Posted by AGORACOM
at 10:31 AM on Tuesday, April 21st, 2020
The gold silver ratio has been rising for nine years.
There are many commentators suggesting that the gold silver ratio is nearing a top at present. Here and here are good examples. I am not of that opinion and consider that it will keep climbing for the next 10 years at least. Below is a chart of the gold silver ratio (Source)
As you can see, the chart shows that the gold silver ratio hit a high of 125.89 on the 18th March 2020 and has since declined back to 111.81 (16/4/20). It is likely over time to retest and break the recent highs and then keep on climbing.
The analysis
To understand why the ratio is going to keep on climbing, we need to look at how gold and silver are used.
Silver
Below is the breakdown of the percentage usage of silver in the US:
As you can see, 45% is used in photography and electrics. The other category (24%) is a mix of energy use, brazing and soldering, chemical production, mirror production and medicine (see link above). In total therefore 69% is used in industry. Only 31% is used in jewelry and coins (silver kept in circulation).
Gold
Below is a breakdown of the percentage uses of gold in the US:
Industrial use of gold is only 37%, but 58% is used in coins and jewelry (gold kept in circulation).
Conclusion
As silver is 69% used in industry and gold only 35%, silver is much more sensitive to the strength of the economy than gold is. The last economic cycle in the US was the weakest in modern economic history. Real potential GDP was 1.6% from 2008 to 2018 (Source). This is the lowest 10-year rate since before the Second World War. The gold silver ratio is therefore doing exactly what you would expect it to do in a weak economic backdrop. It is steadily rising. If the economy remains weak after the present recession, I would expect that the gold silver ratio will continue to rise. So will it remain weak?
Here is a link to the latest Hoisington Investment Management March report. Their conclusion is that growth and inflation will remain weak, despite the massive money printing and stimulus presently being rolled out by the US government and Federal Reserve. I heartily agree with this analysis. Below is a long-term chart of US GDP:
Growth peaked during the second world war and has been steadily falling since then. Since the war, average growth is falling at .7 of a percent every 10 years. As the US government and Federal Reserve are insistent on bailing out all industries and companies, productivity will remain low. This is because the weak companies will not be eliminated, allowing a re-allocation of the capital from the weak to the strong. Below is the population growth of the US economy for the last decade:
The 2019 growth rate was .6 of 1%. With slow population growth and slow productivity growth, the growth rate of the US economy must remain weak. GDP growth is the product of the change in population growth and the change in productivity growth. If both are weak, GDP must remain weak.
Implications
For investment (not trading) purposes, it is clear that if the gold silver ratio keeps climbing, gold will outperform silver on a long-term basis. If you like precious metals to diversify your portfolio, you should buy gold and not silver. It may well be that the gold silver ratio trades lower in the short term and is a good trade, but it is not the way to go if you are an investor. It is also clear that gold miners will outperform silver miners. I presently have no exposure to any silver mining stocks (although some of my gold miners produce silver as a byproduct). Don’t be fooled into thinking that just because the gold silver ratio has hit a high and is now falling that it will mean revert. We are in a low growth environment for the foreseeable future and the ratio will behave accordingly!
Treaty Creek Project is Fully Funded for the 2020 Exploration Season
Last year Eric Sprott became the largest external investor in Treaty Creek in B.C.’s Golden Triangle. He stated “Treaty Creek has a great shot at having 20 million ounces of gold.†A very successful program was run hitting wide intervals of gold in every drill hole. This year we’ll see if Eric is right as the objective of this year’s program is to develop a resource calculation.
The Goldstorm Zone will host a significantly larger drilling program in 2020
18,000 to 20,000 Meter Drill Program
7-10 Drill Platforms
Four Diamond Drill Rigs
The drill program is designed to extend and to explore the limits of Goldstorm System
The current conceptual model for Goldstorm is 1 billion tonnes at close to 1 gram of gold
The system remains open in all directions and to depth
The best mineralization encountered to date is from the two consecutive 150m step-out holes to the Northeast:
GS-19-42 yield 0.849 g/t Au Eq over 780 m with 1.275 g/t Au Eq over 370.5m
GS-19-47 yield 0.697 g/t Au Eq over 1,081.5m with 0.867 g/t Au Eq over 301.5m
The best Southeast extension:
GS-19-52 yields 0.783 g/t Au Eq over 601.5m
Includes 1.062 g/t Au Eq over 336.0m (NR dated March 3rd, 2020)
The Treaty Creek Project is a Joint Venture with Tudor Gold owning 3/5th and acting as operator. American Creek and Teuton Resources each have a 1/5th interest in the project. American Creek and Teuton are both fully carried until such time as a Production Notice is issued, at which time they are required to contribute their respective 20% share of development costs. Until such time, Tudor is required to fund all exploration and development costs while both American Creek and Teuton have “free ridesâ€.
Treaty Creek Background
The Treaty Creek Project lies in the same hydrothermal system as Pretium’s Brucejack mine and Seabridge’s KSM deposits with far better logistics.
American Creeek Responds to Shareholder Questions Re: COVID-19:
American Creek has received numerous messages from our investor base asking similar questions. We’ve compiled the most common questions with their answers for you below:
Q: Has Covid 19 affected the ability of the office to keep running and will it affect the company’s ability to run programs this year?
The Canadian Minister of Public Safety and Emergency Preparedness has deemed exploration and mining essential services during the current COVID-19 outbreak. This specifically includes mineral exploration and development. At the same time, explorers, miners and those in related businesses need to be in compliance with local regulations with regard to health and safety practices in order to protect workers and others from the COVID-19 virus.
Both American Creek and its JV Partner Tudor Gold are following these guidelines and fully expect to carry on operations in the office and in the field.
Q: Does American Creek have enough money to carry on operations or will it have to raise money this year?
The company raised sufficient money in 2019 to carry on operations through 2020. This currently includes an exploration / drill program on the Dunwell Mine property and may include work on Gold Hill and other properties as well.
Q: How will Covid 19 and the resulting drop in the stock market and economy affect the precious metals industry?
As the stock market and the economy drop there are institutions, brokerage houses, and individuals who will sell everything right across the board to cover themselves. Precious metals or stocks in precious metal companies are no exception. We’ve already seen this taking place. However, gold served its purpose in retaining value as its drop was very minimal compared to the stock markets. It’s governments reactions to the falling stock markets and economy that will have a profound effect on Gold. We are reading that more money has been created out of thin air in the last few weeks than in any time in history. All the gold in the world is worth approximately $9.5 trillion dollars and just the United States alone is creating $2 trillion, plus $4 trillion from the Fed, plus another $2 trillion plus in infrastructure spending (and that’s not counting the $2.5 trillion put into the repo markets). The rest of the world is acting similarly. Inflation (an increase of the monetary supply) does have a direct effect on gold (especially once money velocity increases). We are already seeing the very early stages of this upward pressure as gold futures spiked to a 7.5-year high of $1,742.60 an ounce in overnight trading (April 6-7, 2020). Gold will continue to be volatile but will have greater upward pressure the more governments try to help the economy.
Q: Why should people invest in American Creek when there are so many gold plays out there?
While there are a number of excellent projects out there, even within the Golden Triangle, I’m not aware of one with as much potential poised to be realized over the next two years. Since he’s the expert I’ll refer to Eric Sprott’s comments concerning the Goldstorm on Treaty Creek: “They have a good shot at having 20 million ounces of gold.â€â€œSo that’s the sort of play that I like where man, if the price of gold goes to $1,700 or $2,000 these plays will look so economically viable and the stock will go up so much, and the analogy I use is Seabridge back in 2000. I remember buying it at a dollar…and Seabridge went from $1 to $35 dollars! That is what we are looking for – a dollar to $35 dollars, set you up for life!†American Creek investors benefit through the development of Goldstorm while having no associated costs and while retaining a 1:3 ownership ratio with Tudor Gold. The timing couldn’t be better for a project of this scale and quality. Add to that the development of the Dunwell Mine along with the possibility of programs on our other high potential projects and we feel that we offer people the best possible investment. American Creek is in a position of strength as it has the ability to continue developing core assets and bring value to its shareholders amidst a world of economic uncertainty. We will continue to do all we can to help our shareholders prosper.
