Posted by AGORACOM
at 1:42 PM on Friday, December 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
Slovakia’s gold reserves consist of 31.7 metric tons of gold that are now worth around $1.4 billion
Slovakia’s talk of gold repatriation comes at the same time as Poland chose to bring home 100 tons of its gold from the Bank of England’s storage in London.Â
Slovakia’s former prime minister called on the country’s parliament to repatriate its gold from the U.K., stating that Britain can’t be trusted with the yellow metal.
“You can hardly trust even the closest allies after the Munich
Agreement,†former Slovak prime minister Robert Fico told reporters last
week. “I guarantee that if something happens, we won’t see a single
gram of this gold. Let’s do it as quickly as possible.â€
In his comment, Fico was referring to a 1938 pact reached by France,
the U.K., Italy and Germany, which permitted Adolf Hitler to annex a
part of Czechoslovakia.
Fico, who is the leader of the country’s biggest party the
socially-conservative Smer. Fico wants to hold a special parliamentary
session on the issue, citing uncertainties around Brexit and global
economic slowdown.
Slovakia’s gold reserves consist of 31.7 metric tons of gold that are
now worth around $1.4 billion, according to Slovakia’s central bank
spokesman Peter Majer.
A week after Fico’s gold repatriation comments, the former PM was
charged with racism after he agreed with a racist comment made by a
far-right former lawmaker, who lost his seat in parliament earlier this
year, local police said on Thursday.
“Milan Mazurek said what almost the whole nation thinks and if you
execute someone for truth, you make him a national hero,†Fico said in
the message published on his official Facebook page in September.
Slovakia’s talk of gold repatriation comes at the same time as Poland chose to bring home 100 tons of its gold from the Bank of England’s storage in London.
“The gold symbolizes the strength of the country,†Poland’s central
bank Governor Adam Glapinski told reporters as he announced the move
last week.
Poland’s precious metals will now be stored in the central bank’s treasury, National Bank of Poland (NBP) noted.
Posted by AGORACOM
at 2:30 PM on Monday, December 2nd, 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
It’s that time of year again, tax selling in North America which
leads into a seasonally strong period there after for mining stocks.
Today i’ll focus on strong potential set ups that are in a stage one
base, looking to move higher. Stage analysis example for those new to
that approach.
Source: Sprott
Historical data supports a strong move higher in Gold / Silver Miners in late Q4 into Q1.
Both $GDX mainly Gold miners and $SILJ both since 2016 bottoms, has lead into strong periods for the months ahead.
Looking at the big picture first in GDX. Built a base since the 2013 break down, which was retest in 2016 and mid 2018.
Current situation GDX in a large bull flag, building energy in a
possible attempt to retest 31usd GDX, and if it can break, not much
above resistance to 40usd GDX.
$SIL Silver Miners ETF Monthly showing similar though lagging price
action. Miners have lead Silver (see below). If 32-33usd is taken out, a
move into the 50usd+ level could come quick.
Gold and Silver
Gold broke out this year of a long term base, whilst Silver has
failed to take out 18.75ish on a weekly close thus far in 2019. Gold
moves has been strong, and after the peak at 1560usd, Gold miners has
continued to act well, indicating the consolidation in Gold and a
possibly upwards move is incoming. Watching to see if Gold will follow
the miners and break a flag to retest 1560usd.
Silver 18.75 weekly close and we will be looking at 20+ Silver. 2020
targets would show 24-26usd very possible thereafter. The way stocks
like $AG $PAAS have acted, could be a leading indicator.
Favourite leading set ups.
In no particular order, charts that are leading the sector, and have
strong bases and look set to push higher. I may miss a few, but these
set ups look solid. The longer the base, the higher in space as they
say.
$CNL #TSX Has broken out on shorter time frames. Up near 180% in 2019. Looking at the big picture in a large multi year base.
$TGZ #TSX Looking like a nice power, ready to break higher.
$AUY #TSX after a near 100% rise in 2019, has been basing despite
Gold pull backs. 3.80$ break out and could be ready to retest $6 2016
high.
$PRU #ASX #TSX Had an excellent 2019, rising from mid 30c to high of
95c AUD. 250k oz pa looking to double production to 500k+ in Africa.
Retesting 2013 levels, a break above 95c and nothing but air to 1.50$.
