Posted by AGORACOM-Eric
at 10:01 PM on Tuesday, October 8th, 2019
Labrador Gold is aggressively pursuing the under explored gold potential of Labrador.
2 large, separate, under-explored land packages that demonstrate potential for district scale gold discoveries.
Two successful gold explorers lead the way in the Labrador gold rush: Shawn Ryan and Roger Moss.
2 Key Exploration Properties: Hopedale and Ashuanipi
Hopedale:
The Hopedale property covers much of the Hunt River and Florence Lake greenstone belts that stretch over 80 km. The belts are typical of greenstone belts around the world but have been underexplored by comparison. Initial work by Labrador Gold during 2017 show gold anomalies in soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 kilometres along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details). Labrador Gold now controls approximately 57km strike length of the Florence Lake Greenstone Belt.
Ashuanipi:
Two district scale gold anomalies outlined by soil and lake sediment survey: 15x3km north south anomaly and a 14 x 3km east west anomaly
2018 Soil Sampling identified: 164 samples with over 50 ppb gold, 67 samples over 100 ppb (0.1g/t) gold and a high of 8,973 ppb (8.97 g/t) Au
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration program. Results of the 2017 reconnaissance exploration program following up the lake sediment anomalies show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The anomalies appear to be broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional scale (see news release dated January 18th 2018). This suggests a possible structural control on the localization of the gold anomalies
Posted by AGORACOM-Eric
at 1:00 PM on Monday, September 9th, 2019
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Fundamental and technical factors came together last week to suggest that a significant correction to the recent strong runup has now started.
Indicators pointing to a correction include its overbought status, overly bullish sentiment readings and COTs showing extreme readings.
Although a major Precious Metals sector bullmarket has certainly started, various fundamental and technical factors came together last week to suggest that a significant correction to the recent strong runup has now started.
The
main fundamental development was the announcement that there will be a
Trade War summit between China and the US early next month, with hopes
being expressed that this may lead to compromise or some kind of truce.
Whilst the chances of improvement may be slim, the market has got what
it wants for now which is hope, and this hope should continue at least
until this meeting, which provides the excuse for the markets to go
“risk on†until then, which is why the stockmarket broke higher last
week, delaying but not eliminating our crash scenario.
A
return to “risk on†is clearly not good for the Precious Metals which,
until last week, had been benefitting from a flight to safety as had the
dollar, creating the unusual situation where the dollar and gold were
rising at the same time. Now, in a risk on environment they are suddenly
out of favor again.
In
addition to this fundamental argument we have a range of technical
indicators pointing to a correction in the Precious Metals sector that
we will now look at. They include its overbought status, overly bullish
sentiment readings and COTs showing extreme readings.
Starting
with gold’s 6-month chart, we can see that it doesn’t look too bad –
yet, but if we look more closely we can see that it is on the point of
breaking down from the rather steep uptrend in force from late May, with
it having dropped back on quite high volume the past 2 trading days,
and it is noteworthy that Thursday’s drop was the biggest 1-day drop for
a long time, making it more likely that it signals a reversal. In
addition, the MACD indicator shows that momentum is starting to flag.
So,
how far could gold react back? It happens more often than not that
after a price breaks clear out of a giant base pattern, as gold did from
its giant complex Head-and-Shoulders bottom or Saucer base shown on our
10-year chart, that it then returns to test support at the upper
boundary of the base pattern before turning higher again. That could
happen again and it would throw a lot of investors in the sector who are
now of the view that we are “off to the racesâ€. So, if it does react
back that far don’t be dismayed – on the contrary it would throw up one
last great buying opportunity.
We
have had a rather unusual situation in the recent past where the dollar
and the Precious Metals have been strengthening together. This is
because, in a risk off environment both have been considered safe
havens. In a risk on environment this logic works in the other direction
so that the dollar and the Precious Metals may both react back
together. On the 3-year chart for the dollar index we can see that it is
at a good point to turn lower, despite its still bullishly aligned
moving averages, as its persistent gentle uptrend has brought it up to
the significant resistance level shown.
