Gold Prices Just Hit a Nine-Year High, and Could Test $1,900 Shortly

July 09, 2020 -

With coronavirus cases mounting, and fears about the health of the global economy, gold prices just settled at a nine-year high above $1,800 – the highest it’s been since September 2011. Coupled with falling interest rates around the world, a weaker dollar, and central banks flooding markets with liquidity, gold prices could make a return back to $1,900 – and fast. Analysts are just as bullish with Bank of America forecasting $3,000 as fiat currencies come under pressure. Goldman Sachs says we’ll see $2,000 an ounce in the next 12 months on low real interest rates and currency debasement concerns. That’s all creating big opportunity for gold companies including Eclipse Gold Mining Corporation (TSXV:EGLD)(OTC:EGLPF), Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), Kinross Gold Corporation (TSX:K)(NYSE:KGC), Newmont Corporation (NYSE:NEM), and Royal Gold Inc. (NASDAQ:RGLD).

Eclipse Gold Mining Corporation (TSXV:EGLD)(OTC:EGLPF) BREAKING NEWS: Eclipse Gold Mining Corporation reported it has completed an induced polarization (IP) survey at the Hercules Gold Project located in Lyon County, Nevada. The survey was completed by Zonge International Inc. of Reno, Nevada, and covered approximately 2.8 square kilometers of the Hercules Gold Project. Data processing is currently in progress and we anticipate the final results by mid-July.

Recent drilling identified several open-ended targets, including the Hercules target where hole H20010 returned 89.92 meters of 0.65 g/t Au and 12.51 g/t Ag, and the southern end of the Cliffs target where hole H20009 returned 74.68 meters of 0.54 g/t Au and 4.78 g/t Ag (for further information refer to the Company’s June 10, 2020 news release).

“Our recent drilling suggests that the mineralization at the Hercules Gold Project is open for expansion both along strike and at depth.” stated Michael G. Allen, President and CEO of Eclipse Gold, “It is anticipated that the IP survey will allow us to map out resistive zones associated with areas of known mineralization, as well as in untested areas. This technique should also allow for the delineation of potential feeder structures and zones of disseminated mineralization.”

The Company is investigating initiating a property wide geophysical survey to properly articulate the scale of the mineralizing system at the Hercules Gold Project. Geophysical data will be incorporated into the Company’s geological model and used to target the next phase of drilling, expected to launch in late summer.

Other related developments from around the markets include:

Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) announced that it has sold 79,268,800 shares of Shandong Gold Mining Co., Ltd., at a price of HK$20.50 per share for gross proceeds of approximately US$210 million. Barrick purchased the shares in the fourth quarter of 2018 at a cost basis of HK$10.50 per share. Barrick continues to hold 10,250,000 shares of Shandong Gold, representing a 2.05% interest in Shandong Gold’s Hong-Kong listed (H-class) shares, re-affirming its commitment to the strong existing long-term strategic partnership between the two companies. The shares were sold by an accelerated book building process and were placed primarily with new and existing institutional shareholders of Shandong Gold.

Kinross Gold Corporation (TSX:K)(NYSE:KGC) announced that it has reached an agreement in principle with the Government of Mauritania to enhance the parties’ partnership. The key terms of the agreement, which remain subject to definitive documentation, are the culmination of discussions between Kinross and the Government that balance the interests of both parties. The terms contemplate reasonable commercial trade-offs intended to provide certainty and resolution of outstanding matters. Under the terms of the agreement, the Government will provide Kinross with a 30-year exploitation license for Tasiast Sud under the 2008 Mining Code and the 2012 Mining Convention, granted with expedited permitting and the possibility of early mining. The agreement also provides for the reinstatement of the tax exemption on fuel duties1 and the repayment by the Government to Kinross of approximately $40 million in outstanding VAT refunds with an agreed payment schedule through 2025. Kinross will make a $10 million payment to the Government after completion of the definitive agreements to resolve disputed matters related to fuel use and tax exemptions. In addition, upon receiving the exploitation license for Tasiast Sud, Kinross will make a $15 million payment to resolve disputed matters arising out of Kinross’ prior application to convert the Tasiast Sud exploration license into an exploitation license. 

Newmont Corporation (NYSE:NEM) announced the Company continues to ramp up operations at Peñasquito, Cerro Negro, Éléonore and Yanacocha. Among Newmont’s 12 operating mines and two joint ventures, 13 sites will be fully operational in the coming weeks. “We are pleased to be ramping up operations at our four sites previously placed in care and maintenance and we remain committed to protecting our workforce and neighboring communities,” said Tom Palmer, President and Chief Executive Officer. “We continue to respond to this pandemic from a position of strength and Newmont’s diverse portfolio in top-tier jurisdictions provides a long-term, stable production profile with the potential to generate significant free cash flow over time.” Newmont is providing a revised 2020 outlook with nearly all of our mines operating and mining now deemed an essential activity in every jurisdiction where the Company operates. The revised 2020 outlook assumes that operations will continue throughout the remainder of the year without major interruptions. Newmont’s long-term guidance remains unchanged with stable production of more than 6 million ounces and improving costs from 2021 through 2024.

Royal Gold Inc. (NASDAQ:RGLD) announced that its Board of Directors has declared its third quarter dividend of US$0.28 per share of common stock. The dividend is payable on July 16, 2020, to shareholders of record at the close of business on July 2, 2020.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Eclipse Gold Mining Corporation has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Eclipse Gold Mining Corporation. Please click here for full disclaimer.

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