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NEW YORK, June 9, 2020 /PRNewswire/ -- The price of gold has continued to rally over the past several months, consistently breaching the $1,700 mark with stock markets behaving erratically. Gold stocks of all sizes have begun to garner investor interest, particularly those in prolific gold regions like the Abitibi Greenstone Belt. Abitibi is one of the most prospective geological terranes in the world for gold. Over the past century, more than 170 million ounces of gold have been produced from the Abitibi Greenstone Belt, which measures 500 kilometers (310 miles) by 350 kilometers (217 miles) and spans the Ontario/Quebec provincial border. The high mineral potential and stable jurisdiction make the Abitibi one of the premier places to explore and develop mines, not only in Canada but internationally as well. Major gold companies with operating mines in the Abitibi include Eldorado Gold (NYSE:EGO) (TSX:ELD), Kirkland Lake Gold Ltd. (NYSE:KL) (TSX:KL), Newmont Mining Corp. (NYSE:NEM) (TSX:NGT), IAMGOLD Corporation (NYSE:IAG) (TSX:IMG), and Agnico Eagle Mines Limited. Meanwhile, notable junior exploration companies who are advancing gold projects in Abitibi include Osisko Mining Corp, Wallbridge Mining Company Ltd., and Genesis Metals Corp. (TSX-V:GIS) (OTCQB:GGISF).
Genesis Metals Corp. (GIS.V) (GGISF.QB) is actively exploring its flagship +290 square kilometer (~71,660 acres) Chevrier Gold Project in the eastern Abitibi Chibougamau-Chapais Mining Camp, where approximately 6.7 million ounces of gold have been produced historically. The Chevrier Project is situated in an area with excellent infrastructure, strong local support for resource development, and nearby major gold deposits and active exploration projects.
The Chevrier gold project is contiguous with the high-grade Monster Lake gold project, a joint venture between IAMGOLD Corporation and Tomagold Corporation, and 20 kilometers northeast of IAMGOLD Corporation and Vanstar Mining Resources' new 3.1 million ounce Nelligan gold discovery.
A current mineral resource estimate for the Chevrier Project was published on March 21, 2019, by Genesis Metals Corp. (GIS.V) (GGISF.QB). It includes 395,000 ounces of gold averaging 1.45 grams/tonne in the Indicated mineral resource category and 297,000 ounces of gold averaging 1.33 grams/tonne in the Inferred mineral resource category.
On June 2, 2020, Genesis Metals Corp. announced initial assays from a 9-hole 2,502-meter Phase 1 drilling program focused on improving definition and testing for expansion opportunities of modelled higher-grade domains which are interpreted to form plunging "shoots" within the Chevrier Main deposit. Results from 5 holes (1,596 metres) are pending from this program and plans for the second phase of drilling will be announced once all assays from the current program are received and evaluated. A surface exploration program will commence in June to assess target areas identified through a 2019 property-wide glacial till survey and a comprehensive review of all available data on the large project area. The Company is fully funded for its planned work in 2020, which includes up to a total of 8,000 meters of drilling.
Eldorado Gold Corporation (NYSE:EGO) (TSX:ELD) gained its stake in the Abitibi region when it acquired Integra Gold Corporation in 2017 and has continued to make new discoveries at the Lamaque underground gold mine in Quebec. Lamaque is expected to mine and process over 615,000 tons at an average grade of 7.0 grams/tonne gold. In January, the company announced the discovery of a new high-grade gold zone at Lamaque, which will be incorporated into an upcoming Preliminary Economic Assessment (PEA) update.
Kirkland Lake Gold Ltd. (NYSE:KL) (TSX:KL) also recently increased its footprint in the Abitibi Greenstone Belt through the acquisition of Detour Gold Corporation in an all-share deal valued at CDN$4.89 billion. The Detour Lake gold mine is expected to produce for over 20 years, with the ability to generate 600,000 ounces per year which is similar to the current output from Kirkland Lake's current largest producer, the Fosterville mine in Australia.
Meanwhile, Newmont Mining Corp. (NYSE:NEM) (TSX:NGT) mines and produces gold at its Porcupine operation near Timmins, Ontario. Newmont also previously owned properties in the Red Lake gold complex in Ontario, however, the company sold off the property package to Australia's Evolution Mining Ltd. at the end of 2019.
Gold Stocks Performing in 2020
The global pandemic may have thrown major stock markets for a loop this year, but the chaos has created a serious buzz around the gold market and investors are moving into gold for its safe-haven status. Gold prices have continually breached the $US1,700 mark over the past several months.
An increased interest in gold investments saw Canadian gold ETFs pull in $382-million in April, which represents the biggest monthly gain in four years, according to the National Bank's monthly ETF-flows report. Now, Canada's gold ETF market is worth almost $3 billion, double from a year ago. At the same time, gold ETFs worldwide has attracted $14.5 billion in under five months, topping the $11.7 billion that flowed into the funds in 2009.
The current strong interest in the gold sector is focusing investor attention on gold miners like Eldorado Gold, Kirkland Lake Gold Ltd., Newmont Mining Corp., IAMGOLD Corporation, Agnico Eagle Mines Limited and junior exploration companies like Osisko Mining Corp., Wallbridge Mining Company Ltd. and Genesis Metals Corp. (GIS.V) (GGISF.QB).
To learn more about Genesis Metals Corp. (TSXV:GIS) (OTCQB:GGISF), click here.
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The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Genesis Metals Corp.
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