While
PM stocks continued to push higher in recent weeks, the decline was
losing momentum, as revealed by the downtrending MACD indicator on the
6-month GDX chart below, which led to its starting to break down on high
volume on Thursday and Friday. Although it hasn’t yet broken down from
the uptrend and below its 50-day moving average, this looks set to
happen soon.
So
how about COTs and sentiment? – we will now proceed to look at them. We
had been wary of calling a top too soon based on the increasingly
lopsided COTs, having called a top too soon during the runup early in
2016, but now, given the other factors that we have considered, in
particular the negative developments last week, the latest gold COT,
which shows high Large Spec long positions and heavy Commercial short
positions, certainly makes a reaction back by gold now or soon a lot
more likely…
Click on chart to popup a larger, clearer version.
The
COT is backed up by the latest Hedgers chart, which goes back to 2010,
which shows that positions match the extreme reached in the Summer of
2016, which as we know was followed by a brutal correction for the rest
of the year. While a correction certainly looks likely it shouldn’t be
so deep, because there is a big difference this time round, which is
that gold has broken out into a major new bullmarket – it was still in a
basing phase in 2016.
Click on chart to popup a larger, clearer version.
Chart courtesy of sentimentrader.com
Lastly,
the Gold Miners Bullish % Index is still at 87%, and while we waiting
to see if it would hit 100% as it did in 2016, it doesn’t have to of
course before a reversal occurs, and 87% certainly shows that enough
people are bullish to warrant a trip to the fleecing shed.
Investors
in the Precious Metals sector should therefore take measures to protect
themselves, which include stepping aside for a while, or if staying
long, hedging with inverse ETFs such as DUST, or options (options are
much more cost effective), GLD being very suitable are they are highly
liquid with narrow spreads, and then we watch for the expected
correction to unfold, aware that when it has run its course, we will be
presented with a MAJOR BUYING OPPORTUNITY.
Posted by AGORACOM-Eric
at 2:33 PM on Friday, September 6th, 2019
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Gold is priced internationally in US dollars. So generally, when the
USD rises, gold drops, and vice versa. But over the last year, gold and
the USD seem to be rising together. That’s a strong indication of
safe-haven demand driving money around the world into both gold and the
USD. You can see both the overall inverse relationship and the recent
exception clearly in a long-term USD vs. gold chart.
That much is obvious. What’s less obvious is just how rare this is.
There seem to be a few times when gold and the USD spiked together since
the early 1970s, when the price of gold was freed when Nixon closed the
gold window. But if you look carefully, the most notable spikes are not
at the same exact time. The inverse relationship holds.
Hold on—haven’t we all seen times when safe-haven demand clearly
drives both the USD and gold higher? Yes, but most of those tend to be
very short lived. We’re talking daily price movements. Sometimes weekly.
The fact that such short-term moves aren’t even visible on the chart
shows that they don’t really matter that much.
And even more striking is that gold is rising much faster than the
USD. The gold line is accelerating upward while the USD line is
decelerating. If those curves continue, the USD will be falling hard and
gold will be hitting new nominal highs within two years.
That’s a big “IF,†of course. I’m not making that call. All the more
so since the USD may follow gold’s lead upward—whether it deserves to or
not—if the global economy tanks and central bankers around the world
panic in that timeframe.
Regardless, it’s important to think about what these curves are telling us.
Increasing numbers of people around the world are worried, and they’re shifting their money into safe-haven assets.
The fact that the USD is not rising as fast as gold could be
dismissed as an artifact of gold being the smaller asset class, but the
opposite inflection of the curves suggests that more people are starting
to worry about the soundness of the USD.
That’s bullish for gold.
But what if the trends change?
Almost 50 years of data say that gold and the dollar rising together
won’t last long. This anomaly could be corrected by either the USD
rebounding and gold falling, or the opposite. But which is more likely?
Well, is the volatility and fear driving people into safe-haven assets likely to end soon?
I don’t think so.
Has the US central bank pivoted to a weaker dollar stance?
No question.
With rate hikes fading in the rearview mirror in the US, we may well
see a period of substantial USD weakening, as we did in the years after
the crash of 2008.
