Gold retreated from a new all-time high set on Wednesday as some investors booked profits while assessing geopolitical risks from the US election and Middle East conflicts.
Spot gold dropped 1.0% to $2,718.79 an ounce by 12:10 p.m. ET after briefly hitting an all-time high of $2,758.25 in the morning trading. US gold futures also fell 1.0% to $2,734.00 an ounce in New York.
Bullion was down as much as 1.5% earlier in the session, with some traders exiting positions amid signs that the precious metal’s recent rally to successive highs may be excessive.
Gold’s relative strength index has been above the overbought level of 70 for the past three sessions, according to Bloomberg data.
A stronger US dollar and rising bond yields also weighed on the metal, whose price has surged by more than 30% in anticipation of the Federal Reserve’s pivot to interest rate cuts. The rally also intensified as uncertainties surrounding the US presidential race and the Middle East conflict grew.
Standard Chartered analyst Suki Cooper expects further upside risk in the coming weeks. The bank sees gold averaging $2,800 an ounce in the fourth quarter, with prices set to average $2,900 for the first three months of next year.
Those from Citi Research gave a similar outlook. The bank recently upgraded its three-month gold price view to $2,800 per ounce from $2,700 previously, adding that its 6- to 12-month forecast is $3,000.
If we start with VMS Volcanogenic Massive Sulphide Ore Deposits and their Mineralization we see from this image shows some of the sulphide chimneys associated with the model black smoker VMS deposit. VMS will emit black plume of hot water venting from one of the chimneys. You’ll remember this cross section from reads on both porphyry deposits and epithermal, in the case of VMS deposit, we are basically looking at a submarine high sulfidation epithermal deposit venting from an underlying hot chamber into the sea.
VMS deposits are dominated by copper and zinc, but there are a number of other minor minerals, including: lead, silver, gold, cobalt, tin, selenium, magnesium, cadmium and a whole host of other ones that are associated with them.
The deposits consist of a massive sulphide cap that formed on the seafloor and sort of lies parallel between two stratigraphy and an underlying feeder zone or streamer zone as it is usually called. VMS is basically mushroom shaped, Streamer zone tends to be copper rather than zinc rich. VMS deposits often form as clusters over a large intrusive heat source. If the heat chamber is long-lived you may get flat lenses of massive sulphide, each fed from the same fault, beginning successively younger as you go up through the stratigraphy. The deposits are pretty common although, as with any deposit type. There are only a few big enough or high enough grade to be economic. In spite of that, they really are economically significant with 27% of Canada’s copper production and almost 50% of its historical zinc production, and 20% of the Pb having come from this group of deposits.
VMS deposits have been forming throughout geological history and they still are forming on the seafloor today. Here’s a bunch of the better-known deposits you may have heard of. As you can see they are scattered all around the world, but I’m going to talk a little bit about the distribution later on. This is a cartoon 3D viewer of an active VMS black smoker developing on the oceanic crust on the seafloor (good rock crusher). Some of the metals are contributed by the underlying magma chamber, but as the hydrothermal fluids rise above the hot magma it sucks in cool sea water, this is then heated and mixing with the magnetic water, rises to the vent returning to the sea forming large circulation cells that maybe several kilometres across. It is the seawater circulation through the host volcanic that provides the remainder of the metal inputs. Leaching metals particularly iron there’s also bases metals and sulphur on the volcanic. Metal concentration in the hydrothermal fluids, volcanic and recycled seawater, are really low- just fractions of a percent. So how do we end up with the ore that makes up 20- 30% metal? The next slide will be on the seafloor to explain this. You can see there is a neck of fractured rock below the seafloor caused by the violent boiling of the hot fluids as the pressure is reduced, that in turn is surmounted by a series of chimneys that allow the fluid escape into the cold sea, at the bottom of the thermocline is really very cold, it’s often only a few degrees above freezing even in the tropical areas. Surrounding the chimney is an exhalative length of sulphuric material that forms on the floor. The secret of the high grade of the ore lies in rapid cooling of the hydrothermal fluid when it reaches the full seafloor.
As in porphyry deposits, the main focus of trend in deposits is the drop in temperature rather than changes in EH or pH. Different metal sulphides tend to drop out a metal solution at different temperatures- copper and gold first, followed by zinc, then lead and finally iron. There’s an overlap in the metal deposition, but that’s the broad trend. Copper starts to drop out as the temperature starts to drop from 400 degrees Celsius down to 300 degrees. The Iron and the copper drops out before the fluids actually reach the seafloor. Precipitating is a stockwork of veins in the brecciated funnel also called stringer zone, beneath the sulphide lens.