$KNT #TSX retesting all time highs, has been the best performing
producer, a killer move. Targets from brokers i have seen are up to
4.75$.
$SILV #TSX continues its uptrend and upward trajectory
$WDO #TSX Like Silver Crest, powers higher into new highs..
$SSRM #NYSE Solid numbers and growth. Base nearly complete and price action starts turning higher.
$EGO #TSX up 200% in 2019, building a nice flag here
$CDE #TSX Inverse H&S break out after earnings, pulling in for a
possible retest, completion of the move is 8.8$usd or 50% + circa.
$AG #NYSE Another power base from First Majestic Silver .. If Silver
runs to 24-26usd, perhaps this will outperform. The fact that Silver
peaked at 19.5usd and back to 16.50ish, AG held it’s own. Bullish price
action.
$PAAS #NYSE up 100% YTD, another strong Silver runner, making 52 week
highs and showing excellent relative strength. Cheap on a EPS basis.
$BTO #TSX B2Gold building a power base here too..
$WPM #NYSE Another strong Silver stock larger C+H in play.
Juniors to watch ..
As producers have been the main beneficiary of this rally, i do like
mid cap development plays with solid management teams. The valuation
gap is one of the largest on record.
Source: Sprott
$GDX / $GDXJ ratio which has been in an uptrend for nearly a decade,
favouring large producers, looks to be testing break trend line. A break
down and we could see money moving to the development and exploration
plays that thus far have lagged.
Stocks to add to your watchlist, and ones i like. Charts don’t look pretty on some, but any rotation, and they will rally hard.
$Rio.v Rio2 5moz Chilean development play run by Legendary Alex Black. Potential double bottom.
$MZZ.ax Matador on the ASX is my favourite developer. Down the road
from $MOZ in Canada, trading at near 1/10th of the valuation, will be
producing before MOZ and a profile of 100kpa. Broker targets of 70c,
still in a stage one base.
$PRB Probe run by ex Barrick, with ahigh grade 2moz in Canada.
$AXU #Silver High grade Silver developer
$MAG Silver Tier one Silver Miner, fully funded to development
$NHK Nighthawk Solid LT exploration play, good buying in low 30s
$MKO Mako up 110% YTD, fully funded to production as well as finding and expanding resource with very high grade hits.
$ADT Needs no introduction up 700% since IPO in 2018. One of my
larger holdings, continues it’s solid uptrend, much more left in the
tank.
As you can see, the sector is strong and the set ups moving forward look favorable in this period especially using historical data. Judging on the price action, we continue to move higher into 2020. Have a good Christmas..
Posted by AGORACOM
at 9:06 AM on Friday, November 22nd, 2019
Selected grab samples from new gold showing north of the Thurber Dog gold occurrence show assays between 1.67 and 8.26 g/t Au
Extends potential strike length of gold mineralization by approximately 500 metres along strike to the north
Occurs
within a larger 3km trend of anomalous gold in rock and soil associated
with the contact between mafic/ultramafic volcanic rocks and felsic
volcanic rocks
Labrador
Gold Corp. (TSX-V: LAB) (“Labrador Gold†or the “Companyâ€) is pleased
to announce results of rock sampling at its Hopedale project in
Labrador.
The
Company controls a 57-kilometre strike length of stratigraphy
prospective for gold in the Florence Lake Greenstone Belt (FLGB). To
date, the Company has defined eight high potential areas for gold within
the belt. The 2019 exploration program was designed to generate drill
targets within these areas using detailed geological mapping, rock
sampling and prospecting and ground magnetics/VLF-EM (very low frequency
electromagnetics).
Sampling
of the prospective areas resulted in 201 rock samples with gold values
ranging from below the detection limit of 5 parts per billion (ppb) to
8.26 grams per tonne (g/t) in selected grab samples. The highest gold
values were from three samples taken at the site of a new mineralized
showing discovered shortly after the start of field work (see News
Release dated July 26, 2019). The showing is located approximately 500
metres north, and along strike of, the Thurber Dog gold occurrence where
previous Labrador Gold rock sampling returned values up to 7.87 g/t Au.
Mineralization is comprised of disseminated to semi-massive pyrite and
arsenopyrite hosted by felsic metavolcanic rocks with pervasive iron
oxide alteration. The three samples from the occurrence assayed 1.67 g/t
Au, 2.83 g/t Au and 8.26 g/t Au.
