Precious Metals And Commodities Are Entering A Bull Market That Could Last Over A Decade

May 13, 2021 at 08:45 AM EDT

Palm Beach, FL – May 13, 2021 – It’s common knowledge that the Pandemic has driven the price of precious metals to all time highs over the last year… but how long will it affect the price of gold and the other precious metals. A recent article from Markets Insider reported what the experts from Goldman Sachs (GS) see on this subject. As it turns out, GS projects that the Bull Market for gold will continue through 2021… and they gave a few reasons why. They are inflation, the weakening Dollar and retail demand. The article said that: “Inflation expectations move higher. In this cycle, we believe the gold market, at least initially, is likely to follow the same path as after the Great Financial Crisis and grow strongly into the recovery phase of the business cycle as inflation concerns become central to the forecast,” Goldman said. Goldman’s economics team forecasts a temporary bounce in inflation to 3% next year, which could help spur demand for gold. And with policies surrounding the COVID-19 pandemic focused on fiscal spending, combined with household balance sheets at better levels than they were coming out of the 2008 recession, “the Fed appears more willing to tolerate a temporary inflation overshoot,” Goldman said. “This may well lead to market participant concerns over the long-term inflation rate and more inflows into gold in order to hedge it,” Goldman said. Active stocks in the mining markets this week include Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB), First Quantum Minerals Ltd. (OTCPK: FQVLF) (TSX:FM), Capstone Mining Corp. (OTCPK: CSFFF) (TSX:CS), Denison Mines Corp. (NYSE: DNN) (TSX: DML), Centerra Gold Inc. (NYSE: CGAU) (TSX: CG).

It continued: “The US dollar weakens. Goldman expects the falling US dollar to continue trending lower into 2021, which should help support gold prices. “A breakdown in the correlation of gold and long term real rates has been pretty common with its correlation switching to the dollar and other commodities during these breakdown periods,” Goldman explained. “The breakdown of negative gold price changes and real rates correlation typically happens when the positive rates-dollar correlation disappears. This is the environment which our FX and rates strategists expect in 2021,” Goldman said.

Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB) BREAKING NEWS: CALIBRE ANNOUNCES CONTINUED SUCCESS EXPANDING RESOURCES AND IDENTIFYING NEW ZONES AT THE LIMON COMPLEX – EXPLORATION DRILLING INTERCEPTED 13.35 G/T GOLD OVER 3.2 METRES AT VETA NUEVA AND STEP OUT DRILLING AT ATRAVESADA INTERCEPTED 5.5 G/T GOLD OVER 7.1 METRES – Calibre Mining Corp. (“Calibre” or the “Company”) is pleased to provide an update in respect of the Company’s 2021 drilling program, highlighting both exploration and infill holes at high-grade underground targets within the Company’s producing Limon Mine Complex.

Resource Expansion Highlights –

Atravesada & Veta Nueva Underground

85 g/t Au 5.5 metres Estimated True Width (‘ETW’) from 302.4 metres (LIM-21-4548)
50 g/t Au over 7.1 metres ETW from 285.5 metres (LIM-21-4549)
35 g/t Au over 3.2 metres ETW from 86.9 metres in new vein structure (LIM-21-4537)

Panteon & Santa Pancha 1 Underground

42 g/t Au over 2.0 metres ETW from 304.8 metres (in the Panteon hanging wall vein) and 3.01 g/t Au over 3.5 metres ETW from 347.3 metres (in the Panteon main vein) (LIM-20-4540)
24 g/t Au over 5.5 metres ETW from 195.6 metres (in the Santa Pancha vein) and 6.89 g/t Au over 2.0 metres ETW from 241.1 metres (in the Panteon main vein) (LIM-21-4535)
58 g/t Au over 1.8 metres ETW from 331.2 metres (LIM-20-4546)
95 g/t Au over 4.9 metres ETW from 67.9 metres (LIM-21-4550)
40 g/t Au over 2.3 metres ETW from 344.2 metres (LIM-21-4551)

Darren Hall, President & Chief Executive Officer of Calibre, stated: “Initial results from our 2021 multi-rig drill program at our Limon operations continue to confirm strong resource expansion potential. Since the discovery of the Panteon deposit in 2020, I am pleased with the resource growth potential and the teams’ ability to advance development, putting us in a position to commence high-grade ore production this quarter, all within 12 months of discovery. With over 15 rigs operating across our operating and advanced exploration sites, I have no doubt we will continue to see success.”

