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Advance Gold $AAX.ca – Starts Drilling Large 1000 x 500 Metres Continuous Chargeability Anomaly $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $TECK.ca

Posted by AGORACOM-Eric at 2:33 PM on Wednesday, November 27th, 2019

Kamloops, British Columbia–(Newsfile Corp. – November 27, 2019) – Advance Gold Corp. (TSXV: AAX) (“Advance Gold” or “the Company”) is pleased to announce drilling has started to test the large chargeability anomaly identified in recent 3D Induced Polarization (IP) geophysical surveys on its Tabasquena project in Zacatecas, Mexico. Two phases of IP surveys identified a 1000 metres by 500 metres continuous chargeability anomaly. The anomaly remains open to the north and to the south and at depth.

Allan Barry Laboucan, President and CEO of Advance Gold Corp. commented: “We are very excited to drill this large chargeability anomaly as these kinds of targets are not easily found, especially in regions well known for big mines. What makes it particularly stand out is that the high chargeability is consistent from east to west on each survey line, and from line to line over the entire grid. One always has to be aware of possible false positives, such as the possibility of disseminated magnetite causing the chargeability anomaly. However, in this case there has been no magnetite found in the area and an historical magnetic geophysical survey by the Geological Survey of Mexico showed no magnetic anomaly. There are a few potential explanations for the anomaly of this size from mines in Zacatecas. At the Real de Angeles mine and the mine at Fresnillo there were large stockwork vein systems. Previous drilling at Tabasquena has found a near surface network of epithermal veins with widespread gold and silver mineralization, although the IP survey did not pick up that network of drilled veins. Another possibility is a porphyry intrusion that are known to be below epithermal vein systems. Finally, volcanogenic massive sulphide deposits (VMS) are known to occur in clusters, so far, there is only one found in the area, Teck’s San Nicolas VMS deposit. The San Nicolas discovery was found with the first drill hole into a large IP chargeability anomaly. For a small company like Advance Gold to have such a significant anomaly, in a prolific region for mines is exceptional, now we are drilling to better understand what we have at the Tabasquena project.”

The first drill hole to test the chargeability anomaly will be approximately in the middle of the anomaly. It will be drilled at a 65 degree angle, from west to east. The first image below shows the collar location and direction of the hole. In the north part of the image, you can see the Tabasquena shaft area, where historical mining was done in the oxide zone of the Tabasquena vein, and just off the image to the south is the Tesorito shaft also used historically to mine the Tabasquena vein in the oxides.


Drill Hole 1

To view an enhanced version of Drill Hole 1, please visit:
https://orders.newsfilecorp.com/files/5492/50185_7f3793d874883847_001full.jpg

The image below is a plan view, with past drill holes outside the purple area which is the projected chargeability anomaly to surface. Those drill holes intersected a series of veins, with widespread gold and silver mineralization. None of the holes reached the chargeability anomaly.


Plan view showing previous drill holes

To view an enhanced version of the plan view, please visit:
https://orders.newsfilecorp.com/files/5492/50185_7f3793d874883847_002full.jpg

The final image below, is a cross section of the new drill hole, which has been designed to cover approximately 100 metres from west to east, plus go down to 500 metres and hit the middle of the chargeability anomaly. The anomaly remains open at depth beyond the planned 500 metres and a decision will be made during drilling to extend it.

Cross section of new drill hole

To view an enhanced version of the cross section, please visit:
https://orders.newsfilecorp.com/files/5492/50185_7f3793d874883847_003full.jpg

Julio Pinto Linares is a QP, Doctor in Geological Sciences with specialty in Economic Geology and Qualified Professional No. 01365 by MMSA., and QP for Advance Gold and is the qualified person as defined by National Instrument 43-101 and he has read and approved the accuracy of technical information contained in this news release.

About Advance Gold Corp. (TSXV: AAX)

Advance Gold is a TSX-V listed junior exploration company focused on acquiring and exploring mineral properties containing precious metals. The Company acquired a 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico in 2017, and the Venaditas project, also in Zacatecas state, in April, 2018.

The Tabasquena project is located near the Milagros silver mine near the city of Ojocaliente, Mexico. Benefits at Tabasquena include road access to the claims, power to the claims, a 100-metre underground shaft and underground workings, plus it is a fully permitted mine.

Venaditas is well located adjacent to Teck’s San Nicolas mine, a VMS deposit, and it is approximately 11km to the east of the Tabasquena project, along a paved road.

In addition, Advance Gold holds a 13.23% interest on strategic claims in the Liranda Corridor in Kenya, East Africa. The remaining 86.77% of the Kakamega project is held by Barrick Gold Corporation.

For further information, please contact:

Allan Barry Laboucan,
President and CEO
Phone: (604) 505-4753
Email: [email protected]Reply

Advance Gold $AAX.ca – Five Reasons Why Gold Stocks Make Sense $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $TECK.ca

Posted by AGORACOM-Eric at 3:21 PM on Tuesday, November 26th, 2019

SPONSOR: Advance Gold AAX.v – Advance Gold controls 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico. A cluster of 30 Epithermal veins have been discovered, with recent emphasis on exploring a large anomaly to drill. Advance also owns 13.5% of the Kakamega JV attached to Barrick Takeover Offer for Acacia Mining. Click Here For More Info

This image has an empty alt attribute; its file name is AAX-square-Logo.png

Gold mining stocks have soared approximately 30% so far in 2019, based on the performance of the NYSE Arca Gold Miners Index (GDM) as of November 15.1 Over the last 12 months, the sector is up nearly 50%. Some investors may assume that gold stocks have run their course. On the contrary, we think that the gold mining equities still have a great deal of upside to offer.

