Gold In 2022 Expected to Continue to Rise Due to Increased Investor & Central Bank Demand
The rising demand for gold jewelry is driving the supply of gold.
PALM BEACH, Fla, April 14, 2022 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Gold has been considered one of the best sources of investment for centuries and is always in high demand regardless of any fluctuating economies and happenings in society. The high demand for gold ensures that Jewelry holds its value and will always be easy to liquidate when needed, thus impelling the market growth. Gold mining is a global business with operations on every continent, except Antarctica, and gold is extracted from mines of widely varying types and scales. The rising demand for gold jewelry is driving the supply of gold. Many central banks, particularly in developing nations, are continuing to diversify their assets away from the dollar and euro, and are likely to increase their holdings in the near future. A report from Report Linker recently said that: "Gold Mining Market 2020-2021 turned out to be one of the most volatile in contemporary history, with a number of unusual events. The pace with which the COVID-19 pandemic spread, the severity of the lockdowns, the scope of global government stimulus efforts, and the extent of the equities market bounce were all major factors. Further, higher gold prices and weaker local currencies drove the domestic price of gold to historical highs, negatively impacting the demand for jewelry." Active Companies in the markets today include Tocvan Ventures Corp. (OTCQB: TCVNF) (CSE: TOC), Magna Gold Corp. (OTCQB: MGLQF) (TSXV: MGR), Osisko Gold Royalties Ltd (NYSE: OR) (TSX: OR), Minera Alamos Inc. (OTCQX: MAIFF) (TSXV: MAI), Argonaut Gold Inc. (OTCPK: ARNGF) (TSX: AR).
The article continued: "The Global Gold Mining Market was valued at USD 197.58 Billion in the year 2021. Global Gold Mining Market witnessed healthy growth during the historical period, on account of a significant increase in disposable income of consumers across the globe. Further, major factors driving sales of gold products include increasing, changing consumer preferences coupled with the rising population of high-net-worth individuals. Additionally, different customs followed by people across the world regarding the adoption of ornaments and gems are further anticipated to boost the purchase of products significantly. Another article on Capital.com, also agreed that gold will continue its rise, saying that: "Recently investment bank Goldman Sachs raised its 2022 gold target to $2,500 per ounce, citing a "perfect storm" of increased investor and central bank demand… as well as resilient Asian retail demand."
Tocvan Ventures Corp. (OTCQB: TCVNF) (CSE: TOC) BREAKING NEWS - Tocvan Drills 116.9-meters of 1.2 g/t Au and 7 g/t Ag, including 10.2-meters of 12 g/t Au and 23 g/t Ag at Pilar - Tocvan Ventures Corp. (the "Company"), is pleased to announce drill results from its Pilar Au-Ag Project in Sonora, Mexico. Results for drill hole JES-22-59 are provided in this release, a core twin of RC drill hole JES-20-32 which returned 94.6-meters at 1.6 g/t Au (see Figure 1). Drill hole JES-22-59 was previously mentioned in a news release (see NR February 15, 2022) where a mineralized breccia host was observed in drill core correlating to the Main Zone at Pilar. JES-22-59 returned 116.9-meters at 1.2 g/t Au and 7 g/t Ag, including an impressive 48.1-meters at 2.8 g/t Au and 9 g/t Ag. High-grade gold-silver mineralization was recorded adjacent to a heavily faulted and altered zone returning 10.2-meters at 12.0 g/t Au and 23 g/t Ag, including 4.2-meters at 28.3 g/t Au and 49 g/t Ag.
A total of 1,562 meters of Phase III drilling has been completed in nine drill holes providing key information across the Main Zone and 4-T Trend. Results for five drill holes are pending.
Drill Highlights
JES-22-59 (Core)
- 116.9m at 1.2 g/t Au and 7 g/t Ag
- Including 48.1m at 2.8 g/t Au and 9 g/t Ag
- Including 10.2m at 12.0 g/t Au and 23 g/t Ag
- Including 4.2m at 28.3 g/t Au and 49 g/t Ag
"Once again core drilling has confirmed the significant grade and distribution of gold-silver mineralization at Pilar", commented Brodie Sutherland, CEO. "This further validates the strength of the shallow mineralized system at Pilar, especially in regard to the significant high-grade mineralization adjacent to controlling structures. We look forward to reviewing the remaining results that test the extension of these controlling faults to the southeast."
Discussion of Significant Results:
As part of the Phase III program, nine drill holes have been completed totaling over 1,562 meters. Drilling looked to expand the Main Zone through 25, 50 and 100-meter step-outs to the southeast in a gap zone that has seen little drilling focused on the main trend between hole JES-20-32 (94.6m at 1.6 g/t Au) and hole JES-21-50 (39.7m at 0.96 g/t Au). Drilling also covered the 4-T Trend testing below trench T-21-3, which returned 19.5 meters at 0.61 g/t Au.
