NEW YORK, April 27, 2021 /PRNewswire/ -- Gold prices remained steady on Monday as investors await policy cues from the Federal Reserve's meeting this week. The Federal Open Market Committee (FOMC) will meet for its April meeting on Tuesday and Wednesday, with a monetary policy decision and press conference from Federal Reserve Chair Jerome Powell slated for Wednesday afternoon. Bank of America Chief Economist Michelle Meyer explained, according to a report by Yahoo Finance, that "at the conclusion of the April FOMC meeting, we expect Chair Powell and the FOMC to give a more positive view of the economy but reiterate that the economy needs to make further progress before signaling any policy change and risks remain from the virus. The policy statement and the press conference are likely to emphasize that while the Fed is encouraged by the recent data, the recent acceleration in inflation should prove temporary and the labor market recovery is far from complete." Gold Mountain Mining Corp. (TSX-V: GMTN), Prime Mining Corp. (TSX-V: PRYM) (OTC: PRMNF), Equinox Gold Corp. (NYSE: EQX), Sun Summit Minerals Inc. (TSX-V: SMN) (OTC: SMREF), Kinross Gold Corporation (NYSE: KGC)
Inflation is expected to play a major role in deciding the future of gold. According to the International Monetary Fund (IMF), USD 12 Trillion has been pumped into global financial markets as governments and central banks worldwide have tried to stabilize an economy that was devastated by the pandemic. Investors are now speculating that the fallout will be seen in higher inflation, especially when the economic activity picks up in the second half of the year. When prices rise and the value of the dollar falls, gold is often seen as a hedge against inflation.
Gold Mountain Mining Corp. (TSX-V: GMTN) (OTCQB: GMTNF) announced last week, "results from the Company's latest drill hole intercepts located at its 100% owned Elk Gold Project located near Merritt, BC. These assay results extend known high-grade mineralization of the 2600 and 2700 vein systems and showcase near-surface gold grades consistent with the Company's successful deep drilling results announced on April 14th, 2021. Additionally, the Company's re-logging of historic core using the latest technology continues to uncover high-grade mineralization missed by previous operators.
- The results from the latest assays extend the 2600 and 2700 vein and convey strong grade continuity as the Company continues infilling. Drill results include:
- SND20-033 intercepted 1.3m averaging 13.3 g/t Au (including 0.30m averaging 56.5 g/t Au)
- SND20-033 intercepted 1.3m averaging 4.5 g/t Au (including 0.30m averaging 19.2 g/t Au)
- Relogging and sampling program uncovered a new vein intercept from a historic hole:
- SND11-128, yielding 0.2m averaging 47.8 g/t Au
Gold Mountain's CEO Kevin Smith commented: "These results at the tail end of our Phase 1 Drill program bring our hit rate to 100%. Every drill hole from this program returned significant gold intercepts. The primary goal of the final drill holes was to in-fill data gaps in the 2600 and 2700 vein system and to further enhance JDS' underground geotechnical model. Having these holes return some of our highest grades is a welcomed surprise. Additionally, we continue to uncover phenomenal grades from our relogging program that is proving to be an economical way to fill gaps in our model. The Elk Gold project continues to demonstrate excellent continuity and expandability."
Kevin Smith continues, "Gold Mountain finds itself in a unique position where we're able to deliver shareholder value not only through our exploration efforts but also through the coming transition into development and production. This gives us a unique upside in the junior space which we feel sets us apart from our peers. The market seems to be waking up to our story and with early shareholders staying long there has been a great response in our share price. Management is extremely focused on execution and looks forward to continuing to deliver meaningful progress in the coming months."
Phase 1 Update
Assay Results for Near Surface Drilling Targeting the 2600 and 2700 Veins
The latest assay results from three of the final five Phase 1 drill holes, further extends the 2600 and 2700 vein systems towards the northeast. The intercepts articulate strong consistency throughout the vein system, with assay results showing high grades in each of the new drill holes targeting the 2600 and 2700 veins.
The final five holes targeting the 2600 and 2700 veins were positioned to in-fill data gaps in the vein systems and maintain a 75m distance between drill holes with the goal of methodically expanding the resource at the Siwash North Zone. The Company encountered grade and thickness levels that surpassed its expectations with intercepts showing high grades rivaling its deep drilling intercepts.
