Investors Flock to Gold in Search of a Safe Haven

Investors Flock to Gold in Search of a Safe Haven

PR Newswire

NEW YORK, May 12, 2020

FinancialBuzz.com News Commentary

NEW YORK, May 12, 2020 /PRNewswire/ -- The actual economic repercussions from the current pandemic and measures taken to combat it are still unclear. Recently, the World Gold Council released important data from its first-quarter 2020 demand trends report, where it indicates that the global outbreak was "the single biggest factor influencing gold demand." That is because gold assets are often considered safe heaven assets in a time of economic or political turmoil. "As the scale of the pandemic - and its potential economic impact - started to emerge, investors sought safe-haven assets," the report said. "Gold ETFs saw the highest quarterly inflows for four years amid global uncertainty and financial market volatility." Even though there is a gradual easing of all the restrictions and businesses are slowly starting to reopen, both the CDC and the WHO are warning that there is a significant danger of a second wave of the virus outbreak. Vizsla Resources Corp. (OTC: VIZSF) (TSX-V: VZLA), New Gold Inc. (NYSE: NGD) (TSX: NGD), Kinross Gold Corporation (NYSE: KGC) (TSX: K), Harmony Gold Mining Company Ltd. (NYSE: HMY), Yamana Gold Inc. (NYSE: AUY) (TSX: YRI) 

Many small businesses stopped operating during this crisis with the hopes that they could resume operations after the social distancing restriction are lifted. But it is very likely that many of these businesses will be forced to announce bankruptcy. As a result, analysts are estimating that demand for gold will continue to rise. Joni Teves, precious metal strategist at UBS Investment Bank, explained to CNBC that, "There is growing potential (for gold) to break $1,800 (per ounce) in my view… Gold is becoming attractive in this environment where uncertainty is very high, growth is expected to weaken, and at the same time you have negative real rates which make gold attractive to hold as a diversifier in investor portfolios."

Vizsla Resources Corp. (OTCQB: VIZSF) (TSX-V: VZLA) just announced breaking news regarding, "the latest results from the Company's exploration program at the Panuco silver-gold district in Mexico. Seven holes have been completed on the Honduras Vein with high grade intercepts returned. Infill surface and underground sampling of the Animas, Cordon del Oro and Napoleon vein corridors are also reported. To date, the Company has completed 25% of its initial discovery drill campaign for 3,639 metres of a total 14,500 metre drilling program. Drilling is expected to restart at the Panuco project shortly.

Drilling continues to define sizeable widths and good grades on the veins, particularly on the northern section of the extensively mined Animas vein corridor. The Company is also highly encouraged by the results of sampling on the Cordon del Oro corridor, the next vein corridor to the west of Animas. Cordon del Oro has never been drilled and is essentially unexplored yet is demonstrating thick vein widths and high grades. Vizsla's review of data generated over the past months has determined that this corridor offers an excellent opportunity to make significant discoveries. With more than $2.5 million in cash, Vizsla is well-funded for this work and looks forward to reporting results as soon as possible.

Drilling Highlights

Sampling Highlights

Note: All numbers are rounded and widths represent true widths. Silver equivalent is calculated by multiplying the gold grade by 80 and adding it to the silver grade. All calculations assume 100% metallurgical recovery.

Vizsla continues to aggressively explore the Panuco project with a systematic program of vein prospecting, detailed surface and underground mapping and sampling, and discovery-oriented drilling. Drill holes AMS-20-08 and AMS-20-12 at the Honduras Vein show the continuation of high-grade mineralization from surface though the specific geometry of mineralization to depth is not yet well understood. Vein prospecting has generated several new areas requiring immediate follow up while detailed mapping has generated spectacular assays that upgrade targets along the Cordon del Oro and Napoleon vein corridors.

CEO Michael Konnert stated 'The Panuco silver district continues to offer excellent results and significant discovery potential. Detailed mapping has still only been completed on 19% of the cumulative vein strike length and both Vizsla and historical drilling on 10%, demonstrating the impressive scale of this silver district. The Cordon del Oro and Napoleon veins have never been drilled. These two veins will be the first targets drilled when drilling resumes. The Concordia district, where Panuco is located, is fortunate to have no COVID-19 cases. The Company is working with local authorities to recommence drilling in mid to late May if infection rates remain low'

 

 

Complete table of drillhole intersections

 









Prospect

Drillhole

FROM

To

Width

Silver

Gold

Silver Equivalent

(m)

(M)

(m)

(g/t)

(g/t)

(g/t)

Honduras

AMS-20-08

170.80

175.15

4.35

208.5

0.83

274.7


Incl.

171.80

172.80

1.0

432.0

1.55

556.0


AMS-20-09

215.00

215.50

0.5

67.4

0.24

86.2


AMS-19-10

No Significant Intersection


AMS-19-11

No Significant Intersection


AMS-20-12

138.30

140.90

2.6

150.6

1.02

231.8


Incl.

138.80

139.50

0.7

294

2.09

461.2


AMS-20-13

No Significant Intersection


AMS-20-14

203.50

204.40

0.9

78.5

0.82

143.9


And

260.60

261.00

0.4

18.7

1.48

136.7


 

Table 1: Downhole drill intersections from the holes completed at the Honduras Vein, Panuco. 

All numbers are rounded and widths represent downhole lengths.  True widths are estimated at between 57-82% of downhole lengths.  Silver equivalent is calculated by multiplying the gold grade by 80 and adding it to the silver grade. All calculations assume 100% metallurgical recovery.

 

 

 

Selected surface and underground sample results

 








Vein

Prospect

Location

Width
(m)

Silver
(g/t)

Gold
(g/t)

Silver Equivalent
(g/t)

Cordon del Oro

Mojocuan 2

Surface

3.2

44.1

16.52

1,365.4



Incl.