That’s very bullish for gold.
So why has the USD been strengthening despite the Fed throwing it
under the bus in favor of prolonging the US’s economic party? Because
things have been getting even worse in much of the rest of the world.
The USD isn’t stronger. It’s just that other major currencies are
weakening faster.
That’s extremely bullish for gold—whichever currency is winning the race to the bottom at the time.
All of this begs the big question: “When will people around the world
lose faith in the US dollar and see it as just another piece of paper
of no special value?â€
Well, folks should have realized this long ago. Unfortunately, the
petrodollar system has propped up the USD ever since Nixon killed what
was left of the gold standard in the US. That system is starting to
fray, with China and Russia pulling on the threads to unravel it as fast
as they can, but it still stands.
While the petrodollar system endures, I think that even great
weakness in the US economy and policies obviously destructive of the
USD’s value will hurt, but not dethrone, the dollar.
Remember that in the global economy, a major downturn in the US
economy would have serious consequences for just about every other
economy in the world. If other countries are hurting and trashing their
own currencies at the same time, the USD could still look like the least
leaky among a fleet of sinking ships.
But someday—and it may not be very far off—the USD will lose its last special characteristic.
That’s when I think people worldwide will see that the emperor has no clothes…
… and gold and silver will reemerge as money.
When?
Go ask someone with a working crystal ball.
I’m just happy to own gold now and to see it doing its job as a safe haven.
The tides of history are shifting. I’m confident I’m on the right side.
Posted by AGORACOM-Eric
at 2:44 PM on Wednesday, September 4th, 2019
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Gold hit new all-time highs in multiple currencies
U.S. gold price has yet to follow, but has hit six-year highs
After five years of price consolidation, there is an “unprecedented†foundation for higher gold and silver prices
After hitting new record highs in euros and British pounds, U.S. dollar-based record highs are next, according to Bloomberg Intelligence (BI).
Gold prices had a stellar August, with the metal hitting new all-time highs in multiple currencies as well as reaching fresh six-year highs in U.S. dollars.
“Dollar-denominated gold is likely to follow all-time highs in euro
terms reached Aug. 26 … Despite the trade-weighted broad dollar rallying
about 10% since the start of 2018, dollar-valued gold has increased
15%. Trade tension and diminishing macroeconomic conditions have been
drivers, but increasing stock-market volatility is a primary gold-price
support,†BI senior commodity strategist Mike McGlone wrote in a
September update.
Precious metals are on a very solid footing and are likely just beginning their upward ascension, McGlone wrote this week.
“We expect precious metals to remain the stalwart sector, as moribund
silver and platinum gain buoyancy with the rising gold- and bond-price
tide. A catalyst to reverse the entrenched trends, namely a definitive
U.S.-China trade accord, is unlikely,†he said.
After five years of price consolidation, there is an “unprecedentedâ€
foundation for higher gold and silver prices, McGlone pointed out.
“Markets are in the early days of acknowledging the potential upside
in primary store-of-value, quasi-currency, diversifier assets gold and
silver, in our view. Plunging and increasingly negative bond yields,
central-bank easing, trade and currency wars, elevated debt-to-GDP
levels and a contentious U.S. presidential relationship with the Federal
Reserve are price tailwinds,†he explained.
The biggest threat to the precious metals’ new bull market is a drop
in stock-market volatility, which is looking unlikely at this point,
BI’s report noted.
“The dollar price of gold is on far more stable ground than it was about a decade ago. Some combination of sustained greenback strength and rapid stock-market appreciation should be necessary to suppress the metal’s price … Bottoming with the Federal Reserve’s interest-rate hike in 2015, the gold price appears to be situated for brighter days,†McGlone said.
Posted by AGORACOM-Eric
at 8:13 AM on Tuesday, September 3rd, 2019
VANCOUVER, British Columbia, Sept. 03, 2019 – Labrador Gold Corp.
(TSX-V: LAB) (“Labrador Gold†or the “Companyâ€) announces that it has
received a request to stop further exploration at its Ashuanipi project
in western Labrador. The request was received following the start of the
Company’s exploration program and subsequent discussions with members
of the Matimekush-Lac John First Nation in Schefferville, Quebec.