Q: What opportunity do you see for the company moving forward?
While this pandemic, and our governments responses to it, will do irreparable damage to each of our finances and liberties, we are extremely optimistic about precious metals, the precious metals production and exploration industry, and specifically American Creek Resources. Rick Rule, CEO of Sprott US Global, was recently quoted saying:
Get ready for a “rip your face off†gold market.
Industry Experts Have Already Pointed Out That:
The drop in oil will lower the costs for producers at the same time that gold is going up.
As gold goes higher and producers start producing tremendous amounts of cash…they are going to want to deploy it back in their own sector…there will be a competing FEEDING FRENZY amongst the producers to go buy the best assets and eventually the worst assets of the gold sector
We believe that the Goldstorm deposit at Treaty Creek is quickly becoming one of most significant assets in the gold industry and will be highly sought after.
About American Creek
American Creek is a Canadian junior mineral exploration company with a strong portfolio of gold and silver properties in British Columbia. Three of those properties are located in the prolific “Golden Triangleâ€; the Treaty Creek and Electrum joint venture projects with Tudor Gold/Walter Storm as well as the 100% owned past producing Dunwell Mine.
For further information please contact Kelvin Burton at: Phone: 403 752-4040 or Email: [email protected]. Information relating to the Corporation is available on its website at: www.americancreek.com
Treaty Creek Project is Fully Funded for the 2020 Exploration Season
Last year Eric Sprott became the largest external investor in Treaty Creek in B.C.’s Golden Triangle. He stated “Treaty Creek has a great shot at having 20 million ounces of gold.†A very successful program was run hitting wide intervals of gold in every drill hole. This year we’ll see if Eric is right as the objective of this year’s program is to develop a resource calculation.
The Goldstorm Zone will host a significantly larger drilling program in 2020
18,000 to 20,000 Meter Drill Program
7-10 Drill Platforms
Four Diamond Drill Rigs
The drill program is designed to extend and to explore the limits of Goldstorm System
The current conceptual model for Goldstorm is 1 billion tonnes at close to 1 gram of gold
The system remains open in all directions and to depth
The best mineralization encountered to date is from the two consecutive 150m step-out holes to the Northeast:
GS-19-42 yield 0.849 g/t Au Eq over 780 m with 1.275 g/t Au Eq over 370.5m
GS-19-47 yield 0.697 g/t Au Eq over 1,081.5m with 0.867 g/t Au Eq over 301.5m
The best southeast extension:
GS-19-52 yields 0.783 g/t Au Eq over 601.5m
Includes 1.062 g/t Au Eq over 336.0m (NR dated March 3rd, 2020)
The Treaty Creek Project is a Joint Venture with Tudor Gold owning 3/5th and acting as operator. American Creek and Teuton Resources each have a 1/5th interest in the project. American Creek and Teuton are both fully carried until such time as a Production Notice is issued, at which time they are required to contribute their respective 20% share of development costs. Until such time, Tudor is required to fund all exploration and development costs while both American Creek and Teuton have “free rides”.
Treaty Creek Background
The Treaty Creek Project lies in the same hydrothermal system as Pretium’s Brucejack mine and Seabridge’s KSM deposits with far better logistics.
American Creeek Responds to Shareholder Questions Re: COVID-19:
American Creek has received numerous messages from our investor base asking similar questions. We’ve compiled the most common questions with their answers for you below:
Q: Has Covid 19 affected the ability of the office to keep running and will it affect the company’s ability to run programs this year?
The Canadian Minister of Public Safety and Emergency Preparedness has deemed exploration and mining essential services during the current COVID-19 outbreak. This specifically includes mineral exploration and development. At the same time, explorers, miners and those in related businesses need to be in compliance with local regulations with regard to health and safety practices in order to protect workers and others from the COVID-19 virus.
Both American Creek and its JV Partner Tudor Gold are following these guidelines and fully expect to carry on operations in the office and in the field.
Q: Does American Creek have enough money to carry on operations or will it have to raise money this year?
The company raised sufficient money in 2019 to carry on operations through 2020. This currently includes an exploration / drill program on the Dunwell Mine property and may include work on Gold Hill and other properties as well.
Q: How will Covid 19 and the resulting drop in the stock market and economy affect the precious metals industry?
As the stock market and the economy drop there are institutions, brokerage houses, and individuals who will sell everything right across the board to cover themselves. Precious metals or stocks in precious metal companies are no exception. We’ve already seen this taking place. However, gold served its purpose in retaining value as its drop was very minimal compared to the stock markets. It’s governments reactions to the falling stock markets and economy that will have a profound effect on Gold. We are reading that more money has been created out of thin air in the last few weeks than in any time in history. All the gold in the world is worth approximately $9.5 trillion dollars and just the United States alone is creating $2 trillion, plus $4 trillion from the Fed, plus another $2 trillion plus in infrastructure spending (and that’s not counting the $2.5 trillion put into the repo markets). The rest of the world is acting similarly. Inflation (an increase of the monetary supply) does have a direct effect on gold (especially once money velocity increases). We are already seeing the very early stages of this upward pressure as gold futures spiked to a 7.5-year high of $1,742.60 an ounce in overnight trading (April 6-7, 2020). Gold will continue to be volatile but will have greater upward pressure the more governments try to help the economy.
Q: Why should people invest in American Creek when there are so many gold plays out there?
While there are a number of excellent projects out there, even within the Golden Triangle, I’m not aware of one with as much potential poised to be realized over the next two years. Since he’s the expert I’ll refer to Eric Sprott’s comments concerning the Goldstorm on Treaty Creek: “They have a good shot at having 20 million ounces of gold.â€â€œSo that’s the sort of play that I like where man, if the price of gold goes to $1,700 or $2,000 these plays will look so economically viable and the stock will go up so much, and the analogy I use is Seabridge back in 2000. I remember buying it at a dollar…and Seabridge went from $1 to $35 dollars! That is what we are looking for – a dollar to $35 dollars, set you up for life!†American Creek investors benefit through the development of Goldstorm while having no associated costs and while retaining a 1:3 ownership ratio with Tudor Gold. The timing couldn’t be better for a project of this scale and quality. Add to that the development of the Dunwell Mine along with the possibility of programs on our other high potential projects and we feel that we offer people the best possible investment. American Creek is in a position of strength as it has the ability to continue developing core assets and bring value to its shareholders amidst a world of economic uncertainty. We will continue to do all we can to help our shareholders prosper.
Q: What opportunity do you see for the company moving forward?
While this pandemic, and our governments responses to it, will do irreparable damage to each of our finances and liberties, we are extremely optimistic about precious metals, the precious metals production and exploration industry, and specifically American Creek Resources. Rick Rule, CEO of Sprott US Global, was recently quoted saying:
Get ready for a “rip your face off†gold market.
Industry Experts Have Already Pointed Out That:
The drop in oil will lower the costs for producers at the same time that gold is going up.
As gold goes higher and producers start producing tremendous amounts of cash…they are going to want to deploy it back in their own sector…there will be a competing FEEDING FRENZY amongst the producers to go buy the best assets and eventually the worst assets of the gold sector
We believe that the Goldstorm deposit at Treaty Creek is quickly becoming one of most significant assets in the gold industry and will be highly sought after.
About American Creek
American Creek is a Canadian junior mineral exploration company with a strong portfolio of gold and silver properties in British Columbia. Three of those properties are located in the prolific “Golden Triangle”; the Treaty Creek and Electrum joint venture projects with Tudor Gold/Walter Storm as well as the 100% owned past producing Dunwell Mine.