Resource Expansion Drilling – Exploration and step-out delineation drilling at the Atravesada deposit continues to return positive results. Drill hole LIM-21-4548 intersected 4.85 g/t Au over 5.5 metres ETW at a down-hole depth of 302 metres and approximately 50 metres below the current mineral resource. Hole LIM-21-4549 drilled on a separate ore shoot 100 metres along strike to the southwest intercepted 5.5 g/t Au over 7.1 metres ETW at a down-hole depth of 285.5 metres.

Exploration drilling continues to test the potential to delineate additional resources along strike to the east and west of the central area of the mine. Drilling at Veta Nueva has also intercepted a new vein structure located approximately 190 metres to the north of the mine in hole LIM-21-4537 which intersected 13.35 g/t Au over 3.2 metres ETW at a down-hole depth of 87 metres, further demonstrating favorable potential for continued resource growth within proximity to existing underground infrastructure. During Q1 development of an underground access drive commenced to link Veta Nueva and Atravesada, which lies 600 metres east. As at December 31, 2020, the Atravesada mineral resource is estimated to contain 171,000 tonnes grading 6.20 g/t Au containing 34,000 ounces in the indicated category and 215,000 tonnes grading 6.36 g/t Au containing 44,000 ounces in the inferred category 1 .

Exploration and infill drilling at Panteon and Santa Pancha 1 (‘SP1’) likewise continues to deliver positive results. Drill hole LIM-21-4532, which targeted both vein structures, intersected 4.76 g/t Au over 1.9 metres ETW at 114 m down hole in the SP1 vein followed by 12.94 g/t Au over 4.4 metres ETW at 198 metres down-hole in the main Panteon vein. Both intercepts occur along the southern limits of currently defined resources, demonstrating good potential to extend mineral resources along strike toward the southeast where the two veins converge. Drilling at Panteon has also intersected high grade gold mineralization lateral to the main structure with hole LIM-21-4540 intersecting 13.42 g/t Au over 2.0 metres at 305 metres down-hole in a narrow vein located approximately 25 metres away from the currently defined resource. At SP1, positive results from exploration drilling along strike and down dip has likewise returned positive results. Drill hole LIM-21-4550 intersected 5.95 g/t Au over 4.9 metres ETW at 67.9 metres down-hole at shallow depth near the entrance ramp to the mine, while hole LIM-21-4551 intersected 5.40 g/t Au over 2.3 metres ETW at 344 metres down-hole. These results further demonstrate good potential for the continued expansion of resources both along strike, down dip and lateral to the Panteon and SP1 vein systems. Exploration drilling will continue through Q2 targeting potential resource additions at Panteon and Santa Pancha 1. CONTINUED…. Read this entire release for the Calibre Mining Corp. news at: https://www.calibremining.com/news/2021 FOR ADDITIONAL INFORMATION, PLEASE ALSO VISIT: https://www.equedia.com/calibre-mining-corp-debt-free-gold-producer-is-a-top-pick-in-the-gold-sector/

Other recent developments in the mining markets include:

First Quantum Minerals Ltd. (OTCPK: FQVLF) (TSX:FM) recently reported for the three months ended March 31, 2021 (“Q1”) comparative earnings of $150 million ($0.22 per share), net earnings attributable to shareholders of the Company of $142 million ($0.21 per share) and cash flows from operating activities of $743 million ($1.08 per share).

“Our operations performed very well with Cobre Panama delivering record quarterly production. Our Zambian business delivered in line with plan despite the heavy rains experienced in the quarter. With our continued low costs and the strong copper price, we generated significant cash flow, which in turn, enabled us to further reduce our debt level,” commented Philip Pascall, Chairman and CEO. “I continue to recognize and be thankful for the dedication and resilience of our entire workforce as the challenges associated with COVID-19 persist. We remain committed to protecting our workforce, with their health and safety and that of the surrounding communities a top priority.”