Labrador Gold holds, under option, a number of mineral licenses in
western Labrador, south east of Schefferville that cover a portion of a
trapline owned by some members of the Matimekush-Lac John First Nation
and conducted exploration without incident during 2017 and 2018.
“It is unfortunate that discussions to date have resulted in us
having to stop work,†said Roger Moss, President and Chief Executive
Officer of Labrador Gold. “However, we will respect their decision as we
continue discussions with the aim of maximizing benefits for all
stakeholders. The company is committed to maintaining good relationships
with the community as we look to restart our exploration program at
Ashuanipi.â€
Labrador Gold will continue discussions to properly understand the
concerns of the Matimekush-Lac John First Nation and to seek ways in
which we can work with the community in order that our low-impact
exploration does not interfere with their traditional activities.
The Company is also reviewing the Hopedale, Labrador and Borden Lake
Extension, Ontario projects with the aim of conducting further
exploration on one or both of the projects during the remainder of the
field season.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
The Company gratefully acknowledges the Newfoundland and Labrador
Ministry of Natural Resources’ Junior Exploration Assistance (JEA)
Program for its financial support for exploration of the Ashuanipi
property.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused
on the acquisition and exploration of prospective gold projects in the
Americas. In 2017 Labrador Gold signed a Letter of Intent under which
the Company has the option to acquire 100% of the 896 square kilometre
(km2) Ashuanipi property in northwest Labrador and the Hopedale (458
km2) property in eastern Labrador.
The Hopedale property covers much of the Hunt River and Florence Lake
greenstone belts that stretch over 80 km. The belts are typical of
greenstone belts around the world but have been underexplored by
comparison. Initial work by Labrador Gold during 2017 show gold
anomalies in soils and lake sediments over a 3 kilometre section of the
northern portion of the Florence Lake greenstone belt in the vicinity of
the known Thurber Dog gold showing where grab samples assayed up to
7.8g/t gold. In addition, anomalous gold in soil and lake sediment
samples occur over approximately 40 kilometres along the southern
section of the greenstone belt (see news release dated January 25th 2018
for more details). Labrador Gold now controls approximately 57km strike
length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is located just 35 km from the historical
iron ore mining community of Schefferville, which is linked by rail to
the port of Sept Iles, Quebec in the south. The claim blocks cover large
lake sediment gold anomalies that, with the exception of local
prospecting, have not seen a systematic modern day exploration program.
Results of the 2017 reconnaissance exploration program following up the
lake sediment anomalies show gold anomalies in soils and lake sediments
over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and
over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The
anomalies appear to be broadly associated with magnetic highs and do not
show any correlation with specific rock types on a regional scale (see
news release dated January 18th 2018). This suggests a possible
structural control on the localization of the gold anomalies. Historical
work 30 km north on the Quebec side led to gold intersections of up to
2.23 grams per tonne (g/t) Au over 19.55 metres (not true width)
(Source: IOS Services Geoscientifiques, 2012, Exploration and geological
reconnaissance work in the Goodwood River Area, Sheffor Project, Summer
Field Season 2011). Gold in both areas appears to be associated with
similar rock types.
The Company has 56,264,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Posted by AGORACOM-Eric
at 10:57 AM on Friday, August 23rd, 2019
Discovery of gold enriched zone near high grade (8,973ppb) soil sample at Ashuanipi, Labrador
Defined by gold in soil and rock samples that cover an area of 450 metres by 450 metres
Results of ground VLF-Magnetic survey over the area are pending
Drill testing of zone expected in fall
Systematic approach to exploration of district scale anomalies at Ashuanipi allowed LAB to quickly identify favourable areas for gold mineralization
Two successful gold explorers lead the Labrador gold rush: Shawn Ryan and Roger Moss.