1.0

75.8

38.20

3,131.8


Mojocuan 2

Surface

5.9

248.5

1.64

379.5



Incl.

1.4

412.0

3.42

685.6


Mojocuan 2

Surface

1.4

426.0

2.43

620.4


Peralta

Surface

2.0

879.6

0.63

929.6



Incl.

1.3

959.0

0.65

1,011.1

Animas

Pecari

Surface

0.7

721.7

5.05

1,125.7


Rosarito

Underground

11.9

140.0

1.67

273.4



Incl.

2.9

249.2

3.84

556.6


Rosarito

Underground

8.65

205.3

0.77

267.0



Incl.

2.4

558.0

1.48

676.4


Rosarito

Surface

4.5

171.0

1.75

311.1



Incl.

1.5

264.0

3.19

519.2


Rosarito

Underground

4.0

232.3

2.54

435.2


La Gallina

Surface

0.8

46.0

6.96

602.8


Esperanza

Surface

0.6

620.0

3.34

887.2


Chinacates

Underground

0.7

673.0

1.64

803.8


El Aventurero

Underground

0.5

628.0

5.95

1,104.0


El Tiempo

Underground

0.8

443.0

3.16

695.8


El Tiempo

Underground

2.2

261.9

1.80

406.1



Incl.

1.2

316.0

2.58

522.4

Napoleon

Napoleon-04

Surface

4.2

229.7

3.13

479.9



Incl.

1.2

655.0

10.15

1,467.0


Napoleon-07

Surface

1.0

320.0

6.48

838.4


 

Table 2: Selected vein sampling results from Surface and Underground mapping, Panuco. 

Note: All numbers are rounded, and sample widths are estimated at 85%-100% of true widths.  Silver equivalent is calculated by multiplying the gold grade by 80 and adding it to the silver grade.  All calculations assume 100% metallurgical recovery.

 

 

...Qualified Person - The technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo. for the Company. Mr. Harris serves as a Qualified Person under the definition of National Instrument 43-101."

New Gold Inc. (NYSE: NGD) (TSX: NGD) reported recently preliminary first quarter operational results from the Rainy River and New Afton mines. (All amounts are in US dollars unless otherwise indicated.) The Company is also announcing that due to the rapidly changing and unpredictable environment caused by the global COVID-19 pandemic, the Company is withdrawing its 2020 operational guidance until any impact is better understood. Total production for the first quarter was 103,435 gold equivalent (gold eq.) ounces (66,790 ounces of gold, 131,417 ounces of silver and 18.5 million pounds of copper). The New Afton Mine produced 52,329 gold eq. ounces (16,409 ounces of gold and 18.5 million pounds of copper) for the quarter.

Kinross Gold Corporation (NYSE: KGC) (TSX : K) announced earlier this year that it has filed a new technical report for its Paracatu operation in Brazil. Paracatu is a cornerstone, long-life operation in Kinross' portfolio that is expected to produce an average of approximately 540 Au koz. annually over 12 years from 2020 to 2031. Total production over the remaining mine life is expected to increase approximately 24% compared with the prior technical report that was published in 2014.The new technical report is based on an asset optimization program that commenced in 2018 and was completed in late 2019 with the successful implementation of a comprehensive grade control program. The results of the program include better characterization of the orebody, an improved ability to predict and react to ore variability, and better mill efficiency with improvements in throughput and recovery.

Harmony Gold Mining Company Ltd. (NYSE: HMY) announced earlier this year that it has agreed to acquire AngloGold Ashanti's South African business, thereby consolidating its position as South Africa's primary gold producer. The acquisition, which will see Mponeng and Mine Waste Solutions incorporated into the Harmony portfolio, enhances Harmony's near-term production by adding annual gold production of approximately 350 000oz per annum; increases Harmony's South African reserves by 8.27 million ounces (excluding Mponeng below infrastructure reserves) and improves Harmony's portfolio mix between surface and underground operations. "Over the past two years, Harmony has added over 500 000 quality gold ounces per annum through the acquisition of Moab Khotsong and now Mponeng and Mine Waste Solutions. The acquisition has the potential to improve our overall recovered grade and increasing our cash flow margins," said Harmony CEO Peter Steenkamp.

Yamana Gold Inc. (NYSE: AUY) (TSX: YRI) announced earlier last year exploration results for the Cerro Moro mine in Argentina, all of which show significant high-grade intersections in an entirely new zone and extensions of previously identified zones.  These exploration results demonstrate a growing mineral resource base in new areas that are expected to establish Cerro Moro as a long-life, high-quality, high-grade gold and silver operation. The Company has committed to an initial four-year exploration program, which began in early 2018, to systematically explore Cerro Moro. The program combines soil and rock geochemistry, ground geophysics, surface geological and alteration mapping, and reconnaissance drilling. Through the third quarter of 2019, more than 9,700 soil samples and 5,300 rock samples have been analyzed, 76 line kilometres of CSAMT (controlled source audio-magnotelluric) surveys have been completed, and 23,400 metres of reconnaissance RC (reserve circulation) and diamond drilling have been completed.

Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia

Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz

Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz

Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/

About FinancialBuzz.com 

FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the "site") is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. FinancialBuzz.com has not been compensated directly by any of the companies mentioned here in this editorial unless mentioned otherwise. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For Vizsla Resources Corp. financial and corporate news dissemination, FinancialBuzz.com has been compensated four thousand dollars by meridian ventures. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.FinancialBuzz.com.

Media Contact:
info@financialbuzz.com
+1-877-601-1879
www.FinancialBuzz.com

 

Voltar noticias em Inglês