For further information please contact Kelvin Burton at: Phone: 403 752-4040 or Email: [email protected]. Information relating to the Corporation is available on its website at www.americancreek.com
Posted by AGORACOM
at 8:41 AM on Friday, April 17th, 2020
Compared to the inferred mineral resources of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au) outlined in January 2014
On three separate deposits, Adumbi, Kitenge and Manzako at Imbo, inferred mineral resources have now increased by 49% to 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au)
Total mineral resources at Loncor’s properties in the Ngayu belt now stand at 3.05 million ounces of inferred mineral resources
TORONTO, April 17, 2020 (GLOBE NEWSWIRE) — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) is pleased to announce a 49% increase in mineral resources at its Imbo Project (Loncor 76.29%) in the D.R. Congo.
Compared to the inferred mineral resources of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au) outlined in January 2014 by independent consultants Roscoe Postle Associates Inc. (“RPAâ€) on three separate deposits, Adumbi, Kitenge and Manzako at Imbo, inferred mineral resources have now increased by 49% to 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), this increase coming from the Adumbi deposit. This assessment was undertaken by the Company’s independent geological consultants Minecon Resources and Services Limited (“Mineconâ€). The updated estimate for Adumbi was based on a review of the Adumbi deposit including remodelling, grade capping and considering the CIM requirement for mineral resources to have “reasonable prospects for economic extractionâ€. 76.29% of this updated gold resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
Combined with the Company’s Makapela Project (100%) (see Figure 1), total mineral resources at Loncor’s properties in the Ngayu belt now stand at 3.05 million ounces of inferred mineral resources (33.87 million tonnes grading 2.80 g/t Au) plus 0.614 million ounces of indicated mineral resources (2.205 million tonnes grading 8.66 g/t Au ).
Commenting on today’s inferred mineral resource increase on the Imbo Project, Loncor’s President Peter Cowley said: “We are very encouraged by the significant increase in mineral resources at the Adumbi deposit, which was developed from exploration conducted during the period 2014-17, following on from the recommendations from the independent RPA study in 2014. We now have a clear strategy going forward to increase the mineral resources on the Imbo Project by undertaking additional drilling and advancing the project up the value curve by initiating a Preliminary Economic Assessment on the Adumbi deposit. Significant potential still exists at Adumbi to increase and upgrade mineral resources within the open pit as well as underground potential since the mineralization remains open at depth.â€
As outlined in the Company’s press release dated January 28, 2020, Loncor has been focussing on the Adumbi deposit (see Figures 2 and 3), where Minecon had identified significant resource upside potential from additional exploration evaluation, including drilling that was undertaken during 2017. Much of this exploration work was undertaken following on from the recommendations made by RPA in their 2014 NI 43-101 technical report and included:
Additional Drilling RPA recommended additional drilling at Adumbi to test the down dip/plunge extent of the mineralization. In 2017, four deeper core holes (see Figures 3 and 8) were drilled below the previously outlined RPA inferred resource over a strike length of 400 metres and to a maximum depth of 450 metres below surface. All four holes intersected significant gold mineralization in terms of widths and grade and are summarised below:
Borehole
From(m)
To(m)
Intercept Width(m)
True Width(m)
Grade (g/t) Au
SADD50
434.73
447.42
12.69
10.67
5.51
SADD51
393.43
402.72
9.29
6.54
4.09
SADD52
389.72
401.87
12.15
7.01
3.24
419.15
428.75
9.60
5.54
5.04
SADD53
346.36
355.63
9.27
5.70
3.71
391.72
415.17
23.45
14.43
6.08
Due to funding constraints, no follow up drilling was undertaken at the Adumbi deposit after 2017.
Survey and Georeferencing All the Adumbi drill hole collars, trenches and accessible adits and adit portals were accurately surveyed and the data appropriately georeferenced. In addition, all accessible underground excavations and workings were accurately surveyed.
Re-logging of All Drill Holes All boreholes (153 holes totalling 33,651 metres) from Adumbi were systematically relogged and all data was put on (Strata Logs software) including core orientations. The re-logging of drill holes defined the presence of five distinct geological domains in the central part of the Adumbi deposit where the BIF (Banded Iron Formation) unit attains a thickness of up to 130 metres (see Figures 3 and 4). From northeast to southwest these are:
Upper BIF Sequence: an interbedded sequence of BIF and chlorite schist, 45 to 130 metres in thickness.
Carbonaceous Marker: a distinctive 3 to 17 metre thick unit of black carbonaceous schist with pale argillaceous bands.
Lower BIF Sequence: BIF interbedded with quartz carbonate, carbonaceous and/or chlorite schist in a zone 4 to 30 metres in thickness.
Footwall Schists: similar to the hanging wall schist sequence.
In the central part of the Adumbi deposit, three main zones of gold mineralization are present (see Figures 5 and 6). These include the following mineralization:
within the Lower BIF Sequence;
in the lower part of the Upper BIF Sequence. Zones 1 and 2 are separated by the Carbonaceous Marker, which is essentially unmineralized; and
a weaker zone in the upper part of the Upper BIF Sequence.
There is a higher-grade zone of gold mineralization termed the Replaced Rock Zone (“RP Zoneâ€) associated with alteration and structural deformation that has completely destroyed the primary host lithological fabric. The RP Zone occurs in the lower part of the Upper BIF package and in the Lower BIF package, and transgresses the Carbonaceous Marker, located between the Upper and Lower BIF packages, both along strike and down dip (see Figures 3 and 4).
Relative Density (“RDâ€) Measurements The increase in the sample population coupled with the application of a more rigid RD determination procedure based on recommendations from the RPA resource study, indicates that the new RD measurements from both mineralized and unmineralized material and from the various material types and lithologic units have improved the confidence in the relative RD determination to be applied to any resource estimates. Relative to the 6 oxide RD measurements used for tonnage estimation in the RPA model, 297 oxide RD measurements within the mineralized domain were undertaken during the review work. For the transition and fresh material, equal number of determinations relative to the previous RD sample volumes were undertaken with the review process employing more rigid RD determination procedures.
Table 1 below indicates significate positive variance between the previous model RD and the reviewed work for the oxide and transition materials.
Table 1: Summary of Previous and Updated Mineralised Average RD Measurements for Adumbi Deposit
Material Type
RD used in Previous RPA Model
RD Determinations Used in Current Model
RD Variance (%)
Oxide
1.80
2.45
36.1
Transition
2.20
2.82
28.2
Fresh
3.00
3.05
1.7
Oxidation and Fresh Rock Surfaces The re-logging of the core as per the RPA recommendations identified major differences between the depths of Base of Complete Oxidation (BOCO) and Top of Fresh Rock (TOFR), and the depths used by RPA in the 2014 model. In the RPA model, the BOCO was negligible and the TOFR corresponded approximately to the re-logged BOCO. The deeper levels of oxidation that were observed during the re-logging exercise have had positive implications with respect to ore type classification and associated metallurgical recoveries, mining and processing cost estimates.
Adit Sampling and Georeferencing Following the accurate surveying of the 10 historical adits and appropriately georeferencing, the 796 adit samples (1,121 metres in total) when applied have positive implications on the data spacing and classification of mineral resources at the Adumbi deposit.
Quality Control and Quality Assurance Assessment of assay standards and blanks of the Adumbi deposit by RPA indicated that 1,014 samples within some batches failed QC and were identified for re-assay. A total of 616 pulps and 382 quarter core samples were retrieved for re-assay. The samples were submitted to the SGS Laboratory (which is independent) in Mwanza, Tanzania in November 2014, together with international reference material from Rocklabs (8 per 100 samples) and blanks (4 per 100 samples). This was undertaken to ensure the samples passed internal QA/QC analytical procedures.
For the post 2014 drilling campaign, drill cores for assaying were taken at a maximum of one metre intervals and were cut with a diamond saw with one-half of the core placed in sealed bags by company geologists and sent to the SGS Laboratory in Mwanza. The core samples were then crushed at the laboratory down to minus 2 mm and split with one half of the sample pulverized down to 90% passing 75 microns. Gold analyses were carried out on 50g aliquots by fire assay. In addition, checks assays were also carried out by the screen fire assay method to verify high grade sample assays obtained by fire assay. Internationally recognized standards and blanks were inserted as part of the internal QA/QC analytical procedures.
Minecon has reviewed the quality of all the assay data used for the modelling and estimation of resources to ensure that they all passed the Company’s internal QA/QC criteria.
