REYG:CC - The Top Reasons Gold Could Rally Back to $2000
Gold could test $2,000 again soon. In fact, at this rate – with inflation, fears of recession, and the potential for escalating conflict – gold could see $2,500 before long. According to Jeff Currie, Goldman Sachs global head of commodities research, as quoted by Bloomberg, “It’s a perfect storm for gold right now. There’s three legs to this story. One, you have strong investor demand for gold over concerns about inflation, recessions, and downturn in places like Europe.” In addition, “Gold is being reinforced by elevated inflation and heightened geopolitical risk,” said Kelvin Wong, an analyst at CMC Markets, as quoted by Mining.com. That’s all positive news for companies such as Reyna Gold Corp. (TSXV: REYG) (OTCQB: REYGF), Newmont Corporation (TSX: NGT) (NYSE: NEM), Barrick Gold Corp. (TSX: ABX) (NYSE: GOLD), SSR Mining Inc. (TSX: SSRM) (NASDAQ: SSRM), and Equinox Gold Corp. (TSX: EQX) (NYSE: EQX).
Look at Reyna Gold Corp. (TSXV: REYG) (OTCQB: REYGF), For Example
Reyna Gold Corp. just announced initial results from the first 8 holes totaling 710 meters(m) of its ongoing 10,000m drill program at its 24,215 hectares Flagship La Gloria Property in Sonora, Mexico. Reyna has achieved the two primary objectives from these holes of extending the breccia zone at Big Pit and establishing quartz veining of grade and size at Pique Viejo. All 8 holes hit gold mineralized structures in initial exploration drilling across the 160 hectares Main Zone target area.
Highlights:
- Drill hole LG-22-005, 7.85m of 3.95 grams per ton (g/t) Gold (Au) from surface, including 1.30 m of 19.65 g/t Au, extending the known breccia northeast
- Drill hole LG-22-001, 30.6m of 0.51 g/t Au from surface increasing depth of known breccia
- Drill holes LG-22-007 & LG-22-008 discovered Las Amarillas Vein including intersects of 0.6m of 8.61 g/t Au and 0.5m of 4.13 g/t Au and established minimum length for Amarillas Vein of 280m
- Drill Holes LG-22-008 established Las Amarillas Vein Zone of 81m discontinuous length with seven veins closely stacked
“These are great initial results we are really pleased to have hit a substantial vein at Pique Viejo with the first two drill holes there and to have hit high-grade gold from surface at Big Pit.” Michael Wood CEO of Reyna Gold commented. “The Las Amarillas Vein is a just one of many new targets the geological team have identified on our 24,215 hectares property. We are taking a district scale approach to exploring La Gloria and we are expecting to continue uncovering new areas of gold, silver and copper mineralization across the property.”
The Las Amarillas Vein is the fourth major vein Reyna has now discovered on a developing trend of veins running on the regional northwest trend in Main Zone and El Sombrero target area, a combined target area of around 2,000 hectares.
Las Amarillas Discovery – Pique Viejo
Drill Holes LG-22-007 and LG-22-008 both intersected the Las Amarillas Vein. LG-22-007 intersected the vein around 40m from surface, with an intersect of 8.61 g/t Gold, 11.2 g/t Silver (Ag), 0.11% Copper (Cu), 0.26% Lead (Pb), 0.13% Zinc (Zn) over 0.60m, and hit another 5 veins and veinlets zones with Au, Ag, Cu, Pb and Zn grades.
LG-22-008 intersected the Las Amarillas Vein 105m further north-northwest (NNW), and at around 60m depth from surface, with a main intersect of 4.13 g/t Au, 18.3 g/t Ag, 0.10% Cu, 0.49% Zn over 0.50m. LG-22-008 intercepted seven veins from 6m to 87m deep, identifying a vein zone with a discontinuous width of 81m (separation between veins no greater than 15m).
With the information obtained from holes LG-22-007 and LG-22-008 and work at surface, Reyna is able to corroborate the Las Amarillas Vein has a minimum length of 280m, and is a high-grade gold rich, polymetallic vein. Reyna first identified the Las Amarillas Vein via two high-grade gold surface samples of 93.9 g/t Au, 54 g/t Ag, with traces of Cu, Pb & Zn and a second high-grade surface sample northwest on the vein of 36.2 g/t Au, 12.3 g/t Ag with traces of Pb and Zn. (https://reynagold.com/read/PR-20220110). In addition, with holes, LG-22-007 and LG-22-008, an area of ??veins & veinlets was discovered, both at the hanging wall and foot-wall of the high-grade gold vein, with which the company can confirm a minimum width of 81m of veins and veinlets zone at Las Amarillas. The Reyna geological team believe that the system could well could become thicker and higher grade at depth, and follow-up drilling is being planned.
