GTCH:CC - Bloomberg Intelligence Believes $3k Gold in 2023 Could Happen - And These Companies Stand as Promising Two-Way Hedges
2023-07-12 10:01:36 ET
Bloomberg Intelligence said that fear of missing out (FOMO) could come to dominate the %Gold market, as an economic slowdown in the second half of the year triggers an upwards move towards $3,000 an ounce in gold .
"Central-bank accumulation and the potential for a global economic slowdown, on the back of the most aggressive rate-hike period ever, may set the stage for gold to move toward $3,000 an ounce," said Bloomberg Intelligence senior macro strategist Mike McGlone.
Despite experiencing a recent dip, gold demonstrated a robust performance in the first half of 2023, earning over a 5% year-to-date gain, and outperforming various other assets and commodities.
McGlone is not alone, analysts from Goehring & Rozencwajg (G&R), a notable Wall Street investment firm, believe that the positive momentum of gold is still in its infancy.
Rozencwajg states that this new phase of gold's upward trend began in the second half of 2022, primarily influenced by the buying habits of central banks, which he believes will significantly elevate gold's value.
Rozencwajg also points to international politics as a key influencer in central banks' purchasing decisions. Emerging economies, amidst global tensions, are looking to diversify their reserve holdings from the US dollar and considering gold as an alternative. Russia, for instance, can use gold for international transactions to circumvent Western trade sanctions.
Sitting on both sides of the equation are publicly-traded gold exploration companies in mining-friendly jurisdictions such as I-80 Gold Corp (TSX: IAU), %NevadaKingGold (TSX: ) and %GetchellGold (CSE: ) – with the latter standing out as the company with potentially the highest upside, with currently the lowest market cap out of the pack.
Getchell Gold Corp: A Growing Gold Exploration Company with Strong Fundamentals
Getchell Gold Corporation (CSE: GTCH ) is a %MineralExploration and development company focused on delineating a major gold resource in the United States. The company’s flagship asset is the Fondaway Canyon project: a large-scale, high-grade advanced-stage gold project located in Churchill County, Nevada, consistently ranked as one of the top mining jurisdictions in the world.
GTCH is led by an experienced management team, with expertise in corporate management, finance and the resource sector.
The Getchell Team
Getchell Gold has a strong management team with a proven track record. The team is led by CEO William Wagener , who has over 45 years of global mining experience.
Mike Sieb sits as President and Director – a senior exec with 30+ years of experience in the sector. Worth highlighting during his time as President of Brilliant Mining Corp . the company transformed a $20 million acquisition of part ownership in an Australian nickel sulphide mine into a $200 million market cap in less than two years – which landed the company on to the TSX50 select list of “Top 10 Mining Companies” for 2 consecutive years.
Fondaway Canyon, How Big Can It Be?
%FondawayCanyon is a large-scale, high-grade gold project located in Nevada. The property covers an area of approximately 4,200 acres and has a well-established history of gold production. The project is at an advanced exploration stage, thanks to management’s execution of a very successful three-year drilling exploration program, during which two major discoveries were made, substantial gold mineralization was delineated, and the potential for significant expansion remains on the horizon.
Stressing the degree of success encountered, it's important to note that in these first three years of exploration, every hole drilled into the Central Area of Fondaway Canyon has hit gold mineralization. This is a rare situation that strongly indicates the extent and potential size of the deposit has yet to be tested.
The current Mineral Resources Estimate (MRE) for Fondaway Canyon, released on Feb 1, 2023, 2022, conceptualizes both potential open pit and underground mining.
The MRE for Fondaway Canyon reported the following figures:
- Indicated Mineral Resources of 11 million tonnes at 1.56 grams per tonne (g/t) gold (Au) containing 550,000 ounces of gold.
- Inferred Mineral Resources of 38.3 million tonnes at 1.23 g/t Au containing an additional 1,509,100 ounces of gold.
The complete Technical Report is available on the Company’s website.
Commenting on the newly revised Technical Report for the Mineral Resource Estimate at Fondaway Canyon, Getchell president Mike Sieb stated, “The quantity of gold, the grade, the exposure of the mineralization at surface, the robustness of the Mineral Resource Estimate, and the location in a supportive global gold mining epicenter, places the Fondaway Canyon project in a highly select and coveted group.”
In a recent video presentation, Sieb discussed just how exceptional the results have been at Fondaway Canyon, stating “We found incredible bodies of mineralization, excellent grade consistency and thicknesses…We basically doubled the historic resource with 18 drill holes”.
You can learn more about the Fondaway project by watching the full video presentation ( see link here ).
Among the many impressive drill results released over the years at the Fondaway Project, there is one that should get every gold investor’s attention. A truly world-class intercept: hole FCG21-16 returned the highest ‘Grade x Thickness’ results in the history of the project reporting 10.4 g/t Au over 25.0 m within a broader zone grading 6.3 g/t Au over 50.7m. Following their extremely successful exploration program, the Getchell team is now focused on executing a financing that will allow them to control 100% of the Fondaway Project. The Company is also awaiting permit approval to construct 12 additional drill pads to further increase the size of the resource and place the Company on a strong pathway to completing a Preliminary Economic Assessment (PEA) on the project.
An Understated Prospect
With its stock sitting around CDN$0.19, and a market cap of $20.2 million vs. IAU’s $816.3 million and NKG’s $141.6 million, GTCH has all the makings of an undervalued blue-chip prospect and volatility hedge – a growing gold exploration company that controls a significant asset with historical production in full-fledged exploration. Their strong management team and solid financial position cement it as a potential high-upside safe haven move for savvy investors.
About Getchell Gold Corporation
Getchell Gold Corp., a junior resource exploration company, engages in the identification, acquisition, exploration, and development of precious and base metal mineral resource properties in the United States. The company primarily explores for gold, silver, and copper deposits. It holds interests in the past producing Fondaway Canyon and Dixie Comstock projects located in Churchill County, Nevada. The Company also holds interests in the Cu-Au-Ag Star property situated in Pershing County, Nevada; and the Hot Springs Peak property located in the northern Hot Springs range in Humboldt County, Nevada. Getchell Gold Corp. is headquartered in Vancouver, Canada.
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