The fluids are hot, and because they are from a high sulfidation source, they’re moderately acid. This acidity alters the feldspars and host rocks to clays, some of which are washed out the rock and others metamorphous form sericite mica. Dissolved silica in the hot solutions distributes deposits such as quartz along with iron sulphide. You may hear geologist referring to this characteristic leach quartz, sericite pyrite assemblage the results are either QSP or folic alteration.
As the hydrothermal fluids reach the cold seawater, the temperature drops within seconds from 300 degrees down to 100 degrees and less. The lead and the zinc sulphite precipitates along with along with the remainder of copper. The sulfides dissolve along the sides and at the top of the vents, extending them and then bellow out to form black and white smoke as you see in National Geographic pictures. The fine clouds of sulphide cool and settles on the seafloor, building up a finely banded layers of pure sulphate which are closest to the vent, galena and sphalerite next. Pyrite deposits throughout the sequence and most desolate from the bed that is the only sphalerite still available to deposit. Beyond that the sulphur is exhausted and iron-oxide or hematite and silica is all that’s left to precipitate.
The massive sulphide is made up of a combination of finely interbedded sulphides that settle out of the black smokers and fragments of chimneys that have broken off and rolled down the slope. Here are couple of shots of massive sulphides in outcrop, note the typical, fine rhythmic banding just below the hammer on the left hand photo. The photo in the bottom right shows abandoned iron formation, developed very distantly to a VMS vent, as you can see it is made of hematite or magnetite which is oxide, rather than sulphide and white silica.
The fluids that form VMS deposits usually reach the seafloor of faults, because those faults represent zones of weakness when the stratigraphy is subsequently subject to deformation, the area around the faults is often particularly deformed. Combine this with the highly ductile nature of massive sulphides, we find that massive sulphide lenses themselves often exhibits extreme deformation. Very often the stringy cap which started off with a very high angle to the massive sulphide mushroom cap, is flattened and rotated to a much more acute angle and the massive sulphide may end up squeezed into a cigar shaped broad.
So not we know a little more about how VMS deposits are formed, let’s consider; where they occur; how common they are; and more importantly how big they are and what metal grades can we expect.
VMS deposits have been forming since the earliest of times in the Earth’s history and they are still forming today on the seafloor. As you might expect, they are found all over the world and in all ages of rocks. However, there are few areas in history where they seem to be particularly prevalent- the late Archean and the Tertiary, seem to be very prolific times. The blue, green and red symbols mark some of the more important VMS deposits worldwide.
Ok, what about size and grade? There are a number of different classes of VMS, each with somewhat very different characteristics.
It’s nice to say that economic VMS deposits generally range in size from 4- 25 million tonnes with an average of about 5 million tonnes, although there are a few monsters such as Peak Creek in Ontario which is 150 million tonnes.
Average Volcanogenic Massive Sulphide Ore Deposits Grades:
5% copper
4% zinc
< 1% lead
Maybe 1 gram per tonne of gold.
Again there are a few outlines with far higher grades than these.
Let’s look now at a few examples of VMS deposits.Nevsun’s Bisha deposit near Eritrea is a superb example of a VMS deposit. It was discovered in January in 2003, construction began in 2008 and production in 2011. This is a view of the Bisha deposit looking south, before development began. The dark brown material in the foreground is a zinc rich deposit the without the outcrop of the mineralization. Not surprisingly, the way the mineralization is being folded and it plunges to the south, where the stringer zone smeared out, parallel to the massive sulphides. The massive sulphide material varies from 1- 70 meters thick, this is unusual as most VMS deposits are less than 20 meters in thickness. Bisha is a footprint that’s about 1 kilometre long and 200 meters wide. In spite of the steep dip to the mineralization which results in a pit with a high stripping ratio the deposit has one big advantage. So there is a leach gold zone on the surface, underlain by a secondary enrich copper zone with the primary zinc dominated, primary zone below that.
The advantage of this is the expense is concentrated and does not have to be booked by start-up and could be constructed just a few years later when the primary sulphides are reached and funded, most importantly from cash flow, rather than debt. Most attractive of all in Bisha, is the size:
With reserves of 26 million tonnes
at 1.8% copper
6.3% zinc
0.9 grams per tonne gold
and 41 grams per tonne silver.
This is 5 times the average VMS site. VMS deposits occur in clusters/groups and Bisha is no exception. With at least 7 other VMS deposits discovered within 20 kilometres. Although Bisha is the only one in production so far.
