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INTERVIEW: Advance Gold $ 3D Model Shows Large Cluster Of Mineralized Veins

Posted by AGORACOM-JC at 6:02 PM on Wednesday, June 26th, 2019

Monarques Gold $ Produces 4,417 Ounces of #Gold and Generates $11.4 million in Revenue in its Second Quarter $ $ $ $ $ $IAG $MUX

Posted by AGORACOM-JC at 9:18 AM on Wednesday, January 23rd, 2019
  • Production activities at the Beaufor Mine extended until April 2019, taking place in known stopes with a smaller workforce
  • Sustained positive contribution of custom milling at the Camflo mill
  • During the quarter, successfully completed a positive feasibility study on its Wasamac deposit (see feasibility study), which can be summarized as follows:
    • Projected annual average gold production of 142,000 ounces over 11 years
    • Pre-tax NPV of $522 million
    • Pre-tax IRR of 23.6%
    • Production cash costs of US$550 per ounce

MONTREAL, Jan. 23, 2019 – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to report its production results and corporate highlights for the second quarter ended December 31, 2018. Amounts are in Canadian dollars unless otherwise indicated.

Production highlights

  • Monarques produced 4,417 ounces of gold in the second quarter, up 23% from the first quarter but down 19% from 5,444 ounces last year.
  • The Corporation recorded revenues of $11.4 million in the second quarter from the sale of 5,169 ounces of gold at an average price of $1,656 per ounce (US $1,254), combined with revenues from custom milling operations, which were up 2% from the first quarter and more than 71% year over year.

“These positive results for Monarques in the second quarter reflect a number of factors, including better grades from known stopes at the Beaufor Mine, higher gold prices and the sustained contribution of custom milling activities at Camflo,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “We will continue mining the ore remaining in the known stopes at Beaufor over the next few months, which should allow us to continue producing until April 2019. To reduce costs and in anticipation of the upcoming suspension of production activities at Beaufor, we stopped doing exploration and development work a few months ago and currently have 51 employees at the Beaufor Mine, compared to approximately 130 employees prior to the announcement of the suspension. I would also like to thank our employees for their outstanding performance during the quarter.”

Production statistics

Three months
December 31,
Three months
December 31,
Six months
December 31,
Six months
December 31,
Beaufor Mine
Ore processed (tonnes) 26,079 35,005 55,454 35,005
Gold recovery (%) 98.50 98.68 98.26 98.68
Ounces produced 4,417 5,444 8,325 5,444
Ounces sold 5,169 5,444 8,441 5,444

Corporate highlights

  • On October 23, 2018, the Corporation provided new results from the Probe Metals Inc. 2018 drilling program on the Monique property, located near Val-d’Or, Quebec (see press release).

  • On December 3, 2018, the Corporation reported positive results from the feasibility study prepared by BBA Inc. for the Wasamac Gold project (see press release).

  • On December 13, 2018, Monarques announced that it had closed a non‐brokered private placement of an aggregate of 3,029,606 flow‐through shares at a price of $0.33 per flow-through share, for aggregate gross proceeds of $999,769.98 (see press release).

  • On December 18, 2018, the Corporation reported that it had consolidated its position around its Wasamac property through an exchange of mineral claims with Globex Mining Enterprises Inc. (see press release).

  • On January 15, 2019, the Corporation reported additional positive assay results from the 2018 diamond drilling program at its wholly owned Croinor Gold project 50 kilometres east of Val-d’Or, Québec (see press release).

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, P.Eng., the Corporation’s qualified person under National Instrument 43‑101.


Monarques Gold Corporation (TSX: MQR) is an emerging gold mining company focused on pursuing growth through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns close to 300 km² of gold properties (see map), including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor Mine, the Croinor Gold (see video), McKenzie Break and Swanson advanced projects and the Camflo and Beacon mills, as well as other promising exploration projects. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.

Forward-Looking Statements

The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarques’ actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

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#Gold jumps most in nearly 2 year on safe-haven demand $ $ $

Posted by AGORACOM-JC at 3:02 PM on Thursday, October 11th, 2018
  • Gold has finally woken up. The price of gold jumped 2.4 per cent on Thursday – the most in nearly 2 years – in a sign of safe haven buying amid a rout in global stock markets
  • The move is a sharp turnaround to gold’s recent performance

By: Henry Sanderson

Gold has finally woken up. The price of gold jumped 2.4 per cent on Thursday – the most in nearly 2 years – in a sign of safe haven buying amid a rout in global stock markets.

