FinancialBuzz.com News Commentary
New York, NY (11/30/2020) – After the election and Pfizer’s announcement about a potential vaccine, gold prices have been volatile. Yet, the same factors that had helped the gold price to go up in recent months, such as low interest rates, are still very relevant. To reduce the pandemic’s impact on the economy, various measures have been taken, such as near-zero interest rates and economic stimulus for business and individuals. Such measures have impacted the price of precious metals and while the yield on the US 10-year Treasury has slightly increased in recent days, it nonetheless remains below 1%. Bond yields in Europe are negative as they are barely above zero in Japan and the U.K. “The ultra-low interest rate environment will not change anytime soon. Bonds now provide very little return and may not do so for many more years,” said Juan Carlos Artigas, head of research for the World Gold Council, according to CNN. “Investors are looking at gold to replace cash and fixed income.” Clarity Gold Corp. (CSE: CLAR), Kinross Gold Corporation (NYSE: KGC) (TSX: K), NovaGold Resources Inc. (NYSE: NG), Alamos Gold Inc. (NYSE: AGI), Hecla Mining Company (NYSE: HL)
In addition, it is unclear when the second wave of the pandemic will dissipate or how severe it will be. Several countries in Europe are already going back into national lockdown, and as the weather gets colder, the U.S is expected to implement more restrictions nationwide. In addition, it is also unclear when exactly the vaccine will be available to the public and how it will be distributed. William Cai, a partner at Wilshire Phoenix, explained according to Kitco that “our view is that there are still a lot of questions surrounding this vaccine. It has to be kept really cold, so there is a question of how will even be rolled out…The news doesn’t change the view on the ground when it comes to the health of the global economy. The majority of macro factors in financial markets still favor high gold prices.”
Clarity Gold Corp. (CSE: CLAR) just announced breaking gold news that, “it has entered into an option agreement (the “Option Agreement”) dated November 27, 2020 pursuant to which the Company has been granted the sole and exclusive option (the “Option”) by Big Ridge Gold Corp. (“Big Ridge”) (TSX-V: BRAU), an arm’s length company whose common shares are listed on the TSX Venture Exchange, to acquire up to 100% of Big Ridge’s right, title and interest in and to certain mineral claims located in the Province of Quebec known as the “Destiny Project” (the “Transaction”).
Highlights of the Destiny Project1
• Located in the historical, mineral rich Abitibi Greenstone Belt.
• Gold mineralization occurs in high-grade quartz veins within shear zones starting at 15 m below surface (drill results include 167g/t Au over 1 m).
• 2011 NI 43-101 indicated resource of 360,000 oz and an inferred resource of 247,000 oz.
• Mineralization is open to depth and along strike.
• The DAC deposit is open along strike with only coarse drilling denoting high grade intercepts outside of 2011 resource area showing expansion potential along strike from the DAC Deposit over approximately 2.5 km to the Darla Zone.
• Excellent infrastructure: ~75 km NNE of Val d’Or with road access.
• Considerable work done to date including over 50,000 m of diamond drilling.
‘This is a substantial step forward for Clarity. The acquisition of the Destiny Project will mark a transformational first step for the Company into the prolific Abitibi Greenstone belt,’ stated Clarity’s CEO, James Rogers. ‘Our team at Clarity has reviewed countless projects and we are excited to focus our efforts on a project that has high grade, underground potential with underpinning Indicated and Inferred ounces in the ground. We look forward to working with Big Ridge to complete the Transaction and get to work on advancing this exciting project.’
The Destiny Project
The Destiny Project is located approximately 75 km northeast of the city of Val d’Or in the prolific Abitibi Greenstone Belt where more than 180 million ounces of gold have been produced historically along major structural breaks within the assemblage of Archean-age volcanic, sedimentary and intrusive rocks. The Destiny Project lies along the approximately 400 km long Chicobi Deformation Zone, a major structural break which is largely underexplored in the Abitibi Greenstone Belt. The 5,013 ha project includes the DAC deposit, one of several gold zones along an approximately 6 km long segment of the Despinassy Shear Zone within the Chicobi Deformation Zone.
Approximately 2.5 km east along strike of the DAC deposit is the Darla zone. In between the Darla and DAC is the coarsely drilled GAP zone where 2012 drilling intercepted anomalous gold in all 12 holes which were spaced 100 m apart.
