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Gold is the Buy

Falcon Gold Corp. (TSX-V: FG) (OTC: FGLDF), Agnico Eagle Mines Limited (NYSE: AEM), Novo Resources Corp. (TSX: NVO) (OTC: NSRPF), International Montoro Resources Inc. (TSX-V: IMT), B2Gold Corp. (NYSE: BTG)

Gold prices were stable on Thursday. However, the economic landscape is becoming more complex and Bitcoin now competes with the yellow metal for a safe-haven status. Furthermore, the road ahead in 2021 remains unclear in terms of where the economy is headed. Nevertheless, gold is expected to bounce back. According to a report by Kitco, the U.S. government continues to move forward with its proposed USD 1.9 Trillion stimulus package to support the U.S. economy further after the fallout from the pandemic. The U.S. is not unique in that regards, as central banks around the world are maintaining very supportive monetary policies and growing their balance sheets to record levels. The threat of global currency debasement is real and continues to increase the longer the pandemic restriction remains in effect. Therefore, the issue may not be which is better, bitcoin or gold, since any alternative asset that will protect wealth will become a necessity if the world’s purchasing power falls.

Inflation is expected to play a major role in deciding the future of gold. According to the International Monetary Fund (IMF), USD 12 Trillion has been pumped into global financial markets as governments and central banks worldwide have tried to stabilize the economy that was devastated by the pandemic. Investors are now speculating that the fallout will be seen in higher inflation, especially when the economic activity picks up in the second half of the year. When prices rise and the value of the dollar falls, gold is often seen as a hedge against inflation.

Falcon Gold Corp. (TSX-V: FG) (OTC: FGLDF) announced yesterday, “an update on its fall 2020 drilling program at the Central Canada gold mine. The Company has received the preliminary analyses for holes, CC 20-10, CC20-11 and the upper half of CC20-12. There remains outstanding in addition to the balance of CC20-12, the analyses for the final 5 holes of the program. Falcon has presently 264 core samples submitted for analyses and anticipates in the order of 250 more samples to be taken from the last three drill holes core. A surface plan of Falcon’s 2020 drilling and that of TerraX Minerals (2012) and Anjamin Mines (1966 & 1967) may be found below in Figure One.

Falcon is also pleased to report that each of the three drill holes of this release penetrated the Central Canada main mine trend with gold mineralized intersections including the visible gold core sample from CC20-12. Highlights of the drill intersections for CC20-12 are as follows:

  • The Central Canada main gold zone occurred from 89.6m to 102.9m for 14.8m core length;
  • The weighted average grade of the main gold zone is 1,570 ppb gold or 1.57 grams per tonne gold (“g/t Au”);
  •  Within the main zone intersections, the first meter of core returned 5.68 g/t Au: and,
  • Intersections from 97.4m to 98.6m (1.2m) averaged 6.06 g/t Au which includes the visible gold sample that assayed 20.5 g/t Au over 0.3m.

The Central Canada main gold zone as intersected in drill holes, CC20-10 and -11, was somewhat narrower being approximately 3.5m and mineralized with 0.5% to 2.0% pyrite in silicified and chloritic units and quartz veins. The host rock lithologies include metamorphosed quartz feldspar porphyries, felsic pyroclastic units and mafic volcanic flows and intrusive units, all of which may be intensely altered to such a degree as to obliterate most original features.

The Company’s hole, CC20-12 was collared approximately 70m north-north-west of the shaft to target the main gold zone at a vertical depth of approximately 75m. This hole reported entering high-grade gold mineralization of 5.68 g/t Au in a 1m sample at 89.6m within altered porphyry. This intersection was the first of a 14.8m core length zone with an average grade of 1.57 g/t Au. In addition, visible gold was identified in a 0.3m vein at 97.6m that returned an assay of 20.5 g/t Au.

Mr. Karim Rayani, Falcon’s Chief Executive Officer, commented, ‘Our drill program is continuing to expand the potential of the Central Canada gold mine. The results from Falcon’s fall drilling gives us more than encouragement that the historic gold resources of this mine were as advertised back in 1934. We have a substantial number of samples pending analysis and look forward to reporting on our findings as soon as the results are available.’

