Posted by AGORACOM
at 11:08 AM on Thursday, April 23rd, 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
Ronald Peter Stöferle’s keynote speech at this year’s virtual World Gold Forum 2020.
Unlimited quantitative easing and fiscal stimulation. Central banks and governments are on the test bench. Learn why this is the perfect breeding ground for gold, commodities and mining stocks.
A golden future lies ahead!
Topics: Black Swan or Grey Rhino?
In recent weeks, the news filled with Corona, experts and governments have been throwing around the term Black Swan. The Black Swan is a metaphor that describes an unpredictable, rare event that causes great harm. Ronald Stöferle, on the other hand, is of the opinion that the corona virus is more like a grey rhinoceros. A rare but highly probable but neglected event.
Central banks and governments under scrutiny We are in the process of making history. Never before has there been a crisis in which so many monetary and fiscal interventions by central banks and governments have been made in such a short time. Ronald postulates that the central banks, as they have already announced, will do everything possible to prevent deflation. The markets and the population should therefore be prepared for anything. From unlimited quantitative easing, to ideas like the universal basic income.
Gold on the rise again. There is a general change on the markets. Gold has reappeared on the scene. Ronald shows how gold has done exactly what it is supposed to do. Stabilize your portfolio and protect your assets from a drastic decline in stock values. He also postulates that the gold price has already reached its lowest point. Inflation or Stagflation Even if it was in fashion to declare inflation dead, it seems to be returning. Ronald explains that our in-house inflation indicator shows that inflation could be about to make a comeback. The markets are unlikely to feel this until the curfew is lifted and there is suddenly much more money in the system.
Gold stocks back in the bull market The comparison between the Great Depression and now does not seem to limp. Ronald postulates a good environment for gold mining stocks, as was the case during the Great Depression. The Golden Future Gold has returned to the public eye. We are currently in the public participation phase.
As Ronald explains that current climate, both by the massive interventions and the general crisis, are the perfect breeding ground for gold and commodities in general.
Posted by AGORACOM
at 9:20 AM on Thursday, April 23rd, 2020
JV partner Tudor Gold Corp has initiated metallurgical studies
Study will focus on the mineral characteristics and the prospects of developing Treaty Creek as a bulk tonnage mining target
Metallurgical test results will be used as part of the initial economic assessment for the project.
Cardston, Alberta–(Newsfile Corp. – April 23, 2020) – Â American Creek Resources Ltd. (TSXV: AMK) (“the Corporation”) is pleased to report that its JV partner Tudor Gold Corp has initiated metallurgical studies for the JV flagship project, Treaty Creek, located in the Golden Triangle of north-west British Columbia. This study will focus on the mineral characteristics and the prospects of developing Treaty Creek as a bulk tonnage mining target using conventional processing techniques. The test work will be conducted on material selected from the extensive continuously mineralized drill core intervals encountered in the 2019 exploration program. The metallurgical test results will be used as part of the initial economic assessment for the project.
The metallurgical study will be managed under the direction of Frank Wright, P.Eng., of F. Wright Consulting Inc, of Delta BC. The related laboratory test program will be conducted at Bureau Veritas Minerals – Metallurgical Division of Richmond, BC (BV). BV is a globally recognized and certified testing facility with customers ranging from small independent operators to large multi-national mining firms and consultants. Mr. Wright has over 30 years of experience consisting of both operations and consulting in the fields of mineral processing and hydrometallurgy. His career has included the last 20 years as a qualified independent professional engineer managing process advancement for projects worldwide, although primarily focused in BC. His work includes oversight of test programs leading to the selected process flowsheet and design criteria, related technical reporting, supervision of detailed engineering, and assisting in project commissioning.
Tudor Gold also announced an agreement with RTEC (a joint venture partnership between ERM Consultants Canada Ltd. (ERM) and the Tahltan Nation Development Corporation (TNDC)), to begin preliminary baseline studies that will be required for provincial permitting of the Treaty Creek project. These baseline studies will focus on surface water quality, hydrology, atmospherics, wildlife and archaeology.
Tudor Gold’s Vice President of Project Development, Ken Konkin, P.Geo., states: “The metallurgical test work and baseline studies will provide crucial data to further our project development plans. These studies will serve as templates for on-going studies aimed to carry the project forward to more advanced stages. Both studies will begin in conjunction with the 2020 diamond drill hole exploration program that is planned to start this spring. In addition, our geologists will select representative composite samples from last year’s drill holes as the basis for our preliminary metallurgical studies.”
The safety and wellbeing of Tudor Gold employees, contractors, and communities they work in is of upmost importance. Tudor Gold has developed new operational guidelines to reduce the chance of spread of the COVID-19 virus while conducting our work, which has been deemed as essential service by the Provincial Government.
Tudor Gold’s Covid-19 policy and guidelines are available on their website at:
Walter Storm, President and CEO of Tudor Gold stated: “2020 is poised to be a transformative year for our company. The agreement with RTEC to begin preliminary baseline studies, necessary for potential future mine permitting, together with the initiation of the metallurgical studies, demonstrates our commitment to further advance the Treaty Creek project. These studies as well as the upcoming drill program are fully funded. We are particularly pleased that we were able to further strengthen our partnership with the Tahltan First Nations through the RTEC agreement.”
About the RTEC Joint-Venture partnership
RTEC is a joint venture partnership between ERM Consultants Canada Ltd. (ERM) and the Tahltan Nation Development Corporation (TNDC). With more than 5,500 people, ERM is a leading global provider of environmental, health, safety, risk, social consulting services and sustainability related services. The Tahltan Nation Development Corporation (TNDC) is the business arm of the Tahltan Nation. TNDC pursues sustainable and responsible business and economic development opportunities in the region that lead to employment, training and business opportunities for Tahltan members.