The second example we are going to talk about today is kind of unusual, it’s actually a group of deposits that only recently been formed, in fact they are so young they are still on the ocean floor and will have to be mined remotely from floating platforms. They were discovered by Nautilus Mining Company using a combination of both metrics and EM geophysics. To date it gives and fascinating insight to the nature of the black smoker fields.This image is taken from Nautilus’ 43 101 report and it shows an amazing isometric view of the chimney of Salwara 1 target off the coast of Papua New Guinea derived from the symmetry.The image covers about 800 meters from left to right and the individual chimneys are clearly visible. The small image shows remote operating vehicles claws, removing a sample of a smoker chimney for for assay. For environmental reasons only extinct smokers were targeted. Once the hot water stop flowing, the cold and lack of nutrients causes the once abundant sea life to move away or to die. Extinct smokers are therefore devoid of significant sea life, and environmentally not an issue. In the cross section of the Solwara 1 VMS based on mapping and drilling of deposits we can see the massive sulphides in red, the alterations associated with stringer zones in pale green. Although the resource is relatively small, just two and a half million tonnes, the grades are exceptionally high- with a copper grade of almost 8% and a gold grade of over 6 grams per tonne, as is typical there has been at least 18 other deposits discovered in this particular cluster.The Solwara 1 VMS is at a depth, 1600 meters below sea level. Submarine VMS deposits have never been mined before but the equipment that Nautilus plants use has a proven record, excavating trenches for submarine cables and mining marine diamonds off the South African coast. Its practicality is well established. This is another piece of mining equipment that Nautilus is considering having custom built, you will notice the proposed completion date in this old material, to my knowledge this construction is still on hold which gives the indication that funding and mining will not be straight forward. Once the material is remotely mined, its plan to pump it to the surface as a slurry then to transfer debarked or to transport to lower a sure base concentrator.
Vancouver, British Columbia–(Newsfile Corp. – October 23, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce that its royalty partner at Timok in Serbia, Zijin Mining Group Co., Ltd. (“Zijin”), released unaudited interim results that show markedly increased levels of copper and gold production at Timok in the first half of 2024. Zijin reported 90,008 tonnes of copper and 2,894 kilograms of gold produced from Timok’s Cukaru Peki Mine in H1, 2024 (see Zijin Mining Group Co., Ltd. Interim Report 2024). This aligns with the record Q2 royalty revenues of $1,586,000 reported by EMX in its Q2 MD&A filings. On page seven of its 2024 Interim Report, Zijin also states that the combined Serbia Zijin Copper (which includes Zijin’s Bor operations, which are not covered by EMX’s royalties) and Serbia Zijin Mining projects (which includes the Timok/Cukaru Peki Mine which is covered by an EMX royalty), now have a capacity to produce 450,000 tonnes of copper on an annual basis. This is a significant increase compared with previous years.
Zijin has previously announced that the throughput of its processing plant at Cukaru Peki is being expanded from 12,000 tonnes per day to 15,000 tonnes per day1. The expansion of capacity and production at Cukaru Peki is part of an ongoing effort by Zijin to de-bottleneck their operations in Serbia, and by doing so, will unlock additional potential in the greater district. In addition to the ongoing production from the Upper Zone at Cukaru Peki, Zijin is also working to develop the underlying Lower Zone porphyry copper-gold deposit. The Lower Zone at Cukaru Peki will be developed through block caving, and EMX believes that the Cukaru Peki Mine will become one of the more important block cave development projects in the world.
On page 6 of the interim report, Zijin also highlights high grade copper gold exploration potential at its “MG Zone” in the “southern part of the Cukaru Peki Copper and Gold Mine”. We do not yet know whether Zijin’s exploration efforts will be successful and become material to EMX. However, it is notable that a discussion of the newly described MG Zone appeared in the interim report.
EMX congratulates Zijin on its outstanding performance in the Bor and Timok districts in Serbia. EMX currently holds a 0.3625% NSR royalty over Zijin’s Brestovac exploration permit area (including the Cukaru Peki Mining licenses), as well as portions of Zijin’s Jasikovo-Durlan Potak exploration license north of the currently active Bor Mine. EMX also owns a 2% NSR royalty on precious metals and a 1% NSR royalty on base metals on the Brestovac West License, which lies immediately adjacent and to the west of the Brestovac Mining License and the Cukaru Peki Mine (see Figure 1). All of EMX’s Timok royalties are uncapped and cannot be repurchased or reduced. The Company is currently receiving quarterly royalty payments from Zijin for copper and gold production from the Cukaru Peki Mine.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended June 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Edmonton, Alberta–(Newsfile Corp. – October 22, 2024) – 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 includes highlights of the recently compiled historical information for the Motherlode Crown Grants, located near the town of Greenwood, South-Central British Columbia (BC). The Motherlode Crown Grants host 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 and 2). The Motherlode Mine is reported to have 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 (BC Minfile 082ESE034). The Motherlode mine is road accessible and is approximately 2.5 km (1.5 miles) northwest of the town of Greenwood (Figure 1).
