Gold Letter

Gold prices have surged to record highs approaching $3,000 per ounce over the past week, driven by escalating U.S.-China trade tensions and rising geopolitical uncertainties. Investors are increasingly turning to gold as a safe-haven asset amidst these developments. Central banks have continued their robust gold purchasing trend, with 2024 marking the 15th consecutive year of net acquisitions. This sustained demand reflects ongoing economic uncertainties and a strategic move to diversify reserves. Analysts anticipate that gold's upward trajectory may continue, with some projections suggesting prices could reach $4,000 per ounce within the next 12 months, as investors seek stability amid ongoing economic and geopolitical challenges. Here are a few interesting early-stage companies

Collective Mining (CNL CNL.TSX GG1.F) announced significant drill results from the Apollo system, including a 51.95 metre intercept grading 8.38 grams per tonne gold equivalent and a high-grade 18.05 metre interval at 16.32 grams per tonne gold equivalent at approximately 1,200 metre depth. The results expand the Ramp Zone vertically and along strike, with ongoing drilling aimed at further defining this deep, high-grade system. Both drill holes extended the Ramp Zone by around 150 metres vertically and 50 metres along strike in the deeper part of the Apollo system. The detailed assay results indicate a high-grade gold system with geological similarities to the nearby Marmato Deeps deposit. Collective is advancing a fully funded 60,000 metre drill program with multiple rigs actively testing the Ramp Zone.

Ariana Resources (AAU.L 4A6.F) released new assay results from five geotechnical holes drilled for the purposes of the pre-feasibility study at the Dokwe gold project in Zimbabwe. DPD126 intercepted 2 metres at 17.11 grams per tonne gold in the Eastern Zone, bridging a gap between previous intercepts and providing a strike length of ~270 metres. DPD127 was drilled down-dip within a dacitic unit, confirming the continuity of mineralisation, with intercepts including 8 metres at 4.32 grams per tonne gold from 116 metres, 5 metres at 5.14 grams per tonne gold from 142 metres and 5 metres at 4.30 grams per tonne gold from 213 metres. DPD128 confirms grade continuity on the northeastern limits of the mineralisation, which remains open at depth and northwards along strike. Per Dr. Kerim Sener, Managing Director, results confirm the presence of significant gold mineralisation occurring within an area now referred to as the Eastern Zone, demonstrating considerable strike continuity of over 270 metres for this zone alone, in addition to pointing towards the further depth extent of the deposit.

Founders Metals (FDR.V FDMIF 9DL0.F) announced a bought deal financing to raise approximately C$30 million. The net proceeds will fund accelerated exploration at the Antino gold project and support general corporate purposes. Underwriters led by BMO Capital Markets have agreed to buy 5,716,000 common shares at C$5.30 each and an option is granted to underwriters to purchase an additional 15% of shares within 48 hours before closing. The financing is expected to close on or about February 20, 2025, subject to regulatory approvals.

i-80 Gold (IAUX IAU.TSX 8JI.F) announced that it has closed its prospectus offering of 28,212,593 common shares at a price of C$0.80 per share for aggregate gross proceeds of approximately C$22,570,074. The previously announced concurrent private placement offering to certain directors and officers of the company is expected to close this month, subject to the receipt of regulatory approvals. i-80 has the third largest gold mineral resources in the state of Nevada. The recapitalization plan underway is designed to unlock the value of the company's high-grade gold deposits to create a Nevada mid-tier gold producer.

B2Gold (BTO.TSX BTG 5BG.F) announced a positive preliminary economic assessment result for the Antelope deposit at the Otjikoto mine in Namibia, highlighting strong financial metrics and a promising underground operation. The study also outlines further exploration plans aimed at expanding the resource base. The estimate for the Antelope deposit outlines a 5 year underground mine life with an after‐tax NPV of $131 million and an IRR of 35%. Key production parameters include an average grade of 5.75 grams per tonne gold, projected annual production of around 65,000 ounces, and low all-in sustaining costs. The estimate leverages existing Otjikoto infrastructure and team experience, while a $7 million exploration program with selective infill drilling is planned for 2025.

Japan Gold (JG.V JGLDF)Corp. announced initial drill results at the Barrick Alliance Togi project, confirming a concealed gold-bearing system with significant strike potential. High-grade drill intercepts along the Mori fault are said to support further exploration efforts. Initial drill holes at the Akasaka target confirmed a concealed low-sulfidation gold system with potential strike extensions up to 2 kilometres and drill intercepts returned high-grade values, with some samples reaching up to 79.7 grams per tonne, supporting the advanced exploration model along the Mori fault. The Togi drill program was fully funded by Barrick Gold; a joint Japan Gold/Barrick technical committee oversees the work programs. Advancement of the Togi project will be prioritized based on results of drill programs scheduled to commence at the Hakuryu and Ebino projects in April this year. The Togi project comprises an area of 3,990 hectares and covers the historic Togi goldfield.

Calibre Mining (CXB.TSX CXBMF WCLA.F) announced additional ore control RC drilling results at the Leprechaun open pit, confirming a 30% increase in contained gold compared to the 2022 reserve model. The update also highlighted robust construction progress at the Valentine Gold Mine, suggesting extended mine life and improved production. The company completed 21,500 metres of RC drilling on a 9 x 9 metre grid at the Leprechaun open pit, with drill results showing 29% more ore tonnes at a 1% higher grade, yielding a 30% increase in contained gold over the 2022 model. Data from the updated block model signals potential for processing higher grade material with adjusted cutoff grades; construction progress at Valentine is ongoing, with key installations advancing toward first gold in Q2 2025.

To close, a fascinating chart

Info for Tucano Gold ($19/ounce of gold in the ground)

Info for Laiva Gold ($14/ounce of gold in the ground)

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.