Qualified Person
The Qualified Person for this news release for the purposes of National Instrument 43-101 is the Company‘s Vice President of Project Development, Ken Konkin, P.Geo. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
Treaty Creek JV Partnership
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 creating a 3:1 ownership relationship between Tudor Gold and American Creek. 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 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.
The Corporation also holds the Gold Hill, Austruck-Bonanza, Ample Goldmax, Silver Side, and Glitter King properties located in other prospective areas of the province.
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 3:11 PM on Wednesday, April 22nd, 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
Ronald Peter Stöferle’s keynote speech at this year’s virtual World Gold Forum 2020.
Unlimited quantitative easing and fiscal stimulation. Central banks and governments are on the test bench. Learn why this is the perfect breeding ground for gold, commodities and mining stocks.
A golden future lies ahead!
Topics: Black Swan or Grey Rhino?
In recent weeks, the news filled with Corona, experts and governments have been throwing around the term Black Swan. The Black Swan is a metaphor that describes an unpredictable, rare event that causes great harm. Ronald Stöferle, on the other hand, is of the opinion that the corona virus is more like a grey rhinoceros. A rare but highly probable but neglected event.
Central banks and governments under scrutiny We are in the process of making history. Never before has there been a crisis in which so many monetary and fiscal interventions by central banks and governments have been made in such a short time. Ronald postulates that the central banks, as they have already announced, will do everything possible to prevent deflation. The markets and the population should therefore be prepared for anything. From unlimited quantitative easing, to ideas like the universal basic income.
Gold on the rise again. There is a general change on the markets. Gold has reappeared on the scene. Ronald shows how gold has done exactly what it is supposed to do. Stabilize your portfolio and protect your assets from a drastic decline in stock values. He also postulates that the gold price has already reached its lowest point. Inflation or Stagflation Even if it was in fashion to declare inflation dead, it seems to be returning. Ronald explains that our in-house inflation indicator shows that inflation could be about to make a comeback. The markets are unlikely to feel this until the curfew is lifted and there is suddenly much more money in the system.
Gold stocks back in the bull market The comparison between the Great Depression and now does not seem to limp. Ronald postulates a good environment for gold mining stocks, as was the case during the Great Depression. The Golden Future Gold has returned to the public eye. We are currently in the public participation phase.
As Ronald explains that current climate, both by the massive interventions and the general crisis, are the perfect breeding ground for gold and commodities in general.
Posted by AGORACOM-JC
at 9:37 AM on Wednesday, April 22nd, 2020
Rob Edwards discusses the extraordinary exploration results at the ALLCO Project and the implications of discovering such a significant discovery hole at their Regal Pollymettalic Property in the Kootenay Arc, B.C.
The numbers show there is a considerable source of mineralization on the property to create 11.10 meters of 143.29 g/t silver including 0.55 meters of 2612.0 g/t, only further exploration will continue to define the limits of the Allco area and other the Major targets Affinity has plans for developing during the 2020 exploration season.
Take a seat and grab your favorite beverage and have a listen to the remarkable story that is Affinity Metals.
Posted by AGORACOM
at 8:52 AM on Wednesday, April 22nd, 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
The analysts noted that the Federal Reserve: “Can’t print gold.â€
(Kitco News) – Bank of America commodity analysts just keep getting more bullish on gold as the weeks go by.
The bank said in a report last week that gold ’s technical momentum could drive prices to an all-time high this year; in a new report published Tuesday, analysts have officially increased their bullish outlook, saying that gold prices could hit $3,000 within 18 months, a 50% increase from its previous forecast
Along with increasing its 18-month target, the bank said that it sees gold prices averaging $2,063 an ounce in 2021.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,†the analysts said.
Although a strong U.S. dollar and weak physical jewelry demand in Asia could be headwinds for the gold market, the analysts said that the Federal Reserve has provided enough momentum to propel investment demand and prices higher.
Economists at Bank of America have warned that the Federal Reserve’s balance sheet as a percentage of GDP could rise 20% to 40% this year. According to reports last week, the Federal Reserve’s balance sheet hit a record high of $6.42 trillion, up more than 50% from levels reported during the first week of March.
The analysts noted that the Federal Reserve: “Can’t print gold.â€
“Beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale. Rates in the US and most G-10 economies will likely be at or below zero for a very long period of time as central banks attempt to push inflation back above their targets,†the analysts said.
Although investor sentiment has improved slightly during the last few weeks, the bank’s analysts said that there is still more bad news ahead. They noted that economists are forecasting a 30% decline in the U.S. GDP in the second quarter as the economy was grounded after all non-essential businesses were closed and citizens were requested to stay at home.
“As central banks rush to expand their balance sheets and backstop the economy, a lot of risks could effectively be socialized, boosting the appeal of gold,†the analysts said.
Weak economic growth does not bode well for equity markets, the analysts said, adding that this will be another factor supporting higher gold prices.
“The positive equity/gold correlations are a possible sign that equity markets may not have fully bottomed and that the gold market has further room to run, in our view. The trigger here could be an extension of lockdown restrictions over the next few weeks,†the analysts said.
Despite the strong bullish sentiment, Bank of America does see some risks in the marketplace. Along with weak physical demand, the analysts said that central bank gold purchases are expected to slow this year.
They also noted that lower market volatility could also weigh on gold prices.
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.
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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.
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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.
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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.
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In other precious metals, silver futures also advanced on the Comex, while platinum and palladium gained on the New York Mercantile Exchange.
