GREY:HGGOF - Post by User
Post by
goldenriviton Nov 03, 2022 10:14am
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Post# 35069457
Two factors crushing the JR gold market
Two factors crushing the JR gold market1) Powell says the FED has seen no evidence yet that a rapid rise in rate hikes is taming inflasion and he has much further to go rasing rates.That kills the gold price.2) the high grade bust at Pure Gold is a little like the Bre-X effect on grades/F studdies and not always reliable to make a deposit economic.The I guess there is a 3rd factor JRs are going to have to raise capital at muliti yr lows if these conditions linger longer into tax loss selling;
Globe says Pure Gold victim of Red Lake's tough geology
2022-11-01 08:16 ET - In the News
The Globe and Mail reports in its Tuesday edition that Pure Gold Mining shareholders face losing their entire investment with the junior miner filing for creditor protection after it failed to turn around its gold project in the notoriously hard-to-mine Red Lake district of Northern Ontario. The Globe's Niall McGee writes that last year, Vancouver-based Pure Gold ran into trouble when it encountered both grade and production shortfalls at its Madsen mine soon after putting it into production. While rich in grade, Red Lake is also renowned for gold that is not evenly distributed, but instead routinely occurs randomly and erratically, meaning miners need superb technical skills to get it right. Over the past 18 months, Pure Gold had tried to salvage its project by replacing its chief executive officer twice, redoing a technical study that aimed to find a path to profitable mining and keeping itself going by raising cash through dilutive equity issues. Last week, it put shareholders on notice by revealing it failed to raise nearly as much cash as it needed. Pure Gold holds $2-million in cash, compared with more than $200-million in liabilities. Facing a possible $100-million loss on his investment is Eric Sprott.