Gold Is Expected to Linger Near Record Highs as Interest Rates Hit Their Peak
After the Federal Reserve kept its options open after raising interest rates by another 25 basis points on Wednesday, the gold market is maintaining strong gains. As predicted, the Fed Funds rate was increased by the Federal Reserve to a range between 5.00% and 5.25%. However, the statement’s monetary policy statement doesn’t offer much forward direction. In this tightening cycle, the central bank has increased interest rates ten times. The central bank’s decision on monetary policy initially caused the gold market to surge to session highs of $2,059 per ounce. The bullish gold outlook is good news for gold miners such as Ximen Mining Corp. (TSXV:XIM) (OTCQB:XXMMF), New Gold Inc. (TSX:NGD)(NYSE:NGD), B2Gold Corp (TSX:BTO)(NYSE:BTG), Equinox Gold (NYSE:EQX) (OTC:EQXWF), and Eldorado Gold Corporation (TSX:ELD)(NYSE:EGO).
Ximen Mining Corp. (TSXV:XIM) (OTCQB:XXMMF) wants to be the next BC gold producer with its high-grade gold mine in southern British Columbia, after which it will be able to self-finance its exploration.
On May 9, 2023, Ximen Mining announced exploration plans for 2023 in southeastern British Columbia.
Ximen is focused on precious and critical metals and has six mining project regions, including Wild Horse, Quartz Mountain, Nelson, Greenwood, Brett, and Treasure Mountain. The Company’s field programs are managed from its command base in Greenwood, British Columbia.
Wild Horse includes 25 mineral occurrences and 156 claims covering 13,948 hectares. The Wild Horse River placer gold deposit’s source areas are northeast of Fort Steele Cranbrook, British Columbia. The two holes’ 86-meter mineralized interval averaged 0.36 grams per tonne gold. The findings show bulk-minable gold. Ximen plans to drill this year where gold was separated from overburden samples.
Quartz Mountain, 12.5 kilometers southwest of Kimberly, British Columbia, has 76 claims covering 3,829 hectares and 13 mineral discoveries. Last year, rock and soil geochemical surveys confirmed high-tenor gold mineralization at the Anderson pit (12.2 grams per tonne gold over 1.2 meters). 2023 rock and soil geochemical surveys at Running Wolf, Rome, and Valley are planned.
Ximen has 21,476 hectares of mineral claims in Nelson, including the Kenville gold mine, covering 57 mineral occurrences. Ximen is exploring nearby claims while developing the Kenville mine. The 2023 exploratory program will include metallurgical testing of Wilcox tailings samples at Ymir and field studies of other occurrences.
In Greenwood, Ximen has 57 mining claims covering 21,683 hectares and 56 mineral occurrences, including the Bud-Elk and Amelia assets, which are permitted for drilling. Bud-Elk seeks bulk-minable copper-gold skarn and porphyry. BC’s oldest lode gold mine, Amelia, is being considered for expansion.
Brett has 46 claims and 18 mineral findings on 20,273 hectares. Since 1983, this property has uncovered new gold zones. Ximen is building a 3D geological model and utilizing multivariate statistical analysis to link pathfinder elements to diverse alteration and mineralization trends. 2022 saw aerial magnetic and LIDAR surveys. 2023 surface drilling will test for bulk-minable and bonanza-grade epithermal-style gold mineralization.
New Destiny Mining Corp. has optioned Ximen‘s Treasure Mountain property (43 claims, 10,819 hectares). To identify historical workings and mineralized geological formations, an airborne LIDAR study was undertaken over the property in 2022. 2023 will see drilling and rock geochemistry for Railroad, Jim Kelly, and Rio Grande mineral discoveries.
Gold Miners Report Quarterly Results
In the first quarter of 2023, New Gold Inc. (TSX:NGD)(NYSE:NGD) reported gold equivalent production of 104,857 ounces (82,477 ounces of gold, 10.3 million pounds of copper, and 137,698 ounces of silver). Operating costs were $1,086 per gold equivalent ounce. All-in sustaining costs amounted to $1,486 per ounce of gold equivalent, including total cash costs of $1,134 per ounce of gold equivalent. Gold average realized price was $1,890 per ounce and copper average realized price of $4.10 per pound. New Gold had a net loss of $32 million, or $0.05 per share. The Company reported $18 million in adjusted net earnings, or $0.03 per share. During the quarter, New Gold sold about C$31.5 million of Artemis Gold Inc. shares.
