NEW YORK, Nov. 19, 2020 /PRNewswire/ -- Amid a global pandemic and economic uncertainty, investors are increasingly turning to gold. A recent MagnifyMoney survey reported that about one in six people have invested in gold or another metal in the past three months, with another 23% saying they're seriously considering it. Companies operating in the precious metals sector are in an ideal position to benefit from this investment tide as they evaluate their offerings, increase their holdings and work to support the growing number of investors on the lookout for more stable options. For example, GoldHaven Resources Corp. (CSE: GOH) (OTCQB: ATUMF) (GOH Profile) has completed options on some of the most promising properties in the highly productive Maricunga Gold Belt of Chile, including one yielding rock chip sample assays of 764 grams per tonne gold and 719 grams per tonne silver; the company is anticipating starting drilling program early next year. Newmont Gold (NYSE: NEM) recently announced that it has formed an exploration joint venture in Colombia with Agnico Eagle Mines Limited. Barrick Gold (NYSE: GOLD) (TSX: ABX) is reporting that its Kibali min is on track to deliver at the upper end of its 2020 guidance. Mirasol Resources Ltd. (OTCPK: MRZLF) has released positive initial exploration results from its wholly owned Nandi Cu project located in Northern Chile. New Found Gold Corporation (OTCPK: NFGFF) also released initial results from hole NFGC-20-26 at the Keats Zone, drilled as part of the company's ongoing 100,000m diamond drill program at its 100% owned Queensway High-Grade Gold Project in Newfoundland.
- Economic uncertainty has shaken investors' faith; many looking to alternative investment opportunities.
- GoldHaven has inked agreements to acquire promising gold projects in Maricunga Gold Belt of Northern Chile.
- GoldHaven moving forward in strong financial position.
Alternative Investment Opportunities
"Thanks to the coronavirus pandemic, the stock market has been a rollercoaster over the past few months," stated an article reporting the MagnifyMoney survey results. "It has plunged sharply on more than one occasion, only now to have returned almost to pre-pandemic levels. Reasonably, this instability — and general economic uncertainty — has shaken investors' faith in the stock market. As a result, many are looking to alternative investment opportunities."
One firm, BullionVault, reports that in the past six months demand to invest in gold, silver and platinum has reached almost half a billion dollars. "Net of client selling, investing in physical bullion on our peer-to-peer platform — first opened in 2005 — has now topped $442 million since the pandemic reached Europe and North America in March," the company said.
That desire for alternative opportunities has led to record prices for both gold and silver. Gold reached topped out over $2,000 per ounce earlier this year while silver has risen nearly one-third since July, its fastest upward trend since 1987. "The idea that gold preserves wealth is even more important in an economic environment where investors are faced with a declining U.S. dollar and rising inflation," states Investopedia, which notes that historically, gold has served as a hedge during fragile economies.
Key Locations, Promising Projects
The recent upward swing in gold investing seems to confirm that thinking. And certainly the trend is borne out by looking at GoldHaven Resources Corp.'s (CSE: GOH) (OTCQB: ATUMF) recent trading. The company's trades are levered to gold. As the price of gold increases, so has GOH trading, with more than 9 million shares traded since inception, and the company is intent on making its position even stronger.
Just within the past few months, GoldHaven has inked agreements to acquire promising gold projects in the productive Maricunga Gold Belt of Northern Chile, an area that touts discoveries within the last decade of more than 100 million ounces of gold and in excess of 450 million ounces of silver. GOH's impressive presence in the northern portion of the Maricunga Belt equal about 100 square miles, making the company one of the largest gold exploration players in the Maricunga.
Several of GOH's projects are advantageously located within miles of some of the area's most exciting discoveries, including Gold Field's Salares Norte mine, with an excess of 5 million ounces (Moz.) Au, and La Coipa, a Kinross mine producing more than 7.6 Moz Au. Recent studies and analysis on GoldHaven's targeted properties indicate these strategic properties may produce similar numbers.
Currently GoldHaven has classified four of its properties as high priority: the Roma, Alicia, Coya and Rio Loa projects. The Alicia and Rio Loa projects are situated within 20 miles of Salares Norte; Coya is only about 10 miles northeast of La Coipa. These high-priority targets were identified after conducting modern-day field assessments including mapping, geochemical sampling and satellite imagery and carefully evaluating their locations relative to existing deposits and discoveries. Three of GOH's projects are drill ready, and the company plans on phasing in a drilling program by January 2021.
Exploration, Drilling in the Works
GoldHaven will be moving forward with its drilling phase from a strong financial position. The recent completion of two tranches of an oversubscribed, non-brokered private placement resulted in gross proceeds for the company of $2,449,500; the combined units issued in both tranches was 12,247,500.
