Category: Base Metals

Vancouver, British Columbia–(Newsfile Corp. – January 15, 2025) – West Point Gold Corp. (TSXV: WPG) (OTCQB: WPGCF) (“West Point Gold” or the “Company”) is pleased to announce the first drill results from its recently completed 1,264m (7 hole) diamond drill campaign focused on the Tyro Main Zone, at its Gold Chain Project in Arizona.

Highlights:

• Hole GC24-30 intersected 52.25m of 1.53 g/t Au, including 36.10m of 2.02 g/t Au, from 43.50m.
• Hole GC24-31 intersected 50.65m of 0.53 g/t Au, from 51.30m.
• Both these holes intersected additional zones in the hanging wall of the deposit – 2.56m of 2.85 g/t Au, from 7.80m (GC24-30) and 4.10m of 2.17 g/t Au, from 23.00m (GC24-31), prompting infill sampling of the holes which is in progress and have the potential to expand the width of the mineralized zone.
• Results confirm the exploration target at Tyro of 15.6 to 31.2 Mt at 1.5 to 2.5 g/t Au (*see note on the next page).
• Assays are pending for the remaining five holes representing approximately 1,025m.

“This drill program has materially advanced our understanding of the Tyro Main Zone and its structural controls. The grades returned fit West Point Gold’s previously announced exploration target, while the widths, along with the new hanging wall zone, suggest the zone may be wider than first thought,” stated CEO, Quentin Mai. “We look forward to the balance of the results and are preparing for the next phase of drilling which is expected to follow-up on these positive results.”

Figure 1: Preliminary Tyro Main Zone Long Section showing GC24-30 and GC24-31 (center), along with RC drilling, trenches and 200 Level Sampling

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5717/237285_westpointfig1.jpg

Table 1: Drill Results

Holes		From (m)	To (m)	Width (m)	Grade (g/t Au)
GC24-30		7.80	10.36	2.56	2.85
	and	24.70	25.30	0.60	6.59
	and	43.50	95.75	52.25	1.53
	incl.	43.50	79.60	36.10	2.02
	and incl.	92.60	95.75	3.15	1.49
GC24-31		23.00	27.10	4.10	2.17
	incl.	24.15	27.10	2.95	2.86
	and	51.30	101.95	50.65	0.53
	incl.	51.30	63.35	12.05	0.58
	and incl.	73.76	100.55	26.79	0.67

Notes:

• All widths shown our down hole; true width is approximately 80% of down hole width
• Hole GC24-30 -Infill sampling is underway, assays pending between 10.36 to 16.40m, 20.00 to 24.70m, 25.30 to 43.50m
• Hole GC24-31 – Infill sampling is underway, assays pending between 27.10 to 49.99m

Summary
The Q4 2024 drill program totaled 1,264m (7 holes), and was designed to improve West Point Gold’s understanding of the Tyro Main Zone, in particular the structural model and controls of the mineralization. Based on these assay results and our observations from the other holes, there are two key findings.

First, as evidenced in these assay results, the zone appears to be either wider or there are additional structures in the hanging wall (east side) of the Tyro Main Zone. It also appears that the Tyro Main Zone most likely dips at 80 degrees to the east versus our previous assumption that the zone was near vertical.

Secondly, the Tyro Main Zone appears to have developed between two near parallel structures whose relative movement is responsible for the ground preparation for subsequent gold-bearing fluids. The footwall boundary appears to be a sharp contact that may control mineralization while the hanging wall remains partially defined.

These initial results from holes GC24-30 and GC24-31 are consistent with the previously announced exploration model, of 15.6 to 31.2 Mt at 1.5 to 2.5 g/t Au* and conform with the existing geologic model based upon drilling, trenching and geologic mapping conducted over the vein system.

*The potential quantity and grades are conceptual in nature. There has been insufficient exploration drilling to define a mineral resource, and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource.