Qualified Person: The technical content of this news release has been reviewed and approved by Mike Kilbourne, P.Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.”

For our latest “Buzz on the Street” Show featuring Falcon Gold Corp. recent corporate news, please head over to: https://www.youtube.com/watch?v=AWMJO9D0b48

Agnico Eagle Mines Limited (NYSE: AEM) reported back in October quarterly net income of $222.7 million, or net income of $0.92 per share, for the third quarter of 2020. The increase in cash provided by operating activities in the third quarter of 2020, compared to the prior-year period, was mainly due to an increase in revenues from mining operations resulting from higher average realized gold and silver prices, and higher gold sales volume, offset by higher production costs from the Meadowbank Complex, the LaRonde Complex and the Meliadine mine as a result of higher throughput levels, and higher income and mining taxes related to higher operating margins in the quarter.

Novo Resources Corp. (TSX: NVO) (OTCQX: NSRPF) announced earlier this week that it has poured its first gold bar from the Company’s Beatons Creek gold project in Nullagine, Western Australia. The Company’s inaugural commissioning gold pour was achieved following refurbishment of the Golden Eagle mill and rapid development of the Project, both of which have been completed on time and under budget. “This first gold pour marks over ten years of dedicated commitment from Novo’s team and its shareholders to advance towards conglomerate gold production,” commented Dr. Quinton Hennigh, President, Chairman, and a director of Novo.

International Montoro Resources Inc. (TSX-V: IMT) reported last month the recent acquisition of an additional 2,850 hectares of land to add to the company’s existing land position on its Victoria Lake Project. With this new acquisition the Company’s land holding is increased to 10,650 hectares along the Exploits Subzone and covers a large highly prospective structural zone proximal to the Valentine Lake Shear Zone which hosts Marathon Gold’s (TSXV:MOZ) Valentine Gold Project with resources of 4M oz. of gold. The company staked the new claims after undertaking a detailed structural analysis from available airborne magnetics within the Victoria Lake area. These studies showed an extremely complex structural framework with large scale fold and refold patterns indicative of polyphase folding and with numerous sets of curved and splayed cross-faults associated with dislocations of major shear zone contacts. In addition, a complex fault pattern of major and minor faults / shear zones was interpreted to converge on a complex splay/fault interference zone in the center of these newly staked claims. These are interpreted to be second and third order shears which are important hosts to gold mineralization in the Abitibi Subprovince of Ontario and Quebec. Central Newfoundland is increasingly being recognized as a younger version of the Abitibi where major crustal scale breaks, preserved clastic sedimentary basins in a mafic volcanic environment are disrupted by second and third order shear zones that focus fluid pathways and traps.

B2Gold Corp. (NYSE: BTG) announced on September 17th, additional positive exploration drilling results from the Cardinal and FMZ zones near Fekola, and the Mamba zone in the Anaconda area such as new high-grade drill results from the Cardinal and FMZ zones extend the mineralization to over 3.5 kilometres along strike, continuing to indicate potential for additional gold deposits near the Fekola mine, with additional potential at depth and along strike.  Resource infill drilling completed at the Cardinal zone, with an initial Inferred Mineral Resource estimate expected in the first quarter of 2021.  Additional high-grade drill intercepts at the Mamba zone extend the mineralized zone by over one kilometre, to a total known strike length of approximately 2.2 kilometres (20 kilometres north of Fekola)  Resource infill drilling at the Mamba zone in the Anaconda area approximately 90% complete, with an updated mineral resource estimate for the Anaconda area expected by the end of the fourth quarter of 2020. In 2020, B2Gold continued exploration drilling near Fekola and the Anaconda area with an $18 million program in Mali that focussed on exploration at the Cardinal and FMZ zones near the Fekola deposit which demonstrate potential for additional gold deposits within 3 kilometres of the Fekola mill, expanding the mineral resources within the Anaconda area, including the Mamba zone, and further testing the sulphide zones.

S. Jack Heffernan Ph.Dhttps://www.shayneheffernan.com
S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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