Gold Price A gold price of US$1,200 per ounce was used in 2014 for the RPA study. To reflect more recent market conditions, a gold price of US$1,500 per ounce has been used in Minecon’s resource determinations.
In summary, this additional 2014 to 2017 information resulted in better quantification with improved confidence in updating the geological model for grade interpolation and pit optimisation studies to determine mineral resources for the Adumbi deposit.
Geological Modelling and Grade Estimation The Adumbi 3-Dimensional model was constructed by Minecon in collaboration with on site geologists using cross sectional and horizontal flysch plans of the geology and mineralization (see Figures 3 and 4) and was used to assist in the constraining of the 3-D geological model. The mineralization model was constrained within a wireframe at 0.5 g/t Au cut-off grade (see Figures 5 and 6). Grade interpolation was undertaken using:
2 metre sample composites capped at 18 g/t Au to improve the reliability of the block grade estimates.
Ordinary Kriging to interpolate grades into the block model.
Relative densities of 2.45 for oxide, 2.82 for transitional and 3.05 for fresh rock were applied to the block model for tonnage estimation.
Pit Optimisation Parameters To constrain the depth extent of the geological model and any mineral resources, an open pit for the Adumbi deposit was constructed based on the following pit optimisation parameters:
A long-term gold price of US$1,500 per ounce.
Block size: 8 metres x 8 metres x 8 metres.
A two-metre minimum mining width and a maximum of four metres of internal waste was applied.
Mining dilution of 100% of the tonnes at 95% of the grade.
Ultimate slope angle of minus 45 degrees.
Metallurgical recoveries of 95% for oxide and transitional material and 90% for fresh rock (in the RPA study a fresh rock metallurgical recovery of 95% was used while Minecon reduced this to a more conservative 90% even though no additional metallurgical testwork was undertaken after the RPA study).
Average mining cost of US$2.5/t mined.
Mineral resources were estimated at a block cut-off grade of 0.9 g/t Au constrained by a Whittle pit with processing and G&A costs of US$30/t.
Transport of gold and refining costs equivalent to 4.5% of the gold price.
No additional studies on depletion by artisanal activity was undertaken since the 2014 RPA study and the same total amount of material was used by Minecon.
The results of the Adumbi pit optimisation (see Figure 7) indicated an inferred mineral resource within the pit of 2.19 million ounces of gold (28.97 million tonnes at 2.35 g/t gold) (see Table II below).
Mineral Resources Within the US$1,500 pit shell (Figure 7), the following is classified as inferred mineral resource at the Adumbi deposit:
Table II: Inferred Mineral Resource for the Adumbi Deposit (with an effective date of April 17, 2020)
Material Type
Tonnage (Tonnes)
Grade (g/t Au)
Contained Gold Ounces
Oxide
3,820,000
2.44
300,000
Transitional
3,320,000
2.69
290,000
Fresh
21,820,000
2.28
1,600,000
TOTAL
28,970,000
2.35
2,190,000
Note: Numbers may not add up due to rounding.
The additional drilling information, the higher RD determinations and the increased gold price, have contributed significantly to the increased mineral resources of the Adumbi deposit with improved confidence.
In summary for the Imbo Project, the inferred mineral resource for the Adumbi, Manzako and Kitenge deposits now totals 2,503,000 ounces of gold (30,650,000 tonnes grading 2.54 g/t Au) and is summarised in Table III below. 76.29% of this inferred mineral resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
Table III: Inferred Mineral Resource for the Imbo Project (with an effective date of April 17, 2020)
Deposit
Tonnage (Tonnes)
Grade (g/t Au)
Contained Gold Ounces
Adumbi
28,970,000
2.35
2,190,000
Kitenge
910,000
6.60
191,000
Manzako
770,000
5.00
122,000
TOTAL
30,650,000
2.54
2,503,000
Note: Numbers may not add up due to rounding.
Additional Resource Potential and Recommendations for Further Work There is significant additional resource potential within the Imbo project permit:
At the Adumbi deposit, the gold mineralization is still open at depth and, subject to securing the necessary financing, the drilling of an additional 12 core holes (7,000 metres) has the potential to add and upgrade mineral resources within the US$1,500 pit as well as outline potential underground resources below the pit (see Figure 8). After this proposed drilling program has been completed, additional drilling may be undertaken (subject to securing the necessary financing) before a Preliminary Economic Assessment is initiated to include additional mineral resource determinations, metallurgical testwork, open pit and potential underground studies, metallurgical plant processing, infrastructural, environmental and economic studies.
At the Kitenge and Manzako deposits, additional drilling may also be undertaken (subject to securing the necessary financing) to further define and increase the inferred mineral resources at these deposits.
Ongoing exploration including gridding, soil sampling, trenching and channel sampling is planned to be undertaken at the Imbo East prospect in order to generate potential drill targets.
An independent National Instrument 43-101 technical report relating to the mineral resource estimates on the Imbo Project reported in this press release will be filed on SEDAR and EDGAR within the period required by National Instrument 43-101.
Qualified Person Mr. Daniel Bansah, Chairman and Managing Director of Minecon, is the “qualified person” (as such term is defined in National Instrument 43-101) who is responsible for the mineral resource estimates and other technical information disclosed in this press release. Mr. Bansah has reviewed and approved the contents of this press release.
About Loncor Resources Inc. Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the Democratic Republic of the Congo (the “DRCâ€). The Loncor team has over two decades of experience of operating in the DRC. Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base. The area is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrickâ€). In 2019, Kibali produced record gold production of 814,000 ounces at “all-in sustaining costs†of US$693/oz. Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of any discovery in 1,894 km2 of Loncor ground that they are exploring. As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. In a recent announcement Barrick highlighted six prospective drill targets and are moving towards confirmation drilling in 2020. Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.
In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick. Barrick has certain pre-emptive rights over the Makapela deposit. Loncor’s Makapela deposit (which is 100%-owned by Loncor) has an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au). Adumbi and two neighbouring deposits hold an inferred mineral resource of 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), with 76.29% of this resource being attributable to Loncor via its 76.29% interest in the project.
Resolute Mining Limited (ASX/LSE: “RSG”) owns 26% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering.
Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com.
Posted by AGORACOM
at 2:17 PM on Thursday, April 16th, 2020
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 a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Recently acquired 14km of the potential extension of the new discovery by New Found Gold’s Queensway project to the south.Click Here for More Info
Gold extended its rally to hit the highest in more than seven years on concern that the coronavirus pandemic will have a deep effect on the global economy, hammering corporate earnings while supercharging demand for havens.
Futures in New York moved closer to US$1,800 an ounce, a level last seen in 2011. Spreads between futures and spot prices remain wide, suggesting thinner liquidity, which is further exacerbating price dislocation.
“Liquidity conditions are challenging and market participants are understandably cautious,†Joni Teves, a strategist at UBS Group AG, said Tuesday in a note. “Gold’s journey has been quite bumpy so far, but given the macro backdrop we think the destination remains higher.â€
Bullion has soared this year as the global heath crisis tipped economies toward recession and spurred central banks to launch huge stimulus measures. Since last month’s wave of forced selling, as equities sank, gold has staged a recovery.
Comex gold futures for June delivery climbed as much as 1.6 per cent to US$1,788.80 an ounce, the highest for a most-active contract since October 2012. The metal rose 0.4 per cent to settle at US$1768.90 at 1:30 p.m. in New York. Spot gold was more than US$30 cheaper at US$1,737.20, with the spread a feature of trading in recent weeks amid physical market disruptions.
Futures pared earlier gains as “there’s a little bit of a move on volatility, and equities turned around a bit, and what we might be seeing is that people are locking in what they’ve gained on gold here,†Bart Melek, head of commodity strategy at TD Securities, said by phone.
Overall, gold still has room to run, according to Hans Goetti, founder and chief executive officer of HG Research.
