Tuesday 1 October 2024

Gold Made a New All-Time High at $2,673 Followed by Monthly and Quarterly ATHs at $2,635 Built on Top of the Highest Yearly Close in History at $2,063. Next is a Climb to $5,000 & Over $10,000

 


Gold continues to shine very bright during this historical rally and we continue our Chronicles of the Gold Bull Market and TNR Gold's Shotgun Gold ProjectGold has finished the third quarter of 2024 in style showing its might and striking the new highest monthly and quarterly closings in history at $2,635 on September 30. Nothing grows straight into the sky and this very powerful Gold Bull Market will continue its assent to $5,000 and over $10,000 following the healthy consolidation stage. 



This very strong Gold Bull Market enters the much-needed consolidation stage which will be built on the solid base of the monthly all-time high closings confirming the solid uptrend established after the magnificent breakout this year. Gold finished trading in September with a decisive monthly candle and the highest monthly closing in history at $2,635.


Gold finished the third quarter on a remarkably strong note and made a new quarterly highest closing in history at $2,635 on September 30, 2024. The previous all-time high quarterly closing was made by Gold in the second quarter this year at $2, 327 on June 28, 2024.


FT brings us more information about the forces driving this marvellous Gold Bull Market. "Chinese Gold trading activity explodes". 


As we have discussed, The whole world will probably be shocked if China ever reveals the amount of its true Gold reserves which are held by numerous entities under China's control including the citizens of China and the vast Chinese diaspora.


Bloomberg brings us the confirmation that Hedge Funds are boosting bets on Gold. As we discussed last weekGreed and FOMO will be driving hedge fund managers to gain exposure to the Gold and Mining Sectors risking to underperform the more wise forward-looking peers building their positions in the Real Hard Assets and Commodities.


Gold continued its parabolic move last week, making the new highest daily close in history at $2,673 on September 26, 2024. In its relentless assent to the new highs, Gold was striking one all-time high daily closing after another again: $2,629 on September 23, 2024; $2,658 on September 24, 2024; and $2,659 on September 25, 2024. The much-needed consolidation phase will be welcomed now for the health of this powerful Gold Bull Market after the amazing break-out phase.



It is time for Gold Miners to start to move decisively up breaking out and outperforming Gold advance during this healthy consolidation phase for the powerful Gold Bull Market. Financial reports about the increased operation margins and profits for the major Gold Miners should bring the headlines and new investors into the sector.


Gold Miners have a lot of work to do just to catch up the the magnificent performance of Gold this year. Investors will rediscover Gold Exploration Companies and excitement will be building up during the coming M&A wave we have been discussing last week


Greed and FOMO will be driving hedge fund managers to gain exposure to the Gold and Mining Sectors risking to underperform the more wise forward-looking peers building their positions in the Real Hard Assets and Commodities.


Gold was going parabolic overtaking $2,600 in one breath and striking the new highest daily and weekly closings in history at $2,622 on September 20, 2024. That new breakout phase was coming after striking a whole series of new ATHs: $2,558 on September 12; $2,580 on September 13; $2,584 on September 16; and $2,587 on September 19, 2024. Gold continues to shine very bright during this historical rally and we continue our Chronicles of the Gold Bull Market and TNR Gold's Shotgun Gold Project. Nothing grows straight into the sky and consolidation will be welcomed for the Gold Bull market at this stage. 


This very interesting chart from Formula Stocks shows "Gold Miners Will Move More Than 40X from 2024". Now it is time for Gold Miners to start making headlines while Gold will be consolidating before its next big move up. 


Gold miners are literally printing money now with their expanding margins, this news is slowly making its way among investors still chasing AI and Crypto Dragons. M&A is the only way for majors to rebuild the falling Gold Reserves and keep the Gold production from falling over the cliff. 


The smart money is taking profits in Gold and looking upstream for the new M&A targets. These investments are lifting Gold Producers first and even a minimal spillover in the Gold Exploration Companies will create fireworks there. This coming wave of M&A among Gold Producers and investments made by Rob McEwen, Erik Sprott and other Gold Gurus in the new promising projects will drive the next stage of remarkable gains for wise investors. 