Hole GC24-30
Drilled to the northwest and perpendicular to the Main Tyro vein system (Figure 4), hole GC24-30 was designed to cross the structure about 50 metres below the Tyro 200 Level which is immediately below the floor of the open pit (Figure 2). The hole is located about 100 metres northeast of hole No. GC23-23 which traversed 44.2 m (approximately 36m true width) at 2.01 g/t Au. A similar complex of veins and veinlets was encountered in hole GC24-30 with the results presented in Table 1. The intercept consists of several discrete banded chalcedony-adularia veins and vein breccia up to 0.8 metres wide within a broader zone 1 to 10 cm veinlets in altered wall rock.

Figure 2: Hole GC24-30 Cross Section

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5717/237285_westpointfig2.jpg

Hole GC24-31
Drilled about 80 metres northeast of hole GC24-30, hole GC24-31 also passed immediately beneath the Tyro 200 Level and about 50 metres below the floor of the open pit (Figure 1). The mineralized envelope, which extends down-hole from 23.00 to 100.55 metres, consists of mostly quartz-chalcedony veinlets with local banded chalcedony-adularia veins and vein breccia up to a couple metres wide.

To date, four holes have been drilled from 20 to 70 metres beneath the Tyro 200 Level over a strike length of about 300 metres indicating widths of the mineralized zone between 25 and 40 metres (true width).

Figure 3: Hole GC24-31 Cross Section

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5717/237285_westpointfig3.jpg

Figure 4: Plan View of Tyro Main Zone Showing Drill Holes, Trenches and Surface Sample (gold).

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5717/237285_westpointfig4.jpg

Figure 5: Looking North at the Historic Tyro Open-Pit

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5717/237285_westpointfig5.jpg

Qualified Person
Robert Johansing, M.Sc. Econ. Geol., P. Geo., the Company’s Vice President, Exploration is a qualified person (“QP”) as defined by NI 43-101 and has reviewed and approved the technical content of this press release. Mr. Johansing has also been responsible for overseeing all phases of the drilling program including logging, core cutting, labelling, bagging and transport from the project to American Assay Laboratories of Sparks, Nevada. Samples were then dried, crushed and split, and pulp samples were prepared for analysis. Gold was determined by fire assay with an ICP finish, over limit samples were determined by fire assay and gravimetric finish. Silver plus 15 other elements were determined by Aqua Regia ICP-AES (IM-2A16), over limit samples were determined by fire assay and gravimetric finish. Both certified standards and blanks were inserted on site along with duplicates, standards and blanks inserted by American Assay. Standard sample chain of custody procedures were employed during drilling and sampling campaigns until delivery to the analytical facility.

About West Point Gold Corp.
West Point Gold Corp. (formerly Gold79 Mines Ltd.) is a publicly listed company focused on gold discovery and development at four prolific Walker Lane Trend projects covering Nevada and Arizona, USA. West Point Gold is focused on developing a maiden resource at its Gold Chain project in Arizona, while JV partner Kinross is advancing the Jefferson Canyon project in Nevada.

For further information regarding this press release, please contact:
Aaron Paterson, Corporate Communications Manager
Phone: +1 (778) 358-6173
Email: info@westpointgold.com

Stay Connected with Us:
LinkedIn: linkedin.com/company/west-point-gold
X (Twitter): @westpointgoldUS
Facebook: www.facebook.com/Westpointgold/
Website: www.westpointgold.com

FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business, including any future private placements, the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, plans and references to the Company’s future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the ‘safe harbour’ provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents, which can be found on SEDAR at www.sedarplus.ca. West Point Gold does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237285

Edmonton, Alberta–(Newsfile Corp. – January 15, 2025) – Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) (“Grizzly” or the “Company”) is pleased to provide an update on the acquisition of the Motherlode Crown Grants from First Majestic Silver Corp. (First Majestic) and some highlights of recent exploration completed by the Company on the Motherlode Crown Grants, host to the historical Motherlode, Sunset, Sunrise and Greyhound mines that at various times during the early and middle 1900’s produced copper (Cu), gold (Au) and silver (Ag) from both open pit and underground workings (Figures 1 to 5).