“What’s happening here is that the Fed is expanding its balance sheet and every other central bank in the world is doing the same,†he told Bloomberg TV. “What you’re looking at is massive currency debasement in the long term. That’s the major reason why gold is higher, and I would think that over the next few weeks or months, we’re probably going to retest the high that we saw in 2011.â€
The Federal Reserve’s massive U.S. monetary program and the fiscal stimulus “could see long-end rates rise during the recovery phase, but not without rising inflation expectations, which should keep real rates suppressed,†TD Securities analysts said in an emailed note. “In this context, we suspect that investment demand for gold will continue to rise as capital seeks shelter from a long-term environment in which real rates are negative.â€
Negative real rates boosts the appeal of non-interest-bearing bullion.
Gold’s latest upswing has come even as risk sentiment received a boost after China’s trade data beat estimates, while the pace of coronavirus infections has slowed in some countries, with the focus shifting toward how lockdowns can be eased. President Donald Trump said he has “total†authority to order states to relax social distancing and reopen their economies.
Worldwide holdings in bullion-backed exchange-traded funds have ballooned to a record on rising demand, with investors seeking additional portfolio protection. On Monday, volumes in SPDR Gold Shares, the largest such fund, surged above 1,000 tons to the highest since mid-2013.
In other precious metals, silver futures also advanced on the Comex, while platinum and palladium gained on the New York Mercantile Exchange.
Posted by AGORACOM
at 9:16 AM on Thursday, April 16th, 2020
Affinity Metals Corp. (TSXV: AFF) (“Affinity”) (“the Corporation”) is pleased to release assay results from the late fall drill program conducted on the Regal property encompassing 8,800 hectares of the northern end of the prolific Kootenay Arc approximately 25 km northeast of Revelstoke, British Columbia, Canada.
Along with numerous high grade intercepts in multiple holes, a significant new silver discovery was made in the ALLCO area with drill hole #10 intersecting 11.10 meters of 143.29 g/t silver including 0.55 meters of 2612.0 g/t silver. This intersection also carried high grade zinc and lead with some copper.
A total of 1,846.35 meters of diamond drilling was completed with 21 holes being drilled.
The drilling was divided over two separate target areas with 10 holes from two separate drill pads allocated to testing two areas within a graphitic argillite/limestone contact in the ALLCO area. Mineralized intersections encountered within the ALLCO area drill core consisted mostly of argentiferous galena, sphalerite and tetrahedrite hosted within quartz veins and breccias along a northwest-southeast fault that separates the limestones from the argillites.
A further 11 preliminary confirmation holes were drilled from a single drill pad designed to begin testing the underground structure associated with the historic 1971 resource (pre NI43-101 and therefore not compliant) reported for the past producing Regal/Snowflake mines. The Regal mine is located within moderately to gently, westerly dipping, graphitic phyllites/argillites of the lower Index Formation. Mineralization, hosted in quartz veins concordant with host rocks, consists of pyrite, galena, sphalerite, and locally with scheelite (lower levels), stannite (upper levels), and trace chalcopyrite/tetrahedrite throughout. Sulphides occur either as disseminations in the quartz, or as massive pods or bands parallel with slatey partings.
Robert Edwards, CEO of Affinity stated: “We are extremely encouraged to see such positive assay results from the 2019 drilling, our first drill program on the property. Our expectations were that the assays would show strong mineralization given what we have seen from our prior surface sampling program and the historical production grades, but to find this new 11 meter silver zone is truly exciting! These results set the backdrop for our 2020 exploration program which will target not only this new silver discovery but even more importantly, the two very large anomalies identified by the geophysics that may be the core deposits associated with all this surrounding mineralization. 2020 should be a very exciting year for Affinity.”
Significant intervals from the drill program are presented below:
ALLCO
Hole No.
From (m)
To (m)
Interval (m)
Ag g/t
Cu %
Pb %
Zn %
RP-19-01
28.67
29.09
0.42
106.00
0.06
0.33
0.01
RP-19-01
105.00
106.00
1.00
28.72
0.10
0.05
0.09
RP-19-03
48.70
48.77
0.07
171.00
0.05
1.24
0.46
RP-19-04
38.64
41.00
2.36
214.13
0.14
2.60
2.67
including
38.64
40.32
1.68
62.55
0.08
0.25
0.16
and
40.32
41.00
0.68
588.63
0.30
8.41
8.87
RP-19-05
40.25
43.00
2.75
29.74
0.02
0.02
0.01
RP-19-05
44.75
45.51
0.76
50.80
0.02
0.25
1.64
RP-19-05
56.33
56.78
0.45
26.16
0.00
0.89
0.91
RP-19-06
39.26
43.29
4.03
29.53
0.08
0.13
7.38
including
42.00
42.62
0.62
17.90
0.04
0.02
4.12
and
42.62
43.29
0.67
130.00
0.40
0.41
40.14
RP-19-06
49.72
50.57
0.85
129.02
0.03
0.04
0.32
RP-19-07
38.37
39.27
0.90
182.00
0.13
0.30
0.32
RP-19-07
43.70
46.51
2.81
49.21
0.02
0.34
0.78
including
45.10
46.25
1.15
91.92
0.02
0.71
1.68
RP-19-07
56.61
57.42
0.81
98.60
0.01
2.42
2.45
RP-19-08
45.44
45.94
0.50
20.64
0.00
0.46
0.01
RP-19-08
47.84
52.27
4.43
111.96
0.09
0.23
0.29
including
49.24
51.12
1.88
238.20
0.19
0.51
0.50
RP-19-08
57.51
58.52
1.01
45.70
0.00
0.05
0.03
RP-19-08
67.86
68.05
0.19
85.24
0.02
1.21
0.11
RP-19-08
82.46
82.66
0.20
11.39
0.00
0.32
0.01
RP-19-08
84.82
85.02
0.20
568.00
0.55
0.08
0.18
RP-19-09
44.41
46.62
2.21
28.70
0.02
0.15
0.13
RP-19-09
46.62
48.70
2.08
31.70
0.02
0.47
1.12
RP-19-09
48.70
49.76
1.06
6.88
0.00
0.14
0.32
RP-19-10
61.00
72.10
11.10
143.29
0.04
0.62
0.50
including
61.00
67.81
6.81
230.84
0.07
0.94
0.66
including
61.00
61.31
0.31
122.00
0.03
4.18
5.04
and
62.72
63.27
0.55
2612.00
0.66
6.00
2.89
REGAL
Hole No.