Highlights
First Majestic to transfer Motherlode to Grizzly. First Majestic has completed the re-instatement of the MotherlodeCrown Grant owner and wholly owned subsidiary Veris Gold Corp. and in concert with advice from the BC Ministry of Energy, Mines & Low Carbon Innovation has submitted a petition to re-vest the Crown Grants with the subsurface mineral rights back to Veris Gold, at which time once approved, will allow First Majestic to transfer the Crown Grants with the subsurface mineral rights to the Company.
Motherlode Historical MRE. A historical MRE1 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 1.6% Cu equivalent (CuEq3) (0.8% Cu, 1.06 g/t Au).
Additional Cu-Au Mineralization. In addition to the historical MREs, drilling in 1996 by Strathcona Mineral Services on behalf of YGC Resources (Veris Gold) 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 2 and 3).
Drillhole 96-8 encountered gold in almost every sample 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 (Figures 3 and 4). The results include 2.5 g/t (0.073 ounces per ton [opt]) Au along with significant Cu over 4.88 m (16 ft) intersecting the Main Motherlode skarn at the bottom of the drillhole within altered Brooklyn limestone. The skarn mineralization is associated with a strong AeroTEM conductivity anomaly (Figure 2).
The hole was terminated prior to completion due to technical difficulties and concerns over intersecting the existing underground stopes. Strathcona Mineral Services recommended follow-up drilling which has never been completed.
Figure 1: Land position and targets of interest for future exploration, Greenwood Project.
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 2024 drilling campaign at the Motherlode area and other high grade Au-Ag-Cu showings and historical mines 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 based upon a compilation of historical information. The planned program consists of approximately 2,000 m 13 core holes and is focused on targets beneath and along strike from the Motherlode Pit (Figure 4).
Additional planned drilling is being considered for the Greyhound Pit area once a geological and mineralization model have been completed for the Greyhound target.
Summary of the Motherlode Crown Grants and Purchase Terms
The Motherlode Crown Grants near the town of Greenwood, South-Central British Columbia (BC) consist of 13 Crown Grants covering a total of 300 acres (121.4 hectares) that all retain the subsurface mineral rights and date back to the late 1800’s early 1900’s when they were granted. The Crown Grants take precedence over normal mineral claims registered under the BC Mineral Titles Act. The Crown Grants cover a number of historical mines, including the Motherlode Mine. The Motherlode mine is road accessible and is approximately 2.5 km northwest of the town of Greenwood (Figure 1).
Figure 4: Motherlode Mineralized Zone Orthogonal View and Proposed Drilling.
Grizzly will provide First Majestic 250,000 common shares of the Company upon successful transfer of the Crown Grants to the Company.
The Company will cover the costs to re-instate and transfer the Crown Grants from YGC Resources Ltd. (Veris Gold Corp.) a wholly owned sub of First Majestic to First Majestic and then to the Company.
On closing, the Company will grant First Majestic a 1% Net Smelter Return (NSR) Royalty on the Crown Grants that can be purchased by the Company at any time for $250,000.
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 a 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
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.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
1The Motherlode and Greyhound Properties of Cumberland Mining Co. Ltd. N.P.L. Greenwood, BC by Allen Geological Engineering Ltd. September 27th, 1967.
2Various historical Mineral Resource Estimates (MREs) produced both prior to the last period of mining 1957 – 1962 (Report on Motherlode and Sunset Mine by Frances Fredericks, 1951) 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. 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 purpose of illustrating the potential extent of mineralization that may be present.
3CuEq is calculated utilizing 90% recovery for both Cu and Au, and prices of US$4/lb for Cu and US$2,000/oz for Au.
Vancouver, British Columbia–(Newsfile Corp. – October 22, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce the execution of an exploration and option agreement dated October 16, 2024 for its Gumsberg Project in Sweden to Alpha Future Funds S.C.S, a private Luxembourg based company (“Alpha”). The agreement provides EMX with a cash payment and work commitments during a one-year option period, and upon exercise of the option, EMX will receive additional deferred option payments, advance royalty payments, milestone payments and a 2% NSR royalty.
The Gumsberg project is located within the prolific Bergslagen Mining Region of southern Sweden. The region has seen more than a millennium of continuous mining of iron, copper, silver, and recently polymetallic ores. Alpha is a well-capitalized investment fund with its own technical team that will work closely with EMX to advance the project through the option period. EMX and Alpha seek to contribute to the legacy of the Bergslagen Mining Region, one of Europe’s most important metal producing centers, through additional investment and exploration in the district.
