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The Gold Sector Rebounds After Recent Bottom

NEM, T.ABX, T.IMG

PR Newswire

NEW YORK, January 3, 2017 /PRNewswire/ --

The start of 2016 has been great for safe haven investments such as gold having an overall rise of 8.5 percent snapping its three-year losing streak. Market conditions were changed near the end of the year causing gold prices to drop. Analysts at UBS Wealth Management believe a narrowing divergence between growth in the United States and other nations will weaken the dollar next year, boosting gold. They expect prices to rise as high as $1,350 a troy ounce next year. Golden Dawn Minerals Inc. (TSX-V: GOM.V) (OTC: GDMRF) (, IAMGOLD Corporation (NYSE: IAG), Goldcorp Inc. (NYSE: GG), Newmont Mining Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: ABX)

Moving into the New Year, gold is anticipated to move much higher, and there's going to be a "surprising gold price increase" that might come within striking distance of its historic highs later in the year, based on monetary policies, according to senior economic advisor at Rosland Capital LLC, Jeffrey Nichols. Demand from China and India will be a driving force to the increase of gold prices. "Both countries have significant cultural and social affinity to holding gold as form of investment and savings by many people in both countries but for different reasons," he added. "We think that's going to continue."

Golden Dawn Minerals Inc. (TSX-V: GOM.V) (OTC: GDMRF) announces today that, "the execution of the Metal Purchase Agreement with RIVI CAPITAL LLC (RIVI) as published in a News Release dated September 28, 2016. The Company will receive US $ 4,000,000 or approximately CDN $ 5,200,000. US $ 3,000,000 has been paid into escrow with release to the Company upon transfer of security, consisting of the Greenwood Mill, Lexington Mine and Golden Crown Mine. The remaining CDN $ 1,300,000 will be paid no later than Feb. 21st. 2017. The Company is obligated to deliver 13.5% of the gold production limited to the Lexington and Golden Crown Mines for US $ 400 per ounce to a total of 15,000 oz. Post-delivery of 15,000 oz at US $ 400 per oz, the percentage of production from the Lexington and Golden Crown Mines to be delivered to RIVI will be reduced to 6.75%, and the price per oz. of gold paid by RIVI to the company will increase to US $ 650 per oz. The funds advanced by RIVI will be utilized to repay a bridge loan, working capital and complete the acquisition of New Nadina's subsidiary Kettle River Resources Ltd.

The Company is evaluating an extensive library assembled by Kettle River dating back to the beginning of the Greenwood Mining District in the late 19th Century. This property consists of approximately 12,000 ha. of mostly contiguous land covering 70 showings including 30 historic mines. The Company is compiling a National Instrument 43-101 report on this package, based on a review of the invaluable data gleaned from the Kettle River library. This N.I. 43-101 report is expected to be completed by the 3rd. week of Jan. 2017.

The Company will resume underground diamond drilling by Jan. 19th, 2017 at the 100% owned May-Mac Mine. Concurrently, a Notice of Work (Permit Application) has been submitted Nov. 19th, 2016, to extend the 7 Level drift to the northwest beyond its termination to access intercepts obtained from the recent surface and underground drilling on the Skomac multiple vein system. Upon permit receipt, a bulk sample of up to 10,000 tonnes will be extracted from the adit and mineralized zones above the #7 Adit. This bulk sample will be processed in the Company's Greenwood Mill, 15 km southeast of the May Mac Mine.

In addition, a mining plan is being submitted upon completion to reopen the Lexington Mine. Following receipt of a Dewatering Permit and the dewatering process, the Company will commence production from the Lexington Mine based on the current Measured and Indicated Resource of 372,000 tonnes grading 6.47 g/t gold and 1.05 % Cu (8.05 g/t Au equivalent). A Notice of Work Application has been submitted for a substantial surface diamond drilling program on the Golden Crown Mine property to upgrade the current Indicated Resource of 163,000 tonnes grading 11.09 g/t gold, 0.56% Cu (11.93 g/t Au equivalent), and Inferred Resource of 42,000 tonnes grading 9.04 g/t Au and 0.43% Cu (9.68 g/t Au equivalent). 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.

Toronto-based international gold producer, IAMGOLD Corporation (NYSE: IAG) is engaged in the exploration, development, and production of mineral resource properties throughout the world with four operating gold mines. Recently, IAMGOLD signed an agreement to fully acquire 100% of junior mineral exploration company, Merrex Gold. "This agreement consolidates the ownership of a key asset in IAMGOLD's exploration pipeline," said Steve Letwin, IAMGOLD's President & CEO. "The IAMGOLD exploration team, led by Craig MacDougall, working in concert with Merrex on the Diakha-Siribaya project in Mali has done an outstanding job over recent years to define indicated resources of 2.1 million tonnes grading 1.90 g/t Au for 129,000 ounces and inferred resources of 19.8 million tonnes grading 1.71 g/t Au for 1.1 million ounces.  Mali is a prolific mining friendly jurisdiction and is where IAMGOLD began nearly 25 years ago at the Sadiola project which, along with its neighbouring Yatela mine, has already produced over 7.5 million ounces of gold."

Goldcorp Inc. (NYSE: GG) is a gold producer focused on responsible mining practices with safe, low-cost production throughout the Americas.  With a portfolio of long-lived, high-quality assets positions the Company to deliver long-term value. Goldcorp engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company mainly explores for gold, silver, lead, zinc, and copper. Its principal mining properties consists of the Red Lake, Porcupine, Musselwhite, and Éléonore mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin mine in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic.

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. "Long Canyon marks the fourth profitable new operation we've added to the portfolio in the last three years, including Merian in Suriname last month, Cripple Creek & Victor in Colorado last year, and Akyem in Ghana in late 2013," said Gary Goldberg, President and Chief Executive Officer. "We have completed these organic growth projects on or ahead of schedule and at or below budget; delivered a profitable expansion at Cripple Creek & Victor earlier this year; and are on track to complete value-adding expansions at Tanami by 2017 and at Carlin by 2018. These portfolio improvements set the stage for Newmont to continue generating superior free cash flow, which gives us the means to continue investing in profitable growth, retiring debt and returning cash to shareholders."

Barrick Gold Corporation (NYSE: ABX) engages in the exploration and development of mineral properties in the United States, Canada, Australia, Argentina, Chile, Peru, the Dominican Republic, Papua New Guinea, Tanzania, Zambia, and Saudi Arabia. It primarily explores for gold, copper, and nickel deposits. The company's principal properties include Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, and Veladero. The company 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.

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