Safe-haven investors are pushing back into gold. All after activity in the U.S. service sector was shown to have fallen more than expected in May. In fact, according to the Institute for Supply Management (ISM), its Services Purchasing Managers Index fell to 50.3% last month, down from April's reading of 51.9%. That was below expectations for 52.6%. In addition, as noted by Kitco.com, “Analysts have said that gold is seeing new momentum as the disappointing economic data could force the Federal Reserve to end its interest rate hikes. In reaction to the ISM data, markets see a more than 85% chance that the Federal Reserve will leave rates unchanged at next week's monetary policy meeting.” We also have to consider the latest ISM data suggestions we’re headed for recession. With that, it’s no wonder safe haven investors are pushing back into gold, and related gold stocks, such as Golden Cariboo Resources (TSXV: GCC) (OTC: GCCFF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Osisko Development Corp. (NYSE: ODV) (TSXV: ODV).
Look at Golden Cariboo Resources (TSXV: GCC) (OTC: GCCFF), For Example
Golden Cariboo Resources report that significant correlations have been made during an initial study of limited surface mapping and trenching results along with data acquired from Osisko Development’s (ODV:NSE/TSXV) 2016-2017 airborne mag and EM survey which includes over 1000ha of the Quesnelle Gold Quartz Mine Property.
Geotronics Consulting Inc., who visited the Property in 2017 to conduct an IP survey, reviewed the ground and airborne data. Highlights of the findings state “What is immediately apparent in examining the magnetic and EM maps is that there is a strong northwest trend in the anomalies across the Property. This completely agrees with the known geology which shows faulting and lithological contacts as trending northwesterly. The magnetics also show the Main Zone and the Halo Zone to occur within a fairly strong northwesterly-trending magnetic high within the Property and the North Hixon Zone occurs along the northeastern edge of this same high. However, gold mineralization within the known zones occurs within an altered greenstone which would generally not be expected to be magnetic. Therefore, the magnetic high may be caused by basaltic volcanic rocks or ultramafic rocks, possibly at depth, which are known to occur within a few kilometers to the southeast. It would appear that these rock-types are related to the known gold mineralization and therefore the possibility exists that mineralization occurs along this entire strike length within the Property which is 1,850 meters.
The magnetics also show an easterly-trending lineation of magnetic lows across the northern part of the property strongly suggesting that it is reflecting a fault which would therefore be crossing the northwesterly-trending faults. Areas of cross-faulting are prime areas for the emplacement of mineralizing fluids, and this is evidenced by the known gold mineralization in this region.
The EM survey shows a conductor trending northwesterly across the property to the west of known mineralization. It correlates directly with a resistivity low mapped within a 2017 IP-resistivity survey which was interpreted to be caused by a conductive rock-type, probably being a phyllite.”
Company director, Andrew H. Rees commented “The Company was able to procure Osisko Development’s geophysical data from public sources, as they flew their 2016-2017 geophysical surveys over 1000 hectares of Golden Cariboo’s property without the Company’s prior knowledge or providing notification. The Company’s evaluation of Osisko’s data appears to support their staking program which almost entirely encircles Golden Cariboo’s Quesnelle Gold Quartz Mine Property. The Company is currently drilling at the Property and is extremely encouraged with initial findings, in part utilizing knowledge gained from Osisko’s geophysical data along with its own internal exploration efforts.
Golden Cariboo Resources’ exploration program, along with drilling, will include additional detailed re-interpretation of the existing airborne geophysical dataset from Osisko Development with the incorporation of ongoing surface mapping and rock geochemistry results at the Quesnelle Gold Quartz Mine property.
The technical information in this news release has been reviewed by David. Mark, P.Geo., a qualified person with respect to NI 43-101.
Other related developments from around the markets include:
Barrick Gold Corporation announced the declaration of a dividend of $0.10 per share for the first quarter of 2023. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q1 2023 dividend will be paid on June 15, 2023 to shareholders of record at the close of business on May 31, 2023. “Through the maintenance of a robust balance sheet, we are able to continue to provide a strong base dividend to our shareholders, with our Performance Dividend Policy providing shareholders with the potential for additional upside going forward,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
Newmont Corporation announced that following completion of due diligence it has entered into a binding Scheme Implementation Deed under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement. “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, President and CEO of Newmont. “Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets. Leveraging our experience from the acquisition of Goldcorp four years ago, we are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimization opportunities, both part of our strategy to maximize value for shareholders and other stakeholders.”
Franco Nevada Corp. reported its first quarter results. Our diversified portfolio continues to generate strong cash flows and high margins. The first quarter was impacted by production disruptions at Cobre Panama and Antapaccay as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2 with both assets having returned to normal operations. “Cobre Panama’s CP 100 Expansion is on-track for year-end and we look forward to initial contributions from Magino, Se´gue´la and Salares Norte during the year”, commented Paul Brink, CEO. Franco-Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities.
Osisko Development Corp. announced new 2023 underground diamond drilling results at its 100%-owned Trixie test mine, within the Company's wider Tintic Project and to provide an overview of the ongoing 2023 exploration program at Tintic, located in the historic East Tintic Mining District in central Utah, U.S.A. In addition, the Company is also reporting the remaining DD and reverse circulation drilling results from its 2022 exploration program. Chris Lodder, President of Osisko Development, commented, "The underground diamond drilling results from this year's drill campaign continue to generate targets and understanding of the epithermal veins and breccias at Trixie. High-grade gold and silver is observed in the footwall of the T2 and T1 zones, as both disseminated and vein mineralization. As these initial results indicate, the drillholes are intersecting all zones within the deposit area and continue to build upon the exploration successes achieved in 2022. We are also excited to launch our initial drill campaign to target copper porphyry potential at Tintic, which is slated to begin in Q3 2023."
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Golden Cariboo Resources by Golden Cariboo Resources. We own ZERO shares of Golden Cariboo Resources. Please click here for disclaimer.
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