Thursday, 12 September 2019

QE Is Back And Gold Is Back Jumping Above $1,500.



QE is back and Gold is back jumping above $1,500.

ZeroHedge reports: "ECB cuts 10 bp, QE restarted at Euro 20B pace. ECB introduces a two-tier system for reserve remuneration. The ECB lasted 9 months without QE." 

The flood gates are wide open. I guess that we can relatively safely assume that we all know the direction from here by now.  






Please, do not forget to do your own research and you will have to pick the winners.





Here are latest maps from Northstar to help us with navigation.





Gold In The Alaskan Elephant Country: The Northern Miner - Top-10, Canada-based Precious Metals Developers.





The Northern Miner presents top-10 gold and silver metals developers based in Canada. This is another brilliant presentation after "Canada's Top 10 Royalty and Streaming Companies" and I highly recommend you to visit the Northern Miner website and follow them on twitter. Today we have another opportunity to have a look at the Donlin Gold project in Alaska. The magnitude of this "arguably the most important gold project in the world" has already propelled Novagold Resources to the number one place in this rating by The Northern Miner.




You will find a lot of news and discussions these days about gold which is breaking out of its consolidation after six long years when a lot of gold bugs have literally died out and industry has changed dramatically. Yesterday, gold went vertical and was ripping through $1,445 consolidating its advance in the breakout pattern.




We have addressed this tectonic shift in the financial world in-depth as well as here. Gold is rising with the coming tsunami of the record amount of debt with negative rates. Not only gold bugs are talking about it but institutions like pension funds are facing very sobering reality when we are not discussing the return on the invested capital, but the return of that capital.



Quite suddenly for a lot of people, they have the realisation that gold provides something precious that the growing pile of negative-yielding debt doesn't. Wealth preservation. Gold was dismissed by so many before "because it does not provide yield." So now, compared to the negative rates of return even on some junk bonds, it does. The manager of the largest hedge fund in the world, Ray Dalio, is calling gold as safe heaven in this paradigm shift for markets. Now we are in a very good company: Central Banks and billionaires are buying gold.




Below you can find more information about the Gold Reserves Crisis which is explained very vividly by McKinsey. Now you can better understand the place of Donlin Gold among the gold deposits in the world. Development of this 39M oz giant will build a major mining camp on the US soil and will bring life and infrastructure to the whole south-west part of the great state of Alaska. TNR Gold is advancing Shotgun Gold exploration near Donlin Gold mining district and is looking for the strategic partner to grow together in "The Alaskan Elephant Countryin the USA.





Trade Wars, Gold And Billionaires: Gold Price Going To $1,700 Soon Says Billionaire Paul Tudor Jones - Bloomberg.



Gold is banging on the $1350 door and the breakout above this resistance area can bring the fireworks before 4th of July this year. With all market observations of the extreme valuations, it is important that people who can move the real money in order to address these dislocations of capital will join our happy early investors' crowd. We are in a very good company now with our observations about the all-time low valuation for gold adjusted for 1980 consumer purchasing inflation formula.




It is interesting to note that among gold bulls and other fellow billionaires Thomas Kaplan is sighted as well:

"Jones comments also follow recent bullish sentiment from other billionaires. Last month, Thomas Kaplan, chairman and chief investment officer of Electrum Group, said in an interview with David Rubenstein on Bloomberg Television that he could see gold prices rally as high as $3,000 to $5,000 within a decade."

Electrum Group is the major shareholder of Nova Gold which is developing the Donlin Gold project with Barrick Gold in the great state of Alaska.




