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Gold Prices Up as Dollar Slides

T.ELD

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, January 23, 2018 /PRNewswire/ --

Gold price traded higher on Monday due to a weaker dollar. Gold Spot rose 0.19 percent to $1,336.43 per ounce during the Monday trading session. The U.S. Gold future for February delivery rose 0.29 percent to $1,335.8 per ounce, while the U.S. Dollar Currency Index still traded near its three year low of 90.113. Gold price is sensitive to the U.S. dollar as a weaker dollar makes other currencies holders cheaper to buy dollar-denominated commodities. Investors are also closely watching European Central Bank meeting and Bank of Japan policy announcement this week. The change in monetary policy may affect the price of gold. Golden Dawn Minerals Inc. (OTC: GDMRF), Asanko Gold Inc (NYSE: AKG), Golden Star Resources (NYSE: GSS), Eldorado Gold Corporation (NYSE: EGO), Gold Standard Ventures Corp. (NYSE: GSV)

According to a report by Reuters, "Spot gold has risen about $100 from nearly five-month lows hit in mid-December, mainly due to weakness in the U.S. dollar. Analysts have warned that the dollar weakness could have been overdone, which could lead to short-term correction in gold. A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies."

Golden Dawn Minerals Inc. (OTC: GDMRF) also listed on the TSX Venture Exchange under the ticker 'GOM'. Today the company announced breaking news that, "an updated Mineral Resource Estimate has been completed for the J&L Project, with 1.35 million gold equivalent ounces in the Measured and Indicated categories and 1.08 million gold equivalent ounces in the Inferred category (details in table below). J&L is therefore one of the largest undeveloped gold Mineral Resources in western Canada.

J&L is an advanced stage project located 35 km north of Revelstoke, BC. The project assets include a rail siding and load-out facility for the Canadian Pacific Railway in Revelstoke, and a fully functional 40-man camp as well as a large shop and office facility located at the property, with two mine portals that access 3.1 km of underground mine workings, and a fleet of formerly utilized underground mining equipment…

1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.  The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

2) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

3) The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

4) The following parameters were used to derive the NSR block model cut-off values used to define the Mineral Resource:

  - Dec 31, 2017 US$ two year trailing avg. metal prices: Pb $0.95/lb, Zn $1.13/lb, Au $1,253/oz, Ag $17.08/oz
  - Exchange rate of US$0.76 = CDN $1.00
  - Process recoveries of Pb 74%, Zn 75%, Au 91%, Ag 80%
  - Smelter payables of Pb 95%, Zn 85%, Au 96%, Ag 91%
  - Refining charges of Au US$10/oz, Ag US$0.50/oz
  - Concentrate freight charges of C$65/t and Smelter treatment charge of US185/t
  - Mass pull of 5% and 8% concentrate moisture content.

5) The NSR cut-off of CDN$110 per tonne was derived from $75/t mining, $25/t processing and $10/t G&A.

6) AuEq= Au g/t + (Ag g/t x 0.011) + (Pb % x 0.422) + (Zn % x 0.455)

The updated Mineral Resource Estimate includes the Main, Yellowjacket, Hanging Wall (HW) and Footwall (FW) Zones. The most significant are the Main, Footwall and Yellowjacket Zones. The Main Zone extends over 3 km on surface and has been drill-defined over 1.5 km along strike and 850 m down dip and remains open for expansion. In general, the zones consist of gold-silver-lead-zinc-bearing sulfides.

Golden Dawn will also proceed with a Preliminary Economic Assessment (PEA) to fulfil the first phase of the terms of its option agreement. It is expected that the PEA will incorporate results of advanced metallurgical studies and will investigate opportunities for pre-concentration and processing on and off-site. The PEA is expected to be completed within 5 to 8 months, with costs estimated at $250,000, including project expenditures. The Company has no further significant obligations under the terms of the option agreement until a decision is made to proceed with a Pre-Feasibility Study. Golden Dawn intends to manage the J&L Project on a stand-alone basis and finance it on the foundation of an economically robust Pre-Feasibility Study."

Asanko Gold Inc (NYSE: AKG) announced recently production results for the fourth quarter ("Q4") and full year ("FY") of 2017 from the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The company reported US$62.6 million in gold revenue at an average realized price of US$1,264 per ounce for Q4. Commenting on the quarter Peter Breese, President and CEO, said "The Asanko Gold Mine delivered another solid quarterly performance, producing 51,550 ounces and achieving 2017 revised guidance with full year production of 205,047 ounces."

Golden Star Resources (NYSE: GSS) is a gold mining company that owns and operates the Wassa and Prestea mines in Ghana, West Africa.  On January 11th, Golden Star announced its production results for the fourth quarter and full year of 2017 and its guidance for FY 2018.  Golden Star produced 267,565 ounces of gold in FY 2017, achieving the middle of the FY 2017 consolidated production guidance range of 255,000-280,000 ounces.  Consolidated gold production in the fourth quarter of 2017 increased 34% to 71,769 ounces, compared to the same period in 2016.  Sam Coetzer, President and Chief Executive Officer of Golden Star, commented: "I'm particularly pleased to see the strong results from Wassa Underground in the fourth quarter of 2017, including a 55% increase in grade compared to the third quarter, and I look forward to stronger production in 2018 as we increase the mining rate further."

Eldorado  Gold Corporation (NYSE: EGO) is a gold producer with mining, development and exploration operations in Turkey, Greece, Romania, Serbia, Canada and Brazil.  On January 16th, the company announced 2017 operating results and preliminary cash costs, and provides partial production and cash cost guidance for 2018.  George Burns, President and Chief Executive Officer said, "I am very proud of how our team handled the opportunities and challenges of 2017. We completed the Integra acquisition, succeeded in declaring commercial production at Olympias Phase II at year-end and commenced the immense amount of technical work at our key Kisladag, Skouries and Lamaque assets." "Our overarching goal for 2018 and beyond is to move Eldorado back into a growth phase and create value for all our stakeholders."

Gold Standard Ventures Corp. (NYSE: GSV) is a gold exploration company focused on district scale discoveries on its Railroad-Pinion Gold Project, located within the prolific Carlin Trend.  Earlier in October 2017, the company announced highly encouraging metallurgical results from continuing work designed to determine the processing characteristics of the Dark Star oxide gold deposit, on its 100%-owned/controlled Railroad Project in Nevada's Carlin Trend. Column recoveries from -12.5 mm size material averaged 86.5% for Dark Star oxide and 70.0% for partially oxidized transitional material. These results confirm that Dark Star material is likely to support heap leach processing.  Jonathan Awde, CEO and Director of Gold Standard commented: "Step by step we are increasing the value of our Railroad Project by reducing risks and establishing the viability of its gold deposits.  We now know how the gold can be recovered at Dark Star and that crushing requirements and reagent consumption are favorable. The next step is to complete a PEA defining economic parameters."

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