The Motherlode Crown Grants near the town of Greenwood, South-Central British Columbia (BC) include 13 Crown Grants for over 300 acres (121.4 hectares) that include subsurface mineral rights. The Crown Grants take precedence over mineral claims issued pursuant to the Mineral Tenures Act (BC). The Crown Grants cover a number of historical mines, including the Motherlode Mine that produced 76,975,111 pounds of Cu, 173,319 ounces of Au and 688,203 ounces of Ag during the active periods of mining from 1900 to 1920 and then from 1957 to 1962. The Motherlode skarn mineralization is developed in the Triassic Brooklyn Formation sediments (BC Minfile 082ESE034). The Motherlode Mine is road accessible and is approximately 2.5 km northwest of the town of Greenwood (Figure 1).

Highlights

• First Majestic has completed the re-instatement of the Motherlode Crown Grants and is in the process of transferring the Crown Grants with the subsurface mineral rights to the Company.
• The Company has collected in excess of 350 rock samples, mostly selective grab samples, from across the Motherlode project area including the newly acquired Crown Grants (Figures 2 & 3).
• Of the 17 samples collected from the Motherlode Pit area, a total of 9 samples yielded from 1.16% Cu up to 4.88% Cu, 12 samples yielded from 1.075 grams per tonne (g/t) Au up to 6.65 g/t Au and 8 samples yielded from 12.6 g/t Ag up to 51.3 g/t Ag (Figures 2 & 3; Table 1).
• Of the 10 samples collected from the Sunset Pit area, a total of 8 samples yielded from 1.44% Cu up to 3.66% Cu, 9 samples yielded from 1.7 g/t Au up to 4.88 g/t Au and 7 samples yielded from 14.5 g/t Ag up to 55 g/t Ag (Figures 2 & 3; Table 1).
• Various other targets including the Greyhound Pit, the Butte City Target, the Margerite Target and the Great Hopes Target have yielded a number of samples with >1% Cu and >10 g/t Au and warrant additional exploration (Figures 2 & 3; Table 1).
• Various historical Mineral Resource Estimates (MREs) produced both prior to the last period of mining 1957 – 1962 (Fredericks, 1961¹) and after the last period of mining as part of a couple of historical economic studies have been recovered from the publicly available BC Property Files.
• A historical MRE constructed in 1967 by Allen Geological Engineering Ltd.² after the last period of mining on behalf of two companies, Aabro Mining and Oils Ltd. and Cumberland Mining Ltd., is described as Drill Proven (Assured), Indicated and Inferred and totals 2.8 million tonnes with a grade of 0.8% Cu and 1.06 g/t Au yielding a calculated grade of 1.6% Cu equivalent (CuEq) utilizing 90% recovery for both metals and $4/lb for Cu and $2,000/oz for Au.

Figure 1: Land position and targets of interest for future exploration, Greenwood Project.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4488/237278_2280ac62140a597f_002full.jpg

