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Analysts Predict a Big Year for Gold as Miners Kick 2024 Off with Exciting High-Grade Results

BayStreet.ca - Wed Feb 7, 8:16AM CST

USA News Group – There’s a consensus growing around the rising price of gold in 2024, now with analysts at UBS forecasting the precious metal to hit $2,200 before the end of the year. With new gold highs predicted by several firms including JP Morgan and RBC, the mining industry is ambitiously looking ahead to a more active 2024 that’s set to rebound from a downtick in exploration spending in 2023. Already there are several players putting their pieces in place to make 2024 a golden year to remember, including Element79 Gold Corp. (CSE:ELEM) (OTC:ELMGF), Compañia de Minas Buenaventura S.A.A. (Buenaventura) (NYSE:BVN), Calibre Mining Corp. (TSX:CXB) (OTC:CXBMF), i-80 Gold Corp. (NYSE-American:IAUX) (TSX:IAU), and Ivanhoe Electric Inc. (NYSE-American:IE) (TSX:IE).

On its high-grade gold flagship Lucero Project located in Peru, Element79 Gold Corp. (CSE:ELEM) (OTC:ELMGF) is coming off signing perhaps its most important agreement to-date, through a Letter of Intent (LOI) with neighbouring gold giant Buenaventura (NYSE:BVN). The deal LOI has set a clear path for Element79 to sell ore from Lucero to Buenaventura, and puts the junior miner in a solid position to generate cash-flow before the year ends.

The arrangement is set to kick into gear through a Pilot Bulk Sampling Program with the target of extracting a minimum quantity of ore over a 12-month period to be shipped to BVN’s Orcopampa mill for processing, with an expected average delivery of 200 tons of ore daily. Lucero is already permitted for 350 tonnes per day in ore processing, and Element79 had stated openly prior its intention to restart production in the near term.

"This LOI sets the stage for a transformative partnership and represents another pivotal moment – Proof of Concept that this past-producing mine has valuable economic potential today - by aligning with a potential regional offtake partner - notably the same party that used to own this mine the last time it was in commercial production, and spurring the path to restarting commercial production in the near term” said James C. Tworek, CEO of Element 79 Gold. “Our team has a series of project milestones to achieve along the way to realizing this potential offtake, including completing a Definitive Agreement with BVN. We are confident our joint efforts with BVN will enrich our understanding of Lucero's property and help unlock more of the inherent value of ELEM's crown jewel."

Almost immediately after announcing the LOI, Element79 got to work on bringing forth impressive results from chip sample assays from their 2023 work campaign in the Lucero Project’s Pillune zone.

“This batch of 24 assay results from the 2023 underground sampling program conducted by contractor SLM Resource Group completed on the Pillune Area of the Lucero project revealed impressively high-grade gold and silver mineralization, up to 10.5 ounces per ton gold and >29 ounces per ton silver, in addition to some great base metals results,” said Tworek.
“This is encouraging to us as it further validates the potential for a significant high-grade future operation.”

Should the Lucero Project’s further results in 2024 continue with this momentum, it could bode well for both Element79 and for their ore purchasers Buenaventura.

Another miner with Latin American assets receiving significant results is Calibre Mining Corp. (TSX:CXB) (OTC:CXBMF), which delivered an update at the end of January regarding its Limon Mine Complex, including 111.92 g/t gold over 4.1 metres and 33.6 g/t gold over 2.6 metres. The exciting results came from an exploration and delineation drilling program at the Panteon VTEM Gold Corridor on the property, where previous results led to the discovery of the Panteon North deposit, which yielded over 240,000 ounces of Proven and Probable Mineral Reserves (944,000 tonnes at 9.4 g/t Au).

“I am very pleased to see continued drilling success along the multi-kilometre VTEM Gold Corridor at Limon,” said Darren Hall, President and CEO of Calibre. “The latest results are impressive and show a combination of new high grades and broad widths which should prove beneficial for future production, providing further opportunity to leverage the surplus processing capacity at our Libertad mill. The Limon District continues to demonstrate its significant value, reinforcing our confidence that resource conversion and high-grade additions will be possible with these results.”

For Nevada-focused i-80 Gold Corp. (NYSE-American:IAUX) (TSX:IAU), high-grade results from the FAD deposit on its 100%-owned Ruby Hill Property drew positive attention to the company and project. Among the results of the 2023 drill program included 9 g/t Au, 92.4 g/t Ag, and 12.2% Zn over 14.6 m; and 3.9 g/t Au, 185.6 g/t Ag, 11.1% Zn over 25.4m.

"The drill program at FAD compliments successful programs on the Blackjack and Hilltop deposits and our expanded focus on exploring for polymetallic mineralization in the Eureka District to better assess the economic opportunity", said Tyler Hill, Chief Geologist of i-80 Gold. "FAD is unusual in comparison to global CRD deposits given its elevated gold grades."

To the North in Montana, Ivanhoe Electric Inc. (NYSE-American:IE) (TSX:IE) recently shared drill results from their ongoing exploration program at the Hog Heaven Project, located roughly 50 miles from Kalispell, Montana. Included in the results were an intersection of 348m containing 0.43 g/t Au, 40.48 g/t Ag, and also a high-grade vein within that intersection with 2,180 g/t Ag, 5.16 g/t Au, and 6.14% Zinc.

"We are encouraged by the recent drill results at our Hog Heaven Project in Montana. Our team continues to find widespread mineralization, which appears to remain open in several directions,” said Taylor Melvin, President and CEO of Ivanhoe Electric. “We believe the data obtained from recent drilling provides evidence of a nearby porphyry source. Additionally, we recently completed a TyphoonTM geophysical survey over parts of the district. The results of the survey, which we will receive in late February, will assist our team in targeting future exploration efforts."

Article Source: https://usanewsgroup.com/2023/02/13/how-to-build-the-perfect-gold-story-in-2023-a-textbook-example/

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