This is Why Gold Prices Could Push Back Above $2,000 this Year

July 07, 2022 - Baystreet.ca


Investors may want to jump into gold on the pullback. “The gold market still has a path to push above $2,000 an ounce even as the Federal Reserve continues to aggressively raise interest rates throughout the year, according to commodity analysts at the French investment bank Societe Generale,” as noted by Kitco.com. “In the bank's latest commodity outlook, published Wednesday, the analysts raised their gold prices forecast and see the precious metal averaging around $2,100 by the third quarter of 2022. The analysts said that the most significant factor dominating the gold market remains real interest rates.” All could be solid catalysts for stocks, such as NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), B2Gold Corp. (TSX: BTO) (NYSE: BTG), and GoldMining Inc. (TSX: GOLD) (NYSE: GLDG).

Look at NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF)

NevGold Corp. announce the development path forward at the advanced stage Nutmeg Mountain Gold Project which hosts a mineral resource of 910,000 Indicated ounces of gold (43.5 Mt @ 0.65 g/t Au), and 160,000 Inferred ounces of gold (9.1 Mt @ 0.56 g/t Au). The transaction with GoldMining Inc. closed on July 5, 2022 and NevGold has immediately commenced work on Nutmeg Mountain with a core relogging program and geological model update, which will be followed by a drill program.

Key Highlights

- Nutmeg Mountain is a near-surface, heap-leach project located in southwest Idaho

- NI 43-101 report completed in 2020 by GoldMining includes a mineral resource of 910,000 Indicated ounces of gold (43.5 Mt @ 0.65 g/t Au), and 160,000 Inferred ounces of gold (9.1 Mt @ 0.56 g/t Au)

- Historical drilling, which on average only went to a depth of approximately 75 meters, includes:

- 51.8m @ 2.14 g/t Au starting at surface (0 meters to 51.8 meters)

- 60.0m @ 1.38 g/t Au starting at surface (0 meters to 60.0 meters)

- 54.7m @ 1.77 g/t Au (15.2 meters to 70.0 meters)

Including 24.1m @ 3.10 g/t Au (30.6 meters to 54.7 meters)

- 1,724 hectare project area (17.2 km2) comprised of 2 private leases, 12 patented claims, and 210 unpatented Bureau of Land Management claims

Most of the resource is situated on patented claims

- NevGold has outlined a work program for the next 12 months inclusive of a 10,000 meter drill program, updating the resource estimate, and advancing to an engineering study on the Project by 2023

NevGold CEO, Brandon Bonifacio, comments: “We are excited to commence work on Nutmeg Mountain and progress into our first active field program at the project, while we also continue to drill our highly prospective Limousine Butte Project in Nevada. Nutmeg Mountain is an extremely promising project with a large resource base that has significant resource expansion potential and exploration upside. We see a similar value extraction roadmap at Nutmeg Mountain like we did when we acquired Limousine Butte last year, and we will apply the same technical rigour and discipline to project advancement over the next 12 months. We have identified a clear set of objectives and milestones, and the de-risking of Nutmeg Mountain will be a key part of our valuation re-rate as we also continue to advance and de-risk Limousine Butte. It is shaping up to be an exciting period for the company.”

NevGold VP Exploration, Derick Unger, comments: “We are very excited about the upside of Nutmeg Mountain for multiple reasons. Along with having a strong gold system with significant size and excellent continuity, the gold system is untested in multiple directions. Previous drilling averages only 75 meters depth and was focused on the mineralization that begins at surface. This leaves significant untested potential for high-grade veins at depth. Additionally, the near-surface mineralization also remains open along strike to the north and south as the majority of the historical drilling was completed on the patented claims that contains most of the 2020 resource. The on-strike extension areas are on either federal land managed by the Bureau of Land Management or leases of private land, both of which can be permitted for drilling very quickly and will form a key part of our resource expansion and exploration drill program.”

Other related developments from around the markets include:

Barrick Gold Corporation continues to invest in creating value for all stakeholders and in supporting the communities that host its mines, president and chief executive Mark Bristow said. Speaking to media at the company’s Loulo-Gounkoto complex, Bristow noted the commissioning of the Gounkoto underground mine and the Gara West open pit, the continuing replacement of reserves, the extension of the solar power plant and the further strengthening of local partnerships as instances of the company’s long-term commitment to the country. “In the first half of the year we’ve contributed $337 million to the Malian economy in the form of taxes, royalties, dividends, salaries and payments to local suppliers, taking the lifetime contribution of Barrick, previously Randgold, to $8.5 billion. We’re particularly proud of the fact the Gara West pit is being mined for us by two Malian contractors we have mentored.”

Newmont Corporation announced that it has reached a profit-sharing agreement with its represented workforce at the Company’s Peñasquito mine in Zacatecas, Mexico. The agreement supports the continued operation of Peñasquito into the future. Consistent with other agreements across Mexico, Newmont Peñasquito will pay its represented workforce an uncapped profit-sharing bonus up to 10%, with an immediate cost equivalent of $70 million, which is representative of the payments related to 2021 results. “We are pleased to have reached this agreement with the National Union of Mining, Metallurgical, Iron and Steel and Similar Workers of the Mexican Republic,” said Newmont President and CEO Tom Palmer. “Through a respectful dialogue and the active participation of union leadership including Senator Napoléon Gómez Urrutia, we reached this agreement without interruption to the operation, ensuring a lasting relationship for the future of Peñasquito.”

B2Gold Corp. announced additional positive exploration drilling results from Fekola North and the Anaconda area, and provide an update on the development of the Anaconda area. High grade results from the Fekola North target area such as drill hole FKD_64, which returned 4.28 grams per tonne gold over 19.15 metres, from 529.0 metres, provides strong support for ongoing evaluation of underground development of the deepest portions of the Fekola Mine deposit. In the Anaconda area, approximately 20 kilometres north of the Fekola Mine, drill hole MSD_212, which returned 8.09 g/t gold over 15.8 metres, from 431.1 metres, confirms the presence of high grade sulphide, approximately 100 metres below the limits of the current Mineral Resource pit boundary. The good grade and width combinations at the Anaconda area continue to provide a strong indication of the potential for Fekola-style plunging bodies of sulphide mineralization, which remain open at depth.

GoldMining Inc. announced the closing of the previously announced grant of an option on the Company's Almaden Project, located in Idaho, U.S.A. to a subsidiary of NevGold Corp. and the Company's strategic investment in NevGold. As consideration for the option, the Company received consideration of C$3.0 million, which was satisfied by NevGold by issuing 4,444,444 common shares of NevGold.

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. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for NevGold Corp. by NevGold Corp. We own ZERO shares of NevGold Corp. Please click here for full disclaimer.

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