Capstone Mining Corp. (OTCPK: CSFFF) (TSX:CS) recently announced its production and financial results for the three months (“Q1 2021”) ended March 31, 2021. Copper production totaled 47.8 million pounds of copper at consolidated C1 cash costs of $1.70 per payable pound produced.

“Q1 2021 operating cash flow of $95 million was the strongest in our fifteen-year history as a producer. Excellent operating performance and cost containment in a higher copper price environment surpassed our expectations,” said Darren Pylot, President and CEO of Capstone. “We are now debt free³ and generating cash flow as a mid-cap company with a peer-leading 100% growth plan over the next three years.”

Raman Randhawa, SVP & CFO, added, “Capstone’s robust balance sheet position plus strong operating cash flow generation enable us to advance multiple high return projects like Eriez HydroFloat at Pinto Valley, paste backfill and dry stack tailings at Cozamin, and our transformational, fully permitted, greenfield project at Santo Domingo in Chile. We are on track to announce the Santo Domingo ownership structure and finance plan by mid-year.”

Denison Mines Corp. (NYSE American: DNN) (TSX: DML) recently announced that it has delivered a binding offer (the “Denison Offer”) to Overseas Uranium Resources Development Co., Ltd. (“OURD”) to acquire 100% ownership of OURD’s wholly-owned subsidiary, JCU (Canada) Exploration Company, Limited (“JCU”). JCU holds a portfolio of uranium project joint venture interests in Canada, including a 10% interest in Denison’s 90% owned Wheeler River uranium project.

The Denison Offer includes the following features: Consideration including cash payments of up to CAD$40.5 million and the assumption of JCU’s existing liabilities (see below). The cash payments include a CAD$10.0 million refundable deposit on signing of a definitive agreement, an additional CAD$28.0 million on closing, and a further amount of up to CAD$2.5 million, which is expected to be paid within 45 days of the closing date and is subject to adjustment based upon JCU’s actual working capital on the closing date; Binding subject only to the completion of definitive documentation, regulatory approvals (if applicable), and the termination of OURD’s existing definitive purchase agreement with UEX Corporation (TSX: UEX) in accordance with its terms; No conditions for (i) due diligence on the assets of JCU, or (ii) obtaining the necessary financing to fund the purchase price – as Denison already possesses sufficient cash to fully fund the acquisition; A commitment to OURD that JCU will be maintained as a corporate subsidiary in order for JCU to meet its joint venture commitments; and Assumption of JCU’s outstanding liabilities owed to the Japan Atomic Energy Agency.

Centerra Gold Inc. (NYSE: CGAU) (TSX: CG) recently reported its first quarter 2021 results. Key events and operating results of the first quarter included: Net earnings and adjusted net earningsNG of $167.4 million, $0.57 per common share (basic), and $84.2 million, $0.28 per common share (basic), respectively; Cash flow from operations and free cash flowNG of $153.1 million and $72.1 million, respectively; Cash position at quarter-end of $823.2 million with total liquidity of $1,223 million; Consolidated Production of 160,346 ounces of gold and 18.6 million pounds of copper; Gold production costs and copper production costs were $561 per ounce and $1.42 per pound, respectively; All-in sustaining costs on a by-product basisNG and All-in costs on a by-product basisNG were $745 per ounce and $1,073 per ounce, respectively; Finalized the sale of 50% interest in Greenstone Gold Mines Partnership for cash consideration of $210 million and contingent consideration of approximately $75 million.

A gain of $72.3 million was recorded on the sale (excluding contingent consideration); Recent Kyrgyz Republic Developments resulted in several new legislative changes and legal claims affecting the Kumtor Mine, including a new Kyrgyz Republic law which could result in “external management” being imposed on Kumtor Gold Company (“KGC”), a $3 billion civil claim against KGC; various tax claims estimated at $352 million and several new and re-opened criminal investigations; Mount Milligan water permits extension received in April 2021, extending access to surface water sources to November 2023; Commenced trading on the New York Stock Exchange under the symbol “CGAU” on April 15, 2021; and Quarterly Dividend declared of CAD$0.05 per common share.

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