Commercial Terms Overview. EMX will receive US$100,000 upon closing of the agreement, and Alpha can acquire a 100% interest in the project by satisfying specified work commitments by the end of the first anniversary of the agreement. Upon exercising the option Alpha will:
Make additional cash payments totaling US$850,000 to EMX as deferred option payments.
Spend a cumulative of US$5,000,000 on the project by the fifth anniversary of the agreement.
Pay annual advance royalty payments commencing after the deferred option payments are complete.
Grant EMX an uncapped 2% NSR royalty on the project.
Deliver certain milestone payments tied to anniversary dates and the commencement of commercial production.
Overviews of the project. The Gumsberg polymetallic project in Sweden is located in the Bergslagen Region in central Sweden, which is the birthplace of the mining industry of Sweden with hundreds of past producing properties and two world-renowned polymetallic mines currently in operation – Boliden AB’s Garpenberg Mine and Lundin Mining’s Zinkgruvan Mine (see Figure 1).
Gumsberg Project, Central Sweden: The Gumsberg project encompasses multiple past-producing mining areas, some of which operated throughout the Medieval period (see Figure 2). The Östersilvberg silver mine operated as early as the 13th century with peak silver production taking place between 1300 and 1590 and was Sweden’s largest silver producer prior to the discovery of the nearby silver deposits at Sala. Recent drilling at Östersilvberg (2016-2019) led to the discovery of a newly recognized lens of silver-rich polymetallic mineralization south of the historic mine workings, which remains open in multiple directions. Importantly, reinterpretation of the styles of volcanogenic massive sulfide (“VMS”) mineralization at Östersilvberg have demonstrated that VMS mineralization occurred at multiple stratigraphic levels and include high-grade zones of tectonically remobilized silver-lead-zinc mineralization as well as copper and gold enriched “feeder” type structures. These new interpretations will provide vectors toward new targets at Östersilvberg.
Also present at Gumsberg are bedded “exhalative” type zinc-lead-silver deposits at Fredikssongruvan and Vallberget-Loberget that were intersected in 2017-2020 drill programs. The bedded zinc-lead-silver mineralization at the historic Fredikssongruvan mine shows clear evidence for “Broken Hill” style mineralization and is contained within a thick sequence of manganiferous chemical sediment that has not been explored along strike. Exhalative-style polymetallic mineralization is also developed along a multi-kilometer trend around the historic Vallberget and Loberget mines, which has been cut by high-grade “veins” of tectonically remobilized mineralization. Both styles of mineralization were mined historically at Vallberget and Loberget.
EMX and Alpha are looking forward to commencing work on the project and following up on the recent drill successes.
This transaction is another example of the execution of EMX’s business model in providing turn-key and drill ready exploration projects to its partner companies in exchange for royalty interests.
Nearby Mines and Deposits. The mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar tonnages or grades of mineralization.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended June 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Last month, I spoke at Dr. Hans-Hermann Hoppe’s Property and Freedom Society conference in Bodrum, Turkey. My speech was titled ‘Understanding India,’ and I elaborated on the underlying mindset that drives the Indian psyche, its amorality, and its tendency toward irrational and magical thinking. I discussed how this mindset contributes to an inability to distinguish between right and wrong and between the depraved and the virtuous:
Here is a discussion that followed:
On Investments
I recently returned from a site visit in Japan with Irving Resources (IRV; $0.34). The company has signed a joint venture agreement with Newmont and Sumitomo. Despite the legal complexities across several jurisdictions, these companies’ commitment to establishing a JV underscores the significance they place on the Yamagano project. They are already drilling the third of a planned five-hole program, with each hole reaching a depth of 700 meters. Additionally, the company is preparing to begin drilling at the Omu project, which is set to start early next month, with the permit expected imminently.
I briefly discussed IRV in a recent interview (at the 10:27 minute mark):
I recently read an excellent book, THINK: Observations of a Generalist by Rodney Choate. In this book, Choate examines the common errors in people’s thinking that contribute to stubbornness and an unwillingness to change their opinions, even when faced with new information. His insights delve into the cognitive biases and mental blocks that lead to such rigid thinking. What makes the book particularly compelling is that some of Choate’s thoughts are refreshingly unique, offering perspectives I hadn’t encountered in other works on critical thinking.