• This historical MRE was calculated prior to the implementation of the standards set forth in the current National Instrument (NI) 43-101 and current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards for MREs. Resource definitions, terminology and reporting standards have changed significantly since these series of reports. The estimates in these reports are all considered historical in nature, and a Qualified Person (QP) has not done sufficient work to evaluate these resources as current resources. For these resources to be updated as current resources, a QP would need to examine and analyze the existing drill core, validate and verify the existing data supporting the historical estimate, and perform a confirmatory site visit. Therefore, the company and the QP for this news release are treating this estimate as historical in nature, and are highlighting the estimate for the sole purpose of illustrating the potential extent of mineralization that may be present.
• In addition to the historical MREs, drilling in 1996 by Strathcona Mineral Services on behalf of YGC Resources (Veris Gold a wholly owned sub of First Majestic) intersected several zones of Cu-Au mineralization targeting the gold bearing halo to the Motherlode Skarn along the east side of the Motherlode Pit in the vicinity of the historical underground workings (Figures 4 and 5).
• Drillhole 96-8 encountered gold in almost every sample including a weighted average grade of 0.23 g/t Au over the entire 154.23 m (506 ft) length drillhole with a number of higher grade zones in proper skarn towards the bottom of the hole (Figure 5).
• The Main Motherlode skarn was intersected at the bottom of the drillhole and returned 2.5 g/t (0.073 ounces per ton [opt]) along with significant Cu over 4.88 m (16 ft) at the end of the drillhole from skarnified Brooklyn limestone, that is associated with a strong AeroTEM conductivity anomaly (Figure 4).
• The drillhole collared in Brooklyn Sharpstone conglomerate and drilled through alternating skarn an altered diorite along the length of the drillhole, with the main zone at the end of the hole characterized by increased quartz-carbonate-chalcopyrite veining and volumetric chalcopyrite.
• The hole was ended due to technical difficulties. Strathcona Mineral Services recommended follow-up drilling which has never been completed.

Figure 2: Motherlode Crown Grants, Historical and Modern Gold Sampling Greenwood Project.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4488/237278_2280ac62140a597f_003full.jpg

Figure 3: Motherlode Crown Grants, Historical and Modern Copper Sampling Greenwood Project.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4488/237278_2280ac62140a597f_004full.jpg

Figure 4: Motherlode Crown Grants, Historical Drilling and AeroTEM Survey Greenwood Project.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4488/237278_2280ac62140a597f_005full.jpg

Figure 5: Motherlode Historical Drillhole ML96-8 Greenwood Project.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4488/237278_2280ac62140a597f_006full.jpg

Brian Testo, President and CEO of Grizzly Discoveries, stated, “We are excited with the acquisition of the historical Motherlode Crown Grants and the potential battery metal and precious metal targets that they provide. We look forward to an aggressive 2025 drilling campaign at the Motherlode area and other high grade Au-Ag-Cu showings and historical mines along with additional exploration for battery metals in our current 170,000+ acre holdings in the Greenwood District.“

The Company currently has an active land use permit for drilling at the Motherlode area and has designed a confirmation and exploration core drilling program for the Motherlode and Sunset pit areas along with additional drilling at the Greyhound and Great Hopes targets based upon a compilation of historical information. It consists of about 5,000 m in 20 to 25 core holes and is focused on targets beneath and along strike from the various pit areas.

Table 1. Motherlode Area Rock Sample Assay Highlights.

Sample	Showing/ Area	Easting (N83Z11)	Northing (N83Z11)	Au (ppm)	Ag (ppm)	Cu (%)	Pb (%)	Zn (%)
09BMP104	Top	374618	5442036	2.830	32.0	0.429	0.172	0.523
09BMP111	Marguerite	375768	5441431	1.165	51.3	1.160	–	–
09DAP242	Sunset	374961	5440954	4.880	36.4	1.635	–	–
09DAP243	Sunset	374963	5440953	2.340	55.0	1.430	–	–
09DAP244	Sunset	374965	5440946	2.550	20.2	1.030	–	–
09DAP245	Sunset	374965	5440940	3.070	37.1	2.560	–	–
09DAP246	Sunset	374966	5440950	1.700	9.7	2.490	–	–
09RHP063	Motherlode	374624	5441380	6.650	21.7	3.610	–	–
09RHP065	Sunset	374950	5440939	3.250	7.1	0.546	–	–
09RHP066	Sunset	374968	5440960	2.970	17.5	3.680	–	–
09RHP067	Sunset	374978	5440965	3.080	14.5	3.030	–	–
09RHP068	Sunset	374978	5440965	4.110	33.2	1.440	–	–
10CBP023	Great Hopes	375782	5440926	11.300	3.9	0.057	–	–
10CGP059	Greyhound (Butte City)	375428	5440600	13.850	13.0	0.259	–	–
10CGP248	Greyhound (West)	375034	5440346	5.950	28.3	0.069	–	–
10CGP274	Motherlode (West)	374086	5441589	0.246	6.1	–	0.249	2.630
10DCP065	Motherlode North	374972	5442329	0.122	5.5	0.060	–	2.170
10DCP103	Motherlode	374840	5441399	2.870	17.6	2.070	–	–
10JHP018	Marguerite	375780	5441418	1.055	39.1	1.480	–	–
10JHP126	Great Hopes	375795	5440946	51.000	5.2	–	–	–
10JHP130	Gold Bug	377091	5441148	16.600	2110.0	0.216	1.400	0.298
10WBP259	Greyhound (Butte City)	375420	5440613	30.900	60.0	0.259	0.971	3.410

