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Gold Prices Surge After Recent Political Turmoil

V.KEN.H, GFI, T.NG

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, May 15, 2017 /PRNewswire/ --

Gold price rallied for a second straight session last Friday after the price hit an eight-week low of $1,213.81 an ounce earlier in the week. The U.S. president's unexpected decision to fire the now former FBI director continued to weigh on the market. Investors are concerned that the latest events could delay the presidential administration's agenda to implement a tax reform. Spot gold, rose 0.24 percent to $1,228.01 an ounce on Friday, after a 0.5 percent advance on Thursday. Gold price has gained a total of 7 percent year-to-date. Kenadyr Mining Holdings Corp. (OTC: KNDYF) (TSX-V: KEN), Golden Star Resources Ltd. (NYSE: GSS), Gold Fields Limited (NYSE: GFI), Asanko Gold Inc. (NYSE: AKG), NovaGold Resources Inc. (NYSE: NG)

Investors are also closely watching indicators that affect the Federal Reserve's decision on the interest rate next month. Gold is highly sensitive to the changes in U.S. interest rates as they increase the opportunity cost of holding non-yielding bullion. The consumer price index rose by 0.2 percent in April and increased by 2.2 percent over the past 12 months. This pace is slower than economists' expectation of a 2.3 percent advance. The Federal Reserve has an inflation target of approximately 2 percent, with an increase of the borrowing cost by 25 base points in March. Investors are expecting two more rate hikes this year.

Kenadyr Mining Holdings Corp. (OTC: KNDYF) (TSX-V: KEN) announced today that, "Drilling has commenced on the South Zone of Kenadyr's 100% owned Borubai License, Kyrgyz Republic... The South Zone is open in three directions and to depth and drilling in this zone has the potential to see increased grade of the mineralization (from historic numbers) as a result of increased core recovery (core recovery during Soviet drilling averaged only 60% recovery) and the use of Fire Assay versus ICP analysis techniques (which were predominately used during Soviet assaying).

Kenadyr is in a strong position to embark on this upcoming program, having a strong balance sheet, no debt nor significant payments owing, a strong institutional shareholder base and a management team with extensive in-country operational experience, and merger and acquisition expertise."

Dr. Alexander Becker, Kenadyr Chief Executive Officer, states, "Drilling has now commenced, ahead of schedule and this is a testament to the team's strong efforts in the field along with the efficiency of QED, the drill contractor. The South Zone is a high priority area for Kenadyr with excellent underlying geology. It is open and strongly mineralized at the extent of drilling, according to historical results, and we look forward to retesting this area, to confirm the high grade results reported from previous drilling."

Kenadyr's Borubai project comprises a 100-percent-owned exploration licence covering a contiguous 164-square-kilometre land package that encircles the Zijin/Kyrgyz/Altyn newly constructed and operational TBL mine, in northern Kyrgyz Republic.

Golden Star Resources Ltd. (NYSE: GSS) on April 3rd announced a project update for its Prestea Underground Gold Mine, Mampon deposit and Wassa Underground Gold Mine in Ghana. The Company also announces that it is hosting a site visit for analysts, investors and journalists at its two mines. "Golden Star continues to reach its key milestones, on time and on budget. Exciting progress is being made at Prestea Underground and I look forward to blasting the first stoping ore later this quarter. At Mampon, commencing mining within the expected time frame is testament to the hard work of our team in Ghana and their strong relationship with local communities. Finally, operations at Wassa Underground are progressing as planned and it is pleasing that we have now begun accessing the B Shoot, which is the main target of the Wassa Underground development. Our transformation into a low cost, high grade, mid-tier producer remains well on track," commented Sam Coetzer, President and Chief Executive Officer of Golden Star.

Gold Fields Limited (NYSE: GFI) on March 2nd revealed that it was the nation's largest corporate taxpayer in 2016, according to the Ghana Revenue Authority (GRA). The GRA recognised Gold Fields at an awards function held a couple of weeks ago. Gold Fields contributed GHS355m (US$75m) directly through royalty and corporate income tax payments, and an additional GHS146m (US$31m) through employees' Pay As You Earn (PAYE), as well as tax payments on behalf of its local contractors and suppliers. During 2015, GFGL was the country's second largest taxpayer. GRA commended the company for its performance. "Gold Fields is not only one of the biggest contributors to our tax revenue, but one of the most compliant companies with payments and filing of taxes. You have consistently been part of the top taxpayers in Ghana and your contribution to national development in general is significant," the GRA said.

Asanko Gold Inc. (NYSE: AKG) provided an update on April 27th, in which the Mineral Resource and Reserve Estimate for the Akwasiso deposit, part of the Asanko Gold Mine located in Ghana, West Africa, following the successful completion of the infill drilling campaign to upgrade previously reported Inferred Resources into the Indicated category. Compared to the December 31, 2016 Mineral Resource Estimate ("MRE"), the updated Akwasiso MRE has increased Indicated Resources by 79% to 6.72 million tonnes at 1.49 g/t for 322,500 contained gold ounces (refer to Table 1). The Resource grades have improved significantly by 24% from 1.20 g/t to 1.49 g/t. The updated MRE has been signed off by CSA Global (UK) Ltd.

NovaGold Resources Inc. (NYSE: NG) earlier in February released its first quarter financial results and updates for its flagship 50%-owned Donlin Gold project in Alaska and its 50%-owned Galore Creek copper-gold-silver project in British Columbia. NOVAGOLD will focus on five primary goals in 2017: advance the Donlin Gold project toward a construction/production decision; continue to enhance the value of the Galore Creek project; maintain a healthy balance sheet; maintain an effective corporate social responsibility program; and evaluate opportunities to monetize the value of Galore Creek.

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