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendations. I will not and cannot be held liable for any actions you take resulting from anything you read here. Conduct your due diligence or consult a licensed financial advisor or broker before making any investment decisions. Any investments, trades, speculations, or decisions made based on any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
Gold topped $2,700 an ounce for the first time as concerns over escalating conflicts in the Middle East and a tight US election race prompt investors to flock to safety.
Bullion climbed as much as 1% to $2,720.17 an ounce, beating the all-time high set in the previous session. The bullish sentiment spilled over to the wider precious metals complex, with silver jumping as much as 5.5% to the highest since 2012. BlackRock Inc.’s iShares Silver Trust, the largest exchange-traded product tracking the metal, saw a large increase of call options as investors bet on higher prices.
Markets are focused on increasingly fraught geopolitical developments after Israel said it killed Hamas leader Yahya Sinwar, the architect of the Palestinian group’s attack on southern Israel that triggered a yearlong war in Gaza.
Prime Minister Benjamin Netanyahu said Israel would keep fighting until all the hostages captured by Hamas last year are free, even as US President Joe Biden said it was time for the war to end. Investors typically seek safety in gold in times of geopolitical and economic uncertainty.
Investors were also repositioning portfolios ahead of the US election on Nov. 5.
“Traditional polls and decentralized betting polls have diverged significantly, even as we get closer to elections,” said Christopher Wong, FX strategist at Oversea-Chinese Banking Corp. “Trump hedges — long gold — may still gather traction given the fluidity of election developments and geopolitical uncertainties.”
Meanwhile, the Bloomberg Dollar Spot Index fell 0.2%, snapping a four-day rally. A weaker greenback makes bullion cheaper for many buyers, as it is priced in the US currency.
Gold is about 2.4% higher for the week, with haven demand outweighing other macro headwinds that would normally weigh on the precious metal after US reports on Thursday diminished bets on the scale of Federal Reserve easing.
Bullion is one of 2024’s strongest performing commodities, with gains of more than 30% so far this year. Rate-cut optimism fueled the most recent gains as the Fed kicked off its easing cycle last month. Robust central bank buying has also been a long-standing pillar of support for gold prices.
Western investors have also helped drive prices higher, after largely remaining on the sidelines in the first half of the year as Asian demand surged. The US central bank’s pivot to looser monetary policy has bolstered the appeal of exchange-traded funds backed by bullion, with holdings on course for a fifth monthly expansion in October — the longest run of inflows since 2020.
For many in the industry, the outlook from here is even more bullish. Traders, refiners and miners who attended the London Bullion Market Association’s annual gathering this week saw prices rising to about $2,917 an ounce by late October 2025, according to the average forecast from a survey of delegates. Silver will gain more than 40% in the coming year to reach $45 an ounce, according to the survey.
Spot gold was trading at $2,718.72 an ounce as of 2:36 p.m. in New York. Both palladium and platinum climbed.
Updated Sun, October 20, 2024 at 4:14 PM EDT 6 min read
So much for American exceptionalism when it comes to retirement.
The US earned just a C+ for its retirement system in the 16th annual Mercer CFA Institute Global Pension Index, coming in 29th out of 48 countries. Since the index’s inception in 2009, the US retirement system has never surpassed a C+.
The big anchors on the American grade include concerns over pension funding and shortfalls in private retirement savings. Like most countries across the globe, the US retirement system must withstand the double whammy of dropping fertility rates and increasing life expectancy.
“It’s not just Americans, it’s a global problem,” Holly Verdeyen, Mercer’s US defined contribution leader, told Yahoo Finance. “The imbalance between retired and working people continues to grow…coupled with increasing lifespans.”
Only four countries — the Netherlands, Iceland, Denmark, and Israel — earned an A ranking for their retirement systems, providing key lessons on how to shore up our system. India came in last. Provisions from Secure 2.0 that go into effect next year could also address some of our shortcomings.
The problems in the US
The index examined more than 50 indicators to rank each country’s retirement system by adequacy, sustainability, and integrity. Overall, the researchers considered what benefits retirees receive now, if the system could last amid demographic changes, and if private retirement plans are regulated to encourage long-term confidence.
This year, the index score for the US decreased to 60.4 from 63.0, putting it in the same grade tier as the United Arab Emirates, Kazakhstan, Hong Kong, Spain, Colombia, and Saudi Arabia, though each of those countries had a higher overall score. The United States earned a C+ for adequacy and a C each for the sustainability and integrity of its retirement system.
Drilling down, the largest dilemmas for the US come from pensions and private retirement savings accounts, major sources of income for American retirees.
Let’s start with pensions, which are not nearly as prevalent as they were a generation ago. Still, 21% of workers have one through their employer.