Exploration of the Destiny Project dates back to the 1930s with the first serious diamond drilling campaign commencing in 1998 by Cameco. Continued exploration and drilling campaigns supported a maiden NI 43-101 resource estimation being authored in 2007 and the most recent NI 43-101 resource estimation in 2011 in the Technical Report, dated March 1, 2011, authored by, Todd McCracken, P. Geo., and filed by Big Ridge on Sedar on March 7, 2011 (the “2011 Technical Report”). Since the publishing of the 2011 Technical Report, only 15 drill holes totaling approximately 3,473 m were completed as well as geochemical surveys and a geophysical compilation targeting VMS mineralization.
Previous work on the property can be summarized as follows:
• 172 Diamond drill holes comprising approximately 50,400 m
• Reconnaissance till sampling from 11 Sonic drill holes
• 2,430 MMI geochemical samples
• 982 line km of airborne VTEM surveys
• 171 line km of ground magnetics surveys
• 128 line km of IP
Salient results from previous drill programs on the Destiny Project:
| Zone | Hole ID | From (m) | To (m) | Interval (m) | Au g/t |
| DAC | DES9917 | 117.2 | 140.8 | 23.6 | 6.15 |
| including | 118.8 | 121.9 | 3.1 | 23.95 | |
| and | 134.8 | 138.5 | 3.7 | 12.46 | |
| DES0032 | 159.9 | 169.2 | 9.3 | 3.98 | |
| including | 161.2 | 165.9 | 4.7 | 5.37 | |
| and | 163.3 | 165.9 | 2.6 | 7.78 | |
| DES05-64 | 161.8 | 170.5 | 8.7 | 5.42 | |
| including | 161.8 | 163.2 | 1.4 | 22.14 | |
| DES05-66 | 130.3 | 133.1 | 2.8 | 5.18 | |
| and | 138.3 | 139.3 | 1 | 3.37 | |
| and | 142.2 | 143.6 | 1.4 | 8.83 | |
| DES05-67 | 163.7 | 170.9 | 7.2 | 8.81 | |
| including | 166 | 168.7 | 2.7 | 19.49 | |
| DES05-79 | 130.6 | 133.1 | 2.5 | 10.7 | |
| and | 142 | 145 | 3 | 5.04 | |
| DES05-81 | 323.7 | 325.8 | 2.1 | 3.41 | |
| and | 333.7 | 339 | 5.3 | 4.01 | |
| including | 333.7 | 338.5 | 4.8 | 4.32 | |
| DES06-85 | 214 | 216.5 | 2.5 | 4.31 | |
| and | 221.7 | 222.7 | 1 | 167 | |
| DES06-96 | 254.4 | 261.2 | 6.8 | 2.46 | |
| and | 272.7 | 275.7 | 3 | 3.04 | |
| DES10-137 | 372.9 | 374 | 1.1 | 25.65 | |
| Darla | DES06-91 | 115.1 | 117.2 | 1.2 | 19.67 |
| DES08-104 | 104.5 | 107 | 2.5 | 6.73 | |
| including | 104.5 | 105.2 | 0.7 | 19.73 | |
| Gap | DES12-147 | 85.5 | 91.5 | 6 | 16.1 |
| West | including | 87.5 | 88.5 | 1 | 90.3 |
| and | 146 | 148 | 2 | 2.55 | |
| DES05-75 | 79.8 | 80.5 | 0.7 | 3.36 | |
| and | 82.7 | 84.2 | 1.5 | 1.5 | |
| and | 90.3 | 91.8 | 1.5 | 1.23 | |
| South | DES0051 | 308.6 | 309.9 | 1.3 | 2.22 |
| DES0056 | 49 | 49.2 | 0.2 | 3.03 | |
| and | 144.6 | 145.3 | 0.7 | 1.69 | |
| and | 319 | 319.2 | 0.2 | 2.23 | |
| Zone 21 | DES9921 | 93.8 | 99.8 | 6 | 2.49 |
| including | 93.8 | 94.8 | 1 | 7.03 | |
| Zone 20 | DES9920 | 218.4 | 220.4 | 2 | 4.6 |
| The DAC Deposit |
The 2011 Technical Report entitled “NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property, Quebec” included the following estimates:
| Class | Tonnes | Au (gpt) | Au (ounces) |
| Indicated | 10,800,000 | 1.05 | 360,000 |
| Inferred | 8,300,000 | 0.92 | 247,000 |
Notes:
– The 2011 Technical Report was prepared for Alto Ventures Ltd. (now Big Ridge) and Pacific Northwest Capital Corp.