Ashuanipi
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration program. Results of the 2017 reconnaissance exploration program following up the lake sediment anomalies show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The anomalies appear to be broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional scale (see news release dated January 18th 2018). This suggests a possible structural control on the localization of the gold anomalies
Posted by AGORACOM-Eric
at 12:30 PM on Wednesday, August 21st, 2019
Discovery of gold enriched zone near high grade (8,973ppb) soil sample at Ashuanipi, Labrador
Defined by gold in soil and rock samples that cover an area of 450 metres by 450 metres
Results of ground VLF-Magnetic survey over the area are pending
Drill testing of zone expected in fall
VANCOUVER, British Columbia, Aug. 21, 2019 (GLOBE NEWSWIRE) —
Labrador Gold Corp. (TSX-V: LAB) (“Labrador Gold†or the “Companyâ€) is
pleased to announce that it has delineated a new gold enriched zone near
the site of a high grade soil sample at its Ashuanipi project in
western Labrador.
The initial program at Ashuanipi this year continued our systematic
approach of detailed geological mapping, rock and soil sampling and
ground magnetics/VLF-EM (very low frequency electromagnetics) to follow
up on specific areas to generate targets for drilling in the fall. In
particular, infill soil sampling allowed us to define an anomalous gold
zone near the site of a soil sample taken in 2018 that assayed 8,973ppb
gold.
The anomalous zone measures approximately 450 metres by 450 metres
and is defined by soil samples ranging from below detection up to
1,190ppb gold, in addition to the previous high-grade sample, and rock
samples from below detection up to 2,353 ppb Au (2.35g/t). The 2.35g/t
rock sample lies approximately 450m northwest of the high-grade soil
sample within a 200m by 100m gold in soil anomaly with values ranging
from 40ppb to 778ppb gold. The area was also covered by a ground
magnetic and VLF-EM (Very low frequency electromagnetic) survey, the
data from which is currently being processed.
A second area also shows potential, with rock samples grading from
below detection to 0.68g/t gold and 10 samples showing values greater
than 0.1g/t gold over an area of 200m by 120m within a larger anomalous
area of gold in soil. The gold mineralization is associated with
garnet-bearing gossanous gneiss. Further work in the area, including
detailed soil sampling and a VLF-magnetic survey will enable better
definition of the anomalous zone. Maps of the two zones can be found at www.labradorgold.com/portfolio/ashuanipi/.
“Our systematic approach to exploration of district scale anomalies
at Ashuanipi has allowed us to quickly identify favourable areas for
gold mineralization along these trends,†said Roger Moss, President and
Chief Executive Officer of Labrador Gold. “We look forward to the
results of the magnetic – VLF-EM survey that will allow us to further
refine our drill targets for the fall.â€
The 2019 exploration program at Ashuanipi is designed to follow up on
successful results of 2017 and 2018 work that outlined district scale
gold anomalies. To date the company has collected 13,184 soil samples,
752 lake sediment samples and 138 rock samples over the 896 square
kilometre property.
“Our 2019 program confirms and reinforces the thought that the large
regional (20 by 25 km) gold in lake sediment anomaly (greater than the
99th percentile) covering the Ashuanipi north claim block is real. The
anomaly, derived from GSC data (Open File 8348), is the largest and most
robust in the entire northern Quebec and Labrador,†said Shawn Ryan,
Technical Advisor to Labrador Gold. “We are the first exploration
company to give this anomaly a good look and start to explain this new
mineralized system. As we continue our systematic exploration approach
over the property, we should uncover more gold mineralization over the
15-kilometre gold in soil anomaly outlined during the 2018 exploration
program.â€
All samples were shipped to the Bureau Veritas preparation laboratory
in Timmins, Ontario, where rocks were crushed and split and a 500g sub
sample pulverized to 200 mesh. Pulps were sent to the Vancouver
laboratory for assay. Samples of 30g were analyzed for gold by fire
assay with an atomic absorption finish and another 15g sample for 36
elements by ultratrace ICP-MS (inductively coupled plasma-mass
spectrometry) following an aqua regia digestion. Soil samples are dried
and sieved to -80 mesh followed by aqua regia digestion and ICP-MS/ES
assay. In addition to the QA-QC conducted by the laboratory, the Company
routinely submits blanks, field duplicates and certified reference
standards with batches of samples to monitor the quality of the
analyses.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused
on the acquisition and exploration of prospective gold projects in the
Americas. In 2017 Labrador Gold signed a Letter of Intent under which
the Company has the option to acquire 100% of the 896 square kilometre
(km2) Ashuanipi property in northwest Labrador and the Hopedale (458
km2) property in eastern Labrador.
