The Three Top Catalysts That Could Drive Gold to Higher Highs

November 25, 2024 - Baystreet.ca


Gold could push aggressively higher thanks to three key catalysts, including safe haven buying, dropping interest rates and persistent geopolitical risks. According to analysts at UBS, “In addition to monetary policy, geopolitical uncertainties continue to underpin demand for gold. From heightened tensions in Eastern Europe and the Middle East to ongoing concerns over U.S. government debt, these factors have elevated the appeal of gold as a reliable store of value during periods of market volatility,” as noted by Investing.com. That being said, investors may want to establish a position in top gold stocks, such as Calibre Mining (TSX: CXB) (OTCQX: CXBMF), Barrick Gold (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Royal Gold (NASDAQ: RGLD).

In addition, as noted by CNBC, “The escalation in the Russia-Ukraine conflict seems like it’s expanding to a Russia-U.S. war, and that’s definitely boosting short-term safe haven appeal,” said Alex Ebkarian, chief operating officer at Allegiance Gold.”

Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example

- 2.43 g/t Au over 172.8 metres Estimated True Width (“ETW”) including 3.84 g/t Au over 90.9 metres ETW in Hole FZ-24-048;

- 2.12 g/t Au over 95.4 metres ETW in Hole FZ-24-046;

- 2.26 g/t Au over 78.3 metres ETW in Hole FZ-24-040;

Calibre Mining Corp. announce initial discovery and resource expansion diamond drill results from its Valentine Gold Mine located in Newfoundland & Labrador, Canada. The program, part of the expanded 100,000 metre drilling initiative (see News Release dated July 15, 2024), is focused on discovering new gold mineralization beyond the known resources on the 250 km2 property. Launched earlier this year, the drilling highlights (see News Release dated June 5, 2024) the vast potential that exists outside of the three pit 2022 Feasibility Study, which includes a total of 64.6 Mt grading 1.90 g/t gold containing 3.95 Moz of Measured and Indicated Resources and 20.7 Mt grading 1.65 g/t gold containing 1.10 Moz of Inferred Resources. These resources are hosted across only 8 km of the highly prospective 32 km long main Valentine Lake Shear Zone (VLSZ). Drill results include numerous intercepts with visible gold and both high grade intersections and broad zones of continuous mineralization have been identified in several holes, all of which are located outside of known mineral resources.

Highlights from the Frank Zone drill program, southwest of the Leprechaun pit include:

- 2.43 g/t Au over 172.8 metres Estimated True Width (“ETW”) including 3.84 g/t Au over 90.9 metres ETW in Hole FZ-24-048;

- 2.12 g/t Au over 95.4 metres ETW in Hole FZ-24-046;

- 2.26 g/t Au over 78.3 metres ETW in Hole FZ-24-040;

- 10.21 g/t Au over 2.9 metres ETW in Hole FZ-24-028;

- 5.50 g/t Au over 6.0 metres ETW in Hole FZ-24-031;1.73 g/t Au over 11.0 metres ETW in Hole FZ-24-034;

- 13.39 g/t Au over 0.9 metres ETW in Hole FZ-24-035;

- 8.34 g/t Au over 1.0 metres ETW in Hole FZ-24-037; and

- 11.15 g/t Au over 0.9 metres ETW in Hole FZ-24-039.

Darren Hall, President and Chief Executive Officer of Calibre, stated: “We acquired the 5-million-ounce Valentine Gold Mine in Canada primarily for its near-term production of approximately 200,000 ounces per year for the first 12 years of its 14-year reserve life. With construction 85% complete, the funded project remains on schedule for first gold in Q2 2025. Successfully delivering Valentine will transform Calibre into a mid-tier gold producer with annual production of 450,000 to 500,000 ounces.

Since our initial due diligence in 2024, the team has been extremely excited by the highly prospective district potential of the Valentine Gold Mine property, which has a similar geologic setting to the prolific Val d’Or and Timmins camps in the Abitibi gold belt. These initial drill results highlight the significant upside potential for further discoveries and resource expansion. Holes FZ-24-048, 2.43 g/t gold over 172.8 metres, and FZ-24-046, 2.12 g/t gold over 95.4 metres, are very encouraging given the grades and widths, with mineralization importantly remaining open laterally, vertically and up-dip. In just a few months, we’ve discovered broad zones of gold mineralization up to 1,000 metres southwest of the Leprechaun open pit with grades more than 40% above-reserve-grade. These results are located proximal to the mill, and outside of the mineral resource, which strengthens our confidence that Valentine’s 250 km2 land package represents a new gold district. Furthermore, ongoing drilling northeast of our Marathon deposit is uncovering promising opportunities and identifying several new, high priority targets for exploration. We are excited about what lies ahead and look forward to sharing more information as we continue the expanded multi-rig drill program and progress construction completion.”

