Gold is back above $1,700 an ounce, as investors bet central bank won’t tap the breaks on much-needed economic stimulus. In fact, “The global economic recovery will still require further aid and gold prices should still be supported over the medium-term,” wrote Edward Moya, senior market analyst at brokerage Oanda, as quoted by MarketWatch. Coupled with plenty of economic uncertainty on the heels of the coronavirus threat, tensions with China, and upcoming U.S. elections, gold prices push higher on the uncertainty.
In addition, in a world of zero interest rates, the price of gold could rally as high as $3,000, says Bank of America. “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,” the analysts said, as quoted by Kitco. That’s opening a wide range of opportunity for companies including Eclipse Gold Mining Corporation (TSXV:EGLD)(OTC:EGLPF), Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), Sandstorm Gold Ltd. (NYSE:SAND)(TSX:SSL), Kinross Gold Corporation (TSX:K)(NYSE:KGC), and Equinox Gold Corporation (NYSE:EQX)(TSX:EQX).
Eclipse Gold Mining Corporation (TSXV:EGLD)(OTC:EGLPF) BREAKING NEWS: Eclipse Gold Mining Corporation reported drill results for its first phase of drilling at the Hercules Gold Project located in Lyon County, Nevada. A total of 3,271 meters were drilled in 12 exploration holes. Multiple near surface targets were tested and eleven of the twelve holes intersected significant oxidized gold mineralization.
Importantly, this drilling has highlighted that the Hercules mineralizing system appears to be strengthening to the south on the Company’s 85 square kilometer land package.
“The Hercules Gold Project is beginning to take shape as an exciting new gold district in Nevada, we are delighted with these drill results being in hand so quickly after our listing in February 2020.” noted Michael G. Allen, President, CEO and Director, “Being located approximately one hour from Reno, Hercules is a truly remarkable project, potentially representing an almost ideal combination of scale, grade, and location.”
“Evaluating these drill results has allowed us to develop a model that suggests the presence of a mineralized system that is strengthening to the south, potentially expanding the footprint of mineralization beyond what we had previously envisioned.” noted Dr. Warwick Board, Vice President of Exploration, “This is in addition to the gold targets that were outlined following the consolidation of several historical databases for the property, the scale and tenor of which was confirmed by our drilling.”
Hole H20004 identified a potential new target to the east of previously drilled mineralization that the Company will be evaluating for future work. The Company currently is planning its next steps which in the near term will include geophysical surveys to identify extensions to the known mineralization.
Other related developments from around the markets include:
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) built on the solid foundation it laid last year with a robust first quarter performance from all operations in the face of the challenges presented by the global Covid-19 pandemic. Q1 gold production and costs were consistent with full year guidance; debt net of cash was reduced by a further 17% from the end of Q4 to $1.85 billion with no significant maturities until 2033; operating cash flow increased to $889 million and free cash flow1 to $438 million from Q4; net earnings per share was 22 cents; adjusted net earnings per share2 was 16 cents; and the quarterly dividend of 7 cents per share was maintained. President and CEO Mark Bristow said operational and financial delivery were on plan despite the fact that the group’s prime focus during the latter part of the quarter had been on ensuring the safety of Barrick’s people, communities and business in the face of the novel coronavirus pandemic, while also coping with the restrictive conditions imposed by governments.
Sandstorm Gold Ltd. (NYSE:SAND)(TSX:SSL) provided an asset update and announce the Company has filed the prospectus supplement for the previously announced at-the-market equity program. Recent infill drill results have been reported by Lidya Madencilik San. ve Tic. A.S., Sandstorm’s 70% partner at Hod Maden. A total of 2,864 metres in 24 drill holes have been completed in 2020 and once travel and work restrictions are lifted in Turkey, Lidya plans on continued infill, geotechnical, hydrological and exploration drilling on the project.
Kinross Gold Corporation (TSX:K)(NYSE:KGC) announced that the strike by unionized employees at its Tasiast mine has been suspended at the request of the Government of Mauritania. The recent shutdown, which began on May 5th and ended today, is not expected to materially affect 2020 production or the development of the 24k expansion. The Company has adhered to the three-year collective labour agreement finalized in Q4 2019, all applicable labour codes, and rigorously complied with all government mandates related to COVID-19 prior to the strike and will continue to do so going forward. While the Company disagrees with the basis for the strike, it remains open to discussions with the staff delegates.
Equinox Gold Corporation (NYSE:EQX)(TSX:EQX) reported its first quarter 2020 summary financial and operating results. The Company’s unaudited condensed consolidated interim financial statements and related management’s discussion and analysis for the three months ended March 31, 2020 will be available for download shortly on SEDAR, on EDGAR and on the Company’s website. The Company will host a conference call and webcast today commencing at 2:00 pm Vancouver time to discuss the Company’s business strategy and objectives, first quarter results and activities underway at the Company’s projects. Further details are provided at the end of this news release. “Equinox Gold had a strong first quarter bolstered by production from our newly acquired assets and achieved record gold production and record earnings from mine operations, despite navigating challenges related to the COVID-19 pandemic,” said Christian Milau, Chief Executive Officer. “With more than $350 million of cash on hand, Equinox Gold is in a strong financial position and fully funded for its organic growth plans. Castle Mountain Phase 1 construction is 75% complete, the Los Filos expansion and Santa Luz restart projects are expected to significantly increase production over the course of 2021 and 2022 and we recently completed a positive preliminary economic assessment for development of an underground mine at Aurizona. While the temporary suspension of mining activities at our Los Filos mine in Mexico will affect Q2 production, our other mines have experienced only minimal COVID-19 disruption to date. We remain focused on achieving our growth objectives while continuing to maintain appropriate operational and safety procedures to help protect the health and economic wellbeing of our workforce and local communities.”
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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