The Hopedale property covers much of the Hunt River and Florence Lake
greenstone belts that stretch over 80 km. The belts are typical of
greenstone belts around the world but have been underexplored by
comparison. Initial work by Labrador Gold during 2017 show gold
anomalies in soils and lake sediments over a 3 kilometre section of the
northern portion of the Florence Lake greenstone belt in the vicinity of
the known Thurber Dog gold showing where grab samples assayed up to
7.8g/t gold. In addition, anomalous gold in soil and lake sediment
samples occur over approximately 40 kilometres along the southern
section of the greenstone belt (see news release dated January 25th 2018
for more details). Labrador Gold now controls approximately 57km strike
length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is located just 35 km from the historical
iron ore mining community of Schefferville, which is linked by rail to
the port of Sept Iles, Quebec in the south. The claim blocks cover large
lake sediment gold anomalies that, with the exception of local
prospecting, have not seen a systematic modern day exploration program.
Results of the 2017 reconnaissance exploration program following up the
lake sediment anomalies show gold anomalies in soils and lake sediments
over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and
over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The
anomalies appear to be broadly associated with magnetic highs and do not
show any correlation with specific rock types on a regional scale (see
news release dated January 18th 2018). This suggests a possible
structural control on the localization of the gold anomalies. Historical
work 30 km north on the Quebec side led to gold intersections of up to
2.23 grams per tonne (g/t) Au over 19.55 metres (not true width)
(Source: IOS Services Geoscientifiques, 2012, Exploration and geological
reconnaissance work in the Goodwood River Area, Sheffor Project, Summer
Field Season 2011). Gold in both areas appears to be associated with
similar rock types.
The Company has 56,264,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Posted by AGORACOM-Eric
at 8:59 AM on Tuesday, August 13th, 2019
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
At all-time highs in six of the world’s top currencies
Gold is up 25% in sterling; 22% in the yuan; 21.5% in euros; 19.7% in Australian dollars; 18% in rupee; 13% in Canadian dollars and 12% in Japanese yen
The
charts posted immediately below tell one of the quiet, but perhaps most
important stories unfolding in the world of high international finance.
Gold has appreciated sharply in the currencies of all of the world’s
top economies. In five of the top eight economies – the United Kingdom,
Japan, Canada, Australia, and India – it is priced at all-time highs.
In short, as currencies race for the bottom, gold is racing to the top.
Investors everywhere are moving to insulate their portfolios against the
combined threats of recession, plummeting yields, currency
depreciation, and stock market instability. An over-arching nemesis not
likely to relinquish its place any time soon has unleashed those four
horsemen – the burgeoning trade and currency war.
Gold is up 25% in sterling; 22% in the yuan; 21.5% in euros; 19.7% in Australian dollars; 18% in rupee; 13% in Canadian dollars and 12% in Japanese yen. It is up sharply against a long list of emerging country currencies as well. By way of perspective, gold is up 16% in U.S. dollars thus far in 2019. “A host of global factors mean gold’s price is set to maintain its strength at least for the next six to 12 months,†said Howie Lee, an economist at Singapore’s Oversea-Chinese Banking Corporation, in a recent CNBC interview. “The world right now is in a precarious state and gold is due to benefit from this situation,†With the world – from Asia to Europe, the United States and a long list of emerging countries – now acutely attuned to gold ownership, it might not be long until we begin to see strains on the limited physical supplies.Â
Posted by AGORACOM-Eric
at 2:54 PM on Friday, August 9th, 2019
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Recognizes a lack of early-stage development projects in the sector.
Blames consolidation in the mining sector for a steep decline in greenfield discoveries
“The industry as a whole needed to step up in the wake of a lost decade in exploration “
Rio Tinto has blamed consolidation in the mining sector for a steep decline in greenfield discoveries as it flags a steady build up of its much-hyped Winu copper-gold find in Western Australia.
