Precious metals continue to showcase their resiliency in times of unprecedented uncertainty. Late Sunday evening, gold and silver surged to $1900/ounce and $27.00/ounce, respectively.
I continue to believe we are in the very early innings of a significant wealth transfer from sovereign bonds and into tangible assets. As tweeted out last week, which received over 50,000 views:
Central banks have already openly acknowledged that aggressive quantitative easing wouldn’t stop until we see full employment and elevated inflation. The Federal Reserve has openly said that they allow inflation to run above its 2% mandate to make up for the time it ran below that target.
In my opinion, this is nonsense as the core CPI index excludes items such as energy and food and also asset prices. If these items were included in the academic metrics, they would see we already live in a very inflationary environment.
The Fed and other central banks need to keep real rates NEGATIVE to allow governments to service all this newly created debt that is continuously being injected into the economy.
Negative real rates will continue to serve as a major tailwind for gold alongside silver… and as long as the Fed is printing endless amounts of money, we will continue to live in this environment as they can artificially fix the yield curve.
One of my favorite emerging growth stories in the mining world is Golden Independence, which trades on the CSE under the ticker IGLD. Golden Independence is currently advancing its Independence project (option to earn up to 75% interest in the project)
The project is located 0.5 km to the southwest of the Phoenix pit of Nevada Gold Mines (Newmont / Barrick JV) in Lander County, Nevada.
Nevada is a world-class mining jurisdiction as the state accounts for more than 70% of the United States gold production. The United States is the 4th largest gold producing country, to give you some context.
The company is looking to build on the company’s historical resource of 210,400 ounces of gold at 0.5 g/t (M&I) and 862,000 ounces of gold at 2.9 g/t (INF) through the drill bit.
The company recently expanded its drill program to approximately 18,000 feet to be comprised of 20 – 22 reverse circulation drill holes and 3 – 5 diamond core holes. This represents a significant increase from the initial 12,000-foot drill program, announced on October 6th, 2020, of 14 reverse circulation and three diamond core holes.
The company plans to publish an upgraded resource estimate in Q1 2021, incorporating drilling results from this program into the upcoming estimate.
To give you a taste of historical intercepts on the asset, it is worth taking a look at some of the historical assays the company recently published:
- 155 feet grading 3.94 g/t gold in hole GM-128 including 5 feet grading 99.33 g/t gold
- 45 feet grading 9.52 g/t gold in hole GM-127 including 10 feet grading 33.84 g/t gold
- 180 feet grading 1.20 g/t gold in hole GM-088 including 10 feet grading 7.65 g/t gold
- 100 feet grading 1.63 g/t gold in hole GM-103 including 10 feet grading 8.52 g/t gold
- 85 feet grading 1.88 g/t gold in hole GM-111 including 5 feet grading 5.01 g/t gold
These highlight assay results are from 44 reverse circulation (RC) holes drilled between 2009 and 2010 by a previous operator. These 44 RC holes were not available for the Historical Resource but will be included in the upcoming resource update in Q1/21 in addition to RC holes from the Company’s ongoing drill program.
The company’s CEO, Christos Doulis, said within the news:
“These 44 drill holes expanded the oxide mineralization both to the north and at depth as well as highlighted higher-grade zones within it, we anticipate the inclusion of these historic holes along with our ongoing drilling will result in a significant increase in the historic oxide resource at the Independence project.”
In addition to those assays, the company also released some more data from historical drilling on December 15th.
- 270 feet grading 1.10 g/t gold in hole AGEI-02 including 5 feet grading 10.00 g/t gold
- 160 feet grading 0.79 g/t gold in hole AGEI-08
- 90 feet grading 1.24 g/t gold in hole AGEI-04 including 5 feet grading 5.26 g/t gold
Like the 44 holes released on December 9th, these 12 RC holes were not available for the Historical Resource but will be included in the upcoming resource update, anticipated in Q1/21, as will the RC holes from the Company’s ongoing drill program.
I highly encourage my readers to read my last article on the company which highlighted the permitting advantage for this project, here. (http://www.goldtelegraph.com/golden-independence-looks-to-unlock-value-at-its-advanced-stage-asset-located-in-nevada-in-the-coming-months/)
The company currently trades at a deep discount when viewed against its peer group:
I recently caught up with Mr. Doulis, who is the Chief Executive Officer of the company for a general update.
Thank you for taking the time, Christos, for giving the Gold Telegraph readers an update on Golden Independence.
Firstly, you were recently appointed as the new CEO of the company. Can you give my readers and followers of the company a bit of a background on yourself alongside what got you interested in joining the Golden Independence team?
