Gold Letter

February 02, 2025

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The gold market is experiencing significant volatility due to geopolitical tensions and economic uncertainties. Gold prices have surged, reaching new highs, with a 27% gain in 2024 and expectations to hit $3,000 per ounce in 2025. Investors are flocking to gold as a safe-haven asset amid concerns over potential tariffs and global economic instability. Notably, substantial gold shipments to New York have led to shortages in London, causing delays in withdrawals from the Bank of England's vaults.

Mandalay Resources (MND.TSX MNDJF R7X2.F) announced high-grade drill results at its True Blue prospect adjacent to the operating Costerfield gold-antimony mine in Victoria, Australia. Highlights include 578.0 grams per tonne gold and 20.5% antimony over 0.47 metres, 16.8 grams per tonne gold and 2.4% antimony over 3.98 metres (including 172.0 grams per tonne gold and 19.2% antimony over 0.37 metres) and 161.0 grams per tonne gold over 0.19 metres. Drill testing and soil geochemistry indicate an extensive system with the potential to replicate Costerfield's Central Corridor which has sustained mining for the past 15 years. Structural continuity has been interpreted on 600 metres of strike, leaving 3.4 kilometres of the system yet to be tested. Follow-up drilling at True Blue has commenced with two rigs now mobilizing to further define mineralization and increase deposit confidence.

Kobo Resources (KRI.V) announced additional high-grade gold intercepts from the ongoing 10,000+ metre diamond drill program at its 100% owned Kossou gold project in Côte d’Ivoire. Notable intercepts include 10.0 metres at 4.57 grams per tonne gold at the Road Cut Zone and 3.0 metres at 6.17 grams per tonne gold at the Jagger Zone, reinforcing the high-grade strength and continuity of these gold targets. With drilling now completed at the Jagger Zone, both drill rigs are now focused on completing the company’s drill program at the Road Cut and Contact Zones, further defining their structural and mineralization potential.

Heliostar Metals (HSTR.V HSTXF RGG1.F) announced additional results from a 12,500 metre drilling program at the La Colorada Mine in Sonora, Mexico. La Colorada restarted production in early January 2025 and the current drill program is intended to expand the mineral reserves ahead of a feasibility study and expansion decision planned for mid-2025. Current mineral reserves of 312,000 ounces of gold grading 0.76 grams per tonne gold and 10.1 grams per tonne silver are defined at the Creston Pit. Forty-seven holes totaling 6,452 metres have been completed in the program to date, with highlights including 5.0 metres grading 9.69 grams per tonne gold, 4.3 metres grading 9.87 grams per tonne gold, 15.0 metres grading 2.54 grams per tonne gold, 11.65 metres grading 1.86 grams per tonne gold and 11.6 metres grading 1.72 grams per tonne gold.

Lion One Metals (LIO.V LLO.ASX LOMLF LY1.F) announced significant new high-grade gold results from 3,791.3 metres of underground grade control drilling at its 100% owned Tuvatu alkaline gold project in Fiji. The drilling is focused on Zone 2 and targeted the URW and Murau lode systems. All drilling was completed from existing near surface underground workings and the company intersected high-grade mineralized structures in 25 holes. Most of the drill holes did not exceed 130 metres in length from underground drill stations. Results include multiple bonanza grade gold assays over narrow widths such as 168.3 grams per tonne over 0.4 metres, 158.0 grams per tonne over 0.3 metres, 145.5 grams per tonne over 0.4 metres, 123.5 grams per tonne over 0.6 metres, and 119.5 grams per tonne over 0.4 metres, all of which are located near existing underground workings. These bonanza grade gold results occur within larger intervals of high-grade mineralization, such as 6.7 metres of 25.45 grams per tonne gold, and 4.7 metres of 26.89 grams per tonne gold. Per Chairman and CEO, Walter Berukoff, Lion continues to advance Tuvatu on multiple fronts and looks forward to advancing the mine to new levels underground.

Maritime Resources (MAE.V MRTMF) announced initial drill results from a definition drill program underway at its Hammerdown gold project, which is located in the Baie Verte mining district of Newfoundland and Labrador, near the towns of King's Point and Springdale. The grade control drill program is providing additional geological information within the first year of proposed mining at the Hammerdown open pit project and is one of the final de-risking steps as the company prepares for development. The high-grade gold mineralization occurs just below surface and demonstrates the potential to generate significant cash flow quickly from the project. The mineralized zone seen in drill hole HDGC-24-038 returned 41.6 grams per tonne gold over 6.3 metres, including 127.5 grams per tonne gold over 2.0 metres in a zone located approximately 30 metres south of the historic Hammerdown underground mine workings in an area that was never mined by Richmont and is open to the north-east.

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These are opinions only of the individual author. The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company. All content is purely subjective and you should do your own due diligence. No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made. Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved. No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece. The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.