From (m)
To (m)
Interval (m)
Ag g/t
Cu %
Pb %
Zn %
RP-19-11
9.14
9.38
0.24
13.24
0.00
0.73
0.03
RP-19-11
11.14
15.79
4.65
12.23
0.00
0.32
0.36
including
15.35
15.79
0.44
52.47
0.00
1.20
2.89
RP-19-11
58.44
59.85
1.41
24.85
0.01
0.77
0.25
RP-19-12
7.32
7.62
0.30
40.02
0.00
0.69
0.02
RP-19-12
11.20
11.80
0.60
39.64
0.00
0.95
0.25
RP-19-12
11.93
13.02
1.09
35.90
0.01
0.89
0.79
RP-19-12
13.80
17.77
3.97
26.00
0.00
0.59
0.25
including
13.8
16.17
2.37
39.78
0.00
0.90
0.30
RP-19-12
60.18
60.70
0.52
12.28
0.00
0.07
0.96
RP-19-13
13.76
17.41
3.65
25.38
0.00
0.58
0.48
including
16.91
17.41
0.50
102.21
0.00
1.87
0.28
RP-19-13
18.57
19.05
0.48
15.44
0.01
0.71
0.22
RP-19-14
10.89
11.18
0.29
60.81
0.02
1.24
1.64
RP-19-14
12.28
12.84
0.56
19.83
0.00
0.25
0.21
RP-19-14
12.99
13.34
0.35
13.28
0.03
0.54
0.47
RP-19-14
13.49
13.82
0.33
20.02
0.00
0.35
0.96
RP-19-14
13.93
14.22
0.29
33.00
0.00
1.32
0.53
RP-19-14
16.04
16.31
0.27
43.86
0.00
1.65
1.01
RP-19-15
14.88
15.38
0.50
12.37
0.00
0.38
0.68
RP-19-16
11.30
11.88
0.58
31.23
0.01
0.91
0.55
RP-19-16
13.07
13.80
0.73
41.88
0.00
0.92
0.46
RP-19-16
14.48
15.32
0.84
23.84
0.00
0.62
0.44
RP-19-16
16.88
17.80
0.92
32.15
0.00
1.40
0.56
RP-19-16
28.13
28.29
0.16
4.99
0.02
0.02
2.21
RP-19-17
7.01
7.16
0.15
1360.00
0.01
19.67
0.21
RP-19-17
10.94
11.69
0.75
62.32
0.00
2.78
0.19
RP-19-17
14.64
15.47
0.83
19.82
0.00
0.52
0.36
RP-19-18
12.12
13.41
1.29
48.31
0.00
2.66
0.53
including
12.12
12.94
0.82
70.50
0.00
4.02
0.53
RP-19-18
15.97
18.53
2.56
13.02
0.00
0.33
1.43
including
15.97
17.41
1.44
12.81
0.01
0.37
2.52
RP-19-18
19.92
20.52
0.60
27.27
0.04
1.15
0.76
RP-19-19
6.00
7.00
1.00
68.42
0.00
2.38
0.22
including
6.00
6.30
0.30
134.00
0.01
7.13
0.13
RP-19-19
12.13
17.68
5.55
13.35
0.00
0.46
0.39
including
15.82
17.68
1.86
30.83
0.00
1.17
0.78
RP-19-19
29.91
30.42
0.51
22.88
0.02
1.22
0.89
RP-19-20
6.15
6.65
0.50
46.47
0.01
1.75
0.13
RP-19-20
7.60
8.32
0.72
33.37
0.00
0.50
0.19
RP-19-20
12.01
12.68
0.67
21.51
0.01
0.67
0.49
RP-19-20
15.27
16.36
1.09
18.63
0.00
0.48
0.43
RP-19-20
17.29
18.68
1.39
10.52
0.00
0.34
0.62
RP-19-20
28.08
31.17
3.09
58.78
0.00
0.35
0.33
including
29.52
30.22
0.70
214.00
0.00
0.34
0.19
RP-19-21
9.05
9.56
0.51
37.45
0.00
0.58
0.02
RP-19-21
12.98
13.82
0.84
17.29
0.01
0.47
0.79
RP-19-21
15.89
17.27
1.38
39.77
0.00
1.55
0.70
including
15.89
16.57
0.68
76.50
0.00
3.07
0.31
and
17.00
17.27
0.27
1.84
0.00
0.06
2.27
RP-19-21
30.40
30.54
0.14
46.83
0.00
0.31
0.16
RP-19-21
31.82
32.82
1.00
61.10
0.01
3.39
1.49
RP-19-21
72.01
72.26
0.25
77.11
0.00
0.62
0.02
Note: True widths are presently unknown.
Additional assay work is presently being conducted regarding Tin results in the drill core. Those results will be released once received and interpreted.
Photo description: Photos of 11.10 meter silver discovery intersection in Hole #10. Host rock is a limestone dissolution breccia/dolomitization breccia with weak to moderate silicification overprinting. Flooding this is milky quartz which hosts wispy veinlets of galena and blebby sphalerite at intersections of these or other veinlets.
As previously reported, the Corporation received assay results for 22 rock samples collected from surface outcrops in September 2019 from the Black Jacket and ALLCO areas of the property. Of the 22 grab samples collected, the majority contained bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. The over-limit results for zinc and lead are reported in the table below (italicized) beside the original assay values. Assay values for tin, including high grade samples 11, 14 and 20 which were over-limit in the original assay report, are also presented in the last column of the table.
Sample Number
Sample Type
Silver g/t
Copper %
Zinc %
Lead %
Gold g/t
Tin ppm
ALC19CR01
grab
0
.035
0
0
0
0.4
ALC19CR02
grab
1300
.415
18.20
>20.0 (35.69)
0.70
46.1
ALC19CR03
grab
120
.232
.034
.984
0.02
2.4
ALC19CR04
grab
131
.089
.026
.102
2.66
1.1
ALC10CR05
grab
16.7
.295
.060
.013
0.09
0.4
ALC19CR06
grab
74.9
.144
>30.00 (34.97)
.059
0.28
2.6
ALC19CR07
grab
10.05
.310
.086
.029
0.04
0.5
ALC19CR08
grab
1870
.495
24.5
>20.0 (31.90)
1.85
189.5
ALC19CR09
grab
88.1
.077
>30.00 (39.98)
1.88
0.08
32
ALC19CR10
grab
1545
.178
26.7
>20.0 (28.67)
0.68
373
ALC19CR11
grab
2360
.366
16.80
>20.0 (43.67)
0.11
900
ALC19CR12
grab
3700
.624
1.645
>20.0 (71.14)
3.14
273
ALC19CR13
grab
964
.716
17.30
17.5
0.11
386
ALC19CR14
grab
3530
.350
1.945
>20.0 (59.54)
1.57
1600
ALC19CR15
grab
3670
.026
1.895
>20.0 (77.01)
0.33
205
ALC19CR16
grab
1790
.107
5.28
>20.0 (52.77)
0.37
146.5
ALC19CR17
grab
751
.069
6.45
18.05
0.45
107
ALC19CR18
grab
1065
.718
.178
.514
0.10
7.6
ALC19CR19
grab
2510
.299
5.58
>20.0 (70.63)
0.06
167
ALC19CR20
grab
4410
2.27
26.40
>20.0 (21.56)
5.68
4500
ALC19CR21
grab
47.5
.177
.048
.092
1.78
8.8
ALC19CR22
grab
87.7
.095
.011
.047
4.79
2.9
Property History & Background
The Regal Project hosts several past producing small-scale historic mines including the Regal Silver.
The property also hosts numerous promising mineral occurrences. From the historic records it appears that most, and perhaps all, of the known mineralized showings/zones have not been previously drilled using modern diamond drilling methods.
The geology of the Regal property generally consists of the Badshot and Lade Peak limestones, and argillites and phyllites of the Index Formation.
Snowflake and Regal Silver (Stannex/Woolsey) Mines
The Snowflake and Regal Silver mines were two former producing mines that operated intermittently during the period 1936-1953. The last significant work on the property took place from 1967-1970, when Stannex Minerals completed 2,450 meters of underground development work and a feasibility study, but did not restart mining operations. In 1982, reported reserves were 590,703 tonnes grading 71.6 grams per tonne silver, 2.66 per cent lead, 1.26 per cent zinc, 1.1 per cent copper, 0.13 per cent tin and 0.015 per cent tungsten (Minfile No. 082N 004 – Prospectus, Gunsteel Resources Inc., April 29, 1986). It should be noted that the above resource and grades, although believed to be reliable, were prepared prior to the adoption of NI43-101 and are not compliant with current standards set out therein for calculating mineral resources or reserves.
ALLCO Silver Mine
The ALLCO Silver Mine is situated 6.35 Kilometers northwest of the above described Snowflake/Regal Mine(s). The ALLCO Silver Mine operated from 1936-1937 and produced 213 tonnes of concentrates containing 11 troy ounces of gold (1.55 g/t), 11,211 troy ounces of silver (1,637 g/t) and 173,159 lbs of lead (36.9%).
Airborne Geophysics to Guide Future Exploration
An extensive airborne geophysics survey conducted by Geotech Ltd of Aurora, Ontario, for Northaven Resources Corp. in 2011, on the Regal Project identified four well defined high potential linear targets correlating with the same structural orientation as the Allco, Snowflake and Regal Silver mines. Northaven also reported that the mineralogy and structural orientation of the Allco, Snowflake and Regal Silver appeared to be similar to that of Huakan’s J&L gold project located to the north, and on a similar geophysical trend line. The J&L is reportedly now one of western Canada’s largest undeveloped gold deposits. Rokmaster Resources Corp. recently optioned the J&L property in a $44.2M deal and has renamed it the Revel Ridge Project. Rokmaster is presently working on expanding the current resource.