Now you should really pay some serious attention, to our main Story here, why NOVAGOLD is holding its stake in TNR Gold and why I believe that the time for the Shotgun Gold Project in Alaska is coming very close for its launch on the new orbit of valuation and development. 

"My belief is TNR's Shotgun Gold Project can potentially grow and become a foremost, immediate satellite site Gold deposit to Donlin Gold's Mining Camp infrastructure. This vision is based on our exploration work and academic studies like the ones from Dr Tim Baker in which Shotgun Gold Project is not only listed alongside Donlin Creek as one of the "Major Porphyry Gold Deposits" but is also projected to contain the similar porphyry intrusion-related type system as Donlin." 

Kirill Klip, Executive Chairman

TNR Gold Corp.



Before the start of September, Gold made a new highest daily close in history at $2,526 on August 27, 2024. That previous magnificent ATH daily closing was followed by the highest monthly close in history at $2,503 on August 30, 2024. 


Gold reached our first milestone of $2,500 in this magnificent Bull Market in a spectacular fashion and made a new highest daily close in history at $2,508 on August 16, 2024. We had our headlines. Previously Gold surged to the new ATH at $2,472 on August 12, 2024, smashing the prior highest daily closing in history at $2,469 made on July 31, 2024. 


Gold made a prior monthly all-time high close in history at $2,447 on July 31, 2024. We have a stable foundation for this magical Gold Bull Market based on rising quarterly and monthly ATHs. Gold surged to the new highest daily closing in history at $2,469 on July 16, 2024, smashing the previous ATH at $2,426 on May 20, 2024.


Graddhy has published "The Wild Gold Chart" with a potential technical target price of $48,000. Now my target of $10,000 for Gold seems to be not so outrageous and can be considered a perfectly reasonable milestone in this perspective.


This new record comes after Gold established a new weekly ATH at $2,411 on July 12, 2024. Gold finished the second quarter on a remarkably strong note and made a new quarterly highest closing in history at $2,327 on June 28, 2024. 


This June monthly closing for Gold at $2,327 has repeated the previous monthly highest close in history at $2,327 made on May 31, 2024. We have an exceptionally strong foundation of rising monthly and quarterly ATHs during this consolidation phase of the Gold Bull Market.


Fundamental Research Corp. issued an updated report on TNR Gold: "Since our initiating report in September 2023, TNR’s royalty projects have made significant progress. TNR is up 40% since September 2023." You have a lot of updated information to do your own research on our Company following all-important disclaimers.


Graddhy shows on the 53-year chart the history of 3 Gold Bull moves. He is painting the beautiful road map for Gold to surge in the third wave of this Bull Market towards his targets in the $10,000 - $15,000 range per ounce.

 

Gold surged to $2,450 and made the previous highest daily close in history at $2,426 on May 20, 2024. Before it, Gold hit ATH at $2,414 on May 17, 2024That jump followed a brief consolidation following the previous verticle climb of back-to-back all-time highs. 



The history of Gold Cycles provided by Tavi Costa illustrates very well the main drivers of this new mighty Gold Bull Market. This is only the beginning of the new leg up after the breakout from the giant Cup and Handle technical formation.



Every consolidation phase will provide new opportunities and allow new investors to shift towards true solid values. New fortunes will be created by this powerful dramatic rebalancing of the geopolitical and financial systems based on debt and its common denominator, the US Dollar.



Bloomberg reports, that Gold's return in 50 years exceeds bonds. Can Gentlemen prefer Gold from now on as well? Gold becomes a major diversifier and the ultimate hedge on the institutional level for portfolios constructed with stocks, bonds and crypto assets. 


Gold surged to the previous ATH  at $2,391 on April 19, 2024. During that week Gold again rushed from one ATH to another at $2,382 on April 15, 2024, and $2,383 on April 16.