Tom Gallo, Senior Vice President Strategy and Growth of Calibre, stated: “The anticipated discovery potential of the orogenic gold setting of the Valentine Gold Mine property is highlighted by today’s drill results. Hole FZ-24-040 sits approximately 400 metres along strike to the southwest of the Leprechaun open pit followed by another 450 metre step out in Hole FZ-24-046 and a further 150 metres in Hole FZ-24-048. These three intercepts define a 1,000- metre corridor outside of our present mineral resource which is now being defined for future delineation drilling. These results, combined with the previously announced Frank Zone drilling, ultimately define continuous gold mineralization extending nearly 1,500 metres southwest of the Leprechaun resource. Furthermore, gold mineralization in the past has been defined proximal to the Valentine Lake Shear Zone (VLSZ), the main mineralized structure. It is, therefore, extremely encouraging to see intercepts such as in holes FZ-24-028 (10.21 g/t Au over 2.9 metres ETW) and FZ-24- 031 (5.50 g/t Au over 6.0 metres ETW), which have outlined gold mineralization 250-300 metres north of the VLSZ, meaningfully expanding the width of this golden corridor.”

Other related developments from around the markets include:

Barrick Gold said today it was making significant progress in building a business for the future with a peerless Tier One1 focused asset portfolio and a strategy that continues to uncover and unlock value, while also fostering productive partnerships in its host countries. Speaking in New York to investors at an in-depth presentation on the group’s position, achievements and plans, president and chief executive Mark Bristow said that since the merger, Barrick had generated $23 billion in operating cash flow, invested $15 billion in its operations and growth projects — effectively recapitalizing operations for the next 10 years or more — reduced the net debt by nearly $4 billion and returned over $5 billion to shareholders. “Our world-class projects are set to deliver a new growth phase and our targeted exploration programs are on course to maintain Barrick’s unmatched record of reserve replacement, which allows us to project a 10-year production profile,” he said.

Newmont announced that it has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd for up to $850 million in total consideration. Under the terms of the agreement, Newmont will receive cash consideration of $810 million upon closing and up to $40 million 1 in contingent payments. The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied. 2 Upon closing the announced transactions, Newmont will have surpassed its target of delivering more than $2 billion in gross proceeds from non-core divestitures.

Franco Nevada just noted, “Record gold prices generated higher revenues, Adjusted EBITDA and earnings in Q3 compared to Q2 2024,” stated Paul Brink, CEO. “GEO sales were stable compared to Q2 although lower compared to Q3 2023 without the contribution from Cobre Panama. The quarter benefitted from contributions from the newly commissioned Tocantinzinho mine in Brazil, and increased contributions from royalties from the recently completed Greenstone mine and the newly acquired Yanacocha royalty. Candelaria reported an increase in copper and gold production for the quarter. While Candelaria’s copper output is on track, Lundin Mining has revised its 2024 gold production guidance lower to reflect revised gold grades for the period. In addition, revenue from our Diversified assets translated into lower GEOs reflecting record gold prices. We have adjusted our 2024 guidance as a result. Franco-Nevada continues to benefit from higher gold prices with limited exposure to cost inflation. The company remains debt-free with substantial available capital and has a strong pipeline of potential precious metal streams and royalties.”

Royal Gold announced that its Board of Directors approved an increase in the Company’s annual calendar year common stock dividend of 12.5% from $1.60 to $1.80 per share, payable on a quarterly basis of $0.45 per share. The first quarterly dividend at the increased rate is payable on January 17, 2025, to shareholders of record at the close of business on January 3, 2025. “Royal Gold’s long record of consistently increasing capital return to shareholders is unique in the precious metals sector,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “We paid our first dividend in 2000 and have increased it every year since 2001, and to date we have paid out total dividends of approximately $1 billion. Paying a growing and sustainable dividend is a core strategic objective, and Royal Gold remains the only precious metals company in the S&P High Yield Dividend Aristocrats Index.”

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 Calibre Mining Corp. by Calibre Mining Corp. We own ZERO shares of Calibre Mining Corp. Please click here for disclaimer.

Contact:

Ty Hoffer
Winning Media
281.804.7972
[email protected]