Each unit sold consisted of one common share in the capital of GoldHaven Resources and one common share purchase warrant; each warrant entitles the holder to purchase an additional common share in the capital of the company at an exercise price of $0.30 per share for a period of 36 months from the closing of the offering.
GOH anticipated using the net proceeds from the offering to initiate exploration and drilling programs on its Maricunga Gold Belt projects along with general working capital.
"GoldHaven's properties rank high as some of the best untested gold projects in the Maricunga Belt," said Patrick Burns, GOH director and head of exploration. A prominent exploration geologist, Burns has impressive expertise experience in the precious metals mining space. He was directly involved in the discovery of the world's largest copper mine, the Escondida porphyry copper deposit in Chile. He also played a key role in the discovery of the San Cristobal gold mine, also located in Chile. Burns has been involved in successful publicly traded exploration companies in Chile for almost four decades.
In addition to Burns, the company has several other well-established executives, including Dan Schieber, GoldHaven director and CEO. Schieber established his career in metals and mining finance as an analyst for the Stabilitas Group of Funds. He also co-founded Euroscandic International Group, raising an estimated $350 million in project financing for development projects in the mining sector. Following that success, he became involved in Canadian-based farmland investments, serving as chief investment officer at Dynamis Capital Corp., whose business is long-term, recession-proof investments with an emphasis on gold and silver.
GoldHaven is the third public company that president and director David Smith has successfully co-founded. Smith's previous two companies, both with an environmental focus, traded on the TSX and ultimately sold yielding significant profits to shareholders.
GoldHaven director Gordon Ellis has chalked up more than five decades of experience in the mining industry as a professional engineer; he currently serves as director of a multibillion-dollar ETF. Scott Dunbar, also a GoldHaven director, is a professor and the department head of mining engineering at the University of British Columbia. Dunbar has played a key role in mining exploration, geotechnical engineering and mine design projects around the world.
Making Strategic Moves
Of course, with gold, silver and other precious metals capturing the attention of savvy investors, other companies besides GoldHaven Resources are looking to capitalize as well. These companies are making strategic moves designed to strengthen their position in a market that is heating up.
Newmont Gold's (NYSE: NEM) exploration joint venture with Agnico Eagle Mines Limited will explore the Anzá project and advance other prospective gold targets of district-scale potential in Colombia. The 50-50 joint venture will be operated by Agnico Eagle. The Anzá project is a gold exploration project comprised of exploration contracts and applications totaling approximately 200 km and located in the Mid-Cauca belt in Colombia. "We are excited to partner with Agnico Eagle to further advance exploration opportunities in this highly prospective region in Colombia," said Newmont Gold president and CEO Tom Palmer. "Our companies share similar views of safe and responsible mining practices with proven expertise in Greenfields exploration areas."
The positive news about its Kibali mine is good news for Barrick Gold (NYSE: GOLD; TSX: ABX). One of Barrick's elite corps of tier one mines, Kibali was the first underground gold mine in the DRC and one of the largest in the world. It is a global leader in automation and continues to improve efficiency and productivity through ongoing technological innovation. In the third quarter, the mine set a new ore delivery record from underground, exceeding nameplate for the first time since the shaft was commissioned in 2018. A tier one mine is capable of producing at least 500,000 ounces of gold annually for at least 10 years at the lower end of the industry's cost profile.
Mirasol Resources Ltd. (OTC: MRZLF) has released initial exploration results from its Nandi Cu project. The project comprises approximately 5,000 ha of exploration claims and is located about 18 miles northwest of BHP's world-class Escondida Cu mine and almost 40 miles southeast of Glencore's highly productive Lomas Bayas Cu mine. "Nandi represents an attractive project with multiple targets to be drill tested," said Mirasol chair and interim CEO Patrick Evans. "Results from Mirasol's initial exploration work indicates that Nandi has the potential to host a concealed Cu/Mo/Au porphyry deposit, and skarn type mineralization."
New Found Gold Corporation (OTC: NFGFF) also announced positive initial drilling results. The company noted that hole NFGC-20-26 at the Keats Zone was drilled as part of the company's ongoing 100,000m diamond drill program at Queensway High-Grade Gold Project. "Historic work and more recent drilling at Keats have demonstrated gold mineralization over at least 300m of strike and the Keats target remains open in each direction along strike and to depth," said New Found president Denis Laviolette. "We are continuing to drill on grid lines at 50m spacing to the north and south of NFGC-19-01 and anticipate further results from this drilling in the next several weeks."
These companies, and others in the precious metals arena, are looking to make significant strides forward during a time of uncertainty, strengthening their position in a space that holds real promise.
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