Gold smashed a new intraday all-time high at $2,430 on April 12, 2024, after it made a previous ATH at $2,377 on April 11, 2024. During that week Gold surged from one ATH to another at $2,339 on April 8, 2024, and $2,355 on April 9, 2024.



The week before Gold surged to a new all-time high daily close at $2,330 on April 5, 2024. That new all-time high followed an awe-inspiring week when Gold smashed one ATH after another: $2,249 on April 1, 2024, $2,280 on April 2, 2024, and $2,300 on April 3, 2024. 


We had another set of the magnificent "Super White Soldiers". This incredible Gold price advance was based on the solid foundation of the new monthly and quarterly all-time highs at $2,234 established on March 28, 2024


This powerful move arrived after Gold smashed previous all-time highs at $2,204 on March 20, 2024, and $2,184 on March 11, 2024. Before it, Gold price hit $2,179 on March 8, 2024. As we have discussed, it was crucial that Gold exploded breaking out from this giant "Cup and Handle" formation to new highs rising all first week of March. 



Today's important observation is that Gold is hitting new ATHs while Gold ETF holdings are only just turning up. This Gold breakout was driven by the Central Banks and countries like China accumulating Gold. 


Only nowadays do we see inflows coming into Gold ETF. Investors chasing FOMO the rising Gold price will be the next driving force for this magnificent Gold Bull Market. 


Gold ETF rebound in July. ETFs saw record outflow in the first half of 2024.


We had a confirmed breakout for Gold on the monthly chart with a mighty candle for March. It followed the previous breakout confirmation with magnificent "Super White Soldiers" - back-to-back all-time highs: $2,160 on March 7, $2,148 on March 6, $2,128 on March 5, $2,115 on March 4 and $2,083 on March 1, 2024. 


These previous ATHs followed the highest monthly, quarterly and yearly close in history at $2,063 smashed by the end of 2023. The previous all-time high at $2,080 was made by Gold on December 27, 2023. 


Gold is sending a very loud and clear signal, that something is breaking up in the financial system. "Smart Money", China and Central Banks are buying Gold as real insurance from the coming crisis. 



Every insurance is only as good as the counterparty providing it. Who will be able to meet all claims in the end? Gold is nobody's obligation and has become "The Ultimate Hedge" for all portfolios constructed with bonds, equities and crypto.



Central Banks Buying Gold, Gamblers Buying Crypto.


Barron's provides another indication that the "Irrational Exuberance" party of the general stock market can be over. 


"Smart Money" is rotating already into Gold, Real Hard Assets and Commodities. 


Gold miners are minting money with expanded margins and are still recovering and catching up with the rising Gold price. 




We have a perfect set-up for the new Gold Bull Market and Gold Miners and Gold Exploration Companies will be a major part of it for the rest of this decade.


Tavi Costa illustrates for us the misallocation of investment capital during this "All Bubbles" stage of the market. Gold and Gold miners represent just 1% of total global assets, almost a rounding error. The Great Rebalancing can bring real fireworks to the Gold market, Gold miners and explorers. 


Gold miners are only now waking up relative to the incredible performance of Gold in recent months. Higher Gold prices still have to make their way and expand margins, creating profit and slipping into the financial statements to be noticed by the investment crowds.


This chart from Tavi Costa illustrates very well the recent advance of junior miners relative to the senior miners and Gold prices. Profits made in Gold and Silver markets are making their way into the senior miners first. 

Chart by Nicholas Winton

And only later new money is being allocated to the junior mining sector by investors seeking higher leverage to the rising Gold price. You can also put TNR Gold's performance this year into this perspective.


We have been waiting for the breakout from this giant Cup-and-Handle formation after the "pandemic" all-time high at $2,070 made by Gold in August 2020.


Now we have the generational breakout confirmed for this Gold Bull Market. Gold finished 2023 with the highest monthly, quarterly and yearly close in history at $2,063. Next is a climb to $2,500, $5,000 and over $10,000. 