A pension pays out a benefit for a certain amount of time, such as through the end of a person’s life, or, in some cases, even longer if a surviving spouse qualifies for continued benefits. Because people are living longer, those receiving benefits will be getting that money “for significantly longer than initially forecast today,” Verdeyen said. “That’s one thing.”
On top of that, pensions depend on workers to fund benefits to retirees. But thanks to declining birth rates, there are fewer workers contributing to these pension systems, leading to funding shortfalls that largely affect public-sector employees and workers in the few industries that still offer these retirement benefits.
The US earned a C+ for its retirement system in the 16th annual Mercer CFA Institute Global Pension Index, coming in 29th out of 48 countries. (Photo: Getty Creative) · Steve Smith via Getty Images
What’s left in Americans’ retirement arsenal is savings in private retirement plans, primarily employer-sponsored plans like 401(k)s. But based on the most recent research, Americans are expected to outlive those savings by about 10 years, Verdeyen said.
So, people need to either save more or work longer, or both, she said. And they are working longer, on average, by two years. But they are also projected to live 4.4 years longer too.
“So life expectancy increases are more than double the average rise in retirement ages,” she said. “So this gap between how much people have saved and how much they need to fund an adequate retirement is going to continue to grow.”
Social Security, the federal program that all workers pay into throughout their working life, is the third pillar that supports Americans in retirement. Similar to pensions, Social Security is facing a funding problem because of the worker-to-retiree imbalance. Its reserve fund is projected to run out in 2033, at which point the social welfare program will only be able to pay out 79% of benefits, a costly cut for many seniors.
“This trend [of longer lifespans and lower birth rates] puts pressure on both the private retirement system and the publicly funded Social Security safety net,” Verdeyen said.
The Mercer report offers some straightforward ways to buttress the US retirement system. Americans could also take some best practices from the No. 1 retirement system in the world — the Netherlands.
To start, all US employers should incorporate the best features of a private retirement system, Verdeyen said, which include automatic enrollment, automatic escalation of a worker’s savings rate that would provide adequate income at retirement, and better education.
In the Netherlands, for example, it’s “quasi-mandatory” for employers to provide retirement plans. While the government doesn’t mandate it, industry unions do through collective bargaining agreements. All companies in an industry must abide by those agreements.
“The bigger point is that once an employer-sponsored retirement program is offered, employees in the Netherlands are automatically enrolled,” Verdeyen said. “So that makes participation in the Netherlands pretty much mandatory for a very large part of the workforce.”
Only four countries — the Netherlands, Iceland, Denmark, and Israel — earned an A ranking for their retirement systems. (Photo: Getty Creative) · Alexander Spatari via Getty Images
The Secure 2.0 Act, legislation President Joe Biden signed into law in 2023, aims to boost participation in the US by requiring employers with new 401(k) and 403(b) plans to automatically enroll their workers, starting in 2025. The legislation also includes auto-escalation of contributions.
“In that way, automatic enrollment is going to become mandatory for a large part of our new retirement plans, which over time, I think should improve our rating in the index in the US,” Verdeyen said.
The final fix is for employers to provide easy-to-implement ways to turn worker savings into a reliable stream of income. That could be as simple as embedding a payment feature into a retirement plan that pays out a monthly sum starting at a certain age to help people delay taking Social Security.
“If people delayed their Social Security benefit from age 67 to 70, it would be about a 24% increase in the Social Security retirement annuity payment that they would get,” Verdeyen said.
Employers could also offer lifetime income features in target-date funds, which is the default investment for most retirement plan participants. That would also alleviate concerns over outliving one’s retirement savings.
“The defined contribution system has really only focused on getting workers through to their point of retirement,” Verdeyen said. “But it has fallen short in helping workers get all the way through retirement.”
(Bloomberg) — Price action in some of the world’s most risk-sensitive assets is signaling concern that the Federal Reserve’s decision to begin lowering interest rates may have been premature — or may not be sustainable.
Since the Fed kicked off its long-anticipated loosening cycle on Sept. 18 with a cut of 50 basis points, double the median forecast, emerging-market assets have traded as if borrowing costs in the world’s largest economy will remain high. That’s left developing world assets in limbo, headed for another span of underperformance.
In little over a month, the Fed rate cut has been eclipsed by fresh risks that are keeping global investors shy on the asset class, overshadowing the gains that Fed easing cycles might usually be expected to bring. While the threats have taken different forms — higher Treasury yields, a stronger dollar, greater volatility in currency options — the underlying themes have been just two: the potential return of Donald Trump as US president and China’s inadequate stimulus measures.
That means that once again, traders in emerging markets are positioning defensively for an inflationary US economy and a deflationary Chinese one.