Summary of the Motherlode Crown Grant Purchase Terms

• The Company will cover the costs to reinstate and transfer the Crown Grants to the Company.
• Grizzly will issue 250,000 common shares of the Company to First Majestic upon successful transfer of the Crown Grants to the Company. These shares will be subject to a restricted trading period ending four months and one day from the date of issuance
• The Company will grant a 1% Net Smelter Return (NSR) Royalty on the Crown Grants to First Majestic that with an option for the Company to purchase the NSR for $250,000 at any time.

The technical content of this news release and the Company’s technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

ABOUT GRIZZLY DISCOVERIES INC.

Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 72,700 ha (approximately 180,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.

On behalf of the Board,

GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, President

Suite 363-9768 170 Street NW
Edmonton, Alberta T5T 5L4

For further information, please visit our website at www.grizzlydiscoveries.com or contact:

Nancy Massicotte
Corporate Development
Tel: 604-507-3377
Email: nancy@grizzlydiscoveries.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution concerning forward-looking information

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-Looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedarplus.ca. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.

¹Report on Motherlode and Sunset Mine by Frances Fredericks, 1951.
²The Motherlode and Greyhound Properties of Cumberland Mining Co. Ltd. N.P.L. Greenwood, BC by Allen Geological Engineering Ltd. September 27^th, 1967.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237278

December’s Consumer Price Index (CPI) will serve as the latest test of whether an inflation resurgence is a risk to the US economy as investors debate if and when the Federal Reserve will cut interest rates in 2025.

The report, set for release at 8:30 a.m. ET on Wednesday, is expected to show headline inflation of 2.9%, an uptick from November’s 2.7% annual gain in prices. Consumer prices are expected to have risen 0.4% over the prior month, also ahead of the 0.3% monthly increase seen in November.

Seasonal factors like higher fuel costs and continued stickiness in food inflation are widely expected to keep the headline figures elevated.

On a “core” basis, which strips out the more volatile costs of food and gas, prices in December are expected to have risen 3.3% over last year for the fifth consecutive month. Economists expect monthly core price increases to also match the prior month’s reading of 0.3%, according to Bloomberg data.

“Inflation appears to have stalled moderately above the Fed’s target,” Bank of America economists Stephen Juneau and Jeseo Park wrote in a preview of the report.

https://flo.uri.sh/visualisation/12036059/embed?auto=1

Core inflation has remained stubbornly elevated due to higher costs for shelter and services like insurance and medical care. Core services are expected to be little changed in December after airfares and lodging away from home both surprised to the upside in the previous print.

“These categories should moderate in December,” BofA’s Juneau and Park noted. “Shelter prices have cooled relative to earlier in 2024, but there is still room for improvement.”

The team expects rental prices to once again increase 0.2% month over month, while owners’ equivalent rent (OER), or the hypothetical rent a homeowner would pay for the same property, should increase slightly to 0.3%.

Fed’s next challenge: A new administration

Although inflation has been slowing, it has remained above the Federal Reserve’s 2% target on an annual basis.

The election of Donald Trump as the nation’s next president has further complicated the outlook, with some economists arguing the US could face another inflation resurgence if Trump follows through with his key campaign promises. The president-elect will be sworn into office next week.