Graddhy is painting the beautiful road map for Gold to surge in the third wave of this Bull Market towards his targets in the $10,000 - $15,000 range per ounce. In the coming months, we can expect new all-time highs for Gold following this breakout, which opens the road to climb to new record prices of $2,500, $5,000 and over $10,000 per ounce of Gold.


Gold is not celebrating wars and the annihilation of human life. The price of Gold is pointing to the obvious imbalances in the world governance and global financial system. We have another wake-up call, I do hope the inevitable rise of Gold price to $2,500, $5,000 and over $10,000 will be orderly.


The US National Debt is over $35 Trillion and is unsustainable. The ability to continue paying interest and increase this debt depends on the faith in the value of the US Dollar and appetite for US Treasuries.


After a very brief "deleveraging", the global financial system is back to increasing debt-to-GDP ratio. Total Global Debt stock is at a record $315 Trillion.


You can play the Deep Fake Video Games with Crypto only for so many years, the Deep Fake "Efficient Markets" like the Gold Market can be manipulated for decades, the illusion of your own choice to fight your own brothers to the last drop of your own blood for the elites has been cultivated for millennia.


It will not be so surprising for me that we have already reached the maximum stupidity point of no return and Wall Street will make the same one-trick pony with Bitcoin and all "FED Freedom Fighters": build the House positions in the Crypto Casino, make it easy to buy for retail "investors" by establishing ETFs, pump it UP and sell it into the salivating FOMO-chasing crowd as the new investment dream.  


The level of stupidity in modern society can easily exceed my bravest gestimations, it can be even adopted by some governments as an acceptable level of operations for any advanced version of "Idiocracy". I fulfilled my charity obligations by studying this subject in detail and moved on. 


The last important thing here will be to notice that smart money has moved on as well and has been pumping the AI Bubble like there is no tomorrow for quite a bit of time already.  Society made a very big journey very fast from "FED Freedom Fighters" to Tether - "the Central Bank of Crypto" - and to BlackRock pumping Bitcoin with all deadly force of the Wall Street Machine and selling it to the amused Lambs dreaming about their LAMBOs.


"The simple question to answer is: "Can theoretically some super-smart specially gifted people digitise ENRON's brave advanced accounting, Bernie Madoff's and Lehman Brothers' "Best Investment Practices"; encrypt it all for safely with a lot of BS, put it on a blockchain and give it as a finished product to ReTail to enjoy? In the end, it seems, that this is exactly what they really want to keep them happy while they are FOMO chasing their Day Dreams with LAMBos". A lot of Circus entertainment and some Bread for some, sometimes. All the same, just encrypted with a lot of hard to understand Crypto Tech jargon and other BS spices, so it tastes so good."

 


"I would say, why not? After all, other "One Thousand and One" known to humans scams are already being tortured by elliptic-curve cryptography in the Dark Crypto Web and put on different blockchains. Needless to say, that Circus has left already, probably, with all treasure troves, only clowns are still here."

False prophets did their dirty deeds and deceived millions by misguiding them and turning away from the productive investments and the real store of value represented by Gold. These cults can be run for a very long time, but make no mistake, the divine laws of time and gravity will bring down all sandcastles.


Events of "Black Monday" on August 5, 2024, confirmed the unique status of Gold as "The Ultimate Hedge".  Gold is nobody's obligation and has become "The Ultimate Hedge" for all portfolios constructed with bonds, equities and crypto.


"Gold is coiling into the very powerful spring and knocking on the new all-time high "Heaven's Door". As with all generational Bull Markets, any price suppression and market manipulation can lead only to one thing: another opportunity to accumulate the best stories in the Gold mining junior space where new fortunes will be created in the next few years to come. 


Nobody knows the future, but history can teach us about manias and "irrational exuberance" spilling over from chasing Crypto Dragons into real assets and solid values that some junior miners can represent in the marketplace."

 


Gold price action points to the obvious, any manipulation provides another unique opportunity to accumulate it. Ruthless Mr Market is separating YouTube traders and their money. The wise ones are given another chance and more time to learn and find The Best Stories among junior miners, which will build new fortunes.