“We remain in a world with two potentially existential threats to EM – China weakness and Trump,” said Paul McNamara, investment director at Gam UK Ltd. in London. “A strong US economy without inflation is good for EM, but persistent inflation will not only postpone further cuts, but weigh on all risk assets into the medium term.”
Though there was an initial boost to emerging markets from the Fed move, it was first interrupted by strong US data that revived fears of resurgent inflation, and later comments by presidential candidate Trump that exacerbated them. The Republican nominee has put tariffs and protectionism at the center of his agenda. If implemented, that’s likely to raise consumer prices in the US and undermine demand for exports from the developing world, according to many economists.
“We’re just weeks away from a US election that might lead to a Trump economic assault on the biggest EM out there, China,” said Charlie Robertson, head of macro strategy at FIM Partners. “It’s close to a coin flip as to who wins the US election, and equally makes it hard to choose a local markets trade to like.”
Disappointed Again
Hedge funds have also been ramping up positions speculating on dollar gains against developing economies vulnerable to higher tariffs.
EM stocks, which briefly rebounded from a record low relative to US equities after the Fed decision, are heading back to that dubious honor. Local currencies and local-currency bonds are on course for their worst month since February 2023. Segments of the dollar-bond market, like long-duration and investment-grade, also continue to trail.
Bond investors have seen their returns stagnate in the month since the Fed decision. Their expectations for the developing world to follow the Fed are now being upended by central-bank caution, as policymakers from Indonesia to Hungary and Turkey decide to pause interest-rate cuts.
“Eventually EM local-currency bonds should benefit from global easing,” said Anders Faergemann, a senior portfolio manager at Pinebridge Investments. “However, from a total return perspective, the relief rally in the US dollar and domestic delays to monetary-policy easing may have triggered some profit-taking.”
The average yield on EM sovereign dollar bonds has edged higher by 9 basis points since Sept. 18, while the rate on local-currency bonds has also risen 9 basis points, according to data compiled by Bloomberg. Between the two groups, the latter is underperforming in dollar returns, with currency declines acting as an additional drag.
“Rising geopolitical tensions, uncertainty over China’s efforts to rescue domestic consumption, and event risk leading up to the US presidential election will also spark increased demands for a higher risk premium into year end,” Faergemann said.
Yield Curves
Strong US economic data have not only disrupted Fed monetary-policy bets but are also reshaping emerging-market yield curves. Within the dollar-bond market, investors are favoring short-duration bonds to long-duration bonds — an unlikely preference in an environment where falling rates are a consensus expectation. Bonds with a duration of more than 10 years have handed investors a loss of 3.6% since the Fed cut, while those of less than three years have given marginal gains.
As of Friday, swap traders were penciling in further reductions to their bets on Fed cuts in the remaining two meetings of the year. Citigroup Inc.’s Akshay Singal, global head of short-term interest-rate trading, told Bloomberg TV that the Fed is likely to cut rates by just 25 basis points, or even stay put, over the next few meetings. He said he doubted the Fed would have opted for a 50-basis-point cut in September if it had seen the strong jobs data before the meeting.
“The combination of US Treasury yields above 4% and a pickup in economic activity in the US have called into question the idea of the beginning of a Fed cutting cycle,” said Martin Bercetche, a hedge-fund manager at UK-based Frontier Road Ltd. “We might have had a false start last month.”
China Factor
For emerging-market stocks, the turbulence coming from the US economic and political landscape was just one of the problems. The wildest volatility in nine years has meanwhile gripped China as successive stimulus measures initially sparked a sharp equity rally, then ultimately failed to convince investors that they were enough to turn around the economy.
The EM equity benchmark, where China holds the biggest weighting, is once again trailing the S&P 500 Index, belying expectations that it would pull itself out of a seventh successive year of underperformance when the Fed started to cut rates.
The bruises of the past month have forced investors to reassess their exposure, and many are avoiding the sweeping EM-wide bets they’d recommended for the post-Fed era.
For the moment, the focus is on weathering the US election. With polls showing Trump is neck-and-neck with his Democratic rival Kamala Harris, a firmer view on EM has to wait. For Gam’s McNamara, there’s one scenario where the Fed-cut trades in emerging markets can begin to make money.
“A Harris win,” he said.
What to Watch
In Brazil, the mid-October inflation print could fuel bets on faster monetary tightening at November’s central-bank meeting
Russia’s central bank set to lift interest rates by 100 basis points, according to a Bloomberg survey
China’s banks are set to lower their loan prime rates, tracking the People’s Bank of China’s cuts to key rates near the end of September
South Korea’s GDP data will likely have rebounded in the third quarter