Anomalous
gold values were also found in samples from elsewhere in the targeted
areas and range from 0.11 g/t Au to 0.6 g/t Au (See table below). To
date the company has collected 12,510 soil samples, 414 lake sediment
samples and 834 rock samples along the length of the greenstone belt.
“Our
systematic approach to exploration of the Florence Lake belt continues
to turn up anomalous gold values in areas of high potential.†said Roger
Moss, President and Chief Executive Officer of Labrador Gold. “The
Thurber Dog area stands out as the most consistently mineralized gold
trend in the belt and we are still finding gold mineralization that
fills in gaps along the three kilometre stretch of anomalous gold in
both rock and soil. The discovery of the new gold showing this season is
the latest addition to what is turning into a prolific trend.â€
Highlights of 2019 rock sample assays.
Sample ID
Easting
Northing
Sample Type*
Rock type
Mineralization
Au (ppb)
Area
1702676
654781
6110696
Grab
Quartz vein
Py, Apy
8,263
New Showing
1710148
654778
6110691
Grab
Felsic volcanic
Py, Apy
1.672
New Showing
1710149
654781
6110696
Grab
Felsic volcanic
Py, Apy
2.831
New Showing
1710140
654745
6111249
Grab
Chlorite schist
–
602
Thurber Trend
1695444
654628
6112280
Grab
Ultramafic volcanic
Py
114
Thurber North
1995433
654628
6112280
Grab
Quartz vein
Py
224
Thurber North
1705230
654996
6113663
Grab
Mafic volcanic
Apy
532
Thurber Boundary
1691224
647639
6100795
Grab
Ultramafic volcanic
Apy, Py
107
Jasmine North
1702687
648021
6098550
Grab
Iron formation
Py
388
Jasmine South
1705738
647074
6095318
Grab
Quartz vein
–
134
Misery North
1702678
644914
6091661
Grab
Quartz vein
Py
488
Misery
1785270
643338
6085835
Grab
Mafic volcanic
Py
336
Schist Lakes
*Note that grab samples are select samples and are not necessarily
representative of gold mineralization found on the property.
Abbreviations: Py pyrite; Apy Arsenopyrite.
All samples were shipped to the Bureau Veritas laboratory in
Vancouver, BC, where they were crushed and split and a 500g sub sample
pulverized to 200 mesh. 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. Over limit samples
(greater than 10g/t Au) are re-assayed using fire assay with a
gravimetric finish. 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 57,039,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Posted by AGORACOM
at 10:48 AM on Wednesday, November 20th, 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
at 7:42 PM on Monday, October 28th, 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 miners are facing a key test of
resistance as we enter a week that has at least two potentially major
market moving events (FOMC on Wednesday afternoon, and non-farm payrolls
Friday morning). The gold miners, as represented by the GDX
exchange-traded fund, are attempting to break free from a range defined
by roughly $26.20 on the downside and $28.30 on the upside:
GDX (Daily)
The gold miners experienced a bounce last
week (+2.3%) after support near $26.20 held for the 2nd time in as many
weeks. Historic seasonal trends indicate that the gold miners should
have the wind at their back beginning next week and the tailwinds should
persist through the end of the year (over the last 20 years the HUI
Gold Bugs Index has averaged a 4.7% gain from the end of October through
the end of December).
In the above chart the GDX is on
the verge of experiencing a bullish resolution (MACD bull cross and
bullish RSI crossover above median line) if price can close above the
red line on a weekly closing basis. A failure at the red resistance line
next week could send the GDX tumbling back into the orange wedge for
another test of support at the blue line. Bulls should not want to see
support tested again so soon, and this is why next week is set up to be a
critical test for the goldies.
The Fed is expected to
cut rates a quarter point on Wednesday afternoon, however, it will be
the Chairman’s press conference at 2:30pm EST and any comments on QE or
hints of further rate cuts that will hold the market’s focus. Friday
morning’s US non-farm payrolls report also looms large with expectations
lowered to a paltry 73,000 jobs created in October.