In brief, we think we’re in the early stages of a prolonged bull market for gold. While the relationship between the prices for gold bullion and gold stocks isn’t a linear one, rising demand for the yellow metal commodity has historically driven stock performance. Moreover, despite the recent rally, gold mining stocks have yet to recover from the beating they suffered starting in 2011. Still, recent outperformance — coupled with improving fundamentals — creates momentum, a key factor in many quantitative strategies.

Gold has been a store of value since the beginning of civilization, and yet the nuances of investing in gold â€” be it the metal or miners â€”  is still a source of confusion. As we see it, that also means opportunity.

Here are five reasons to consider investing in gold equities now.

REASON #1. Rising Gold Prices Drive Demand

Figure 1. Gold Bull Market is Just Getting Started

Source: Bloomberg as of 11/15/19. Gold was $1,514 on 11/1/19, and $1,468 as of 11/15/19. 

Gold recently broke past $1,500 an ounce for the first time since 2013 (Figure 1), as global political and macroeconomic trends are driving demand for the yellow metal. Along with other strategists, we think gold bullion could surpass its all-time high of $1,900 within the next couple of years. Key factors driving long-term demand for gold as a store of value and defensive asset, especially among central banks and institutions, include low-to-negative interest rates, rising debt levels, trade tensions and intensifying geopolitical risk.

Price movements for physical gold and gold-mining stocks aren’t perfectly in sync, but the relationship between them is strong and persistent, across economic cycles.

Historically, rising (and falling) gold prices have a three-times multiplier effect on gold stocks: If the value of gold bullion increases by 10%, mining stocks tend to increase by 30%, and vice versa. The reason: Miners have significant fixed operating costs and high operating leverage, meaning big swings in physical gold prices have a larger impact on miners’ profitability.

This relationship cuts both ways, as we saw after physical gold prices peaked in late 2011. As the value of gold subsequently declined (Figure 2), the value of gold stocks plummeted even more. Between 2011 and 2018, the sector posted negative returns in six out of eight calendar years. Even with recent gains, gold mining stocks have yet to recover relative to historical valuations. Since the sector peak in April 2011, gold mining equities are still off by more than 60%.

Figure 2. Gold Mining Equities are Very Undervalued

Source: Bloomberg as of 11/12/19.

Figure 3. Gold Demand Has Rebounded: Purchases by Central Banks

Central banks have been net buyers of gold over the past 10 years. Gold plays an important part in central banks’ reserves management, and they are significant holders of gold. According to the World Gold Council: “Today, central banks own almost 34,000 tonnes (t) of gold, making it the third-largest reserve asset in the world. The increase in central bank demand for gold reflects current geopolitical, political and economic conditions, as well as structural changes in the global economy. Gold is both a liquid, counter-cyclical asset and a long-term store of value. As such, it can help central banks meet their core objectives of safety, liquidity and return.” 

Source: Metals Focus, Refinitiv GFMS, World Gold Council. As of June 30, 2019.

REASON #2. Gold Stocks are Severely Undervalued

Given the amplified volatility of gold stocks relative to gold, investors need to go in with their eyes wide open. Nevertheless, multi-year declines may now set the stage for significant upside.

While miners as a group still trade below their net asset values, the discounts of smaller, “junior” miners are especially extreme, as much of the recent rally has been driven by the largest, “senior” gold miners. In fact, the valuation gap between North American junior and senior gold miners is the widest it’s ever been.

Figure 4. The Valuation Gap Between Senior and Juniors is at Historic Extremes

Source: BMO Capital Markets, FactSet. North American senior vs. junior gold miners. As of 7/19/19.

Reason #3. Supplies are Limited

Most investors grasp the importance of investing in companies whose business models are protected by “competitive moats.” Gold miners have this in spades, as it can take 15 years from discovery of a new gold mine to successful ore production. The barriers to entry are enormous for newcomers in this sector, given the need for expensive and specialized equipment, environmental regulations and political considerations.

Meanwhile, the supply of gold is finite and there have been increasingly fewer gold discoveries in recent years. This dynamic — combined with depressed valuations of junior gold miners â€” is driving consolidation in the industry. It is far cheaper for senior miners to buy new gold production than to “build” capacity themselves. In fact, based on an analysis of recent transactions, there is a 35% discount for buying ounces in the market via acquisitions versus discovering new ounces (according to Scotiabank).

Figure 5. Major Gold Discoveries have Declined Significantly

Source: © Copyright by SNL Metals & Mining 2016. All rights reserved.

REASON #4. Momentum May Turn Positive

Investors love momentum â€” following positive trends in prices, earnings and other factors â€” and the rise of quantitative strategies has made this market phenomenon even more pervasive. For the last eight years, momentum has largely worked against the gold mining sector, but now there are signs the wind is shifting, and that momentum could soon work in its favor.

Analysts covering the sector have understandably been conservative in their estimates and may soon be playing catch up, given higher gold prices and a leveling off of mining costs. Any improvements in earnings outlooks could potentially accelerate positive momentum for the sector. As my colleague Paul Wong wrote earlier this month in The Sweet Spot for Gold Equities: ”At this stage in the gold cycle, we are in the sweet spot for gold mining company earnings. A starting low gold price base will result in earnings changes with a high percentage increase when measured quarter-over-quarter or year-over-year.” 