The
mining giant’s head of growth and innovation, Stephen McIntosh, said
headwinds pushing against discovery success were stronger than ever as
he bemoaned a lack of early-stage development projects in the sector.
Mr
McIntosh said the industry as a whole needed to step up in the wake of a
lost decade in exploration. He said something had gone wrong as
exploration spending failed to translate into discoveries.
His warning, in a speech to the Diggers
& Dealers mining conference in Kalgoorlie on Monday, comes with Rio
drilling its largest number of greenfield targets in almost two decades.
The drilling includes the company’s Winu copper-gold discovery in WA’s Paterson Range.
Mr McIntosh said Winu was a “rare and exhilarating†case where the first drill hole was the discovery hole.
He
gave fresh insight into how highly Rio rates Winu, saying none of the
company’s existing tier 1 assets started life that way and some projects
needed ongoing development and exploration to grow into that status.
“It is important with Winu that we look for a case that is bankable, relatively low capital and low risk,†he said.
“As such, we are primarily focused on defining a potential open pit starter case.â€
‘Every hole is telling us something new’
Rio
released the latest set of drill hole results for Winu last week, which
continue to indicate wide intersections of vein-style copper
mineralisation associated with gold and silver beneath relatively
shallow cover.
Winu is named after the local Aboriginal word for
thirsty and Rio is just that for a big copper discovery now that is in
greater demand with the rise in renewable energy and electric vehicles.
“We have an extensive drilling program this year with 12 drill rigs on site and a 190-person camp,†Mr McIntosh said.
“Every hole is telling us something new and slowly we are pulling together the story of the Winu deposit.â€
Rio
increased its footprint in the Paterson Range from 1000 square
kilometres to 12,000 square kilometres after drilling just three holes
at Winu in 2017 in a sign of how excited it was about the potential
prize.
The company defines tier 1 assets as low-cost, expandable
resources that are profitable at all points in the price cycle and
deliver a sustainable competitive advantage.
Every bit of data
that points to Winu approaching that status will be welcome good news
for Mr McIntosh and his growth and innovation division that is in the
spotlight over its role in managing the troubled multibillion-dollar Oyu
Tolgoi project in Mongolia.
Rio spent $281 million on greenfield exploration in 2018 with a focus on copper and diamonds.
Decline in discoveries
Mr McIntosh said the reasons for a steady decline in discoveries across the industry were complex but included consolidation.
“The
industry consolidation through the 80s, 90s and into the early-mid
2000s saw the focus on early stage exploration start to fall away,†he
said.
“The new mid-tiers and super majors were driven to generate synergies from M&A or harvest opportunities in the orbit of their operations.
“The
downside is that slowly we saw fewer and fewer large regional
exploration programs, an overall lowering of domain expertise and a
reduction in professional development.
“So just when life gets
tough and we need to move beneath cover in the well-explored parts of
the world, we find very few companies with the requisite finances and
domain expertise to take this on.â€
Mr McIntosh said that post the
Global Financial Crisis there had been a steady and precipitous decline
in discoveries even though exploration funding peaked in 2012.
“Many
of the discoveries of the early-mid 2000s came from work done in the
prior decade. Based on this, we should now be seeing a solid pipeline of
early stage projects starting to emerge. We are not,†he said.
“So clearly something has gone wrong. The reasons are likely to be many and complex, ranging from industry capability, land access challenges through to gaps in our targeting capabilities.â€
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China has been quietly stockpiling gold for years now
No one knows just exactly how much gold China has amassed
Lots of other countries are rapidly buying up gold, too, including – Serbia, Greece, Ecuador, Mexico, Kazakhstan, Kyrgyzstan, and Tajikistan.
The Russian central bank has almost doubled its gold holdings within the last 5 years to 1,094.8 tonnes in June of this year
A larger global currency shift is underway… And it may be happening much more quickly than anyone has realized.
Things are definitely in motion. Call it a game of musical chairs, or
an exercise in rearranging chairs on the Titanic, or just that a
tilting balance of power. Just don’t make the mistake of thinking this
is all routine.
