With investors pushing into the safe havens of gold, the metal now sits just under $2,000. From here, $2,500 is possible as gold edges up on U.S. dollar weakness, and hopes the Federal Reserve will maintain its dovish monetary policy. “The Fed is expected to maintain the target rate of inflation, we’re going to run 2% for some time and they will increase Quantitative Easing (QE) buying, so gold should remain supported on that,” said Phillip Streible, chief market strategist at Blue Line Futures, as quoted by CNBC.
Helping, Warren Buffett’s Berkshire Hathaway has just started to jump into gold miners, like Barrick Gold. “In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments. Large miners including Barrick and Newmont Corp. have been hoping to woo back generalists who fled the sector years ago,” says Bloomberg.
Goldman Sachs says we’ll see higher gold prices on low real interest rates and currency debasement concerns. In addition, Elliott Management’s Paul Singer still says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.” With investors still rushing into gold, some of the top companies to keep an eye on include KORE Mining Ltd. (TSXV:KORE)(OTC:KOREF), Equinox Gold Corp. (NYSE:EQX)(TSX:EQX), Corvus Gold Inc. (TSX:KOR)(NASDAQ:KOR), Midas Gold Corp. (OTC:MDRPF)(TSX:MAX), and First Majestic Silver Corp. (NYSE:AG)(TSX:FR).
KORE Mining Ltd. (TSXV:KORE)(OTC:KOREF) BREAKING NEWS: KORE Mining Ltd. is pleased to announce a positive Preliminary Economic Assessment for the Company’s 100% owned Long Valley Gold Deposit, located in California, USA.
The PEA demonstrates Long Valley’s potential to generate strong economic returns while being in full compliance with California’s stringent operating and reclamation standards. Long Valley has clear upside potential from targets on-strike and lateral to the current modelled oxide mineralization and intends to aggressively explore this untapped potential.
LONG VALLEY PROJECT PEA HIGHLIGHTS:
- Robust economics: US$ 263 million NPV5% post-tax with 40% IRR at US$ 1,600 per ounce gold
- 100,000 ounces gold per year over 7 years at AISC of US$ 732 per ounce
- Technically simple: shallow open pit, heap leach with nearby infrastructure
- Significant leverage to gold: US$ 396 million NPV5% at recent spot US$ 1,900 per ounce gold
- Unmodeled silver potential from metallurgical test-work
- Shallow oxide and sulphide feeder exploration potential to further enhance project
KORE’s CEO Scott Trebilcock stated: “In addition to the Long Valley project, KORE also has a preliminary economic assessment on its Imperial Project, published on May 19, 2020, which generates an NPV5% of US$ 660 million at US$ 1,900 per ounce gold and an IRR of 69%. With the Long Valley PEA generating an NPV5% of US$ 396 million at US$ 1,900 per ounce gold, KORE has the unique advantage of having two simple, low-cost heap leach development projects in one Company. With a portfolio, KORE is able to stagger resource expansion, permitting, construction; manage capital needs and maximize shareholder value. The Long Valley PEA is a key milestone towards KORE’s becoming a significant North American producer envisioning production of 250,000 ounces of gold a year from our US projects.”
KORE’s COO Marc Leduc added: “The mine plan at Long Valley complies with California’s stringent reclamation and environmental laws while delivering skilled jobs and long-term regional economic development. KORE’s next step is to grow Long Valley by drilling oxide and sulphide targets while further defining silver potential.”
The PEA is preliminary in nature and 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. There is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Other related developments from around the markets include:
Equinox Gold Corp. (NYSE:EQX)(TSX:EQX) reports that mining activities at its Los Filos Mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues.
Corvus Gold Inc. (TSX:KOR)(NASDAQ:KOR) announces it has received additional results from its current drill program at the Mother Lode project with a successful expansion of the new Central Intrusive Zone “CIZ”, Upper Oxide and “North” targets. These new results are beginning to define the shape and continuity of the gold mineralization in these important resource expansion areas of the Mother Lode deposit (Figure 1 & Table 1). Key new intercepts include ML20-151CT, with 56.4m @ 1.71 g/t Au and ML20-141CT with 64.9m @ 1.02 g/t Au including 11.7m @ 3.9 g/t Au and ML20-149CT with 55.1m @ 1.40 g/t Au which shows good vertical continuity with the initial CIZ discover hole ML19-123CT (125.5m @ 2.6 g/t Au and 74.7m @ 0.62 g/t Au NR20-06, May 13, 2020). The CIZ target will be the focus of two of Corvus’ three drill rigs operating in the District with the third rig directed at new discovery drilling at its Lynnda Strip, and other emerging new targets.
Midas Gold Corp. (OTC:MDRPF)(TSX:MAX) announced that the Stibnite Gold Project has received a ‘Permitting Dashboard’ to bring improved coordination, transparency and accountability to projects under the National Environmental Policy Act permitting process. Published on the Council on Environmental Quality website, the Stibnite Gold Project Permitting Dashboard maintains the same permitting schedule as that published by the U.S. Forest Service in July, 2020 (see news release dated July 2, 2020). Projects that have received a Permitting Dashboard are afforded enhanced coordination between federal agencies but must still move through the strict protocols of study and review under, and meet the regulatory standards required by, NEPA. The Permitting Dashboard is a result of infrastructure development, a domestic supply of critical minerals for national security, and the environmental restoration of what has been a long abandoned and contaminated mine site.
First Majestic Silver Corp. (NYSE:AG)(TSX:FR) announced that it has entered into an agreement with Cormark Securities Inc., as underwriter pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 5,000,000 common shares of First Majestic at a price of CDN$15.60 per Common Share for gross proceeds of CDN$78,000,000. The sole investor under the Offering will be Canadian billionaire businessman, Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially controlled by him. This investment will result in Mr. Sprott holding approximately 2.3% of First Majestic’s issued and outstanding common shares, post-closing. Mr. Sprott, commented, “We believe there has been a lack of appreciation for First Majestic’s equity in 2020 and we are happy to align ourselves with Keith who recognizes the mispricing of silver in the marketplace and has been a stalwart for silver.”
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