Richard Postma – The Doctor Is In – Fri 17 Jan, 2020

Here are Doc’s updated thoughts on gold, GDX, and the US Markets

Doc joins me to share his updated thoughts on if gold can hold the $1,550 level and where he sees GDX going. What is very noteworthy is now Doc has moved up his timeline on when he thinks gold will test the recent high around $1,600. We also discuss the potential and timing of a significant drop in US markets.

Kinross starts drilling at newly acquired Russia project

Dual-listed Kinross Gold has completed the $283-million acquisition of the Chulbatkan heap leach development project in Russia, and has started a comprehensive drilling programme aimed at updating the resource base by year-end. Kinross will be spending about $10-million on initial exploration drilling at Chulbatkan during the year. The company is also planning to convert estimated mineral resources to estimated mineral reserves, complete prefeasibility and feasibility studies for the project within about three years, and is targeting a subsequent two-year construction period.

American Battery Metals inks LoI to buy Elk gold project

Junior American Battery Metals has entered into a nonbinding letter of intent (LoI) to acquire Bayshore Minerals, a private company and its 100%-owned Elk gold mine project, in British Columbia. The project is host to a NI 43-101 compliant resource estimate comprised of 442 600 oz of gold in measured and indicated categories and 88 000 oz of gold in the inferred category.

Troy secures funding for Karouni restart

ASX-listed Troy Resources has secured a further $8.07-million in funding to help fund the restart of its Karouni mine, in Guyana. The company on Friday told shareholders that it had entered into a gold loan facility of 5 200 oz with Malaysia-based Asian Investment Management Services.

Bibiani review to be complete in H1

Gold miner Resolute Mining on Friday said that the review of its Bibiani gold project, in Ghana, would be completed during the first half of 2020. The miner in December last year initiated a strategic review of the asset to evaluate options for Bibiani, reviewing recommisisoning plans, assess capital requirements and funding alternatives, and investigate recently received expressions of interest from third parties seeking to acquire the asset.

QMX up 18% on Eldorado placement news

QMX Gold Corp. [QMX-TSXV; QMXGF-OTCQX] shares rallied in active trading Thursday January 16 after the company said it has raised over $4 million  from a private placement offering with Eldorado Gold Corp. [ELD-TSX; EGO-NYSE].

In connection with the offering, QMX issued 68.1 million common shares at $0.06 per share. QMX said it intends to use the net proceeds from the offering to fund its exploration activities on its Val d’Or mining camp property in Quebec. All securities issued under the offering are subject to a statutory hold period that ends four months and one day after the date of closing.

QMX advanced on the news, rising 18.7% or $0.095 on volume of 1.15 million.  The shares are trading in a 52-week range of $0.04 and 11 cents.

Eldorado now owns 68.1 million common shares of QMX, which has the backing of a shareholder group that also includes Osisko Gold Royalties Ltd. [OR-TSX, NYSE] and Probe Metals Inc. [PRB-TSXV; PROBF-OTCQB]. The company is applying a systematic and methodical approach to targeting, drilling, and evaluating an extensive land package across 200 km2.

In addition to the land package, QMX owns the Aurbel gold mill and tailings facility, which is located 15 km east of Val d’Or. In October, 2018, the company said it had entered into a custom milling agreement with Gowest Gold Ltd. [GWA-TSXV; GWSAF-OTC; 1GW-FSE]. Under the agreement, QMX said the Aubel mill would be the focus of an initial pilot program involving the processing of up to 120,000 tonnes of ore from Gowest’s Bradshaw deposit for one year. QMX said Gowest pledged to fund the restart of the crushing, grinding and flotation circuits, which were winterized in mid-2016 following the termination of mining activities at the Lac Herbin Mine.

In July, 2019, QMX announced a NI 43-101-compliant resource estimate for its Bonneford South property, which is located on the eastern portion of QMX’s land package, and about 25 km east of Val d’Or and less than 25 km from the Aurbel mill. According to the estimate, the property hosts an Indicated Resource of 4.75 million tonnes at 1.69 g/t gold or 258,700 ounces. On top of that is Inferred Resources of 2.4 million tonnes at 1.87 g/t gold or 145,100 ounces.

Back in December, QMX announced the first results from a planned 6,000-metre fall drilling campaign on the Bonneford deposit. Highlights included 44.95 g/t gold over 5.6 metres and 10.7 g/t gold over 11.2 metres in an area called the Bonneford intrusive.

In connection with the $4 million offering, QMX has stuck an agreement which grants certain rights to Eldorado as long as it maintains a certain percentage ownership of shares in QMX. They include the right to appoint a member of QMX’s technical committee.

Under the agreement, if Eldorado owns more than 15% of QMX, it has the right to be represented on the QMX board of directors. If Eldorado owns more than 10% QMX, it has the right to name an observer to the QMX board. Eldorado will also have the right to participate in future equity offerings.

Ed Moya – Senior Market Analyst at OANDA – Thu 16 Jan, 2020

Data and central bank easiness could continue to push markets higher

Ed Moya joins me to share views on the US equity markets and how recent data and general central bank policy could support a continued rise. There is no arguing that the current rally in US markets is due for a pullback however it could go one for a little while longer, being supported by recent news events. Pay close attention to Ed’s time frame because he is expecting volatility to creep back in the near term.

Click here to visit the OANDA website and keep up to date with Ed’s daily commentary.

Jordan Roy-Byrne – Technical Commentary on the Metals – Thu 16 Jan, 2020

What are the odds of the recent highs in gold and GDX getting taken out?

Jordan Roy-Byrne kicks off today by sharing his thoughts on the recent spikes and now pullbacks in gold. We also address the recent pullback in GDX. The overarching main question we address is if the recent highs in gold and GDX will be broken in the near term.

Click here to visit Jordan’s site and follow along with his technical commentary and trading.

Strong quarter caps off ‘excellent’ first year since Barrick’s merger with Randgold

The world’s second largest gold mining company, Barrick Gold, has met its production targets for 2019, with gold output touching the upper-end of its guidance and copper production beating its planned output. During 2019, Barrick produced 5.5-million ounces, which compares with its guidance range of 5.1-million to 5.6-million ounces. Copper production of 432-million pounds exceeded its guidance of 375-million to 430-million pounds for the year.

Barrick estimates higher sequential quarterly gold output

Global gold major Barrick Gold said on Thursday it expects fourth-quarter gold production to be higher than third quarter, benefiting from strong output from its Turquoise Ridge gold mine in Nevada. Total preliminary gold production rose to 1.44-million ounces in the quarter ended December 31, from 1.31-million ounces in the third, while copper output gained 4.5% to 117-million pounds.