"Since investing roughly US$70 million to acquire a 28 percent stake in Novagold Resources Inc. in 2009, American billionaire Thomas Kaplan and his Electrum Group of companies have taken a keen interest in some of the more intriguing mineral exploration companies and projects in Alaska and across Canada's North. 
Kaplan, an Oxford-educated historian that began investing in natural resources in the 1980s, knows that gold has served as a currency throughout mankind's written history and believes the precious metal continues this role in society today. 
"Gold is not a commodity, it is a currency with the longest known provenance we have – actually gold and silver," he asserted in 2011. "And, that is extremely important because when you start looking at something no longer as a commodity but as a currency, you have to really assess; what is that market, is it deep enough to give people the opportunity to play?" 
Kaplan believes the gold market is not deep enough, which is one of the reasons he invested in Novagold, a Vancouver, B. C.-based junior that owns 50 percent of the 39-million-ounce Donlin Gold project in Alaska. 
"To us, Novagold is the right story at the right time," Kaplan, Novagold's chairman, penned in the company's 2018 annual report. "It represents a once-in-a-lifetime opportunity to make the very lowest risk/highest reward trade in gold." 
While Kaplan is an outspoken advocate for gold, investments made by private equity funds managed by Electrum go beyond the precious metal to include junior mining companies exploring for nickel and platinum group metals in the Yukon; zinc and copper in Alaska and diamonds in Nunavut. "Electrum Group funds strategic exploration." North of 60 Mining News"



We have discussed in depth the McKinsey's Gold Reserves crisis and you can find this analysis on my blog. According to McKinsey: "Reserves by major Gold companies have declined 26% from 2012 and now below 2007 levels." M&A will be only part of the solution for some companies as it only redistributes the same Gold reserves, we need new discoveries and new elephant projects coming online just to address the gap between growing demand and available supply.




Barrick Gold is developing together with NovaGold 40MOZ giant Donlin Gold in Alaska - "arguably the most important Gold project in the world." So where will you be looking for the new elephants? Maybe in the Alaskan Elephant Country. 




Barrick Gold received crucial permits to advance Donlin Gold now and this new developing mining district in the US can make the promise of "Gold In the USA" providing stable supply feasible again and it can become that solution to "The Gold Mining Reserve Crisis" McKinsey is talking about:
"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR") is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "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 that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."




Gold In The USA: Kirill Klip GEM Royalty TNR Gold Presentation May 2019 - Gold In The Alaskan Elephant Country.






LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.





Gold In The Alaskan Elephant Country: TNR Gold Shotgun Gold Presentation April 2019.





"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR") is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "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 that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."






LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.





  

The Northern Miner:

Top-10, Canada-based Precious Metals Developers.

Canadian gold and silver juniors are leading project advancement at home and abroad, as precious metals exploration and development enjoy boom times again. 
The following are the top-10, Canadian-headquartered precious metals companies that are developing projects but not yet in commercial production, ranked according to market capitalization in early July. Royalty and streaming companies are not included in the list.
1. NOVAGOLD RESOURCES
$2.38B market cap
Vancouver-based Novagold Resources’ (TSX: NG; NYSE-AM: NG) flagship project is its half interest in the large but remote Donlin Gold project in southwestern Alaska, which is a fifty-fifty joint venture with Barrick Gold (TSX: ABX; NYSE: GOLD).
Donlin Gold is one of the world’s largest undeveloped gold deposits, boasting measured and indicated resources of 541 million tonnes grading 2.2 grams gold per tonne for 39 million contained oz. gold, plus 92 million inferred tonnes grading 2 grams gold per tonne. (The measured and indicated resource includes 505 million tonnes of proven and probable reserves at similar grades.)
The latest updated feasibility study of Donlin Gold envisions an open-pit mine that would produce 1.5 million oz. gold annually in the first five years of operation, and 1.1 million oz. gold per year over a 27-year life.
For 2019, Novagold says it expects to spend US$13 million to fund its share of expenses at Donlin Gold, and US$11 million for general and administrative costs.
It says its goals for 2019 include: advancing Donlin Gold toward a production decision; maintaining an effective corporate social responsibility program; promoting a strong safety culture; and safeguarding the company’s treasury, with cash and term deposits totalling US$157 million as of May 31.
A year ago, Novagold sold its half stake in the Galore Creek copper project in northern B.C. to Newmont Mining for US$275 million, with the resulting funds directed to Galore Creek. Teck Resources owns the rest of Galore Creek."


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