Focused On Discoveries Within The World-Class Abitibi Greenstone Gold Belt, Rallies 300%
Gold prices recently rallied to all-time highs of US$2,050 per-ounce, but now have consolidated to $1,868. The latest move in gold comes from the financial uncertainties surrounding the global economy relating to a highly inflationary environment.
Since the recent invasion of Ukraine by Russia, Sberbank, Russia's largest financial institution, reported that demand for gold and palladium has quadrupled in the last several weeks. Meanwhile, Russia's Ministry of Finance also referred to gold as an "ideal alternative" to the U.S. dollar.
Setting a fixed price for gold reminds some analysts of what the U.S. did during the “gold standard” years. The period between 1879 and 1914 is known as the classical gold standard era, during which one ounce of gold would represent$21. Then in the 1930s, the U.S. banned gold ownership and raised the value of the dollar in gold from $20.67 to $35 per ounce.
That price remained fixed until 1971 when Richard Nixon put a halt on the U.S. dollar's convertibility into gold, which meant that other countries could no longer redeem dollars for gold. In 1973 the gold standard was scrapped.
"I am reminded of what the U.S. did in the middle of the Great Depression. For the next 40 years, gold's price was pegged to the U.S. dollar at $35. There is a precedent for this. It leads me to believe that Russia's intention would be for the value of the ruble to be linked directly to the value of gold," Gainesville Coins precious metals expert Everett Mill man told Kitco News. "Setting a fixed price for rubles per gram of gold seems to be the intention. That's pretty important when it comes to how Russia could seek funding and manage its central bank financing outside of the U.S. dollar system.”
ONE UP AND COMING GOLD STOCK FOR YOUR WATCHLIST
iMetal Resources (TSX.V: IMR) (OTC: ADTFF) (FSE:A7V) is sitting on three projects within one of the most prolific gold belts in Ontario, the Abitibi Greenstone Belt – Gowganda West, the Kerrs Gold Deposit and the Ghost Mountain gold project.
The company recently completed a $3M over-subscribed financing led by Sprott Asset Management, which now owns just under 9.9% of the company. The funds will be used towards defining additional drill targets and further expand the historical resource at the Kerrs Gold Deposit, continuing development work towards identifying and confirming high priority drill targets at Gowganda West and completing additional surface developmental work at Ghost Mountain.
“The Kerrs Gold Deposit is the perfect complement to Gowganda West, giving iMetal multiple highly prospective projects in the prolific producing Abitibi Greenstone Gold Belt. The Company has closed its up-sized financing to fund significant diamond drilling to both bring the Kerrs 386,467-ounce historical resource current and build upon it, as well asunder take follow-up drilling at Gowganda West,” commented iMetal CEO Saf Dhillon. “The Company has come a long way under the new management team, continuing to build value for iMetal shareholders and we look forward to a successful 2022,” he concluded.
The Kerrs Gold Project is strategically located across from one of the worlds largest gold producers - Newmont Gold (TSX: NGT), which currently hasa market cap of approximately $70B.
The potential synergies between iMetal Resources (TSX.V: IMR) (OTC: ADTFF) (FSE: A7V) and Newmont (TSX: NGT) could be on the table, as the miner is focused on acquiring exploration assets with proven resources to build onto their current gold reserves.
Recently Newmont (TSX: NGT) acquired GT Gold (TSX.V:GTT) for C$393M in cash, with the asset being in the Golden Triangle, British Columbia.
"We are excited to expand our world-class portfolio to include the Tatogga project in the Tahltan Territory located in the highly sought-after Golden Triangle district of British Columbia, Canada," said Newmont President and CEO Tom Palmer.
With iMetal Resources (TSX.V: IMR) (OTC: ADTFF) (FSE: A7V) having the Kerrs Gold Deposit directly adjacent to their claims, the potential for Newmont (TSX: NGT) stepping in as a partner is not out of the question.
Kinross Gold (TSX: K) recently acquired Northern Ontario based explorer Great Bear Resources (TSX.V: GBR) for$1.8 Billion, creating one of the biggest acquisitions in recent years.
iMetal Resources (TSX.V: IMR) (OTC: ADTFF) (FSE: A7V) is cashed up and ready to begin their 2022 drill campaigns. As of today, the company trades at $0.25 and has 37.18M shares outstanding, giving it a market cap of C$9.3M. The company is led by successful junior company executives, who have built careers in the exploration, natural resource and renewable energy sectors and is laser focused on delivering the next major gold discovery in Canada!
Disclaimer iMetal Resources is a paid marketing client*
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