In Figure 6, we highlight the progression of 2020E EPS (estimates of earnings-per-share) revisions for the top-10 gold mining companies in SGDM2 versus the average 2020E EPS for the top-20 companies in the S&P 500 Index.3 Since January 2019, the average 2020E EPS for the top-10 gold mining companies had increased from $0.65 to $0.98 by the end of October, representing a 50% jump, compared to a decline of 9% for the S&P 500. After the Q3 reporting season, we would expect that 2020E EPS for gold miners will be revised even higher.

Figure 6. Sweet Spot for Gold Mining Company Earnings

Source: Bloomberg as of 10/31/19.

REASON #5. Gold Stocks Play a Different Role than Bullion

As with any investment, it’s important to think about the role of gold stocks in the context of a broader portfolio. One common misconception is that gold stocks and physical gold are two sides of the same coin. While their fates are certainly correlated, as asset classes they could not be more different.

Physical gold, whether it’s in the form of coin, bar or a trust (for example, Sprott Physical Gold Trust, NYSE Arca: PHYS), should be viewed as a stable store of value. It’s counter-cyclical and has proven over millennia to be an effective hedge against market turbulence and volatility.

As such, we recommend that investors allocate between 5% to 10% of their assets to physical gold and precious metals.

Gold stocks, conversely, should be viewed in the context of an investor’s overall equity portfolio; the size of the allocation will depend on many factors, including risk tolerance. Strategists advocate owning gold stocks continuously, in part because they have low correlations to the broader market. However, most investors view gold stocks as tactical investments. When valuations are severely depressed, as they are now, gold stocks may have the potential to outperform. 

At Sprott, we believe that it may be time to consider investing in gold stocks, in addition to physical gold.

BY Ed Coyne

SOURCE: https://www.sprott.com/insights/five-reasons-why-gold-stocks-make-sense/

CLIENT FEATURE: Advance Gold $AAX.ca – IP Survey Demonstrates Potential for Large System Beneath Tabasquena Mine Prior to Drill Program $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $TECK.ca $FNLPF $PAAS.ca

Posted by AGORACOM-Eric at 11:28 AM on Monday, November 18th, 2019
https://www.advancegold.ca/site/templates/img/advance-gold.png
  • A 3D Induced Polarization (IP) geophysical survey on its Tabasquena project in Zacatecas, Mexico has outlined a significant continuous chargeability anomaly.
  • This anomaly now has an east-west width of approximately 400 to 500 metres and an apparent strike length of over 1000 metres.
  • The anomaly remains open to the north and to the south and at depth.
  • Drilling to commence once the IP survey has been completed.
The chargeability anomaly is approximately 250 metres below historical mining and was designed for 500 to 550 metres of vertical depth investigation.

The IP data also clearly shows that the large polarisable body/target is apparently quickly deepening northward and getting closer to surface southward. The IP anomaly starts at around 100 metres below the past drill hole intersections that contained widespread gold and silver mineralization in epithermal veins.

Tabasquena

  • Previous drilling found a network of veins with widespread gold and silver mineralization.
  • The first phase geophysical survey revealed a large chargeability anomaly right below these veins and is getting nearer to the surface as it trends south.
  • Geophysical advisor described the anomaly as ‘quite remarkable in its size and continuity.
  • Advance is in a region with very large mines, including the El Coronel open pit, 12 miles to the south of Tabasquena.

Advance Gold Hub on Agoracom

FULL DISCLOSURE: Advance Gold is an advertising client of AGORA Internet Relations Corp.

Advance Gold $AAX.ca – Largest Gold ETF Inflows in Three Years Boosted Demand for Yellow Metal in the Third Quarter

Posted by AGORACOM-Eric at 7:56 PM on Tuesday, November 5th, 2019

SPONSOR: Advance Gold AAX.v – Advance Gold controls 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico. A cluster of 30 Epithermal veins have been discovered, with recent emphasis on exploring a large anomaly to drill. Advance also owns 15% of the Kakamega JV attached to Barrick Takeover Offer for Acacia Mining. Click Here For More Info

Pure 1,000-gram gold bars.

A surge in speculation led to an increase in gold demand in the third quarter, according to a World Gold Council report released Tuesday.

Exchange-traded fund inflows shot higher by the largest amount since the first quarter of 2016, in what the council attributed to accommodative monetary policies, safe-haven and momentum buying. During the third quarter, the Federal Reserve cut interest rates twice, and the European Central Bank cut interest rates in a package of easing measures.

Leading gold ETFs include the SPDR Gold Trust GLD, +0.01%, iShares Gold Trust IAU, +0.07%   and the Aberdeen Standard Physical Swiss Gold Shares ETF SGOL, -1.51%.

Overall gold demand rose just 3% during the quarter, as jewelry demand shrank by 16% as the yellow metal’s prices rose. 

Gold futures GC00, -1.67%  were holding above the $1,500 an ounce level on Tuesday and have climbed by 19% over the last 12 months.

Central-bank buying fell by 38%, as the third quarter of 2018 featured the highest amount of buying on record. Bar and coin demand dropped by half.

The gold supply rose by 4%, helped by a 10% increase in recycling.

