Do You Stick Or Twist16 Feb 2021 20:48
This is aimed at anyone who is sat on the fence about whether or not to stick or twist.
The lack of new major deposits being discovered means that there is an increased shortage of large, high-quality assets to replace ageing major gold mines.
Only 25 deposits have been discovered over the past decade.
In 2019, none of the four initial gold resource announcements that were made, was actually discovered in the last few years.
The Gran Bestia announcement of 4.2 million ounces made by Lumina Gold Corp (CVE:LUM) is a new zone at the Cangrejos deposit in Ecuador, was discovered in 1999.
The 4-million-ounce Chulbatkan deposit announced by N-Mining Limited was discovered in 1980.
Nelligan's initial resource of 3.2 million ounces announced in 2016 is the group's most recent discovery, while the 2.5 million ounces Estelle deposit was first drilled in 1988.
Of the 154.3 million ounces contained in the 25 discoveries made over the past 10 years, 70% is in the 10 largest deposits.
The biggest is SolGold's Cascabel copper-gold deposit found in 2013, which forecasts annual production of 150,000 tonnes of copper and 245,000 ounces of gold.
Zhaojin Mining Industry Company Limited's Haiyu gold project in China's Shandong province is the second-largest discovery, and hosting almost 16.4 million ounces in reserves and resources was found in 2011.
Barrick Gold Corp’s Goldrush discovery in Nevada, also found in 2011, is third with 14.9 million ounces in reserves and resources.
Of the 278 deposits discovered from 1990-2019, 135 of them are not yet in production.
Only 30 have over 10 million ounces of gold in reserves and resources and only nine of these assets have a grade of 1 g/t or greater.
Some of the assets will likely enter production over the next few years, such as Barrick's Goldrush and Zijin Mining Group's Buritica.
Some, like Rosia Montana in Romania, face significant challenges and might never be developed, and others, like NovaGold Resources Inc’s Donlin in Alaska, have a potentially long road to production.
And with production from existing mines expected to begin decreasing in 2022, there is a need for more high-quality assets that can be developed in the medium term.
Just taking Havieron alone we have the best New Gold Project on the Planet. Grades well above 1g/t, proceeding at breakneck speed to first pour, and you can still buy this at a 40% discount from where we were a 6 weeks ago.
It's an absolute no brainer at these discount prices to buy as many as you can.
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