The move is a sharp turnaround to gold’s recent performance. Gold had fallen by 10 per cent before Thursday’s move higher, hit by a stronger dollar and rising US interest rates.

“As a stock market sell off continues gold is once again a desired destination in times of uncertainty,” Alfonso Esparza, senior market analyst at Oanda, a currency exchange, said. “The metal had lost some cache in minds of investors, but when there is no clear safe haven fonds are flowing to gold.”

US stocks turned sharply lower in morning trading on Thursday, with the S&P 500 down 0.6 per cent at 2769.35. Shares in London and Hong Kong also fell.

Gold last traded at $1,222 a troy ounce, its highest level since July 31.


A Prime Setup for Buying Power to Rush into #Gold Investment $ $ $ $ $ $

Posted by AGORACOM-JC at 12:11 PM on Wednesday, May 2nd, 2018

  • All signs point to gold investment
  • The safe haven metal took a hit as bond rates jumped in the fourth-quarter of 2016, but has been trending higher despite the rise in real interest rates
  • Gold bulls should take note of how gold prices have behaved in relation to long-term treasury bonds because they appear to be behaving differently than they have in the past

A Prime Setup for Buying Power to Rush into Gold Investment

All signs point to gold investment. The safe haven metal took a hit as bond rates jumped in the fourth-quarter of 2016, but has been trending higher despite the rise in real interest rates. Gold bulls should take note of how gold prices have behaved in relation to long-term treasury bonds because they appear to be behaving differently than they have in the past.

“U.S. inflation breakeven rates have been rising in tandem with oil prices, and gold tends to have a tight positive correlation with moves in inflation expectations.”

After the Great Financial Crisis, the two big exceptions were in the lead-up to the Brexit vote and in the aftermath of President Donald Trump’s election. In the former case, gold rose even as inflation expectations declined with bond yields; in the latter case, the opposite occurred. Here are two charts from TS Lombard, one shows gold decoupling from the 10-year TIPS yield and the other shows how gold tracking the yield curve:

Gold’s outlook looks rosy. The precious metal should benefit from late-cycle dynamics, which tend to favor real assets over stocks. A weaker dollar could help too and Venetis said what appears to be in the works today is the opposite of what happened following the 2013 taper tantrum:

“Back then, the currencies of current account-deficit emerging markets came under pressure as the dollar strengthened from a low point, deflationary headwinds spread and commodity prices suffered. Now, the currencies of large current account-surplus developed markets are appreciating as the dollar retreats from lofty levels, inflation picks up speed and commodity prices increase.”

He isn’t the only one bullish on gold. The commodity team at Goldman Sachs is betting that rising emerging-market wealth combined with geopolitical and trade war concerns will push haven prices higher.

Based on gold supply and demand dynamics, RBC Capital Markets’ gold analyst Christopher Louneyforecasts an average price of $1,307 per ounce for gold for 2018. “Each time gold has touched the higher end of the range [this year] it hasn’t been able to cling to that level for very long,” he wrote last week. “The question remains, how sustainable is this level?”

Maybe not that sustainable given the drop today. Or maybe this is merely a golden window of opportunity to buy. – Crystal Kim

Prefer gold investment now, or keep chasing momentum later?

You need to own gold – and you need to own shares in companies that find and mine it. I lay out seven reasons below, in what I’m calling the “Seven Pillars of Gold.”

Each “pillar” reinforces the argument for holding gold.

There’s some overlap between each of the pillars. In fact, it’s fair to say that many of the reasons to own gold actually segue back and forth, bumping into each other. But it’s possible to lay out seven distinct ideas. Here they are:

Pillar One: Oil prices are rising. Doubtless, you’ve noticed it if you’ve filled the fuel tank in your car with gasoline in the past nine months. From 2015 to late 2017, we enjoyed a three year respite from the olden days of $100 oil; but now, oil has decided to get up off the mat.

From a price in the $40 range a mere six months ago, we’re now into the $70s per barrel and higher prices are forecast. Of course, oil means energy, which means that higher oil costs will translate into higher prices for just about everything, not just at the fuel pump.

More costly energy will be a core component of inflation throughout the economy. That is, it will cost more to drive your car, for farmers to grow food, truckers to transport that food, businesses to buy supplies ranging from paint to roofing shingles.