SOURCE: https://www.marketwatch.com/story/largest-etf-inflows-in-three-years-drove-gold-demand-higher-in-the-third-quarter-2019-11-05

Advance Gold $AAX.ca – Gold Eyes Further Gains as Rock-Bottom Rates Tempt Investors $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $TECK.ca

Posted by AGORACOM-Eric at 5:56 PM on Monday, October 28th, 2019

SPONSOR: Advance Gold AAX.v – Advance Gold controls 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico. A cluster of 30 Epithermal veins have been discovered, with recent emphasis on exploring a large anomaly to drill. Advance also owns 15% of the Kakamega JV attached to Barrick Takeover Offer for Acacia Mining. Click Here For More Info

This image has an empty alt attribute; its file name is AAX-square-Logo.png

BENGALURU — Fragile global growth and the prospect of interest rates staying lower for longer, boosting gold’s appeal for nervous investors, are behind upward revisions to price forecasts for the yellow metal, a Reuters survey showed.

Spot gold will average $1,402 an ounce in 2019 and $1,537 an ounce next year, according to the median forecasts returned by the poll of 40 analysts and traders in mid-October.

Those numbers are sharply higher than predictions of $1,351 for 2019 and $1,433 for 2020 returned by a similar poll conducted three months ago. Gold has averaged around $1,375 an ounce so far this year.

Gold – traditionally seen as a safe place to invest in uncertain times – hit a more than six-year high of $1,557 in September and with gains of about 17% so far is set for its biggest yearly gain since 2010.

“Rate cuts by major central banks, a deteriorating global economic outlook and elevated geopolitical tensions are the key tailwinds for gold prices,” ANZ analyst Daniel Hynes said.

A U.S.-China trade war has sent a shiver through the global economy.

The U.S. Federal Reserve has meanwhile cut interest rates twice this year to stimulate growth, and other major central banks have followed suit.

Lower rates reduce the opportunity cost of holding non-yielding bullion, making it more attractive to investors.

Central banks have also steadily increased their gold reserves and private cash has flooded into gold-backed exchange traded funds (ETFs), boosting physical demand.

“If central banks and exchange-traded funds keep on buying and the Fed continues with lowering interest rates, we will talk about prices of $1,600 in the near future,” said LBBW analyst Frank Schallenberger.

For silver, poll respondents forecast average prices of $16.24 an ounce this year and $18.13 in 2020, up from predictions of $15.50 and $16.85 three months ago. In the year to date it has averaged $15.97 an ounce.

Silver will remain cheap relative to gold, with the gold/silver ratio averaging 86 in 2019 and 85 in 2020, not far from a more than two-decade high just above 93 reached in July.

Silver in September breached the $19 mark for the first time since 2016. It tends to move with gold, but around half of consumption comes from industry, and weaker economic growth would drag on demand and, potentially, prices.

Gold and silver prices have dipped in recent weeks as signs of progress in trade talks revived appetite for riskier assets. If reached, a trade deal could boost economic growth and hurt gold and silver, said ETF Securities analyst Nitesh Shah.

Speculative bets on price rises for gold on the COMEX exchange have eased slightly from record highs in September, while those for silver have also dipped from a near two-year peak in July. .

High prices have also dampened demand in Asia, the biggest gold-consuming region.

“The main negative factors (for gold) are the speculative overhang in the futures market and the lackluster demand from physical buyers in India, to some extent in China and amongst Western coin and bar purchasers,” said Ross Norman, an independent analyst.

“Gold is due a period of consolidation and perhaps even a temporary correction,” he said.

Source: Reporting by Brijesh Patel in Bengaluru; editing by Arpan Varghese, Peter Hobson and)

Advance Gold $AAX.ca – Gold Prepares For Next Phase Of Bull Market $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $TECK.ca

Posted by AGORACOM-Eric at 4:48 PM on Tuesday, October 22nd, 2019

SPONSOR: Advance Gold AAX.v – Advance Gold controls 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico. A cluster of 30 Epithermal veins have been discovered, with recent emphasis on exploring a large anomaly to drill. Advance also owns 15% of the Kakamega JV attached to Barrick Takeover Offer for Acacia Mining. Click Here For More Info

This image has an empty alt attribute; its file name is AAX-square-Logo.png
  • Fears of a Trans-Atlantic trade war have increased gold’s safety bid.
  • U.S. economic data also continues to attract safety seekers to gold.
  • All signs point to a continuation of the metal’s bull market in Q4.

After a brief respite last month, fear and uncertainty have returned with a vengeance in October. Recent world events have given investors plenty of reasons to fear an expansion of the global trade war.

Meanwhile on the domestic front, investors are becoming increasingly alarmed by soft economic data which some interpret as a harbinger of recession. Gold’s “fear factor” has thus been resuscitated, bringing with it the promise of stronger prices in the months ahead. Here we’ll discuss the growing number of variables which suggest gold is consolidating its recent gains ahead of the next stage of its long-term bull market.

One sign of a market controlled by the bulls is the steadfast refusal of prices, following a correction, to stay down for long. Bull markets have a tendency to consolidate gains achieved during extended rallies in the form of a lateral trading range, or sideways drift. That appears to be the form of gold’s most recent correction in September following a productive three-month rally.