"Only the patient investors who still can read, analyse and use the powerful organic intelligence tool - calculator, will be rewarded by the ruthless Mr Market. Only you can decide what to do after your own research and due diligence."

 


"We are getting closer to The Next Catalyst for Gold. The whole new generation of investors has to learn the hard way history lessons. They must find real, solid values after being used, disillusioned and thrown away by "The Ponzi on Steroids". "The Thousand and One" digitized scams known to humans remain scams even on the blockchains."



Central banks continue to accumulate Gold while retail investors are chasing Crypto Dragons.


"High gold price reflects strong demand
Another year of blistering central bank buying, together with resilient jewellery consumption, offset sizable ETF outflows. 

Annual gold demand (excluding OTC) of 4,448t was 5% below a very strong 2022. Inclusive of significant OTC and stock flows (398t), total gold demand in 2023 was the highest on record at 4,899t.

 


Central bank buying maintained a breakneck pace. Annual net purchases of 1,037t almost matched the 2022 record, falling just 45t short." (World Gold Council, 31 January 2024)


China continued to accumulate Gold and reported a jump in reserves.


The whole world will probably be shocked if China ever reveals the amount of its true Gold reserves which are held by numerous entities under China's control including the citizens of China and the vast Chinese diaspora. 


Yields are rising again and the prices of Treasuries are going down while Gold price is going up. We have a great rotation out of the US Treasuries into Gold. 


"There is no Gold 2.0, there are over 5,000 years of humankind's history with Gold. Investors are tired of losing money by chasing Crypto Dragons and Bitcoin Dreams in the Tether Metaverse."


We have The Peak Gold Supply in place, which will drive the new M&A cycle for the Gold industry. Gold miners are printing money again with expanding margins and they will have to start looking more aggressively for new major Gold projects.



"My belief is TNR's Shotgun Gold Project can potentially grow and become a foremost, immediate satellite site Gold deposit to Donlin Gold's Mining Camp infrastructure. This vision is based on our exploration work and academic studies like the ones from Dr Tim Baker in which Shotgun Gold Project is not only listed alongside Donlin Creek as one of the "Major Porphyry Gold Deposits" but is also projected to contain the similar porphyry intrusion-related type system as Donlin." 

Kirill Klip, Executive Chairman

TNR Gold Corp.

 

 


"A recently published research report on TNR, written by Fundamental Research Corpreckons fair value for the company at C$0.22 per share. The current price is significantly lower than half of that." (Alastair Ford)


Since our initiating report in September 2023, TNR’s royalty projects have made significant progress,” the analysts wrote in a report. “TNR is up 40% since September 2023.” (Emily Jarvie)



"The report from Fundamental Research underscores the company's near-term royalty potential, particularly from Ganfeng Lithium's Mariana project, and reaffirms a Buy rating with an adjusted fair value estimate of C$0.24 per share." (Angela Harmantas)

 

 
Disclaimer: Please be aware that any opinions, estimates or forecasts regarding the performance of TNR Gold Corp. in any research reports do not represent the opinions, estimates or forecasts of TNR Gold Corp. or of its management.




Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.








My Vision for TNR Gold and Strategy: Share Buyback, Potential Valuations, and Shotgun Gold Project Spinout




“We are building The Green Energy Metals Royalty and Gold Company. Our business model provides the unique entry point into the creation of supply chains for critical materials like energy metals which are powering Tesla Energy rEVolution and Gold industry which is providing the ultimate hedge during this part of the economic cycle. Our shareholders are participating in the building of The Green Energy Metals Royalty and Gold Company. In our portfolio, we have a unique combination of assets providing exposure to different parts of mining cycle: starting with the power of blue sky discovery and including partnerships with industry leaders like McEwen Mining, Ganfeng Lithium and Lundin Mining as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”

Kirill Klip, Executive Chairman TNR Gold Corp.


Today I would like to present our strategy for the Shotgun Gold Project in more detail for all our shareholders.