After completing the airborne survey, Northaven failed in financing their company and conducting further follow up exploration on the property and subsequently forfeited the claims without any of the follow up work ever being completed. Affinity Metals is in the fortunate position of benefitting from this significant and promising geophysics data and the associated targets.
The aforementioned Northaven airborne geophysical survey conducted at a cost of $319,458.95 in August of 2011 is described in The BC Ministry of Energy, Mines and Petroleum Resources Assessment Report #33054. The results of the survey are competently explained and illustrated by professionals on You Tube at: https://www.youtube.com/watch?v=GX431eBY_t0
Condor Consulting, Inc. who compiled the survey data and produced the original geophysics report was recently retained by Affinity in order to provide more detailed interpretations and potential drill target locations with the aim of testing two of the four main target areas in the future.
Earth Sciences Services Corp. (ESSCO) has also recently provided acoustical geophysics data for portions of the Regal property. This data is also being interpreted and analyzed with respect to future drill targets.
The Corporation is presently in the process of correlating and interpreting all of the historic and new geophysical and geochemical data as well as the 2019 drill results with the objective of further defining 2020 drill targets.
Affinity Metals has been granted a 5 Year Multi-Year-Area-Based (MYAB) exploration permit which includes approval for 51 drill sites.
Assay Procedure, Quality Assurance and Quality Control Procedures
All drill core samples were sent to MSA Laboratories in Langley, British Columbia for assay. Samples were analyzed by the following methods, as appropriate, to determine grades: ICP-130 35 element two acid digestion with ICP-AES finish, IMS-130 51 element two acid digestion with ICP-AES/MS finish, FAS-418 Ag 30g fire assay with gravimetric finish, determination of Ag, Cd, Pb, W, and Zn with four acid digestion and ICP-AES finish, determination of Pb and Zn by titration, and determination of Sn by Sodium Peroxide fusion with ICP-OES finish.
The Company employed a QA/QC program that was managed by a Qualified Person during the entire drill program. Blanks, duplicates (both pulp splits and 1/4 core), and two certified standard reference materials were used. These QA/QC samples were inserted at a rate of 1 every 10 to 15 samples.
Qualified Person
The Qualified Person for the Regal Project for the purposes of National Instrument 43-101 is Frank O’Grady, P.Eng. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
About Affinity Metals
Affinity Metals is focused on the acquisition, exploration and development of strategic metal deposits within North America.
The Corporation’s flagship project and present focus is the Regal.
On behalf of the Board of Directors
Robert Edwards, CEO and Director of Affinity Metals Corp.
Posted by AGORACOM
at 8:42 AM on Thursday, April 16th, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info
Physical gold was up 13.8 percent through April 10
Too few investors have adequate exposure to the yellow metal
Gold and gold stocks are among the highest performing assets of 2020 so far as investors seek a haven amid the coronavirus-fueled rout, and as central banks and governments around the world roll out unprecedented monetary and fiscal measures in an effort to mitigate the economic impact of the “Great Lockdown.â€
That’s the name the International Monetary Fund (IMF) has given this uncertain period, and I believe it may stick. The IMF added that the “world economy will experience the worst recession since the Great Depression,†with global economic growth this year projected to fall to negative 3 percent.
This highlights the importance of protecting your family’s wealth right now, which savvy investors have historically managed to do with gold and precious metals.
Physical gold was up about 13.8 percent through April 10, while senior gold miners advanced 2.8 percent, making the group the best asset class of the year so far. Longtime readers of Frank Talk know that I frequently recommend a 10 percent weighting in gold and gold stocks, and now you can see why. A 10 percent allocation at the beginning of the year—before any of us had ever heard of the novel coronavirus—could have helped minimize the impact of losses in other positions.
(Click on images to enlarge)
The problem is that too few investors have adequate exposure to the yellow metal. That’s the case even for many who may believe they do. As the World Gold Council (WGC) pointed out last year, most broad-based commodity indices have a very small weighting in gold — the S&P GSCI’s, for instance, is only 3.37 percent. What this means is that investors in funds that track these indices likely do not get the full benefit of having gold in their portfolio.
That’s why I recommend that the 10 percent weighting be split into two halves, with 5 percent in physical gold (bars, coins, 12-karat jewelry ) and the other 5 percent in high-quality gold and precious metal mining stocks, mutual funds and ETFs.
Maybe you’ve missed the rally up to this point, but the good news is that it’s probably still not too late to participate.
Gold Well-Positioned to Revert to Its Mean Relative to the S&P 500
According to analysis by Bloomberg commodity strategist Mike McGlone, the price of gold appears to be seeking to revert to its long-term mean relative to the S&P 500 Index. This would suggest that we could see a new record high, driven largely by excessive money printing.
“Unprecedented global monetary stimulus is a worthy catalyst for the per-ounce price of gold to revert to its long-term mean vs. the S&P 500 Index, in our view,†McGlone explains.
The implication of mean reversion right now is that gold would hit a new all-time high, assuming the S&P continues to trade around 2,800. After all, a one-to-one ratio means that both assets are trading at the same level.
This has happened before, as you can see in the chart above. As recently as March 2013, both spot gold and the S&P 500 were trading in the same 1,500 to 1,600 range. Before that, in May 1990, it was a 330 to 360 range.
A reversion to the mean now—again, assuming the S&P continues to trade at its current level—would put the yellow metal at approximately $2,800 an ounce, a new record high by far.
But remember, that’s just a simple one-to-one ratio. The long-term gold/S&P mean is slightly higher, at 1.12, so the gold price would also be slightly higher, possibly closer to $3,000 an ounce.
Mean reversion is something I write about more in-depth in “Managing Expectations: Anticipate Before You Participate in the Market,†which you can read by clicking here.
Interest in Gold Mining Stocks and Gold Royalty Companies Takes Off
Not enough investors have optimal exposure to gold, according to the WGC, but we’re currently seeing a surge in interest in gold mining stocks and gold royalty companies, if Google search data is any indication.
Search terms using “gold mining stocks†and “gold royalty companies†were higher this month than at any other time in the past 10 years. That includes when the yellow metal hit its record high of $1,900 an ounce in 2011.
Google Trends isn’t a leading indicator recognized by mainstream economists and market analysts, but I believe it shows where investors’ thinking may be at right now. They’re seeking a way to preserve their wealth as we face what could be the worst economic downturn in nearly 100 years, and they’re betting that higher precious metal prices will send shares of gold mining and royalty companies higher as well.
Posted by AGORACOM
at 11:16 AM on Wednesday, April 15th, 2020
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 a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Recently acquired 14km of the potential extension of the new discovery by New Found Gold’s Queensway project to the south.Click Here for More Info
Gold futures prices are trading not far from unchanged on the day Tuesday at midday, after scoring a 7.5-year high early on, at $1,788.80, basis June Comex futures. Silver prices are sharply up and at a four-week high today. Gold bulls are enjoying the strong near-term technical advantage to continue to suggest more upside for the yellow metal in the near term. Safe-haven demand continues to boost gold, and to a lesser degree silver, as the global economy is still on very shaky ground. June gold futures were last up $0.10 an ounce at $1,761.30. May Comex silver prices were last up $0.503 at $16.04 an ounce.
Global stock markets were mostly higher in overnight trading. U.S. stock indexes are solidly higher at midday. More and more it appears North America and Europe have “turned the corner†on the Covid-19 pandemic. New York Governor Cuomo said Monday his state has seen the worst of the pandemic. Other hotspots in the U.S. have also showed signs of simmering down. Leading U.S. health officials are now saying the world’s largest economy can very likely begin to reopen in stages beginning in May.
The present Covid-19 situation appears to be a sweet spot for the precious metals. There is enough confidence in the marketplace for traders to want to trade markets, but the global economies are still in very bad shape and it’s uncertain when they will be fully operational or healed.
Major corporate earnings reports are now starting to be released, which will show the early impact of the Covid-19 pandemic, and be a sobering reminder of the tough economic times at present. JP Morgan’s results today were a testament of a crippled U.S. economy.