Although gold prices briefly violated a key short-term trend line earlier this week, the bulls fought back fiercely and pushed prices back above the widely, followed 50-day moving average within two days of the violation. It may take several more days for gold to regain enough strength and build the support necessary to stay above the 50-day MA. But the signs are plainly evident that the bulls are clawing their way back to controlling gold’s immediate-term (1-4 week) trend.

Source: BigCharts

And while gold prices haven’t kept pace with its nearest competitor in the rush to safety – namely U.S. Treasury bonds – it’s instructive that gold has so far responded favorably to most of the latest negative economic and political news. For instance, gold jumped nearly 1.5% on Oct. 2 after the release of the latest ADP National Employment Report. The report showed that private payroll growth by U.S. employers slowed in September and wasn’t as strong in August as previously estimated, according to a Reuters article. Reuters reporter Lucia Mutikani, capturing the sentiment which has overtaken many gold investors, observed:

The longest economic expansion on record, now in its 11th year, is losing ground with the blame largely put on a 15-month trade war between the United States and China, which has eroded business confidence.”

It’s further believed by many investors that the growing signs of a slowing U.S. economy could influence the Federal Reserve to further lower its benchmark interest rate this fall. Lower rates are widely regarded as bullish for gold since it reduces the competition vs. interest-bearing assets for the non-yielding metal.

Elsewhere on the U.S. economic front, the recent disappointments in the Purchasing Managers’ Index (PMI) is another reason for the revival of gold’s fear factor. The PMI has now fallen for seven consecutive months and is below 50.0, which indicates contraction in the manufacturing sector.

The latest disappointing PMI readings also have weighed heavily on the U.S. dollar index (DXY) of late. The dollar fell to one-week lows against the euro and yen on Oct. 3. However, the dollar index is still close to a multi-year high, which means that gold doesn’t yet enjoy support from its currency component (see chart below). Nonetheless, gold has proven to be stalwart enough this year under the influence of the fear factor alone and in spite of a strong dollar. Thus, a weaker dollar isn’t necessarily a prerequisite for a Q4 gold rally.

Source: BigCharts

Aside from a weakening manufacturing sector, the U.S. service sector also is showing signs of slowing. The latest ISM survey released on Oct. 3 showed service-sector activity for September fell to its lowest level in three years. Some analysts blamed the U.S.-China trade dispute for the slowdown. The latest ISM Non-Manufacturing Index fell to 52.6 last month as new orders fell more than expected. This disappointed economists’ expectations of 55.3. This increased gold’s allure as a safe haven in the eyes of many investors and should provide some underlying support for the metal going forward.

In yet another development which bolsters gold’s safety bid, the U.S. won approval on Oct. 2 from the World Trade Organization to levy tariffs on $7.5 billion worth of European goods. The WTO’s decision relates to illegal subsided given to Airbus (EASDF) and Boeing (NYSE:BA). Consequently, many investors fear the outbreak of yet another front in the ongoing global trade war.

In view of the above-mentioned factors, gold’s intermediate-term (3-6 month) upward trend looks secure. The only thing standing in the way of a renewed immediate-term gold buy signal, however, is confirming strength in gold’s sister metal. Silver remains below its 15-day moving average, as can be seen in the iShares Silver Trust (ETF) below. As I mentioned in a previous report, we need to see silver confirm gold’s returning strength before we get a confirmed re-entry signal. A lack of confirmation from silver normally means that gold’s rally will fail due to the lack of institutional demand. Historically, when market-moving institutional investors are bullish enough to buy gold, they usually buy silver as an adjunct.

Source: BigCharts

Another sign that should accompany gold’s next confirmed breakout is a return to strength in the actively traded U.S. mining shares. Shown below is the PHLX Gold/Silver Index (XAU), which remains below its 15-day moving average as of Oct. 3. To get a renewed buy signal for gold stocks in the aggregate, we should see a two-day higher close above the 15-day in the XAU. Moreover, a gold stock rally tends to accompany a rally in bullion prices due to the leverage factor of the miners, which attracts precious metals investors.

Source: BigCharts

In summary, a growing number of worries on the U.S. economic and global trade fronts has provided gold with a renewed safety bid. The evidence reviewed here suggests that gold prices are consolidating ahead of another breakout attempt this fall. Confirming strength in the silver price would increase gold’s bullish prospects in Q4, as would a breakout in the leading gold mining stocks. With trade war threats on the rise, however, gold is poised to benefit from safe-haven demand and keep its bull market intact. Investors are therefore justified in maintaining longer-term investment positions in the yellow metal.

On a strategic note, I’m waiting for both the gold price and the gold mining stocks to confirm a breakout before initiating a new trading position in the VanEck Vectors Gold Miners ETF (GDX), my preferred trading vehicle for the mining stocks. I’m currently in a cash position in my short-term trading portfolio

SOURCE: https://seekingalpha.com/article/4295225-gold-prepares-next-phase-bull-market

CLIENT FEATURE: Advance Gold $AAX.ca – IP Survey Showing Potential for Large System Beneath Tabasquena Mine $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $TECK.ca $FNLPF $PAAS.ca

Posted by AGORACOM-Eric at 2:55 PM on Thursday, October 17th, 2019
  • A 3D Induced Polarization (IP) geophysical survey on its Tabasquena project in Zacatecas, Mexico has outlined a significant continuous chargeability anomaly.
  • This anomaly has an east-west width of approximately 250 metres and an apparent strike length of over 800 metres.
  • 2nd planned IP surgery to extend the grid approximately 1000 metres to the south where due to the elevation change the anomaly is closest to surface.
  • The anomaly remains open to the north and to the south and at depth.
  • Drilling to commence once the IP survey has been completed.
The chargeability anomaly is approximately 250 metres below historical mining and was designed for 500 to 550 metres of vertical depth investigation.