As of March 31, 2023, the Company has $197 million in cash and cash equivalents.
On April 27, B2Gold Corp (TSX:BTO)(NYSE:BTG) announced fresh encouraging exploration drilling results from the Fekola Regional region in Mali, which is located about 25 kilometers (km) north and northeast of the Fekola Mine. The Fekola Complex contains the Anaconda Area (Bantako North and Menankoto permits), the Bakolobi permit, and the Dandoko permission, as well as the Medinandi permit, which houses the Fekola Mine and the Cardinal Zone. B2Gold is exploring the Fekola Complex for $35 million in 2023. This year’s 178,000 m drill program began in the Anaconda Area, which encompasses the Mamba, Adder, Anaconda, Cascabel, Boomslang, Taipan, and Cobra zones. The Anaconda Area has received 39,000 m of infill drilling from the 85,000 m performed in 2023 to update the March 2022 Mineral Resource estimate from Inferred to Indicated. This infill drilling program’s assays are being integrated into an updated Mineral Resource estimate due in the second quarter of 2023.
In the first quarter of 2023, Equinox Gold (NYSE:EQX) (OTC:EQXWF) produced 122,746 ounces of gold. 123,295 ounces of gold were sold at an average realized gold price of $1,895 per ounce. The AISC was $1,658 per oz, and total cash costs amounted to $1,376 per oz. Equinox earned $14.5 million from mine operations. Net income came in at $17.4 million, or $0.06 per basic share. The Company reported $8.2 million in adjusted net loss, or $0.03 per share. At March 31, 2023, cash and cash equivalents (unrestricted) totaled $284.9 million.
During the quarter, Equinox sold 12.0 million common shares of its interest in Solaris Resources Inc. for a total of $53.3 million (C$71.8 million). In March 2023, the Company signed a non-binding term sheet with Sandbox Royalties Corp. for a $75 million gold purchase and sale arrangement.
Eldorado Gold Corporation (TSX:ELD)(NYSE:EGO) reported in the first quarter gold production of 112,533 ounces, which was in line with estimates. Production jumped 21% from Q1 2022, with higher gold production at most sites, including a 25% rise at Kisladag. Gold sales in the first quarter totaled 109,817 ounces, with an average realized gold price per ounce sold of $1,932. As a result of increasing output at Kisladag, Lamaque, and Olympias, gold sales jumped 16% from Q1 2022. Cash operating costs per ounce sold in Q1 2023: $766. Costs fell from $835 per ounce sold in Q1 2022, owing mostly to increased gold production in the period.
All-in sustaining expenses (AISC) were $1,184 per ounce sold in Q1. Costs fell from $1,346 in Q1 2022, owing mostly to lower cash operating costs per ounce sold in Q1 2023, as well as lower royalty expenditure. The Company retains its 2023 annual expectation of 475,000 to 515,000 ounces of gold. Production in the first quarter was in line with its 2023 annual guidance, and higher output is projected in the second half of the year.
Ximen Mining just received its Environment Permit for its Kenville Gold Mine project in southeastern BC.
Featured Image MegaPixl @ Milslav78
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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Ximen Mining Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Ximen Mining Corp.’s industry; (b) market opportunity; (c) Ximen Mining Corp.’s business plans and strategies; (d) services that Ximen Mining Corp. intends to offer; (e) Ximen Mining Corp.’s milestone projections and targets; (f) Ximen Mining Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Ximen Mining Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Ximen Mining Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Ximen Mining Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Ximen Mining Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Ximen Mining Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Ximen Mining Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Ximen Mining Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Ximen Mining Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Ximen Mining Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Ximen Mining Corp.’s business operations (e) Ximen Mining Corp. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, Ximen Mining Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Ximen Mining Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Ximen Mining Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Ximen Mining Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Ximen Mining Corp. or such entities and are not necessarily indicative of future performance of Ximen Mining Corp. or such entities.
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