Turning
to the weekly chart of the GDX we can see the lowest weekly close since
the correction began in early September has been $26.64:
GDX (Weekly)
Friday’s high tested the downtrend drawn off
the tops since the early September high, which sets the stage for a
potential breakout above this downtrend next week. Sentiment is in
neutral territory on the gold miners and seasonality will begin to offer
tailwinds beginning next week. The stage is set for an upside breakout,
however, in the event of another failure at resistance the stage is
also set for a breakdown through support that has been tested multiple
times in recent weeks.
In the words, a big move is coming in the gold mining sector and it could happen as early as next week.Â
Posted by AGORACOM
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
at 1:43 PM on Tuesday, September 24th, 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
Investors are starting to pay more attention to junior miners but the
sector isn’t out of the woods when it comes to attracting much needed
capital, according to one mining executive.
Gold’s $200 rally this year has breathed new life in the precious
metals market, but the junior sector has seen only a small portion of
renewed investor interest. The TSX Venture Index ($JX),
which is heavily weighted with junior explorers is up less than 3% this
year, a disappointing performance compared to gold’s 18% rally so far
this year.
Following a busy and positive Beaver Creek Precious Metals Summit, Ioannis Tsitos, president of Goldsource Mines (TSX.V: GXS)
said that the junior exploration sector needs more than just higher
gold prices to attract investors; it needs new discoveries: greenfield
discoveries
“In the last decade we have seen a significant decline in budgets for
greenfield exploration and that has led to less discoveries and that
has led to less stories in the marketplace,†he said.
Greenfield exploration refers to projects in unchartered territory
where information on the region’s mineralization is unknown. Because of
that lack of initial mineral information greenfield projects are seen as
a higher risk compared to brownfield projects, where exploration is
done around an existing mime.
Tsitos added that not only are few deposits being discovered but
grades are also dropping, which leads to a general lack of excitement in
the industry.
“Investor sentiment is improving for the sector but junior explorers
still need to do a lot more work and show that they are finding new
deposits,†he said.
Tsitos’ comments come as the company
develops its Salbora project, in Guyana, South America, which isn’t
exactly a greenfield project as there has been some preliminary airborne
surveys of the area. The project is also 1.5 kilometers from the
company’s Eagle Mountain Gold Project. However, the company has been
doing a lot of work to define the project’s mineralization.
Earlier this spring the company was able to raise nearly $7.5 million
in an oversubscribed private placement deal. Tsitos added that the
company has spent about $2 million on an aggressive exploration,
targeting 4,000 to 5,000 meters drilled by the end of the third quarter.
“The private placement was oversubscribed in one day,†he said. “It just shows how starved investors are for a new discovery.â€
Tsitos added that his company didn’t set out to be a greenfield
explorer but have embraced this role as the company ran into production
issues when it started producing gold at Eagle Mountain. He added that
the company needed to expand its resource to make the original mine more
efficient.
“For us exploring in a greenfield was a necessity. We were driven by
internal forces and our organic growth objectives,†he said. “But being
on this side we see the need for new discoveries in the industry.â€
Posted by AGORACOM
at 3:14 PM on Tuesday, September 10th, 2019
Retained Ms. Patricia Stirbys, J.D., LL.M, to help develop a comprehensive indigenous engagement and community relations program
Ms. Stirbys is a member of Cowessess First Nation and specializes in engaging Indigenous groups
VANCOUVER, British Columbia, Sept. 10, 2019 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX-V: LAB) (“Labrador Gold†or the “Companyâ€) is pleased to announce that it has retained Ms. Patricia Stirbys, J.D., LL.M, a member of Cowessess First Nation, to help it develop a comprehensive indigenous engagement and community relations program.
Ms. Stirbys has over 20 years of experience in law, negotiations and
policy, specializing in engagement with Indigenous groups. She has an
excellent understanding of Indigenous peoples, issues and challenges
along with an understanding of the mining sector. Ms. Stirbys has
engaged with Indigenous communities in most provinces, including First
Nations in B.C., Saskatchewan, Ontario, Quebec and
Newfoundland-Labrador. She has successfully negotiated agreements with
Indigenous groups across Northern Ontario, particularly First Nation
communities within the Ring of Fire.
“We are very pleased to have Ms. Stirbys join the Labrador Gold
team,†said Roger Moss, President and Chief Executive Officer of
Labrador Gold. “Her significant experience in indigenous relations will
be a valuable asset as we move forward with engagement and consultation
with the community of Matimekush-Lac John.â€
The Company is committed to maintaining respectful relations with the
community and to understanding their concerns as we find a way to work
in the region to the benefit of all stakeholders.
