In an insightful discussion on the outlook for gold and mergers and acquisitions (M&A) in the mining sector, Robert Eckford, CEO of Rua Gold (CSE: RUA | OTC: NZAUF), sheds light on the dynamics influencing the precious metals market.
Gold Market Dynamics and Economic Factors
Eckford attributes recent pullback in gold prices to profit-taking by investors following positive economic news. Despite this dip, Eckford remains optimistic about gold's trajectory, forecasting a continued upward trend over the next 12-18 months as the current environment of fiscal uncertainty bolsters gold's appeal as a reliable value storage.
Rua Gold’s Strategic Focus in New Zealand
Historically underexplored due to stringent environmental regulations and political challenges, New Zealand presents a unique opportunity for RUA. The recent political shift and new government has introduced pro-mining policies aimed at revitalizing the sector. These include a fast-track bill to expedite mining project permits, signaling a supportive political landscape for exploration and development. RUA’s strategy is to leverage this and the largely untapped potential of New Zealand's gold regions.
The Glamorgan Project
RUA recently initiated exploration, including magnetic geophysical survey activities, at its 4,600-hectare Glamorgan Project in the Hauraki Goldfields on New Zealand's North Island.
Previous exploration within the permit area identified silicification, veining, and alteration with gold concentrations greater than 50 ppb in soils over 3.8km. Additionally, rock samples returned up to 95 g/t gold.
Historically, the Hauraki region has produced over 15 million ounces of gold and 60 million ounces of silver. The Glamorgan Project is especially well-located within the region, only 2.8km from OceanaGold’s Wharekirauponga Project (WKP), which has an indicated resource of 1.01 million ounces at 15.9 g/t gold. The WKP was recently included in New Zealand’s Fast Track Approvals Bill, providing a clear pathway for accelerated project development for RUA.
M&As, Expansion Plans and Future Outlook
Addressing the potential for expansion and M&A, Eckford expresses openness to opportunities within New Zealand, emphasizing a strategic focus on consolidating assets in the region. RUA’s long-term vision includes advancing projects to production and potentially integrating high-grade assets from neighboring entities to enhance overall value.
Currently, RUA is applying for minimum impact access to conduct soil sampling, resistivity geophysical surveys, and geological mapping at Glamorgan. These activities are expected to begin before July, setting the stage for designing a drilling program and applying for full access to start drilling before 2025.
Full interview here:
Posted on behalf of RUA GOLD Corp.