That, and it will cost more to move all the other goods that support the economy. Indeed, energy-based inflation will eventually work its way all through the economy.

Rising energy costs are a type of inflation that we saw in the mid-2000s, during the previous runup to oil at over $130 per barrel in 2008. Then though, energy costs were squashed by “importing deflation” from low-priced overseas goods. But that trick has played out.

Americans haven’t experienced gut-ripping energy-based inflation in perhaps two generations, since the late 1970s and early 1980s. But when higher oil prices really pull into port, the ripple effect of inflation across every part of the economy will weaken the dollar’s purchasing power. We’ll see it in higher gold prices.

Pillar Two: Interest rates are rising. According to the Congressional Budget Office (CBO), interest on the national debt is among the fastest growing parts of the federal budget. In fact, by 2028 – just 10 years from now – the federal budget will spend more on interest payments (about one trillion dollars per year) than on defense (currently about $800 billion total).

Rising interest rates will crowd out most everything else in the federal budget, from defense to air traffic control to national parks. The budget money just won’t be there, because so much will go to pay interest. The only workarounds for Congress are less spending (ha!) or just open the spigots and roll with higher annual budget deficits.

Any way you cut it, the dollar – and the Federal Reserve’s unique powers of “money creation” – will surely be in play to wallpaper this mess. Again, we’ll see reduced purchasing power and higher gold prices.

Pillar Three: The petro-yuan. China has begun trading for oil in yuan, recently launching its so-called “petro-yuan.” Here’s the facts.

China is working hard to abandon the dollar as an instrument with which to pay for oil. It’ll use its own currency, the yuan, where and when possible. Currently, China’s petro-yuan contracts are what are called “long-dated,” meaning they commence in September 2018. (Four months is “long” if you’re trading.) In this respect, the Chinese are taking things slowly at first; no surprises.

China’s ultimate goal is to convince Saudi Arabia – one of China’s top-three oil suppliers – to take yuan in exchange for oil, and thus to abandon the 45-year link of Saudi oil to the petro-dollar.

If the globally dollarized oil trade takes a hit, it means many more bad things for the purchasing power of those “dead presidents” in your wallet or bank account.

Here’s the good news in all this. If you understand the implications, you are already several months ahead of the broad market on this. You have time to buy in on gold and miners. The entire setup is overall favorable for gold.

Pillar Four: Currency Wars. We’re already in the midst of “Currency Wars,” along the lines of what my colleague Jim Rickards discussed in his 2010 book of that title.

These types of monetary competitions are built around the very real understanding that nuclear armed nations cannot afford to fight old-fashioned, kinetic wars with each other. No battleships and bombers; but large, powerful nations can still play other games; such as cyber war and attacks on the other nation’s currency.

The currency war idea is ripe to hatch in the sense that Russia and China (among others) have accumulated immense amounts of gold over the past decade or so. Russia, in particular, is quite transparent about its national gold reserves, and Russian spokespeople make no secret that the gold is intended as a defense against dollar hegemony.

One of Jim’s theses in Currency Wars is that Russia and China could team up to combine their respective gold resources, and create a rival currency to the dollar. If the world trading system has an alternative to the dollar, it’s hard to imagine that the scenario would favor the U.S. dollar. Usage would likely decline to some level from decades past.

In other words, the dollar has had a runup in its percentage of world trade over the past 45 years. Looking ahead, if the dollar loses even some of its status as the world’s “reserve currency,” we should definitely expect to see its value decline and gold prices to increase.

Pillar Five: Tariffs, sanctions and potential trade wars. With global trade, it’s fair to say that everything is related to everything else. Lay a higher tariff on Chinese steel, and China taxes U.S. soybeans. Ban exports of high tech chips to China, and China might ban exports of rare earth magnetic powders to the U.S.

The “era of dollar supremacy is fast ending.

We no longer live in a unipolar, post-Cold War world in which the U.S. reigns supreme.” Indeed, to a large degree, the U.S. owes its current global economic and political dominance to a unique, near-accidental correlation of forces at the end of World War II in 1945. It’s a long story.

The short version is that the most destructive war in human history created the greatest economic engine that the world has ever seen. Post war, the U.S. was like the proverbial Phoenix, rising out of the ashes. It’s a massive, complex historical process, of course; but the point to keep in mind is that the post-war world – certainly that world for the U.S. – is coming to the end of its long, 73-year run.