The IP data also clearly shows that the large polarisable body/target is apparently quickly deepening northward and getting closer to surface southward. The IP anomaly starts at around 100 metres below the past drill hole intersections that contained widespread gold and silver mineralization in epithermal veins.

Tabasquena

  • Previous drilling found a network of veins with widespread gold and silver mineralization.
  • The first phase geophysical survey revealed a large chargeability anomaly right below these veins and is getting nearer to the surface as it trends south.
  • Geophysical advisor described the anomaly as ‘quite remarkable in its size and continuity.
  • Advance is in a region with very large mines, including the El Coronel open pit, 12 miles to the south of Tabasquena.

Advance Gold Hub on Agoracom

FULL DISCLOSURE: Advance Gold is an advertising client of AGORA Internet Relations Corp.

Advance Gold $AAX.ca Gold Prices Shoot Higher After ISM Service Sector Drops Sharply in September $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca

Posted by AGORACOM-Eric at 1:52 PM on Thursday, October 3rd, 2019

SPONSOR: Advance Gold AAX.v – Advance Gold controls 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico. A cluster of 30 Epithermal veins have been discovered, with recent emphasis on exploring a large anomaly to drill. Advance also owns 15% of the Kakamega JV attached to Barrick Takeover Offer for Acacia Mining. Click Here For More Info

Recession fears are once again gripping financial markets and pushing gold prices higher as sentiment within the U.S. service sector fell more than expected, according to the latest data from the Institute for Supply Management (ISM).

Thursday, the ISM said its nonmanufacturing index showed a reading of 52.6% for September, down from August’s reading of 56.4%. The data was much weaker than expected as consensus forecasts were calling for a reading of 55.1%.

According to reports this is the lowest reading in three years.

Readings above 50% in such diffusion indexes are seen as a sign of economic growth, and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.

Ahead of the report, the gold market was holding its own above $1,500 an ounce, recovering from a 2% selloff at the start of the week. The latest economic data has added to gold’s gains. December gold futures last traded at $1,518.80 an ounce, up 0.72% on the day.

Economists and analysts warned that disappointing service sector data could boost recession fears as this is the largest component of the U.S. economy.

The nonmanufacturing data comes just two days after the ISM said that its manufacturing index fell even further into contraction territory, also missing economist expectations.

“The non-manufacturing sector pulled back after reflecting strong growth in August. The respondents are mostly concerned about tariffs, labor resources and the direction of the economy,” said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee.

Looking at the components of the report, the Business Activity Index dropped to a reading of 55.2%, down from August’s level of 61.5%.

The labor market also lost some momentum in September, with the Employment Index falling to 50.4%, down from August’s level of 53.1%. This indicator is closely watched by economists as it is used as a predictor for Friday’s nonfarm employment report.

Some economists have noted that the miss in the ISM employment data points to downside risk to Friday’s employment report.

Source: By Neils Christensen

Advance Gold $AAX.ca – Additional Drilling and Geophysics planned at Tabasquena #Epithermal Project $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca

Posted by AGORACOM-Eric at 9:19 AM on Wednesday, September 18th, 2019

Kamloops, British Columbia–(Newsfile Corp. – September 18, 2019) – Advance Gold Corp. (TSXV: AAX) (“Advance Gold” or “the Company”) is pleased to provide an exploration update on its Tabasquena gold and silver project in Zacatecas, Mexico. To date, 10 drill holes have been completed hitting widespread gold and silver mineralization in near surface epithermal veins. Recently, a 3D induced polarization (IP) survey was completed that identified a significant continuous chargeability anomaly, with an east-west width of approximately 250 metres and an apparent strike length of over 800 metres. This anomaly is located directly below the Tabasquena vein. The anomaly remains open to the north and to the south and at depth. A second phase 3D IP geophysical survey is scheduled to begin in the first week of October to extend the grid to the south.

The purpose of the extended grid to the south will be threefold, firstly it will establish the continuity of the anomaly to the south, secondly whether or not the target anomaly becomes shallower and lastly it will assist in positioning the upcoming drill hole locations. It is planned to commence drilling once the IP survey has been completed.

Images shown below are a 3D model of the epithermal veins hit in previous drilling and a voxel inversion model showing the extent of the large chargeability anomaly for lines L7450N and L7250N. These two diagrams are an excellent representation of the emerging targets at Tabasquena.

The black line at the surface of the 3D model of drill holes is the surface projection of the Tabasquena vein. The red shaded area is the historical mining done by Penoles. The chargeability anomaly is approximately 250 metres below the historical mining, and it follows the strike direction of the Tabasquena vein. The epithermal veins, with highlighted widespread gold and silver mineralization, are above and slightly to the west of the deeper chargeability anomaly.