Core Relogging Program
Phase 1 also included a campaign to re-log and sample historical drill core using the latest exploration technology to discover additional veins. The Company found initial success, discovering a new vein intercept recognized in historic hole SND11-132, yielding 1.2m averaging 52.3 g/t Au (including 0.30m averaging 216 g/t Au.) Recently, the Company uncovered an additional new vein intercept recognized in historical hole SND11-128, yielding 0.2m averaging 47.8 g/t Au. With the discovery of these two high-grade intercepts, the Company is bullish on the extensive relogging efforts that are part of its Phase 2 exploration program and anticipates it will lead to adding cost effective ounces to its resource estimate.
Below is a table of Selected Core Drill Results. A complete list of all drill results to date have been posted to the Company's website at www.gold-mountain.ca:
Historic Core Relogging
Drill Collar Locations
Drill collar locations, azimuths and dips for the drill holes included in this release are provided in the table below and have been posted to the Company's website for all drill holes:
Drill Collar Locations
Quality Assurance/Quality Control (QA/QC) Measures and Analytical Procedures
Gold Mountain adheres to a strict QA/QC monitoring program that includes the insertion of blanks, standards and duplicates into the sample stream, as well as the re-submission of select samples for check assays by an independent third party laboratory. Core samples were analyzed by Actlabs in Kamloops BC using Fire Assay methods with a gravimetric finish for results over 10g/t gold.
No material QA/QC issues were noted with the results received from the laboratory."
Prime Mining Corp. (TSX-V: PRYM) (OTCQB: PRMNF) announced earlier this month release additional positive results from its ongoing 15,000-metre Phase 1 drill program at its wholly owned Los Reyes gold-silver project in Sinaloa State, Mexico ("Los Reyes, or the "Project"). Currently, 5 diamond drills are active until the commencement of the rainy season in August 2021. The results announced today include initial core assay results from the Zapote-South, Noche Buena and San Miguel East deposits, which are three of eight known deposits that comprise the current mineral resource at Los Reyes. Thirteen drill holes are being reported on, including eight holes from Zapote-South, four from Noche Buena and one from San Miguel East.
Equinox Gold Corp. (NYSE: EQX) announced recently that the Company has sold its Pilar Gold Mine in Brazil to Pilar Gold Inc. for aggregate consideration of: $38 million in cash, payable as follows: A 9.9% equity interest in Pilar Gold Inc.; and a 1% net smelter returns royalty on production from the Pilar Gold Mine. Christian Milau, CEO of Equinox Gold, commented: "Equinox Gold has grown considerably over the last two years and the sale of the Pilar Gold Mine is a step toward optimizing our portfolio to focus on our larger production and development assets. With existing production and growth potential, the Pilar Gold Mine is an excellent foundation mine for an emerging gold company. We look forward to participating in the success of Pilar Gold Inc. as a supportive shareholder as they launch a new Brazil-focused gold producer."
Sun Summit Minerals Inc. (TSX-V: SMN) (OTC: SMREF) announced earlier this year that it has commenced a significant drill program at the Buck Property, central British Columbia. Sun Summit will complete over 5,000 metres of drilling focused on expanding zones of high-grade gold mineralization. Bob Willis, Sun Summit's CEO, states, "We are excited to commence this round of drilling at our Buck property. The identification of visible gold throughout our discovery hole is significant and confirms our assay data. Running these select samples, as well as samples from other mineralized zones, for metallic screen fire assay will further investigate the grade of these intercepts. This data will be compared to our fire assay data to better inform our sampling and analytical protocols going forward if visible gold is identified again."
Kinross Gold Corporation (NYSE: KGC) announced last September, that it has entered into agreements to acquire a 70% interest in the high-quality Peak Gold project in Alaska from Royal Gold, Inc. ("Royal Gold") and Contango ORE, Inc. (OTCQB: CTGO) ("Contango") for total cash consideration of USD 93.7 Million. Kinross will have broad authority to construct and operate the Peak Gold project, with Contango retaining a 30% non-operating minority interest. "The relatively high-grade, low-cost Peak Gold project is an excellent addition to our portfolio, as it allows us to leverage our existing mill and infrastructure at Fort Knox and strengthens our medium-term production and cash flow profile. In today's gold price environment, Peak Gold is an attractive, high-margin project that is expected to generate robust returns," said J. Paul Rollinson, Kinross Gold President and CEO. "The project is also expected to add to our strong record of socio-economic contributions to our host communities in Alaska, one of the top mining jurisdictions in the world."
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