Subdued Inflation Data Extends the Rebound of Gold Prices
FinancialBuzz.com News Commentary
New York, NY (3/11/2021) – Gold erased its earlier losses on Wednesday, hitting a one-week high and crossing the USD 1,720 per ounce mark. The gold price rebound follows subdued inflation data, which has pushed U.S Treasury yields down. In recent trading sessions, gold’s status as an inflation hedge has been challenged by a stronger dollar and higher bond yields. Edward Moya, Senior Market Analyst at OANDA, explained according to CNBC that “gold is still taking cues from the Treasury market and today’s data lessens worries about near-term inflation… If today’s 10-year note sale has decent demand, gold prices could eventually make a run towards USD 1,730… The USD 1,700 level will provide key support…but that should hold unless the bond market selloff resumes.” Exploits Discovery Corp. (CSE: NFLD) (OTC: RNRRF), Hecla Mining Company (NYSE: HL), Eldorado Gold Corporation (NYSE: EGO), Yamana Gold Inc. (NYSE: AUY), Coeur Mining, Inc. (NYSE: CDE)
Inflation is expected to play a major role in deciding the future of gold. According to the International Monetary Fund (IMF), USD 12 Trillion has been pumped into global financial markets as governments and central banks worldwide have tried to stabilize the economy that was devastated by the pandemic. Economists and analysts note that weak inflation pressures could be a positive for gold prices. A report by Kitco also indicates that analysts have pointed out the latest inflation data gives the Federal Reserve some flexibility to provide more accommodative monetary policies.
Exploits Discovery Corp. (CSE: NFLD) (OTCQB: RNRRF) announce breaking news yesterday that, “the Company has received full permitting from the Newfoundland and Labrador Government for drilling at its True Grit Gold Project, Newfoundland.
• Exploits has received diamond drilling permits for 12 holes totaling 3,000 metres at the True Grit Gold Project.
• The drill program will focus on high grade gold targets within a halo (2.6km/800m wide surficial Au-As-Sb soil anomaly) with historic wide-low grade drill intercepts, including 0.60 g/t Au over 117m incl. 0.83 g/t over 26m from surface.
• Exploits’ refined targets were defined by mapping, SGH soil sampling and a high resolution, VTEM geophysical survey that the company recently flew over the property. Historic drilling has been identified to occur on the fringes of the anomalies that have been newly defined by the Company, indicating the main anomalous bodies were not tested.
• Sampled in the fall of 2020 identified a west-northwest trending quartz vein which returned a value of 15.6 g/t Au over 1 metre, This vein orientation coincides with high grade gold mineralization at Jonthan’s pond and is sub-parallel to historic drill at True Grit. This program will drill oblique to the inferred high grade structures to be able to intersect both high grade and low grade targets.
• Exploits also has drill applications pending on the Quinlan Veins, Schooner prospect, Little Joanna prospect and the Jonathan’s Pond project. Inaugural drilling programs will commence in Spring 2021.
Michael Collins, President and Chief Executive Officer of Exploits, commented: “With receipt of drill permitting for the True Grit project, Exploits is excited to ramp up into the next phase of exploration on this project. 2020 was all about prospecting, SGH soil, rock sampling and integrating old and new geophysical surveys. 2021 will focus on integration of high resolution Geophysic, drill targeting with our partners at GoldSpot Discoveries Corp. and drilling for discovery in 2021.”
About 2021 Diamond Drilling
Exploits has identified 5 discrete targets across their projects within the Exploits Subzone that are nearing drill ready status. These targets are named the Quinlan Veins, True Grit, Little Joanna Veins, Schooner, and Jonathan’s Pond. To date, drill permits have been approved for the True Grit Project, totalling 12 holes for an estimated length of 3,000 metres. Four drill applications are still pending and are expected to be through the approval process shortly.
12 holes (3,000m) were approved for the True Grit project. Historic wide, low grade, gold intercepts including 0.60 g/t Au over 117m from surface (Moydow Mines, 2005) are being slated for follow up. Exploits’ 2020 SGH soil survey combined with the newly flown, high resolution geophysics have provided context to the historical drill intercepts, optimizing targets for drilling in the area.
With limited outcrop on the project, historical drilling was focused on a 2.6 kilometre by 0.80 kilometre gold in soil anomaly and channel sampling along a ridge of minor outcrop, which contained channel samples of up to 15.6 g/t Au over 1.0 metres (Teck, 1990). From these results, Exploits believes there is potential for a low grade system with high grade quartz veins within the body. Updated field techniques such as SGH soils and high resolution airborne VTEM geophysics, which was undertaken in late 2020 and early 2021, have identified a larger footprint to the historic drill targets and that drilling took place on the fringes of the newly defined targets, which the company is looking forward to testing.
The True Grit Property is 100% owned by Exploits Discovery and is easily accessible, located only 2 km west of the junction of the Harbour Breton (Route 360) and St. Alban’s highways (Route 361) in the Baie d’ Espoir area of Newfoundland’s Exploits Subzone.
Quality Assurance – Quality Control (“QA/QC”)
All rock samples are collected by company personnel and bagged in the field with a sample tags for identification. The bags are sealed with tape and kept secure at a company facility until they are transported directly to the lab by Exploits staff.