Since November 2022, %Gold has experienced a remarkable surge in price, flirting with its record high of $2,089.20 set in August 2021, according to data from stockcharts.com. As the world's most enduring and sought-after precious metal, gold continues to captivate investors and analysts alike.
Stockcharts.com data shows that the continuous contract for gold on the Chicago Mercantile Exchange hit $2,085.40 on May 4, edging past the previous high of $2,078.80 touched on March 8, 2022 in its bid to cross $2,090 for the first time ever. Gold bugs will be glad to know that the factors driving the recent run-up in price appear to be durable, keeping gold on an upward trajectory.
These include, but are not limited to, a weakening U.S. dollar (gold is historically valued inversely to the USD), geopolitical uncertainty, inflationary pressures (expansive fiscal policies), volatility in financial markets (gold is a safe haven during economic turbulence), and production constraints. Gold is a finite resource and faces challenges related to supply, as discovering new gold reserves has become increasingly difficult. As supply flatlines, demand continues to rise, putting upward pressure on gold prices.
According to the World Gold Council, total gold supply increased 2% year-over-year in 2022, ending two straight years of declines, while global production remains below the record set in 2018. The slight advance for 2022 was led by China returning to normal production after pandemic-related declines in 2020 and 2021. China’s gains offset declines in other leading producers, including the U.S., Russia, and South Africa.
On a side note, many major gold-producing regions are experiencing diminishing ore grades and depleting reserves, making it increasingly challenging and costly to extract gold from the earth. Moreover, environmental concerns and stricter regulations have resulted in delays and restrictions on mining operations. These factors have created a supply-demand imbalance, with limited new supply entering the market.
As long as these factors remain in play, it is likely that gold prices will continue to ascend. Investors seeking stability, diversification, and protection against inflation will find solace in the enduring shine of gold.
Exposure can come in various forms. Notably, there are exchange traded funds, such as Horizons Gold ETF (TSX: HUG) and Sprott Gold Miners ETF (NYSE American: SGDM). There are direct approaches, considering the gold mining industry in North America is sustained by the efforts of industry giants like Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD), Newmont Corporation (NYSE: NEM), and Kinross Gold Corporation (NYSE: KGC) (TSX: K).
Speaking of Sprott, the namesake ETF of famed billionaire gold investor %EricSprott, investors often follow his investments when looking for up-and-coming juniors. Sprott’s nose for winners is unprecedented in a culture of operational excellence, commitment to sustainability, and community engagement. These factors combine to drive economic growth in supportive mining jurisdictions.
%GanderGoldCorp (CSE: $GAND) (OTCQB: GANDF) caught the attention of Sprott a couple of years ago. He and about half a dozen other key stakeholders own more than two-thirds of this company, which also has virtually no warrants outstanding (unlike many of its peers) after being listed on the CSE since March 2022. A well-financed “pure play” Newfoundland gold company, Gander is led by an entrepreneurial group of exploration, mining and capital markets specialists determined to create shareholder wealth through new discoveries in one of Canada’s hottest new gold districts.
Gander is clearly differentiated from others in Newfoundland with early mover advantage, grassroots focus, unique exploration approaches, strategic partnerships, and a dominant land position consisting of 2,259 sq. km across eight projects.
Want Gold? Go East, Young Man
Newfoundland, an island province located on the east coast of Canada, has been generating considerable excitement among mining enthusiasts and geologists alike due to its reputation as an emerging gold hotspot. A major staking rush in 2021 grabbed national attention while New Found Gold and others soared in value. Shawn Ryan, Canada’s most famous gold prospector, predicted in 2021 that the Newfoundland Gold Rush will continue in “waves” throughout this decade.
The province’s mining history dates back to the 1800’s, with a geological makeup that is favorable for gold deposition, including large scale structures, quartz veins, volcanic rocks, and sedimentary formations. This is fertile ground for gold-bearing fluids to have circulated and accumulated over time, leading to the creation of substantial gold deposits from one end of the island to the other along very broad parallel trends. However, it wasn’t until just recently – the last several years – when Newfoundland’s real gold potential was fully understood after a reinterpretation of earlier models.
Meanwhile, the provincial government has implemented favorable policies and regulations that promote responsible mining practices while ensuring the economic benefits of mining are realized. This supportive environment has created a positive investment climate and fostered collaboration between government bodies, local communities, and mining companies. Newfoundland is currently ranked as the 4th most friendly mining jurisdiction in the entire world according to the latest Fraser Institute Survey.
We’ve Got You Surrounded
Gander Gold has a dominant land position covering eight highly prospective properties, four of which are really standing out after two years of intense grassroots exploration – Gander North, Mt. Peyton, BLT, and Cape Ray II. Keep in mind, none of these properties has ever been previously drilled or systematically explored. And each has district-scale potential. All claim blocks feature relatively easy access and were carefully assessed and acquired prior to the start of the Newfoundland Gold Rush in 2021.
Gander North Project
Gander North is in the heart of the Gander Gold Belt highlighted by %NewFoundGold (NYSE American: NFGC) (TSX-Venture: $NFG) and it's spectacular Keats Zone discovery (25.6 meters grading a stunning 146.2 grams per tonne gold) and other developing high-grade zones littered with impressive gold intercepts, starting approximately 15 km west of Gander North.