Trump’s proposed policies, such as high tariffs on imported goods, tax cuts for corporations, and curbs on immigration, are seen as inflationary. And those policies could further complicate the central bank’s path forward for interest rates.

On top of political uncertainties, recent inflation prints have run hot heading into the new year, although producer prices did show some relief in data released on Monday.

“Odds are the December consumer price index won’t sit well with the Federal Reserve,” Oxford Economics chief US economist Ryan Sweet wrote on Friday. The economist said December’s strong labor report further cemented an interest rate pause later this month, especially as central bank leaders have indicated they will take a more gradual easing approach.

As of Tuesday, markets remain split on whether the Fed will cut by 25 basis points in the back half of this year. The odds of a cut in June are currently hovering around 40%.

“Our forecast is the Fed lowers rates three times this year, but the [jobs] report increases the risk that there will be fewer cuts and that the Fed won’t lower rates as early as March, which is currently our baseline,” Sweet wrote in a separate report on Friday. The economist said he needs more evidence of labor market improvements before adjusting his forecast.

Bank of America, meanwhile, revised its outlook to zero rate cuts this year — and warned a hike could also be on the table.

“Inflation is stuck above target, with risks skewed to the upside, activity is strong, and the labor market now appears to have stabilized,” Juneau and Park said.

“Our base case has the Fed on an extended hold, but we think the risks for the next move are skewed toward a hike. In our view, hikes will be in play if year over year core PCE inflation exceeds 3% and long-term inflation expectations become unanchored.”

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

Source: https://finance.yahoo.com/news/december-cpi-report-expected-to-show-sticky-inflation-as-investors-recalibrate-rate-cut-bets-202650370.html

DAKAR, Senegal (AP) — Mali’s military government has started seizing gold stocks of the Canadian mining company Barrick as part of a legal battle over the share of revenue owed to the West African state, according to an internal Barrick letter seen by The Associated Press.

The letter from CEO Mark Bristow to the Malian Mining Minister, dated Monday, says Barrick is “awaiting official confirmation of the proper receipt by the Malian Solidarity Bank,” a government entity.

The seizure follows a warning letter to Barrick earlier this month from Mali’s senior investigating judge, Boubacar Moussa Diarra, saying three tons of gold would be seized.

On Monday, a senior Barrick manager confirmed that three tons had been seized by the military government and placed in the capital, Bamako. The manager spoke on condition of anonymity because they were not authorized to speak publicly.

According to the senior manager, the gold was taken from a mine near Kayes in the west and transported by plane and truck to the capital late Saturday.

The Malian authorities did not immediately respond for comment.

Valued at around $180 million, the gold seizure is part of the dispute over revenues owed to the state.

In December, Mali issued an arrest warrant for Bristow for charges of money laundering, without giving evidence, and ordered the seizure of Barrick’s gold reserves. The company has offered to pay $370 million.

Mali’s military government previously arrested four senior executives of the Canadian mining company as part of the dispute. They are still being held.

Mali is one of Africa’s leading gold producers, but it has struggled for years with jihadi violence and high levels of poverty and hunger. The military seized power in 2020, and the government has placed foreign mining companies under growing pressure as it seeks to shore up revenues.

In November, the CEO of Australian company Resolute Mining and two employees were arrested in Bamako. They were released after the company paid $80 million to Malian authorities to resolve a tax dispute and promised to pay a further $80 million in the coming months.

___

Ahmed reported from Bamako, Mali.

Source: https://finance.yahoo.com/news/mali-seizes-3-tons-gold-171341198.html

Jennifer Schonberger · Senior Reporter

Wed, January 8, 2025 at 3:05 PM EST 5 min read

Almost all Federal Reserve officials agreed in their last meeting that “upside risks to the inflation outlook had increased” due in part to the “likely effects” of expected changes in trade and immigration policies, according to meeting minutes released Wednesday.