Other nations, and even entire regions of the rest of the world, are rising; new phoenixes from their own beds of ash. Consider what analyst Christopher Preble recently wrote in the New York Times, that “America’s share of global wealth is shrinking. By some estimates, the United States accounted for roughly 50% of global output at the end of World War II… It has fallen to 15.1% today.”

Now, President Trump is using tariffs, taxes, sanctions and policy changes to try and rearrange the global trading dynamic. But global trade has evolved over the past four generations. Trump may or may not succeed in his quest to rearrange the elements of the U.S. economy; to “Make America Great Again. But if our nation is going to get into a trade war, you better have some gold in the vault.

Pillar Six: War. We’re living in a time of risky geopolitics, right at the edge of true war. Wars cost much “silver,” as the ancient Chinese scholar Sun Tzu once noted. As Sun Tzu wrote, “if the campaign is protracted, the resources of the State will not be equal to the strain.”

Now, consider the global scale of current saber rattling, from the Baltics to the Black Sea, to the Persian Gulf to the South China Sea, Korea and more.

More specifically, consider how NATO has expanded right against Russia, drawing wrath from the latter. Or think about Ukraine, where recent fighting has killed tens of thousands of soldiers and civilians. I barely need mention the Middle East, from Libya to Syria to Afghanistan.

You may have seen articles about the “new Cold War” between Russia and the West. It’s not just abstract anymore, either. It’s fair to say that U.S. forces are already “fighting” against Russians, in a manner of speaking, via full-fledged electronic warfare in the skies over Syria.

Meanwhile, on the other side of the globe, according to Admiral Philip Davidson, the likely next leader of U.S. Pacific Command, China has already taken control of the South China Sea.

We’re living in a world that’s quite close to real war, not just “currency wars.” And gold prices tend to spike on rumors of war, let alone when the shooting begins. One way or another – near-war, fight a war, win a war or especially when a side “loses” a war – it’s not good for the dollar. Come war, and rumor of war, we’ll see the value of dollars decline and gold prices increase.

Pillar Seven: Peak Gold. In a world where demand for gold is likely to rise for a wide variety of reasons, there will be less of it available to buy. We’re just not seeing a lot of new gold discovery. And fewer companies are spending the kind of funds required to make big impacts.

I’ve discussed the lack of investment and how large companies are spending big bucks, simply to stand still in terms of output. Even large gold miners are actively planning to shrink output, to focus on profitability.

We’re “there,” at the peak of gold production for a while to come, barring some sort of technical revolution – which might happen, but we’re not there yet.

When I look at the landscape for gold, I see the results of the lack of past exploration and development, and in consequence, few new mines coming online.

It’s accurate to say that gold output globally has plateaued just now; it’s likely declining in years to come. The result will be higher prices for gold, and for companies that mine it.

So there you have it; seven reasons why gold prices are geared to rise, benefitting metal owners and well-run miners that can pull yellow metal out of the ground.

Gold is in a breakout pattern, awaiting its moment. The price has been dammed-up for a while, via all manner of manipulations. But that golden dam is ready to break.

All the debt, the bad policy, the war dangers, the lack of investment and new output… It’s a prime setup for buying power to rush into the precious metal space.

Thus, Jim and I say to Gold Speculator subscribers, “Buy gold!”

And if you’re not already invested when the move begins, you’ll wind up chasing momentum. – Byron King


Bright Outlook For Gold and The following $ $ $ $ $ $

Posted by AGORACOM-JC at 11:51 AM on Wednesday, June 21st, 2017

Several analysts point out that the outlook for gold and, by association, gold stocks, is bright despite rising US interest rates.

  • Demand in India and China rebounds sharply in recent months
  • Trend towards increased use of scrap gold reverses over past five years
  • Divergence in cash costs between USD and non-USD denominated companies

By Eva Brocklehurst

Gold retains a role as both an investment and defensive asset and analysts believe it will remain an important part of portfolios for both the private sector and central banks. Gold is a store of wealth in unstable times and such times prevail.

ANZ analysts expect increased political uncertainty in the US will support gold in the short term despite higher interest rates. Gold prices are forecast to push past US$1300/oz over the next 12 months and there are positive long-term prospects as well.