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Diagram 1

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Diagram 2

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Allan Barry Laboucan, President and CEO of Advance Gold Corp., commented: “Our exploration efforts at Tabasquena are coming together nicely with the past drilling and the recent IP geophysical survey. It is important to point out, the IP survey is meant to reveal sulphides through chargeability. The epithermal veins are low sulphidation and relatively small and don’t show up well in the IP survey, however right below these veins is the large continuous chargeability anomaly of over 800 metres from north to south and approximately 250 metres from east to west. Before starting our next round of drilling, we wanted to extend the IP grid to the south, where the anomaly is closer to surface. There is a significant elevation change of approximately 300 metres from the northernmost line of the geophysical survey to the most southerly one. We have approximately 1500 metres to the southern limits of our claims. The chargeability anomaly is open to the north, but due to the higher elevation and more cover it exceeds the depth limits of the IP survey. We are very excited to extend the grid to the south as that is the direction of the highest intensity of the chargeability and where it becomes closest to surface. The combination of the quality of Tabasquena and our various projects, our low share count and a tight share structure, with substantial insider ownership and tiny valuation, puts us in a unique position relative to our exploration focused peers as the market for gold and silver are gaining strength.”

Julio Pinto Linares is a QP, Doctor in Geological Sciences with specialty in Economic Geology and Qualified Professional No. 01365 by MMSA., and QP for Advance Gold and is the qualified person as defined by National Instrument 43-101 and he has read and approved the accuracy of technical information contained in this news release.

About Advance Gold Corp. (AAX.V)

Advance Gold is a TSX-V listed junior exploration company focused on acquiring and exploring mineral properties containing precious metals. The Company acquired a 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico in 2017, and the Venaditas project, also in Zacatecas state, in April, 2018.

The Tabasquena project is located near the Milagros silver mine near the city of Ojocaliente, Mexico. Benefits at Tabasquena include road access to the claims, power to the claims, a 100-metre underground shaft and underground workings, plus it is a fully permitted mine.

Venaditas is well located adjacent to Teck’s San Nicolas mine, a VMS deposit, and it is approximately 11km to the east of the Tabasquena project, along a paved road.

In addition, Advance Gold holds a 13.23% interest on strategic claims in the Liranda Corridor in Kenya, East Africa. The remaining 86.77% of the Kakamega project is held by Barrick Gold Corporation.

For further information, please contact:

Allan Barry Laboucan,
President and CEO

Phone: (604) 505-4753
Email: [email protected]

Advance Gold $AAX.ca – ‘Protect Oneself’ From A ‘Paradigm Shift’ Akin to the 1930s With Gold Diversification – Ray Dalio $SIL.ca $FA.ca $ANG.jo $ABX.ca $NGT.ca $MGG.ca $SIL.ca $FA.ca $LON

Posted by AGORACOM-Eric at 2:11 PM on Thursday, September 12th, 2019

SPONSOR: Advance Gold AAX.v – Advance Gold controls 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico. A cluster of 30 Epithermal veins have been discovered, with recent emphasis on exploring a large anomaly to drill. Advance also owns 15% of the Kakamega JV attached to Barrick Takeover Offer for Acacia Mining. Click Here For More Info

Diversify Well To Protect Oneself Against The Coming ‘Paradigm Shift’

The most important forces that now exist are:

1) The End of the Long-Term Debt Cycle (When Central Banks Are No Longer Effective)
+

2) The Large Wealth Gap and Political Polarity
+

3) A Rising World Power Challenging an Existing World Power
=
The Bond Blow-Off, Rising Gold Prices, and the Late 1930s Analogue

In other words now
1) central banks have limited ability to stimulate,
2) there is large wealth and political polarity and
3) there is a conflict between China as a rising power and the US as an existing world power. 

If/when there is an economic downturn, that will produce serious problems in ways that are analogous to the ways that the confluence of those three influences produced serious problems in the late 1930s.

Before I get into the meat of what I hope to convey, I will repeat my simple timeless and universal template for understanding and anticipating what is happening in the economy and markets.


My Template

There are four important influences that drive economies and markets:

  1. Productivity
  2. The short-term debt/business cycle
  3. The long-term debt cycle
  4. Politics (within countries and between countries).

There are three equilibriums:

  1. Debt growth is in line with the income growth required to service the debt,
  2. The economy’s operating rate is neither too high (because that will produce unacceptable inflation and inefficiencies) nor too low (because economically depressed levels of activity will produce unacceptable pain and political changes), and
  3. The projected returns of cash are below the projected returns of bonds, which are below the projected returns of equities and the projected returns of other “risky assets.”

And there are two levers that the government has to try to bring things into equilibrium:

  1. Monetary policy
  2. Fiscal policy

The equilibriums move around in relation to each other to produce changes in each like a perpetual motion machine, simultaneously trying to find their equilibrium level. When there are big deviations from one or more of the equilibriums, the forces and policy levers react in ways that one can pretty much expect in order to move them toward their equilibriums.

For example, when growth and inflation fall to lower than the desired equilibrium levels, central banks will ease monetary policies which lowers the short-term interest rate relative to expected bond returns, expected returns on equities, and expected inflation. Expected bond returns, equity returns, and inflation themselves change in response to changes in expected conditions (e.g. if expected growth is falling, bond yields will fall and stock prices will fall).

These price changes happen until debt and spending growth pick up to shift growth and inflation back toward inflation. And of course all this affects politics (because political changes will happen if the equilibriums get too far out of line), which affects fiscal and monetary policy. More simply and most importantly said, the central bank has the stimulant which can be injected or withdrawn and cause these things to change most quickly.

Fiscal policy, which changes taxes and spending in politically motivated ways, can also be changed to be more stimulative or less stimulative in response to what is needed but that happens in lagging and highly inefficient ways.