Fed officials approved a 25 basis point interest rate cut at that December meeting, but it was clear from the minutes that many who signed off on those cuts still had concerns about the path of inflation in the near future.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

They noted “the likelihood that elevated inflation could be more persistent had increased,” according to the minutes, even though they still expected the Fed to bring inflation down to its 2% goal “over the next few years.”

“As reasons for this judgment, participants cited recent stronger-than expected readings on inflation and the likely effects of potential changes in trade and immigration policy” — a likely reference to plans already floated by President-elect Donald Trump.

Some economists expect Trump’s policies, which could include steep tariffs and deportations of undocumented immigrants, to put upward pressure on inflation and make any future rate cuts less likely.

Fed officials in December reduced their estimate of 2025 rate cuts to two from a previous estimate of four, based in part on elevated inflation concerns.

Several of the participants in that Dec. 18-19 meeting even “observed that the disinflationary process may have stalled temporarily or noted the risk that it could.”

One official, Cleveland Fed president Beth Hammack, objected to the rate cut “in light of uneven progress in returning inflation to 2 percent” and argued for holding it steady.

A coming clash

A clash between Donald Trump and the Fed could develop in 2025 if the Fed pulls back on any future expected rate cuts due to elevated inflation.

Trump heaped more pressure on the Fed Tuesday during a press conference at his Mar-a-Lago club in Florida.

“Inflation is still raging, and interest rates are far too high,” Trump said, arguing that “we are inheriting a difficult situation from the outgoing administration.”

Federal Reserve governor Chris Waller said Wednesday that he still supports cutting interest rates this year, believing inflation will continue to drift lower despite promises of sweeping tariffs from the new Trump administration.

“I believe that inflation will continue to make progress toward our 2% goal over the medium term and that further reductions will be appropriate,” Waller said during a speech in Paris.

While Waller underscored that tariff proposals raise the possibility of a “new source of upward pressure on inflation,” he noted projections of their economic impact vary widely.

“If, as I expect, tariffs do not have a significant or persistent effect on inflation, they are unlikely to affect my view of appropriate monetary policy,” Waller said.

Powell said in December that there are still too many unknowns for the Fed to game out how tariffs could impact setting rates. However, he did say that some Fed officials have begun to factor Trump’s proposed policies into their policy assumptions.

“We don’t know how big they’ll be, we don’t know their timing and their duration, we don’t know what goods will be tariffed, we don’t know what countries’ goods will be tariffed, we don’t know how that will play into prices,” Powell said in December in New York.

“That’s a partial list of the things we don’t know.”

The Fed minutes released Wednesday noted that all participants of the meeting in December “judged that uncertainty about the scope, timing, and economic effects of potential changes in policies affecting foreign trade and immigration was elevated.”

Fed officials “took varied approaches in accounting for these effects, with “a number of participants” indicating they “incorporated placeholder assumptions to one degree or another into their projections.”

“Other participants indicated that they did not incorporate such assumptions, and a few participants did not indicate whether they incorporated such assumptions.”

Central bank officials will be paying close attention to new inflation data as they prepare for their next meeting on Jan. 28-29 following the inauguration of Trump as president on Jan. 20.

The last reading of the Fed’s preferred inflation gauge — the Personal Consumption Expenditures (PCE) price index — showed an easing to 2.4% in November. That is down considerably from a peak of 7.2% in June 2022 but still above the Fed’s 2% goal.

When excluding volatile food and energy costs, the so-called core PCE was down to 2.8% in November — compared with a peak of 5.6% in September 2022.

Waller on Wednesday underscored that two-thirds of prices that comprise the core-PCE index have increased on average less than 2% over the past 12 months through November.

He also said the higher readings on inflation in the first quarter of 2024 will begin to drop out, meaning inflation numbers should start to look significantly better starting in March of 2025.

“If the outlook evolves as I have described here, I will support continuing to cut our policy rate in 2025,” Waller said.

Some of Waller’s other Fed colleagues struck a cautious tone in their comments earlier this week.

Federal Reserve governor Lisa Cook said Monday it makes sense to lower interest rates more gradually given resilience in the job market and stickier-than-expected inflation.