Gander Gold’s seasoned team is highly encouraged by exciting early success at its 485 sq. km Gander North Project where extensive gold-in-soil anomalies are coincident with favorable geophysical structures across a 25-kilometer-long east-northeast trend that is theorized to potentially host Newfoundland’s next high-grade discovery. This is a blue-sky greenfield opportunity, as no drilling has ever been conducted at Gander North. Helping pinpoint targets, over 12,000 soil samples were collected since 2021 across this project, showing multiple anomalous trends and values up to 1,432 ppb (parts per billion) gold (Au) – very high in the context of Newfoundland gold exploration.
The company and its stakeholders are going to find out more soon as drilling finally begins at Gander North. Geologists are using RAB (rotary air blast) drilling, which has now commenced, to test conductive structures underneath the soil anomalies to depths of 60 meters or more, creating the potential for an immediate discovery or at least an inventory of high-priority targets for follow-up diamond drilling during the 2nd half of 2023. This RAB drilling includes some state-of-the-art features including a downhole “televiewer” and collection of critical real-time data such as readings for arsenic and other gold pathfinders. This should help maintain strong news flow throughout the RAB drilling process, expected to continue non-stop at Gander North and other projects for the next few months with diamond drilling to follow.
Mt. Peyton Project
At the 956 sq. km Mt. Peyton Project, strategically located in between the Keats Zone discovery to the east and the %SokomanMinerals (TSX-Venture: $SIC) (OTCQB: SICNF) Moosehead Project to the west, Gander Gold has identified two major zones of interest (Goldenrod and Golden Horseshoe) that are screaming to be drilled – and will be in the near future. Notably, Gander has carried out more work on the massive egg-shaped Mt. Peyton Property than any other company in Newfoundland exploration history, completing over 13,000 soil samples, airborne geophysical surveys (MAG-VLF, LiDAR), and structural analysis.
Mt. Peyton is made up of a granite intrusive surrounded by gabbro. It is conceivable given the location of the property relative to recent gold discoveries within the Gander Gold Belt that the granite intrusive is a possible heat engine which provided an impetus for gold to remobilize in deep-rooted favourable structures.
BLT Project
At the BLT Project, first-ever soil samples on Thwart Island outlined what’s being called the Islander Zone currently measuring 1,400 m x 400 m (open for expansion) with soils assaying as high as an astounding 5.94 g/t Au (5,939.5 ppb). Gold-in-soils at Islander are coincident with very anomalous arsenic-in-soils consistently present across the interpreted strike of the Islander Zone.
Cape Ray II
Cape Ray II is contiguous to one of the highest-grade series of deposits in the world for open-pit mining - Matador Mining’s advanced Cape Ray Project on the southwest part of the island, a nearly one million resource that continues to grow.
Gander’s Cape Ray II occupies deformation zones between two significant tectonic structures, the Long Range/Cabot Fault to the west and the Cape Ray/Valentine Fault to the east which also hosts the %MarathonGold (TSX: $MOZ) (OTCQX: MGDPF) multi-million-ounce deposit with initial production planned for 2025. Nearly 4,500 soil samples, geophysics surveys and detailed structural interpretation at Cape Ray II have outlined three large areas of interest, including Doughball Jog considered very prospective for high-grade gold mineralization that may have accumulated in deformation zones.
Hunting with a Sniper Rifle
Gander Gold has a treasure trove of projects for its leadership team to explore and exploit for investors. The company is led by President, CEO, and Director Mark Scott. The mining industry veteran has more than two decades of experience in all facets of surface and underground mining, metallurgical processing, and associated service and support functions, within multiple mining majors including Vale Canada for whom he served as Head of Manitoba Nickel Operations through 2018. Mark successfully managed an annual combined OPEX and CAPEX budget of $500 million (USD) and a workforce of 1,875. There aren’t many CSE gold junior CEO’s with this kind of a background.
Others on the team include VP Exploration Ian Fraser, an expert in geological models and structural settings with more than three decades as an exploration geologist. Ian has been directly involved in the discovery of six gold deposits in North and South America with three of those having gone into production.
Award-winning prospector Shawn Ryan is a Technical Advisor to Gander Gold and also staked much of the ground the company currently has. A global leader in his field, Shawn’s staking prowess and prospecting instincts and techniques have been instrumental in finding new multi-million-ounce gold deposits and triggering gold rushes in both the Yukon and now Newfoundland.
Leveraging advancements in technology and exploration techniques that have allowed for more efficient and accurate identification of gold-bearing zones, Ryan is a man on a mission. “We got a stacked deck here,” he says in a corporate presentation, adding, “and we have a method to hunt, that’s the key. So we’re not wildcatting. We know where we’re going. Instead of hunting with a machine gun, it’s like we’re hunting with a sniper rifle.”
Gander has partnered with %GroundTruth Exploration which specializes in new and innovative exploration methods to help increase the odds of successful discoveries.
With statistics showing a sharp decline in the number of new gold discoveries across the globe over the last decade, it’s more important than ever to use cutting edge technology and
“smart” exploration approaches to achieve success.
The next Gold Rush “wave” in Newfoundland could be just around the corner, and Gander Gold may very well be the catalyst.
With the drill now turning, anything’s possible – stay tuned!
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Gander Gold Corp. (CSE: GAND) (OTCQB: GANDF) Full Corporate Write-Up: Click Here.
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