“There is great potential at Las Amarillas for a substantial vein system. We have hit a lot of veins and veinlets just in these initial two holes that are relatively shallow. What is even more exciting is that we are also finding similar veins at surface running on the northwest trend in San Pedro, Las Quintas, Las Quintas West and La Republicana target areas, which when added to Main Zone and El Sombrero targets, creates a substantial target area stretching around 16km in length.” said Ariel Navarro VP of Exploration Reyna Gold.
Breccia Zone Extensions – Big Pit
Holes LG-22-01, LG-22-03 and LG-22-05 were drilled looking to extend the depth and the strike southwest and northeast of the known gold hosting hydrothermal breccia at Big Pit. LG-22-05 was drilling 25m northeast of known mineralization towards El Sombrero target, following up on a surface sample of 46 g/t Au and returned 3.95 g/t Au over 7.95m from surface. LG-22-001 was drilling into the known hydrothermal breccia and returned 30.6m of 0.51 g/t Au. LG-22-03 extended the hydrothermal breccia southwest and returned 11m of 0.24 g/t Au.
Holes LG-22-002, LG-22-004, and LG-22-006, were designed to test extensions south and did intersect a tectonic-hydrothermal breccia of 21.90m (LG-22-002), 51.80 m (LG-22-004) and 18.40 m (LG-22-006) but this tectonic-hydrothermal breccia presented limited gold grades from the assay results. Reyna is assessing the possibility of re-assaying with a different assay method better suited to assaying coarse-grained gold. Coarse-grained gold is common in the Orogenic Gold Belt deposits of Northwestern Mexico, Southwestern Arizona, Southeast California and Nevada.
The breccias at La Gloria contain veinlets, patches, and veins of milky white quartz, with pyrite, galena, sphalerite, iron carbonates (mainly ankerite and siderite), the host rock presenting a hydrothermal alteration mainly of quartz-sericite, and to lesser extent carbonates, which is a similar assemblage to the veins and veinlets of the La Herradura and El Chanate mines. At La Herradura, stronger sericitic/quartz-sericite alteration and higher abundance of veins and veinlets, is associated with the higher gold grades, we are observing the same at La Gloria.
Drilling is ongoing and Reyna has now completed 17 holes totaling 2,236 meters of drilling. The first 36 drill holes have been outlined totaling around 3,700 of the initial 10,000m phase 1 drill program (https://reynagold.com/read/news-20220413). Reyna intends to keep releasing batches of drill results when received over the coming weeks and months as the company continues to advance the district-scale La Gloria property.
Other related developments from around the markets include:
Newmont Corporation announced that it will acquire the remaining 5% interest in Yanacocha from Sumitomo Corporation for $48 million. The transaction is expected to close in the second quarter, making Newmont the exclusive owner-operator of this world-class asset. This announcement follows an announcement in February 2022, in which Newmont acquired Buenaventura’s 43.65% interest in Minera Yanacocha. “This transaction gives Newmont full equity ownership of the Yanacocha district where we are positioning the Sulfides project for profitable production and value generation for decades to come. We have deep knowledge of the asset and the value it brings to Newmont stakeholders,” said Newmont President and CEO Tom Palmer. “We are committed to continuing to be a catalyst for sustainable development in Peru and look forward to continuing to work closely with communities in the Cajamarca region and the Peruvian government.”
Barrick Gold Corp. reported preliminary Q1 sales of 1.0 million ounces of gold and 113 million pounds of copper, as well as preliminary Q1 production of 1.0 million ounces of gold and 101 million pounds of copper. As previously guided, Barrick’s gold production in 2022 is expected to be the lowest in the first quarter increasing through the year, while copper production is expected to be higher in the second half of the year.
SSR Mining Inc. completed the previously announced plan of arrangement to acquire all of the issued and outstanding shares of Taiga Gold Corp. With this transaction, SSR Mining has consolidated a 100% interest in the Fisher property contiguous to its Seabee mine, eliminated a 2.5% net smelter return royalty on the Fisher property, and added five new properties covering over 29,100 hectares to complement the Company’s existing exploration platform in the underexplored and geologically prospective Province of Saskatchewan. SSR Mining’s Saskatchewan assets now cover an area of approximately 131,150 hectares.
Equinox Gold Corp. poured first gold from the resin and elution circuit at its new Santa Luz Mine in Brazil. Santa Luz construction has been completed on time and on budget, with no lost-time injuries. Commissioning commenced in February 2022 and the mine is expected to ramp up to commercial production over the next few months. When operating at capacity, Santa Luz is expected to produce approximately 100,000 ounces of gold annually. During 2022, with a partial year of production, Santa Luz is expected to produce 70,000 to 90,000 ounces of gold.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Reyna Gold Corp. by Reyna Gold Corp. We own ZERO shares of Reyna Gold Corp. Please click here for full disclaimer.
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