Confirmation of host rock and structure through the Main Zone was completed with core drilling, targeting key areas where past RC drilling has intersected significant gold—silver mineralization. Drill hole JES-22-59 was successful in intersecting a significant zone of oxide gold with broad mineralization in a silicified brecciated andesite host (116.9 meters of 1.2 g/t Au, including 48.1 meters of 2.8 g/t Au and 9 g/t Ag). The intersection included a high-grade fault bounded zone grading 12 g/t Au and 23 g/t Ag over 10.2 meters. This broad interval correlates with mineralization seen in RC hole JES-20-32, which returned 94.6 meters at 1.6 g/t Au, including 9.2 meters at 10.8 g/t Au and 38 g/t Ag. The high-grade controlling structures indicate a high probability of continuation to the southeast, where pending drill results are located along trend. CONTINUED… Read this full release for Tocvan Ventures at: https://www.financialnewsmedia.com/news-toc/
Other recent developments in the mining markets include:
Magna Gold Corp. (OTCQB: MGLQF) (TSXV: MGR) recently announced that, further to its news release dated June 30, 2020, its subsidiary Molimentales del Noroeste S.A. de C.V. ("Molimentales") has entered into an amending agreement with PEAL de Mexico S.A. de C.V. ("PEAL"). In conjunction with the acquisition of the San Francisco mine on May 6, 2020, the Company successfully negotiated a settlement agreement with PEAL which settled amounts owing from contract mining activities owed by the predecessor owners of the San Francisco mine (the "Settlement Agreement").
On February 22, 2022, the Company amended the Settlement Agreement to settle outstanding amounts owing in exchange for the issuance of common shares of the Company with a value of US$1,000,000, which reduced the Company's amount owing by US$1,000,000from US$4,054,351 to US$3,054,351. The issuance of the shares remains subject to the approval of the TSXV. Any shares issued will be subject to a hold period expiring four months and a day following issuance.
Osisko Gold Royalties Ltd (NYSE: OR) (TSX: OR) recently provided an update on its first quarter 2022 deliveries, sales, cash margins and recent asset advancements.
Osisko earned approximately 18,251 attributable gold equivalent ounces1("GEOs") in the first quarter of 2022. This figure excludes 3,025 GEOs earned from the Renard diamond stream. As expected, production in the first quarter was impacted by the coldest months of the year, which reduced production at the Eagle mine. Production is expected to increase in the coming quarters as that seasonal effect dissipates and as ramp up of the Mantos expansion progresses. In addition, proceeds from the Renard diamond stream are not expected to be reinvested into the bridge loan starting in early May and, as such, revenues will be recognized again as attributable GEOs.
Minera Alamos Inc. (OTCQX: MAIFF) (TSXV: MAI) recently provided a 2021 year-end summary of the ramp-up of mining activities at the Santana gold mine in Sonora, Mexico. Through the end of 2021 approximately 9,100 ounces of gold were mined and stacked on the leach pad during the first phase of the project mining activities. The total exceeded the Company's initial mine opening projections and provides a sufficient amount of mining, crushing and leaching data to allow for final optimization of the operation through the last stages of ramp-up.
Operational highlights through the end of 2021 were: Gold inventory moved to the leach pad - 9,100 oz; Mine production rates approaching the 100,000 tonnes of mineralized material per month initial target for the project ramp-up; Cumulative gold recovery from mineralization under leach for more than 30 days exceeds 70% with additional recovery ongoing; Total area of stacked mineralization under finished/active leaching remains in excess of 50% and continues to expand; and Low reagent consumptions in line with previous test pad results (~0.2 kg/t NaCN and <2 kg/t lime)
Argonaut Gold Inc. (OTCPK: ARNGF) (TSX: AR) announced last month that it filed an early warning report in respect of its holdings in Magna Gold Corp. ("Magna"). On March 7, 2022, Argonaut sold an aggregate of 9,740,000 common shares of Magna ("Magna Shares"), at a price of $0.70 per Magna Share for aggregate gross proceeds of $6,818,000 (the "Transaction"). In connection with the Transaction, Argonaut paid a trading commission of $0.015 per Magna Share, for aggregate net proceeds of $6,671,900. All dollar amounts are expressed in Canadian dollars.
Immediately prior to giving effect to the Transaction, the Company had beneficial ownership of, or control and direction over, 9,740,000 Magna Shares, representing approximately 10.8% of the issued and outstanding Magna Shares (being 90,059,874 Magna Shares). Immediately after giving effect to the Transaction, the Company had beneficial ownership of, or control and direction over, nil Magna Shares, representing nil percent of the issued and outstanding Magna Shares.
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