The Company also announces the grant of 100,000 options to purchase
common shares of the Company to Ms. Stirbys. The options vest 50% on
grant and 50% after six months and are exercisable for a price of $0.25
for a period of five years.
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 shows 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 57,039,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Posted by AGORACOM
at 1:30 PM on Tuesday, September 10th, 2019
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Mark Mobius,
the founding partner of Mobius Capital Partners, recommends that
investors hold 10% of their portfolios in physical gold, and invest the
rest in dividend yielding equities.
In the first half of this
year, central banks bought 374 metric tons of gold, according to the
World Gold Council. That was the largest net increase for the first half
of the year since at least 2000.
China’s central has been
adding to its gold reserves for eight straight months since December,
scooping up another 10 metric tons of the yellow metal in July,
according to data from the People’s Bank of China.
Veteran investor Mark Mobius is bullish on gold as central banks around the world cut interest rates.
“Physical
gold is the way to go, in my view, because of the incredible increase
in money supply,†said Mobius, the founding partner of Mobius Capital
Partners.“All
the central banks are trying to get interest rates down, they are
pumping money into the system. Then, you have all of the
cryptocurrencies coming in, so nobody really knows how much currency is
out there,†he told CNBC’s “Street Signs†on Friday.Amid expectations of slowing global growth, central banks around the world have been lowering interest rates, as they seek to boost money supply in the economy, stoke demand and provide an impetus to growth.
Mobius recommends that investors hold 10% of their
portfolios in physical gold, with the rest invested in dividend
yielding equities. That’s especially if the dollar gets weaker.
In his view, “the U.S. government, the Trump White House, does not want a strong dollar.â€
“They
are certainly going to try to weaken the dollar against other
currencies and of course, it’s a race to the bottom. Because, as soon as
they do that, other currencies will also weaken,†said Mobius.
“People are going to finally realize that you got to have gold, because all the currencies will be losing value,†he added.
Gold can retain its value much better than other forms of currency, and is traditionally a safe haven during market volatility.
A weaker dollar tends to boost the price of gold as global trade in the yellow metal is denominated in U.S. dollars.
“At the end of the day, gold is a means of exchange. It’s a stable currency in some way,†said Mobius.
Central banks are buying gold
Data from the World Gold Council this year point to risingcentral bank demand for the yellow metal amid global macroeconomic uncertainty.
In the first half of this year, central banks bought 374 metric tons of gold, reported the World Gold Council. That was the largest net increase for the first half of the year since at least 2000.
“Deep
down inside, the central bankers do believe in gold, but they don’t
want to say it because … they won’t be able to create new currency,â€
said Mobius.
The 2019 Central Bank Gold Reserve survey,
conducted by the World Gold Council and released in July, also found
there was central bank demand for gold in the short to medium term.
Of
those polled, 11% of emerging market and developing economy central
banks said they intended to increase their gold reserves over the next
12 months.
That was similar to data from 2018 when 12% of such
central banks bought gold, giving rise to 652 metric tons of central
bank gold demand — the highest level on record under the current
international monetary system, noted the World Gold Council.
“The
planned purchases are being driven by higher economic risks in reserve
currencies. In the medium term, central banks see changes in the
international monetary system, with a greater role for the Chinese
renminbi and gold,†said the World Gold Council in their report. The
renminbi is another name for the Chinese yuan.
About 40% of
emerging market and developing economy central banks cited “anticipated
changes in the international monetary system being relevant to their
decision to hold gold,†the World Gold Council said.
China also investing in gold
Spot gold
was trading around $1,509.51 an ounce on Monday morning in Asia after
hitting a six-year high of $1,554.56 in late August amid heightened U.S.–Chinatrade tensions.
China’s
central bank has been adding to its gold reserve for eight straight
months since December, scooping up another 10 metric tons of the yellow
metal in July, according to data from the People’s Bank of China.
“China
is the biggest producer of gold to begin with. And then of course,
they’ve been buying gold, so nobody really knows how much they have in
the vaults,†said Mobius. “I’m sure it’s been increasing at a pretty
good pace.â€
Posted by AGORACOM
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.