TNR Gold – AmeriGold – Shotgun Gold

The Company’s strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR is actively introducing the project to interested parties. We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner who shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time. 



I believe that in order to maximise shareholder value and reach the potential valuations presented above we must preserve capital, reduce the amount of outstanding shares and not invest in Alaska our own capital.


Our strategy presented to potential strategic partners involves the creation of a JV with one of the major gold mining companies when our partner will be investing very substantial capital in the development of the Shotgun Gold Project while earning a stake in the project.



TNR Gold shareholders will benefit from the strategic partner’s capital being invested “in the ground” and industry expertise, including operations in Alaska.



The Management is investigating the best value creation strategies for the Shotgun Gold Project and has put in place the corporate structure of AmeriGold – the stand-alone company that could potentially inherit the Shotgun Gold Project JV operations after the contemplated potential spinout from TNR Gold.



This article is for information only and provides publicly available information and my personal Vision and valuation matrix of TNR Gold. I am the largest individual shareholder of our Company. Nothing in this blog post constitutes investment advice, offer or solicitation of the sale of any securities. Please carefully read all our Legal Disclaimers and conduct your own due diligence as always.

Thank you for your support of TNR Gold!

Tesla Nicola rEVolution and Gold. 




Proactive:

TNR Gold’s Shotgun Project In Alaska Has All The Trappings And Trimmings It Takes To Attract In A Major

Alastair Ford



"TNR Gold’s track record of successful deals with majors like Ganfeng and McEwen Mining should stand it in good stead as manoeuvring continues on the Tintina gold belt.



“I believe the Shotgun gold project could become one of the main satellite gold projects of the Donlin gold camp,” says Kirill Klip, the chief executive and largest shareholder of TNR Gold Corp (CVE:TNR).

Shotgun is the flagship asset of TNR, and is located to the south of Donlin, just inside the boundary of the famous Tintina gold belt which arcs right across Alaska.




It’s a gold belt that has proved prolific in delivering up sizeable discoveries over the years, and now boasts a serious number of major producing mines, including at their forefront, the Pogo mine, owned by Northern Star Resources (ASX:NST) and the Fort Knox mine, owned by Kinross (TSE:K).




But Donlin takes things to another level again.

With its 39mln ounces of gold grading well over two grams per tonne, it’s one of the largest open pit deposits anywhere in the world.

Not surprising then that one of the biggest names in the industry, Barrick Gold (TSE:ABX), is playing a crucial role in bringing it on, alongside partner NovaGold (TSE:NG).

Will these two stay as partners for the duration, or will Barrick step in and buy out NovaGold?



Or, for that matter, will a third party, like Newmont, show up late at the party and try to initiate some sort of division of the spoils with Barrick along the lines of the current hard-won arrangement in Nevada?

These are matters for speculation just at the minute, but it might not be long before we see tangible corporate action.

And it’s not altogether out of the question that Shotgun will get caught up in it too.

After all, TNR has plenty of form in forming strong alliances with the world’s leading mining companies.



In an earlier phase of its existence it made two major discoveries in Argentina, the Los Azules copper project, now being brought forward by McEwen Mining (TSE:MUX), and the Mariana lithium project, now being brought forward by Ganfeng Lithium. After some adroit deal-making TNR managed to retain substantial royalties in these projects, such that when they come on stream it’s likely that Los Azules will contribute upwards of US$3.5mln per year to the TNR coffers, with Mariana providing a further US$1mln. However, the latter estimate was made by the analyst before Ganfeng  announced an increase of the lithium resource at Mariana of more than 250%.



This background of successful deal-making with majors ought to provide TNR with a real advantage when it comes to assessing options for Shotgun in the coming months.

To some degree, it’s a fairly simple exercise for investors to form an idea of what the future holds, but in the case of Shotgun Klip is keen that TNR ends up retaining a 25% interest, rather than just a royalty.

In this, he does have some room for manoeuvre, because Shotgun isn’t just another piece of prospective ground. Rather, the project already boasts an inferred resource of over 700,000 ounces of gold at Shotgun Ridge, and shows every sign of being able to deliver a markedly larger total than that, once the next major exploration programme delivers its results.



