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FinancialBuzz.com: Looming Gold Market Rebound in the Near Future

T.K, T.IMG, NEM, T.ABX

PR Newswire

NEW YORK, December 13, 2016 /PRNewswire/ --

http://www.Financialbuzz.com - The first half of 2016 saw the gold market rebound from uncertainties in the economy. Since then, the market conditions have changed, and gold prices started to slide. The U.S economy is doing well, stock indexes rallying to new all-time highs, thus reducing demand for the 'safe heaven' metal. Yet, new rules for gold investing were established last week, and they have the ability to open the market to several Muslim countries. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the World Gold Council have announced the new initiative, which is called the Shariah Standard on Gold, and is designed to significantly soften rules and regulations for citizens of Muslim countries to invest in gold.  Golden Dawn Minerals Inc. (TSX-V: GOM) (OTC: GDMRF), Kinross Gold Corporation (NYSE: KGC), Newmont Mining Corporation (NYSE: NEM), IAMGOLD Corporation (NYSE: IAG), Barrick Gold Corporation (NYSE: ABX

According to GoldCore's research executive Jan Skoyles and Editor Mark O'Byrne, the new gold investment rules are expected to change the game for 1.6 billion Muslims in the world, or 25% of the population, as they will now them to have a "far greater access to the gold market than they had since the birth of modern finance, which has been primarily structured towards Western ideals." Analysts like Chintan Karnani from Insignia Consultants are expecting the rules to start make effect on the gold market, specifically on short-term and medium-term gold prices, within six months.  

Golden Dawn Minerals Inc. (TSX-V: GOM) (OTC: GDMRF) is a Canadian based resource exploration company, which focuses on acquisition, exploration and development of mineral properties. Golden Dawn holds interests in resource properties in British Columbia.

Golden Dawn Minerals Inc. reported, "the first round of analytical results from the Amigo, Glory Hole, May Mac and Sylvester K mines, part of the Greenwood Precious Metal Project, comprising a mostly contiguous land package of 16,000 ha., near the City of Greenwood in the historic Greenwood Mining District, of South-Central B.C., 500 km east of Vancouver on BC Hwy. #3.

May Mac Mine - Surface Drilling

The surface diamond drilling on the May-Mac Skomac vein system commenced in late November after drilling finished on the Amigo and Glory Hole mines, which lie 1000 meters south of the May Mac mine. Three drill holes (550 metres) were completed northeast of the historic mine workings on the Skomac vein system. These holes were drilled at different angles from the same collar location to test the upper Skomac vein. Hole BF16-26 intersected a quartz vein containing a well mineralized section of coarse-grained massive sulphides including pyrite, galena, sphalerite and chalcopyrite.  The vein was intersected between 177.47 and 183.54 metres (6.07 metres core length).  This intercept is located 13 metres below the elevation of the # 7 adit, and 100 meters northeast of the end of that level. The significance of this is (A) the mineralization that was historically mined from levels 4, 5 and 6 continues vertically down another 75 meters to below the elevation of the #7 adit,  and is open to depth (hole BF15-06 also encountered mineralization at depth 118 meters below # 7 Level on a new zone, now named "Rose Vein", see news release dated Dec. 16, 2015. (B) the mineralization continues along strike to the northeast of the historic mine and is open in that direction.  The intercept in Hole 26 provides a target for extending 7 level 100 meters northeast. Further surface drill testing will continue to determine the extent of the north-easterly trend of the Skomac Vein system in early 2017.  

IN SUMMARY:

In late Oct. 2016, the company executed a letter of intent to Purchase the 14,000 ha substantial land package from Kettle River Resources, a subsidiary of New Nadina (see N.R. of Oct. 31, 2016).  This contiguous land package hosts 30 historic mines and significant showings, including the famous Phoenix mine, ranging from 2-20 km from the Company's 100 % owned 200-400 t/d processing facility. This suite of properties was consolidated in the early 1980's by Kettle River Resources from numerous Crown Grants and mineral titles held by many individuals since the pioneering days of the Greenwood Mining District. The combination of acquiring the KRR assets, the Greenwood Mill, the Lexington and Golden Crown mines, and the Company's May -Mac mine, present the company with a rare opportunity to revive the historic Greenwood Mining District.

As part of the due diligence on the KRR land package, 7 channel samples were taken from the Sylvester "K" mine, located 3 km north of the company's 200-400 t/d processing facility.  Of these, the latter 6 samples were collected in a continuous line across the width of the massive sulphide zone and footwall quartz-pyrite veinlet stockwork (network).  The average grade of this line of samples is 9.92 g/t gold over a true width of 15.2 metres

Technical disclosure in this news release has been approved by Dr. Mathew Ball, P.Geo., a Qualified Person as defined by National Instrument 43-101, and Chief Operating Officer of the Company."

For more details, please see the NI 43-101 Technical Reports on the Company's website at http://www.goldendawnminerals.com .

On October 17, 2016, Golden Dawn continued to expand its ownership of gold properties in the Greenwood area by signing a Letter of Intent (LOI) to acquire Kettle River Resources Ltd, which holds 100% interest in 54 mineral claims and 75 crown grants encompassing approximately 10,400 hectares. According to the company the completion of the Kettle River Resource purchase will make Golden Dawn one of the largest landowners in the Greenwood mining camp, second only to Kinross Gold Corporation (NYSE: KGC) (TSE: K).

Kinross Gold Corporation is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. Its current segments include Fort Knox, Round Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. The Fort Knox mine is located near Fairbanks, Alaska. The Round Mountain open pit mine is located in Nye County, Nevada. The Maricunga open pit mine is located around 120 KM northeast of Copiapo, Chile. The Paracatu open pit mine is located in the State of Minas Gerais, Brazil. The Tasiast mine is an open pit operation located in north-western Mauritania and is over 300 kilometers north of the capital Nouakchott. The Chirano is located in southwestern Ghana, over 100 kilometers southwest of Kumasi, Ghana. The company also produces and sells silver.

Newmont Mining Corporation (NYSE: NEM) has reached commercial production at Long Canyon, a higher grade oxide mine in an emerging gold district located less than 100 miles from its current Nevada operations. The Company declared commercial production based on sustaining plant obtainability of more than 85 percent, and attaining a minimum of 70 percent of modeled leach recovery. The project was finished two months ahead of schedule for an investment of just under $225 million, which is about $50 million or 18 percent below its budget. The first phase of development is likely to produce between 100,000 and 150,000 ounces of gold per year over an eight year mine life at estimated costs applicable to sales of between $400 and $500 per ounce, and all-in sustaining cost of between $500 and $600 per ounce.

IAMGOLD Corporation (NYSE: IAG) (TSE: IMG) currently has four operating gold mines along with their joint ventures in Mali. Together, the companies anticipate to produce between 770,000 and 800,000 ounces of gold of this year. The company's approach to doing business, whether in its Canada or in a foreign country, is to establish productive relationships with all levels of government. Solid partnerships are conducive to finding the common ground necessary to arrive at mutually beneficial agreements. IAMGOLD impacts positively on its risk profile and is reflected in the outcomes of its negotiations and long history of operating in these countries.

Barrick Gold Corporation (NYSE: ABX) (TSE: ABX) produced 6.12 million ounces of gold in 2015 from a portfolio that includes some of the leading gold assets. The company's five core mines in the Americas are expected to account for about 70 percent of its total production of this year, at a cost of sales applicable to gold of $790-840 per ounce, and all-in sustaining costs of $620-$650 per ounce. Barrick Gold has an average reserve grade of 1.88 grams per tonne, which is more than double that of the company's peer group average. Copper production in 2015 was 511 million pounds.

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