Over the weekend, Fed governor Adriana Kugler and San Francisco Fed president Mary Daly both said that the Fed has more work to do to bring inflation down but that they don’t want to weaken the job market further as they focus on that task.

Source: https://finance.yahoo.com/news/fed-officials-fretted-about-likely-effects-of-trump-trade-and-immigration-policies-200525705.html

Bloomberg News

Thu, January 9, 2025 at 12:14 AM EST 4 min read

(Bloomberg) — China expanded its support for the beleaguered yuan with a plan to issue a record amount of bills in the Hong Kong market to mop up excess liquidity.

The People’s Bank of China will auction 60 billion yuan ($8.2 billion) of six-month bills in the city on Jan. 15, the Hong Kong Monetary Authority said in a statement. The issuance will effectively increase demand for the yuan in offshore markets, making it more costly to borrow and short the currency.

The issuance is set to be the largest on record since the central bank started bill auctions in Hong Kong regularly in 2018, according to Bloomberg-compiled data.

The yuan’s tumble in recent months, spurred by a sluggish Chinese economy and potential US tariff hikes, has traders pondering the PBOC’s commitment to defend the currency. The central bank has so far remained firmly supportive of stability, as it propped up the yuan with its daily fixings while also pledging to prevent an overshoot in exchange rates.

“We cannot rule out policymakers deploying even higher funding squeeze in the short term,” said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. “At this point, the combination of fixing pattern and offshore funding squeeze are intended to guide for a stable yuan.”

The additional bill issuance in Hong Kong is a tactic that the PBOC deployed multiple times before and it was last used in 2023. Offering broader choices of yuan assets in the city also serves Beijing’s long-term ambition to globalize the currency.

Jitters over tighter liquidity pushed up gauges of the yuan’s borrowing costs in Hong Kong to levels unseen in years earlier this week, before they eased. The offshore yuan’s overnight Hibor fell after rising to 8.1% on Tuesday, the highest since June 2021.

This is the first time that the PBOC is issuing offshore bills in months without maturities, which shows its clear purpose to defy further yuan depreciation in the near term, said Becky Liu, head of China macro strategy at Standard Chartered Bank in Hong Kong. “Offshore yuan liquidity condition will likely to stay tight for an extended period post Donald Trump’s inauguration or even post Lunar New Year till early February.”

The PBOC had been mainly using its daily reference rate to support the yuan, particularly as the dollar soared following Trump’s victory in the US election. The central bank again set the so-called fixing, which limits the currency’s moves by 2% on either side in onshore trading, at a level that was significantly stronger than forecast on Thursday.

That’s because Beijing fears disorderly capital outflows can trigger a panic selloff in yuan-denominated assets and derail an already lackluster recovery. Analysts still expect the currency to weaken this year due to factors including a yawning interest-rate discount to the US.

However, the PBOC’s strategy to prioritize yuan stability carries a cost, as it opens up the prospect of trading glitches or thin liquidity the closer the currency comes to its permitted limit. On Wednesday, the yuan weakened to trade close to the policy no-go area.

“The mopping up of liquidity is likely to keep offshore yuan funding relatively tight in the near-term,” said Wee Khoon Chong, senior APAC market strategist at BNY. However, “elevated dollar and the on-going tariff uncertainties is likely to exert downside pressure on the yuan in the near-term.”

The offshore yuan gained 0.1% to 7.3486 per dollar on Thursday, following the announcement of central bank bill sales. In the onshore market, the currency was little changed at 7.3315, close to the weak end of its trading range at 7.3323 as defined by the day’s fixing.

As of Jan. 9, the central bank has 140 billion yuan locked up through previously-sold offshore yuan bills that expire later this year, data compiled by Bloomberg show. The settlement date for the bills to be issued next week will be on Jan. 17.

–With assistance from Betty Hou and Iris Ouyang.

Source: https://finance.yahoo.com/news/china-ramps-yuan-support-record-010919244.html