For a simpler explanation of this template see my 30-minute animated video â€œHow the Economic Machine Works” and for a more comprehensive explanation see my book Understanding the Principles of Big Debt Crises, which is available free as a PDF here or in print on Amazon. Also, to learn more about our extensive debt cycle research, please visit our debt crises research library on Bridgewater.com.

Looking at What Is Happening Now in the Context of That Template

Regarding the above template and where we are now, in my opinion, the most important things that are happening (which last happened in the late 1930s) are

a) we are approaching the ends of both the short-term and long-term debt cycles in the world’s three major reserve currencies, while

b) the debt and non-debt obligations (e.g. healthcare and pensions) that are coming at us are larger than the incomes that are required to fund them,

c) large wealth and political gaps are producing political conflicts within countries that are characterized by larger and more extreme levels of internal conflicts between the rich and the poor and between capitalists and socialists,

d) external politics is driven by the rising of an emerging power (China) to challenge the existing world power (the US), which is leading to a more extreme external conflict and will eventually lead to a change in the world order, and [Ian Bremmer calls this the return of a bi-polar world but with significant differences in the goals of the powers—JM]

e) the excess expected returns of bonds is compressing relative to the returns on the cash rates central banks are providing.

As for monetary policy and fiscal policy responses, it seems to me that we are classically in the late stages of the long-term debt cycle when central banks’ power to ease in order to reverse an economic downturn is coming to an end because:

  • Monetary Policy 1 (i.e. the ability to lower interest rates) doesn’t work effectively because interest rates get so low that lowering them enough to stimulate growth doesn’t work well,
  • Monetary Policy 2 (i.e. printing money and buying financial assets) doesn’t work well because that doesn’t produce adequate credit in the real economy (as distinct from credit growth to leverage up investment assets), so there is “pushing on a string.” That creates the need for…
  • Monetary Policy 3 (large budget deficits and monetizing of them) which is problematic especially in this highly politicized and undisciplined environment.

More specifically, central bank policies will push short-term and long-term real and nominal interest rates very low and print money to buy financial assets because they will need to set short-term interest rates as low as possible due to the large debt and other obligations (e.g. pensions and healthcare obligations) that are coming due and because of weakness in the economy and low inflation. Their hope will be that doing so will drive the expected returns of cash below the expected returns of bonds, but that won’t work well because:

a) these rates are too close to their floors,

b) there is a weakening in growth and inflation expectations which is also lowering the expected returns of equities,

c) real rates need to go very low because of the large debt and other obligations coming due, and

d) the purchases of financial assets by central banks stays in the hands of investors rather than trickles down to most of the economy (which worsens the wealth gap and the populist political responses).

This has happened at a time when investors have become increasingly leveraged long due to the low interest rates and their increased liquidity. As a result we see the market driving down short-term rates while central banks are also turning more toward long-term interest rate and yield curve controls, just as they did from the late 1930s through most of the 1940s.

To put this interest rate situation in perspective, see the long-term debt/interest rate wave in the following chart. As shown below, there was a big inflationary blow-off that drove interest rates into a blow-off in 1980–82. During that period, Paul Volcker raised real and nominal interest rates to what were called the highest levels “since the birth of Jesus Christ,” which caused the reversal.

During the period leading into the 1980–82 peak, we saw the blow-off in gold. The below chart shows the gold price from 1944 (near the end of the war and the beginning of the Bretton Woods monetary system) into the 1980–82 period (the end of the inflationary blow-off). Note that the bull move in gold began in 1971, when the Bretton Woods monetary system that linked the dollar to gold broke down and was replaced by the current fiat monetary system. The de-linking of the dollar from gold set off that big move. During the resulting inflationary/gold blow-off, there was the big bear move in bonds that reversed with the extremely tight monetary policies of 1979–82.

Since then, we have had a mirror-like symmetrical reversal (a dis/deflationary blow-off). Look at the current inflation rates at the current cyclical peaks (i.e. not much inflation despite the world economy and financial markets being near a peak and despite all the central banks’ money printing) and imagine what they will be at the next cyclical lows. That is because there are strong deflationary forces at work as productive capacity has increased greatly. These forces are creating the need for extremely loose monetary policies that are forcing central banks to drive interest rates to such low levels and will lead to enormous deficits that are monetized, which is creating the blow-off in bonds that is the reciprocal of the 1980–82 blow-off in gold. The charts below show the 30-year T-bond returns from that 1980–82 period until now, which highlight the blow-off in bonds.

To understand the current period, I recommend that you understand the workings of the 1935–45 period closely, which is the last time similar forces were at work to produce a similar dynamic.

Please understand that I’m not saying that the past is prologue in an identical way. What I am saying that the basic cause/effect relationships are analogous:

a) approaching the ends of the short-term and long-term debt cycles, while

b) the internal politics is driven by large wealth and political gaps, which are producing large internal conflicts between the rich and the poor and between capitalists and socialists, and

c) the external political conflict that is driven by the rising of an emerging power to challenge the existing world power, leading to significant external conflict that eventually leads to a change in the world order.

As a result, there is a lot to be learned by understanding the mechanics of what happened then (and in other analogous times before then) in order to understand the mechanics of what is happening now.

It is also worth understanding how paradigm shifts work and how to diversify well to protect oneself against them.

by Ray Dalio, Bridgewater Associates, August 28, 2019