I have 25 years of experience in the metals and mining space primarily on the “sell” side of the street as a Mining Analyst, Investment Banker and M&A Advisor. My career has focused on advanced development assets similar to the Independence project. I joined the Golden Independence team due to the nature of the Independence project as well as the people already at Golden Independence.
The Independence project is an asset that can be fast-tracked to a production decision located in a mining-friendly jurisdiction (Nevada) of a politically stable country (the USA) sequestered within the footprint of NGM’s current operations. Don McDowell, who spearheads activities at the project, has a wealth of experience in mineral exploration and a deep contact list within the Nevadan mining community.
The company recently announced that the drill program would be expanded at the Independence project, which is located adjacent to Nevada Gold Mine Phoenix-Fortitude mining operations in the Battle Mountain-Cortez trend of Nevada.
Can you touch on how many meters will be added to this program alongside a general update of how the on-going drill program is going?
Our initial drill program envisaged around 12,000 feet of RC drilling and we have since expanded that to 18,000 feet of RC drilling. RC drilling is a cheap, quick way to drill bulk tonnage deposits, which is the portion of the Independence project we are currently developing.
Results from our current drill program are going to be integrated with 56 previously drilled RC holes undertaken by previous operators to generate a new, NI 43-101 compliant resource early in 2021 which we anticipate will be significantly larger than our historic resource at the Independence project.
The company recently announced an acceleration of its warrants due to the company trading above .65 cents for ten consecutive days. If all warrants are exercised, it will bring the company an additional $3,194,346.96 onto its balance sheet.
If these warrants are exercised, the company will be well-positioned with a healthy cash position on its balance sheet.
Can you touch on some of the corporate milestones the company is hoping to achieve in 2021?
Golden Independence has embarked on a very aggressive timeline for the advancement of the Independence project and we are going to devote significant corporate resources to ensure we meet our milestones of delivering an updated NI 43-101 compliant resource in early 2021 followed by an initial PEA on the oxide component of the project in the second half of 2021. In addition, we see significant opportunities to expand our land holdings in Nevada and may deploy capital to pursue these opportunities should a deal make sense.
Alex Deluce In mid-November, the company acquired a 480-acre land parcel near the company’s flagship project.
Can you touch on this strategic acquisition and how water rights played a role in this key acquisition?
The 480-acre parcel of land we recently acquired, called Section 17, was granted water rights in 2013 by the State Engineer of Nevada. Water rights in the Buffalo Valley River Basin is key to this land purchase. JUB Engineering will refresh and resubmit the water rights application for Section 17 which should lead to securing an independent supply of water for the development and eventual operation of a heap-leach operation at the Independence project.
Finally, it is unique for a Nevada project with over 1 million ounces to be trading at this type of discount relative to peers.
Can you mention to my readers the permitting advantage the project has in relation to its peer group? This advantage should dramatically accelerate the process of putting this into production if the resource upgrade, metallurgical, and preliminary economic assessment is a success.
The Independence project lies entirely within the Nevada Gold Mines plan of operations for the producing Phoenix-Fortitude mine complex which has previously undergone the permitting process. Essentially this allows us to refresh and update data for the permitting process rather than beginning it from square one and we anticipate that this could result in our reducing the permitting timeline by a year or more for the Independence project relative to similar projects.
Legal Notice / Disclaimer
The Gold Telegraph, goldtelegraph.com, hereafter known as Gold Telegraph.
Please read the entire Disclaimer carefully before you use this website or read the newsletter. If you do not agree to all the Gold Telegraph Disclaimer, do not access/read this website/newsletter/article, or any of its pages. By reading/using this Gold Telegraph website/newsletter/article, and whether or not you actually read this Disclaimer, you are deemed to have accepted it.
Any Gold Telegraph document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
Gold Telegraph has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. Gold Telegraph makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold Telegraph/Author only and are subject to change without notice.
The Gold Telegraph/Author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, The Gold Telegraph/Author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this The Gold Telegraph/Author report.
The Gold Telegraph/Author is not a registered broker/financial advisor and does not hold any licenses. These are solely personal thoughts and opinions about finance and/or investments – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor. You agree that by reading The Gold Telegraph/Author articles, you are acting at your OWN RISK. In no event should The Gold Telegraph/Author be liable for any direct or indirect trading losses caused by any information contained in The Gold Telegraph articles. Information in Gold Telegraph/Author articles is not an offer to sell or a solicitation of an offer to buy any security. The Gold Telegraph/Author is not suggesting the transacting of any financial instruments but does suggest consulting your own registered broker/financial advisor with regards to any such transactions
The author does own shares of Golden Independence Mining Corp (CSE: IGLD). Golden Independence is a paid advertiser on the Gold Telegraph.