The absolutely stunning decision by the Swiss National Bank to decouple from the euro has triggered billions of dollars worth of losses all over the globe.
[…]
And these are just the losses that we know about so far.
It will be many months before the full scope of the financial
devastation caused by the Swiss National Bank is fully revealed. But
of course the same thing could be said about the crash in the price of
oil that we have witnessed in recent weeks. These two “black swan
events†have set financial dominoes in motion all over the globe. At this point we can only guess how bad the financial devastation will ultimately be.
The key to understanding how the hammer will fall may lie in: gold.
In the material world that governs politics and economics, there has
always been one golden rule: he who has the gold makes the rules.
Put China at the top of the next generation of rule makers, then.
China has been quietly stockpiling gold for years now. In fact, it is
stockpiling so much gold that many have speculated that it may be
building a gold-backed yuan currency that would make the Dollar pale in
comparison on the global market.
Bottom line: no one knows just exactly how much gold China has amassed:
Buying surreptitiously allows Beijing to buy bullion at bargain prices; if
the world knew how much gold China was really amassing, a run on gold
the likes of which the globe has never seen would likely ensue.
“We believe China is controlling the gold price because it is buying in
such a way so as not to push prices up.†That’s the opinion of
respected precious-metals analyst Julian Phillips of The Gold
Forecaster, along with a host of other informed sources. (source)
It is widely believed that China has accumulated larger – possibly much larger – reserves since. (source)
Lots of other countries are rapidly buying up gold, too, including –
Serbia, Greece, Ecuador, Mexico, Kazakhstan, Kyrgyzstan, and Tajikistan.
But reportedly no one is buying gold at a faster pace than Russia.
Russia’s increase is the most dramatic,
according to the recent report from the IMF. The Russian central bank
has almost doubled its gold holdings within the last 5 years to 1,094.8
tonnes in June of this year. China’s Central Bank followed with an increase of 75% from its holdings in 2009.
The country has tripled its gold reserves since 2005 and is holding the most since at least 1993, IMF data show.
There is little doubt that gold plays a major factor in Russia’s
posturing during a global showdown that involves proxy war and military
tensions in the Ukraine, Syria, Iraq and other parts of the globe.
Moscow’s purchase of bullion and the assault on
the bank can be seen as tactics of a single strategy designed to break
the monopoly of the dollar. Gold is Russia’s hedge against that hegemony; it can’t be hacked.
More than that, Putin has been positioning his motherland to team up
with China to solidify the emerging BRICS system which aims to thwart
decades of Anglo financial dominance with a un-dollar currency system
that will also include a development bank.
Russia’s response has been to buy gold and turn
east, cementing deals with China and, it would seem, firing the opening
salvos in a cyber currency war with the U.S. (source)
Warnings have sounded about a tipping of the global balance:
Russia is also increasing its gold reserves. China and
Russia have been exchanging their U.S. dollar reserves and buying
physical gold. Last year we speculated that this dynamic would create a
shortage in gold leading to much higher prices. Russia and China now
rank in the top ten countries by gold reserves.
With Russia now in what appears to be a currency war with the U.S.,
they may find a willing partner in China to create an alternative
international financial system that does not rely upon or use the
dollar. Irrespective of either country’s intentions, their physical gold
buying sprees continue unabated. (source)
To that end, Russia has been amassing as much gold as possible, in a
bid to outmaneuver its enemies in a silent economic war to hold onto its
independence and further project its status.
Nearly every bit of gas and oil that Russia sells to neighbors in
Europe and Asia is converted from dollars into gold reserves – and even
with the collapsing oil price, that amount could still be staggering.
Thus, the Western world, built on the hegemony of the
petrodollar, is in a catastrophic situation. In which it cannot survive
without oil and gas supplies from Russia. And Russia is now ready to
sell its oil and gas to the West only in exchange for physical gold! The
twist of Putin’s game is that the mechanism for the sale of Russian
energy to the West only for gold now works regardless of whether the
West agrees to pay for Russian oil and gas with its artificially cheap
gold, or not.
