Goldman Sachs just said that gold has the highest potential for a near-term price increase, as noted by LiveMint.com. "Imminent Fed rate cuts are poised to bring Western capital back into the gold market, a component largely absent of the sharp gold rally observed in the last two years," the brokerage firm said in its note Go for Gold, they added. All of which is also helping to fuel upside in gold stocks including Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), Barrick Gold (NYSE: GOLD) (TSX: ABX), Royal Gold Inc. (NASDAQ: RGLD), Franco Nevada (NYSE: FNV) (TSX: FNV), and Newmont Corp. (NYSE: NEM) (TSX: NGT). The firm also raised its price target on gold prices to $2,700 by early 2025.
Other analysts, including those at Citi have a $3,000 price target on gold over the next 18 months, especially with Middle East tension and the Federal Reserve. Bank of America also said gold could also test $3,000 in the next 12 to 18 months.
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF)
Calibre Mining Corp. announced partial ore control reverse circulation infill drill results from the Marathon Pit, one of three open pits comprising the Valentine Gold Mine in Newfoundland & Labrador, Canada. The current 14-year life of mine plan, which includes the Leprechaun, Berry and Marathon open pits, hosts 2022 Mineral Reserves of 51.6 million tonnes grading 1.62 g/t gold containing 2.7 million ounces1. At the Marathon pit, the Company drilled 196 RC holes totaling 4,915 metres in three benches slated for mining in 2025. When comparing approximately the same tonnage to the 2022 Mineral Reserve model over three planned mining benches, the Ore Control Block model yields significantly more gold than the 2022 Mineral Reserve model due to 47% higher grades. These results coupled with the Leprechaun ore control results (see news release dated February 14, 2024) substantiate the 2022 Mineral Reserve and increase confidence.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “The results from the initial Marathon pit ore control drilling are very encouraging with 47% higher gold grades resulting in 44% additional ounces vs the 2022 Mineral Reserve in the same area. Given these results, and construction at 77%, our confidence continues to increase as we responsibly advance towards first gold at Valentine during Q2, 2025.
Diamond drilling is also underway as part of our expanded, 100,000 metre program (see news release dated July 15, 2024) with three rigs targeting new gold mineralization along the Valentine Lake Shear Zone. We look forward to the first results expected in the coming weeks as we remain excited about the vast potential to yield further significant gold discoveries within the Valentine land package.”