It’s no surprise that the price of gold has been on the rise lately. With economic uncertainty and the rise of inflation, coupled with the collapse of major cryptocurrency exchanges, gold is a surefire way to store wealth and hedge against inflation. Even with the rise of interest rates, gold has remained a steady, reliable investment. Maple Gold Mines Ltd., a junior mining exploration company, is looking to take advantage of this gold bullishness. Read on to learn how Maple is leveraging its partner Agnico Eagle Mines Ltd. to increase investor awareness and get their projects in the ground.
Gold glitters while rates rise
Gold Glows Despite Interest Hikes
Gold has been on a steady climb since November of 2022, reaching US$1,900 per-ounce by January 13th. According to the World Gold Council, 2022 gold purchases of 673 metric tonnes were the highest in 55 years. Even with the rise of interest rates, gold has been a safe bet for investors looking to store wealth and hedge against economic uncertainty.
Matthew Hornor, President and CEO of Maple Gold Mines Ltd. (TSX/VEN-MGM), believes that with the factors affecting the global economy and adding to anxiety, such as the Ukraine war, the price of gold could rise as high as US$2,800 an ounce this year.
Mining Giant Partners with Maple
Maple Gold Mines Ltd. is teaming up with mining giant Agnico Eagle Mines Ltd. (TSX—AEM; NYSE—AEM) to leverage their expertise and prestige into greater investor awareness. Maple is running three projects at present, all located in the Abitibi gold belt of Quebec. The company’s exploration area spans about 400 square kilometers and enjoys easy access to infrastructure such as roads.
Institutional investors in Maple include Fidelity Investments and Quebec’s pension fund, the Caisse de depot et placement du Quebec. With the support of Agnico Eagle Mines Ltd., Maple’s exploration is well funded and can carry on without the challenge of raising funds from outside sources.
Drilling Programs in the Works
Since December 1st 2022, a total of five drill rigs have been on the ground at Maple’s sites carrying out a 6,000-metre drilling program at the Telbel mine area (part of Joutel), 10,000-metre drilling program at Douay, and 5,000-metre program at Eagle. The company plans to rotate rigs from Eagle and Telbel to Douay after the completion of drilling at the former, in the first quarter of 2023.
Results from these drilling programs have been gradually released, and continue to reinforce the merit of developing the projects. The latest assays from five holes at Eagle, released on January 9th, indicated a grade of 10.3 grams of gold per tonne of ore over 7.8 metres, of which one metre graded at 41.1 grams per tonne.
Maple is looking to raise the ounces in its resource estimates to reduce project risk and drive investor confidence, with the goal of becoming the “Berkshire Hathaway of junior mining companies”. With more favorable drill results and other news announcements, Maple’s share price could rapidly rally—especially with the public’s current appetite for gold.
This is an edited version of an article that was originally published for subscribers in the February 3, 2023 issue of The Investment Reporter. You can profit from the award-winning advice subscribers receive regularly in The Investment Reporter.
The Investment Reporter, MPL Communications Inc.
133 Richmond St. W., Toronto, On, M5H 3M8, 1-800-804-8846
The Investment Reporter •4/30/23 •