0.20 per share quarterly dividend, the first to include a $0.10 per share performance component in line with its new dividend policy. President and chief executive Mark Bristow said the Company’s net cash balance at the end of Q1 stood at $743 million, reflecting cash flow from the operations, the continuing sale of non-core assets, and its share of a further $0.6 billion in cash distributions by Kibali. Since agreement on the repatriation of revenue from Kibali was reached with the Democratic Republic of Congo (DRC) last year, Kibali has delivered $1.2 billion (on a 100% basis) in the form of dividends and debt repayments, inclusive of distributions received subsequent to March 31, 2022.
Kinross Gold provided an update on its Red Lake, Ontario-based Great Bear project, as well as its Manh Choh project in Alaska and Curlew exploration project in Washington State. At Great Bear, Kinross is making excellent progress and is on schedule to declare an initial mineral resource as part of its 2022 year-end results. The Company expects the initial mineral estimate to be predominantly in the inferred resource category, with some indicated resources.
To date, Kinross has drilled approximately 83,000 metres and is on track to complete approximately 200,000 metres of exploration and infill drilling in 2022 on the LP Fault zone, the most significant discovery to date at the project. The Company has received additional assay results since its last update on May 10, 2022, with a selection of the new results from targets at the LP Fault zone highlighted in the table below. Kinross has increased the number of diamond drills at Great Bear from eight to 11 since its last update. The latest results continue to support Kinross’ view of a high-grade, world-class deposit that underpins the prospect of a large, long-life mining complex. The results are consistent with findings from earlier in the year, which confirm gold mineralization with good widths and high grades and support the view that the LP Fault zone can host a long-life, open-pit mine.
Newmont Corp. announced that it has closed a transaction with Skeena Resources Limited to acquire certain properties located in Tahltan Territory in northwestern British Columbia. Newmont will work in collaboration with the Tahltan Nation, the Iskut community and the British Columbia government to make available portions of the acquired properties to support the land use planning objectives of the Tahltan Nation and the Iskut community. “We are committed to sustainable resource development and developing a world class mining jurisdiction while protecting and conserving lands that are important to the Tahltan Nation and the Iskut community,” said Newmont President and CEO Tom Palmer. “The mining claims around Iskut are not being purchased for development or their mineral potential, but in an effort to address concerns raised through our engagement with the Tahltan Nation.”
Royal Gold Inc. announced that its Board of Directors has declared its third quarter dividend of $0.35 per share of common stock. The dividend is payable on July 15, 2022, to shareholders of record at the close of business on July 1, 2022.
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