Shotgun Ridge is just one of multiple gold target areas controlled by TNR Gold. ‘Shot’, ‘King’ and ‘Winchester’ add to the collection to form a distinct gold district with five  separate targets identified so far

When that will be though is the big question.

To take Shotgun up to the next level, Klip is clear that a major exploration spend is required – upwards of US$5mln and ideally closer to US$10mln. On one scenario he could go into the market and raise that money himself.

But here’s where his position as a major shareholder in the company becomes key.

“Even a US$5mln raise would be very dilutive to all our shareholders at this stage and will not guarantee success,” he says.

“We need to bring US$10mln in to drill the project very strongly.

The first US$5mln to take the project from the current 700,000 ounce resource up to the two million ounce mark, the rest to drill out the five nearby targets. There’s no reason to suppose that our ground cannot hold multiple mineralised systems.”

At Shotgun the thinking is that there may be upwards of five million ounces of gold in the ground, and there is precedent. At this stage the geology shows remarkable similarity to Donlin.



An academic study conducted in 2001 by Lang & Baker specifically identifies both projects as ‘major porphyry granite related gold deposits’ related to a singular widespread magmatic gold mineralising event that constitutes this horseshoe-like region.

The implication is that both projects arose from the same geographical kitchen sink, leading to the reasonable supposition that they should possess similar favourable geological properties. 



“We are talking about a high tonnage bulk system,” says Klip. “There are no nuggets, it’s very uniform.”

Shotgun’s particular boon is in the details. Shotgun’s mineralisation has been shown  to possess little-to-no ‘nugget effect’. A high ‘nugget effect’ means high variability between samples that are closely spaced. ‘No nugget effect’ implies a tight and uniform mineralisation of a bulk tonnage gold system. So there’s no need to dig up empty rock space as one does when chasing a vein so the stripping ratio for any mine will be low, keeping costs down.



Among the notable intercepts already banked, the company boasts 242 metres grading 1.25 grams gold per tonne, 209 metres at 1.02 grams, and just under 47 metres at 1.14 grams.

What’s more, the gold that’s been identified thus far sits at the top of a ridge, meaning that the stripping ratio for any mine will be low, which in turn will keep costs down.



“I’m in the business to get the maximum out of this new gold bull market. We’ve been waiting for it for nearly ten years after 2011. I just need to get the best deal,” says Klip

“We are not dreamers. We did it with the copper. We did it with the lithium. I would like to make it even bigger with the gold. I would like to do better, to keep a 25% stake.”



Not for him as a shareholder the dilutive effects of repeated equity fundings to support exploration. His favored option – of bringing a major in – would in the end, he calculates, mean that current shareholders end up retaining more of the project, and hence more of the value, in the long-term.

Will the strategy work?

Well, it already shows every sign of doing so.

“A deal could happen any day,” says Klip.

“Literally. We are seeing interest. But we are not in any hurry. The interest at the moment is from mid-sized companies. I do not like to commit to shallow money with sums that look great on paper but come from parties that lack the appropriate technical and financial depth with consistent follow-through in the years following the deal. We hold the high ground. We want to be patient and attract the best of the best, like we did with Ganfeng Lithium years ago - one of the top gold major company to make sure that we can get the absolute most of Shotgun’s resources in development.”



For now, the company is actively introducing Shotgun Gold to potential partners and is much more open to drilling the entirety of these prospects in a strong fashion so that it can expand the known area of mineralisation and conclusively assess the project’s top-end valuation. 

And it’s in this context that the royalty portfolio cleaves once more into view. These are serious assets, and they promise cashflow in the near-term. There’s significant value in the company on their strength alone. All of which means that TNR isn’t like some other juniors, desperately lurching from one equity raise to the next simply to keep going. There’s far more to it than that. In fact, there’s a carefully thought out strategy that looks likely to reap significant benefits for shareholders in the near-to-medium term."




Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.