News ReleaseGold Prices Soar to Record High on Solid Central Bank Demand
MarketJar
Gold prices just hit another all-time high this week, rising above $2,350 per ounce, driven by ongoing central bank gold buying and safe-haven inflows due to geopolitical tensions. 1 In March, China’s central bank added another 160,000 troy ounces to its reserves, marking its seventeenth consecutive month. As the Chinese yuan experiences a decline in its status as the world's second most significant reserve currency, and countries such as Japan, Russia, Turkey, and Poland express concerns about overdependence on the US dollar, a notable shift towards gold has emerged. Looking ahead, analysts remain optimistic about gold's outlook, with some predicting prices could climb even higher. According to famed economist David Rosenberg, the latest gold run is "especially impressive," not just because it beat bitcoin and every major currency, but because it also overcame typical macro headwinds that would typically depress its value like dollar strength, dropping inflation expectations and higher for longer interest rates. 2 For these reasons, Rosenberg sees gold prices reaching $3,000 per ounce, implying a potential 30% upside from current levels. Despite gold prices rising more than 25% since October 2023, gold stocks remain undervalued when compared to their technicals and fundamentals. 3 Fortunately, gold mining stocks are starting to build steam as investors take notice of the overlooked yet high-potential sector. One company that is gaining attention in the market is West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF), a company targeting near-term production at its high-grade gold project in Ontario's Red Lake District, which hosts some of the world's richest gold deposits and has produced 30 million ounces of gold to date. 4 Building High-Grade Resources in One of the Richest Gold Districts in Canada West Red Lake Gold Mines is focused on advancing its flagship Madsen Mine, which is fully permitted and contains a high-grade resource of 1.65 million ounces of gold at 7.4 grams per ton (g/t) in 6.9 million tonnes (Indicated) and 366,000 ounces at 6.3 g/t gold (Inferred). 5 The company also owns the Rowan Property in Red Lake, which covers 31 km 2 and includes three past-producing gold mines: Rowan, Mount Jamie, and Red Summit. West Red Lake Gold Mines, formed in late 2022, has already been recognized as a 2024 Top 50 Company in Mining by the TSX Venture Exchange. The company aims to restart gold production at its Madsen Gold Mine in Red Lake by 2025, which historically produced 2.5 million ounces, and has an existing high-grade indicated resource of 1.65 million ounces at 7.4 g/t. On April 17, West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) reported noteworthy drill results from the high-grade South Austin Zone at Madsen, which currently boasts an Indicated mineral resource of 474,600 ounces grading 8.7 g/t gold, with an additional Inferred resource of 31,800 ounces grading 8.7 g/t gold. Highlights from the results include 1.1m at 68.36 g/t gold including 0.5m @ 145.44 g/t Au and 3.95m at 13.83 g/t Au including 0.5m @ 105.72 g/t Au. These latest results add to West Red Lake Gold ’s efforts to accumulate a runway of high-grade and high-confidence ounces, which will be crucial during the initial stages of mine production. “We are very pleased with the results that have been coming out from the South Austin definition program,” said West Red Lake Gold ’s president and CEO Shane Williams. “The team has been intercepting zones of mineralization where expected, which is helping to increase our confidence in the higher priority areas of the resource model and validates our interpretation of the geology. Now that we have added a second underground drill at North Austin, we expect to be generating a steady stream of positive news flow from North and South Austin over the coming months.” These aren’t the first high grade results from the project. Last month, West Red Lake Gold Mines intersected 25.12 grams per tonne over 5.5 meters, 39.46 grams per tonne over 2 meters, and 18.60 grams per tonne over 4 meters. Since underground drilling resumed at the beginning of 2024, West Red Lake Gold has completed 3,671m of expansion drilling and 2,916m of definition drilling. In total, 65 diamond drill holes for 6,587m have been completed so far in 2024 at the Madsen Mine. The company also recently announced successfully closing an upsized private placement for US$27.1 million. Visit this website or explore their corporate presentation to learn more about West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF). Footnotes: [1] https://www.mining.com/gold-price-touches-2350-on-firm-central-bank-demand/ [2] https://markets.businessinsider.com/news/commodities/gold-price-forecast-outlook-spot-fed-interest-rate-cut-rosenberg-2024-4 [3] https://www.mining.com/web/gold-stock-upside-targets-2/ [4] https://www.theglobeandmail.com/investing/markets/stocks/WRLG-X/pressreleases/22442097/west-red-lake-gold-announces-sprotts-investment-of-us2631463/ [5] https://westredlakegold.com/madsen-mine/ Disclaimer: 1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector. 2) The Article was issued on behalf of and sponsored by, West Red Lake Gold Mines Ltd.. 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Market Jar Media Inc. does not render general or specific investment advice and the information on pressreach.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on pressreach.com. 5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article. 6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management's expectations regarding West Red Lake Gold Mines Ltd.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. 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Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute West Red Lake Gold Mines Ltd.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) West Red Lake Gold Mines Ltd.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) West Red Lake Gold Mines Ltd.’s ability to enter into contractual arrangements with additional parties; (e) the accuracy of budgeted costs and expenditures; (f) West Red Lake Gold Mines Ltd.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. 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April 18, 2024 08:30 AM Eastern Daylight Time
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