In the wake of the US Federal Reserve’s recent increase to its Fed Funds rate, and if the three rate rises in the current cycle are anything to go by, Bell Potter also considers the outlook positive for gold. Typically, rising interest rates are considered negative for gold because of the increased opportunity cost of holding an asset with no yield. As the gold price is appreciating amid rising interest rates in the US this signals to the broker that both inflation and safe-haven trade are key themes in the gold market.

The ANZ analysts do not envisage rising US interest rates as a negative. Gold has rallied in all but one of the past seven rate-hike cycles since the 1970s. Gold has also outperformed when interest rates were increasing relatively slowly. Furthermore, the analysts believe, if the US political situation worsens this year, there is a possibility gold prices will breakthrough US$1300/oz. Safe-haven buying is a strong driver of investor demand and is usually sparked by macro shocks or political instability.

Emerging markets should drive demand for physical gold for some time and China and India are already the world’s largest gold consumers. Demand in India and China has rebounded sharply in recent months and the analysts observe the issues around de-monetisation in India are abating, while there has been a sharp pick up in China’s gold imports, which suggests previous constraints have eased.

Growth in salaries, automobile sales and passenger air travel in India is expected to support the country’s gold market over the next year as India’s gold demands tend to correlate with income growth. Gold holdings are also likely to increase at central banks and most of the future buying is expected from central banks in emerging markets as they move closer to developed world levels.

China is likely to dominate the recovery in the gold price as Asian financial centres open up and the ANZ analysts find no reason why Shanghai should not become a major centre for gold trading, provided the appropriate institution and legal reforms take place. Asia is expected to account for over half of the global economy by 2050.


On the supply side prices are supported by the fact that gold mines cannot expand rapidly. Gold production has risen by an average of just 0.9% since 1995, year-on-year. Mine supply remains the primary source of gold and the trend towards increasing use of scrap has reversed over the past five years. New gold in total supply rose to over 70% in 2016.

Those countries driving the growth in the primary source of gold are ones best place to do so in the future, the analysts assert. Gold reserves are concentrated, at around 70%, in just 10 countries and Australia and South Africa have the largest unmined reserves. Meanwhile, scrap supply is volatile and the extraction from recycled electronics costly, so scrap gold is heavily influenced by both the price of gold and economic cycles.

As the ASX gold index is now down -3% year-to-date, Bell Potter believes the best performances are being driven by company-specific catalysts among the single-mine producers and successful explorers. The broker observes, while the gold price has not cracked US$1300/oz yet, it has established a pattern of higher lows and higher highs.

With a relatively steady exchange rate the Australian-dollar gold price has followed a similar track. The broker also believes relative outperformance of equities versus gold bullion is an indicator of positive sentiment.

Meanwhile, the costs associated with gold mining have fallen globally by around 15% over the past three years. Most of the reductions have been made in operating or production costs. The biggest cost reductions have been experienced in Australia, the ANZ analysts observe, where total cash costs have declined an average -30% since 2012.

Two factors, exchange rates and oil prices, have helped drive costs down and the analysts estimate around 60% of gold mining costs are based in local currency terms and around 10-12% related to oil prices. Indonesia, South Africa, Australia and Canada appear to have been the biggest beneficiaries in this regard.

Divergence In Cash Costs

Citi has highlighted a divergence between the cash costs of US dollar-denominated and non-US dollar-denominated companies. South African gold producers, in particular, have sustained all-in cash cost hikes of 16% while those of US dollar-denominated companies declined by -2.7%. Citi expects that a strengthening South African rand will continue to put pressure on South African gold stocks as will rising capital and exploration expenditure.

The broker expects costs in the industry to rise this year as years of under-investment unwind, especially if a stable, or higher, gold price prevails. Citi believes consensus expectations do not appropriately reflect the rising costs and maintains a bearish view on the sector, particularly South African gold stocks.

Based on recent changes to the underlying MVIS Junior Gold Miners index and significant changes to the GDXJ methodology in the US, Macquarie expects the main impact will be on North America markets. Yet, key beneficiaries in the Australian context are Newcrest Mining ((NCM)), Evolution Mining ((EVN)), Northern Star ((NST)) and OceanaGold ((OCG)).

These stocks have been are seen returning to the index as the eligibility band is widened. Smaller stocks are expected to suffer as a result of the re-balance. Macquarie believes investors should keep buying quality in good jurisdictions where there are cornerstone assets.