– Values rounded to reflect summary nature of the estimate
– Cut-off grade 0.5 g/t Au
– Au price of US$973/Oz
– US$ to CAD$ conversion of 1.02
– Au recovery 94%
– 4:1 Strip ratio
– Operating cost of $14.30/t at 10,000 tpd
Michel Robert, Advisor to Clarity stated: ‘The Abitibi is known for its high mineral potential, it’s a recognized region in Canada and internationally. I have previously worked in several active projects in the region, now I am excited to return to this highly prospective area with solid infrastructure and formidable local support for resource development. Destiny is in an advanced exploratory stage with an NI 43-101 indicated resource, and with multiple under explored zones which makes for untapped exploration potential. At Clarity, we look forward to starting work and further defining this resource to become another success in the region.’…
Qualified Person
Mr. Rory Kutluoglu P. Geo. is the Qualified Person (“QP”) under NI 43-101 for the technical information in this news release and has reviewed the appropriate and available data for the Destiny Project and approves the technical contents of this news release.”
Information extracted from the Technical Report, dated March 1, 2011, authored by, Todd McCracken, P. Geo., and filed by Big Ridge on Sedar on March 7, 2011.
For our latest “Buzz on the Street” Show featuring Clarity Gold Corp. recent corporate news, please head over to: https://www.youtube.com/watch?v=nfyYSNLRfYM
Kinross Gold Corporation (NYSE: KGC) (TSX: K) announced earlier this year that it has filed a new technical report for its Paracatu operation in Brazil. Paracatu is a cornerstone, long-life operation in Kinross’ portfolio that is expected to produce an average of approximately 540 Au koz. annually over 12 years from 2020 to 2031. Total production over the remaining mine life is expected to increase approximately 24% compared with the prior technical report that was published in 2014.The new technical report is based on an asset optimization program that commenced in 2018 and was completed in late 2019 with the successful implementation of a comprehensive grade control program. The results of the program include better characterization of the orebody, an improved ability to predict and react to ore variability, and better mill efficiency with improvements in throughput and recovery.
NovaGold Resources Inc. (NYSE: NG) announced earlier this year that its flagship Donlin Gold project, which NOVAGOLD owns equally with Barrick Gold Corp. (“Barrick”), received the final State Right-of-Way (ROW) authorization for the buried natural gas pipeline, issued by the Alaska Department of Natural Resources (ADNR) on January 17, 2020. Additionally, ADNR denied an appeal and affirmed the Division of Mining, Land, and Water’s original January 18, 2019 approval of Donlin Gold LLC’s Reclamation Plan and its accompanied permit. “We are very pleased to see the issuance of key transportation and energy infrastructure approvals for Donlin Gold,” said Greg Lang, President and CEO.
Alamos Gold Inc. (NYSE: AGI) reported back in August results of the positive internal economic study completed on its fully permitted La Yaqui Grande project located in the Mulatos District in Sonora, Mexico. Given the project’s strong economics and its proximity to the existing Mulatos operation, the Company is proceeding with construction of the project starting in the second half of 2020. Average annual gold production of 123,000 ounces per year starting in the third quarter of 2022. This will replace higher cost production from the main Mulatos pit, keeping combined production at approximately 150,000 ounces per year.
Hecla Mining Company (NYSE: HL) announced back in January preliminary silver and gold production results for the fourth quarter and full year 2019 as well as a significant reduction of net debt and an increase in cash position. The Lucky Friday Union workers have ratified the collective bargaining agreement, reversing the result of the vote held in early December, and many of the workers are expected to return to work. “2019 marked a year of higher metal production and in the second half of the year, strong cash flow generation and an improved balance sheet,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “While gold & silver prices have increased, Greens Creek’s record silver production combined with the most gold production in Hecla’s history were the primary reasons for the cash flow strength.”
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