Investors Begin the Pivot to Commodities Amidst Global Turmo
NEW YORK, April 17, 2020 /PRNewswire/ -- Gold prices were steadily higher in U.S. trading on Thursday, following a corrective pullback in a strong uptrend that was recorded on Wednesday. The most important data published this week is the weekly jobless claims report, which showed that an additional 5.2 million people lost jobs. In total, since the start of the pandemic, the U.S. economy has seen over 20 million American workers lose their jobs. In addition, recent economic data also revealed the extent to which the pandemic has hurt the economy, as U.S. retail sales dropped 8.7% last month, its biggest decay since the government started tracking the data in 1992, whilst manufacturing output fell by the most in 74 years. This is the right environment for gold bullion, as gold is often considered a safe-haven asset amid times of political or economic uncertainties. Blue Lagoon Resources Inc. (OTC: BLAGF) (CSE: BLLG), New Gold Inc. (NYSE: NGD) (TSX: NGD), Kinross Gold Corporation (NYSE: KGC) (TSX: K), Yamana Gold Inc. (NYSE: AUY) (TSX: YRI), NovaGold Resources Inc. (NYSE: NG).
Earlier on Monday, gold futures climbed to mark their highest price in more than seven years, as demand from investors who had losses in the stock market gradually began shifting to gold. And expectations for further moves by central banks and fiscal policymakers to boost the global economy also affected the prices. "The main factor supporting gold at the moment is the extraordinary amount of stimulus from central banks. I don't think it's been fully priced in yet," OANDA analyst Craig Erlam said, according to a report by CNBC. "The record highs hit in the aftermath of the global financial crisis, and even higher, look perfectly reasonable, under the circumstances. The $1,800 level does not seem very far away."
Blue Lagoon Resources Inc. (OTCQB: BLAGF) (CSE: BLLG) announced yesterday breaking news that it, "would like to inform shareholders and key stakeholders that it has not experienced any disruptions at this time on its various stages of planning with regards to moving its Dome Mountain Gold Mine project forward. The Company is currently engaged in several discussions and activities, including dialogue with all key suppliers and contractors that are essential to sustaining a positive momentum of the overall project.
'We are monitoring the situation closely and our highest priority is to ensure the health and well-being of all our consultants and suppliers,' said Rana Vig, President and CEO of Blue Lagoon Resources. 'The Dome Mountain Gold Mine has had multiple millions spent on it in recent years and we are now in the process of organizing and planning on how to rapidly move the project forward. These are steps that can be accomplished via tele or video conferencing and are not being affected by the COVID-19 outbreak,' he added.
In addition to taking steps to advance the Dome Mountain Gold Mine project towards development, the Company's chief geologist, Bill Cronk, and staff are continuing to analyze various geological data in order to determine targets for a summer drill program expected to commence within the next 90 days. Driftwood Diamond Drilling ("Driftwood") has confirmed that they are ready and able under the current COVID-19 guidelines to complete diamond drilling on the Dome Mountain Gold Mine project located a short fifty minutes drive to the mine site from the town of Smithers, B.C. Driftwood, which is also conveniently based in Smithers, B.C., has assured the Company that they have local qualified staff as well as safety protocols in place to ensure the successful execution and completion of the Company's upcoming planned drill program.
Blue Lagoon will continue to monitor the COVID-19 impact in the region with a goal to identify and maintain the best applicable scope of work which fits the current and changing health and safety environment.
The Company is also pleased to announce that it has entered into an investor relations agreement with Star Finance GmbH, a Switzerland-based company, for European corporate communication services. Star Finance has offices in Steinhausen, Switzerland, and Cologne, Germany.
Star Finance is owned and operated by Michael Adams who is an experienced communications professional with more than 15 years of experience assisting Canadian public companies with introductions to investors, primarily in Germany and German-speaking Europe. Among other services, Star Finance owns and operates two established investment-focused financial websites and provides information about investment opportunities to its audience through e-mail newsletters, websites and various social media channels in the form of written articles as well as video content.
The investor relations agreement provides for the introduction of the Company to Star Finance's network, audience and subscribers, as well as the distribution of Company news releases through Star Finance's channels and/or the creation of investment-related content.
Star Finance has advised the Company that it does not hold any direct or indirect interest in the Company or its securities, or any right to acquire any such interest, with the exception of certain discretionary stock options, which the company's board of directors may, at its sole discretion, grant to Star Finance from time to time during the term of the agreement.
The arrangement will have an initial six-month term at a cost of 6,000 euros per month and is effective immediately.
As a result of its focus on the Dome Mountain Gold Mine project, the Company has determined that it will not proceed with its option to earn-in to an up to 70% interest in Mag One."
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New Gold Inc. (NYSE: NGD) (TSX: NGD) reported recently preliminary first quarter operational results from the Rainy River and New Afton mines. (All amounts are in US dollars unless otherwise indicated.) The Company is also announcing that due to the rapidly changing and unpredictable environment caused by the global COVID-19 pandemic, the Company is withdrawing its 2020 operational guidance until any impact is better understood. Total production for the first quarter was 103,435 gold equivalent (gold eq.) ounces (66,790 ounces of gold, 131,417 ounces of silver and 18.5 million pounds of copper). The New Afton Mine produced 52,329 gold eq. ounces (16,409 ounces of gold and 18.5 million pounds of copper) for the quarter.
Kinross Gold Corporation (NYSE: KGC) (TSX: K) announced last month that it has filed a new technical report for its Paracatu operation in Brazil. Paracatu is a cornerstone, long-life operation in Kinross' portfolio that is expected to produce an average of approximately 540 Au koz. annually over 12 years from 2020 to 2031. Total production over the remaining mine life is expected to increase approximately 24% compared with the prior technical report that was published in 2014.The new technical report is based on an asset optimization program that commenced in 2018 and was completed in late 2019 with the successful implementation of a comprehensive grade control program. The results of the program include better characterization of the orebody, an improved ability to predict and react to ore variability, and better mill efficiency with improvements in throughput and recovery.
Yamana Gold Inc. (NYSE: AUY) (TSX: YRI) announced earlier last year exploration results for the Cerro Moro mine in Argentina, all of which show significant high-grade intersections in an entirely new zone and extensions of previously identified zones. These exploration results demonstrate a growing mineral resource base in new areas that are expected to establish Cerro Moro as a long-life, high-quality, high-grade gold and silver operation. The Company has committed to an initial four-year exploration program, which began in early 2018, to systematically explore Cerro Moro. The program combines soil and rock geochemistry, ground geophysics, surface geological and alteration mapping, and reconnaissance drilling. Through the third quarter of 2019, more than 9,700 soil samples and 5,300 rock samples have been analyzed, 76 line kilometres of CSAMT (controlled source audio-magnotelluric) surveys have been completed, and 23,400 metres of reconnaissance RC (reserve circulation) and diamond drilling have been completed.
NovaGold Resources Inc. (NYSE: NG) announced earlier this year that its flagship Donlin Gold project, which NOVAGOLD owns equally with Barrick Gold Corp. ("Barrick"), received the final State Right-of-Way (ROW) authorization for the buried natural gas pipeline, issued by the Alaska Department of Natural Resources (ADNR) on January 17, 2020. Additionally, ADNR denied an appeal and affirmed the Division of Mining, Land, and Water's original January 18, 2019 approval of Donlin Gold LLC's Reclamation Plan and its accompanied permit. "We are very pleased to see the issuance of key transportation and energy infrastructure approvals for Donlin Gold," said Greg Lang, President and CEO.
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