In overnight news, China, the world’s second-largest economy, saw its March exports down 6.6%, year-on-year, which was less than expected. Imports were down 0.9% in the period, also way less than expected. China watchers deemed this data as upbeat, showing the Chinese economy is recovering from the pandemic.
The important markets today see Nymex crude oil prices trading solidly lower, around $21.00 a barrel. Oil market bulls are sorely disappointed the weekend OPEC and other major oil producers agreement to restrict oil output did not boost crude oil futures prices. However, there is no consensus on how much oil production will be reduced. Some market watchers think 10 million barrels a day and the more optimistic bulls think 20 million. There is more agreement among analysts that worldwide oil demand has dropped by at least 20 million barrels a day.
Meantime, the U.S. dollar index is lower at midday. The 10-year U.S. Treasury note yield is trading around 0.735% today.
Technically, June gold futures bulls have the strong overall near-term technical advantage. More upside is likely in the near term. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,800.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,788.80 and then at $1,800.00. First support is seen at today’s low of $1,755.30 and then at $1,750.00. Wyckoff’s Market Rating: 9.0
May silver futures prices were nearer the session high and hit a four-week high at midday. The silver bulls have the overall near-term technical advantage. Prices are in a four three-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at today’s high of $16.30 and then at $16.50. Next support is seen at today’s low of $15.655 and then at this week’s low of $15.385. Wyckoff’s Market Rating: 6.5.
May N.Y. copper closed up 285 points at 233.10 cents today. Prices closed near the session high and closed at a four-week high close today. The copper bulls have the slight overall near-term technical advantage. A price uptrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 250.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 220.00 cents. First resistance is seen at this week’s high of 235.25 cents and then at 238.00 cents. First support is seen at 230.00 cents and then at this week’s low of 226.35 cents. Wyckoff’s Market Rating: 5.5
Posted by AGORACOM
at 10:46 AM on Tuesday, April 14th, 2020
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 a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Recently acquired 14km of the potential extension of the new discovery by New Found Gold’s Queensway project to the south.Click Here for More Info
Gold futures prices are trading narrowly on both sides of unchanged in early U.S. trading Tuesday after scoring another 7.5-year high, at $1,785.00 overnight, basis June Comex futures. Gold bulls are enjoying the strong near-term technical advantage to continue to suggest more upside for the yellow metal in the near term. Safe-haven demand continues to boost gold, and to a lesser degree silver, as the global economy is still on very shaky ground. June gold futures were last down $0.90 an ounce at $1,760.20. May Comex silver prices were last up $0.388 at $15.925 an ounce.
Global stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward higher openings when the New York day session begins. More and more it appears North America and Europe have “turned the corner†on the Covid-19 pandemic. New York Governor Cuomo said Monday his state has seen the worst of the pandemic. Other hotspots in the U.S. have also showed signs of simmering down. Leading U.S. health officials are now saying the world’s largest economy can very likely begin to reopen in stages beginning in May.
Major corporate earnings reports are now starting to be released, which will show the early impact of the Covid-19 pandemic, and be a sobering reminder of the tough economic times at present.
Technically, the gold bulls have the strong overall near-term technical advantage amid a price uptrend in place on the daily, weekly and monthly charts. That strongly suggests the path of least resistance for prices will remain sideways to higher for at least the near term and probably longer. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at the overnight high of $1,785.00 and then at $1,800.00. First support is seen at $1,750.00 and then at Monday’s low of $1,724.20. Wyckoff’s Market Rating: 8.5
May silver futures bulls have the overall near-term technical advantage and prices are trending higher on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at last week’s high of $16.09 and then at $16.25. Next support is seen at Monday’s low of $15.385 and then at $15.25. Wyckoff’s Market Rating: 6.0.
Posted by AGORACOM
at 8:59 AM on Tuesday, April 14th, 2020
Sponsor: Affinity Metals Corp. (TSX-V: AFF) is a Canadian mineral exploration company building a strong portfolio of mineral projects in North America. The Corporation’s flagship property is the drill ready Regal Property near Revelstoke, BC where Affinity Metals is making preparations for a spring drill program to test two large Z-TEM anomalies. Click Here for More Info
By the mid-6th century BC, Darius the Great was ‘King of Kings’, ruling over the vast Achaemenid Empire.
By that time, gold and silver had already been in use by earlier civilizations for thousands of years.
There are cuneiform tablets that are nearly 4,000 years old from ancient Sumeria which record commercial transactions made in gold and silver.And subsequent civilizations – the Babylonians, Egyptians, Lydians, etc. all used gold or silver in commerce.But Darius had a unique idea. He borrowed the idea of minting gold and silver coins from the Lydians… but then established a fixed exchange rate between the two metals.
Darius decreed that one gold “daric†was worth 13.5 silver coins– one of the first examples in history of a fixed, bimetallic standard.
His idea caught on. And for thousands of years afterward, later civilizations established a fixed gold/silver ratio.
In ancient Greece during the age of Pericles, gold was valued at 14x silver. In ancient Rome, Julius Caesar valued gold at 12x silver.
It remained this way for centuries.
Even in the earliest days of the United States, eighteen centuries after Caesar, The Coinage Act of 1792 established a ratio of 15:1.
(According to the law, one US dollar is supposed to be 24.1 grams of silver, or 1.6 grams of gold. So those pieces of paper in your wallet are not dollars– they are technically “Federal Reserve Notesâ€.)
In modern times there is no longer a fixed ratio between gold and silver, though its long-term average over the last several decades has been between 50:1 and 80:1.
This is a lot higher than in ancient times… but the circumstances are obviously different.
Today, gold is still widely used as a reserve by central banks and governments around the world. And investors still buy gold as a hedge against inflation and uncertainty.
Silver, on the other hand, has countless industrial applications; it’s a critical component in everything from mobile phones to automobiles to solar panels.
Like gold, silver is also a hedge against inflation and uncertainty.
But silver’s demand fundamentals are more heavily influenced by overall economic health. If the economy is in recession, silver prices can fall because there’s less demand from industry.
Gold, on the other hand, doesn’t follow that pattern. In 5 out of the last 6 recessions, in fact, gold has increased in price.
That’s why recessions, and extreme turmoil, can lead to a massive spike in the gold/silver ratio. Gold goes up, and silver stays flat (or falls).
Just prior to World War II as Hitler launched his invasion of Poland, the ratio spiked to 98:1.
In 1991 as the first Gulf War began, the ratio again reached 100:1.
Today we’re back again in that territory; as of this morning, the ratio is 110:1, and it’s been as high as 120 or more in recent weeks
Now, there are very few things about this pandemic that we can be certain about.
Things that were unthinkable even a month ago are now part of our daily lives. And so as I’ve written over and over again, EVERY possible scenario is on the table right now.
But one thing that does seem very clear is that central banks around the world are going to print an extraordinary amount of money.
Many of them already have.
The Federal Reserve in the US, for example, has already expanded its balance sheet to SIX TRILLION DOLLARS.
That’s a nearly 50% increase from last month. And they’re just getting started.
Why does something so mundane as a central bank balance sheet even matter?
Because a rising balance sheet means they’re conjuring trillions of dollars out of thin air to bail everyone out.
This is the way they solve problems: they print money and debase the currency, something that policymakers have been doing for thousands of years.
But you can only get away with doing that a limited number of times before the currency starts to lose value.
We don’t know how long it will last, how much destruction it will cause, or what the world will look like once this is over.
But we can be pretty sure that central banks are going to print a ridiculous amount of money, and that governments will go into a ridiculous amount of debt.
They’ve told us this much. And they’ve already started to do it. So this seems pretty obvious.
The price of gold is up significantly over the last several months, and since the start of this crisis.
But the price of silver has declined… leading to a record-high gold/silver ratio.
This ratio may stay elevated for a while, or even go higher.
But in the past, the ratio has always returned to more traditional levels. Always. Even when the world was facing Adolf Hitler or the Great Depression.
So it stands to reason that, if they keep printing money (which they already are), and the ratio eventually returns to its historical range, the price of silver could really skyrocket.
We’ll spend some time this week talking about some interesting ways to take advantage of this.
