With a massive surge in gold demand, exploration company, Eclipse Gold Mining Corp. (TSXV:EGLD)(OTC:EGLPF) is in prime position to profit.
Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”(2)
Greenlight Capital’s David Einhorn says, “We believe the implied negative interest rates are bullish for gold and for unlevered real assets with pricing power.”
JPMorgan Chase advises investors to hedge their risk with gold.(3)
All as central banks around the world turn on the spigot with endless money printing in an effort to prop up the global economy. The U.S. Federal Reserve, for example has pumped trillions of dollars of liquidity into markets.
They even dropped the federal funds rate to a range of 0% to 0.25%.
Coupled with plenty of economic uncertainty on the heels of the coronavirus threat, tensions with China, and even upcoming U.S. elections, gold prices could accelerate higher.
It’s also no wonder Bank of America just raised its 18-month price target to $3,000 an ounce.
Others believe gold is on the cusp of a very long bull market that will send it to $5,000 or more.
Billionaire Thomas Kaplan, chairman and chief investment officer of Electrum Group says:
“I do believe gold embarks on the next leg of its bull market and goes past $1,900 and ultimately $3,000 to $5,000, if not a lot higher, depending on macro circumstances that today seem dim but I can’t really quantify.”
Little wonder there’s such strong interest in gold stocks, like Eclipse Gold Mining Corp. (TSXV:EGLD)(OTC:EGLPF) these days – especially with a growing need for more high-quality gold assets and a good deal of demand.
Successful mining involves identifying easily accessible, financially viable deposits, especially in areas that are also very accessible for mining equipment, skilled labor, and of course, unearthed gold. Located 25 miles southeast of Reno in Nevada’s Walker Lane Trend is Eclipse Gold’s district-scale Hercules Gold project.
There’s easy access from state highways and paved roads from Reno and Carson City, Nevada. That means there’s exceptional infrastructure and support for easy access.
Better, Eclipse Gold Mining Corp. is drilling across the valley from the Comstock Lode, perhaps the greatest mineral discovery in U.S. history. Eclipse Gold Mining also brings together a team with collective funding of over $2 billion in both strong and weak markets, and a track record of at least nine successful buyouts/exits, including:
The company just reported drill results from its first phase of drilling at the Hercules Gold Project located in Lyon County, Nevada. A total of 3,271 meters were drilled in 12 targeted exploration drillholes. Targets tested include Hercules, Cliffs, Loaves, Northeast, and Rattlesnakes; eleven of the twelve holes intersected significant oxidized gold mineralization, and all targets contain gold mineralization.
“The Hercules Gold Project is beginning to take shape as an exciting new gold district in Nevada, we are delighted with these drill results being in hand so quickly after our listing in February 2020.” noted Michael G. Allen, President, CEO and Director, “Being located approximately one hour from Reno, Hercules is a truly remarkable project, potentially representing an almost ideal combination of scale, grade, and location.”
“Evaluating these drill results has allowed us to develop a model that suggests the presence of a mineralized system that is strengthening to the south, potentially expanding the footprint of mineralization beyond what we had previously envisioned.” noted Dr. Warwick Board, Vice President of Exploration, “This is in addition to the gold targets that were outlined following the consolidation of several historical databases for the property, the scale and tenor of which was confirmed by our drilling.”
Then, in late July 2020, the company announced it completed an induced polarization (IP) survey at the Hercules Gold Project located in Lyon County, Nevada.
A review of the data collected to date showed a good correlation between zones of silicification in outcrop and drilling and resistive features in the recently collected geophysical data. Gold mineralization at the Hercules Gold Project is commonly associated with intensely silicified zones. As such, resistivity is considered a good proxy for delineating targets of potential gold mineralization associated with silicification.
Third party interpretation of the data has indicated the presence of two parallel and continuous NNE-trending, steeply west-dipping structures named the Hercules Structural Zone. This Zone passes through and to the west of the main Hercules Target (Figure 1), and may represent a feeder structure for mineralization, which has only sporadically been intersected by drilling conducted to date.
In addition, a large resistive feature at the southern end of the survey suggests a connection at depth between the Cliffs and Hercules Targets. This feature appears to be both open to and increasing in thickness to the south.
Recent drilling announced by the Company on June 10, 2019 presented drill results for the Cliffs target of 74.68 meters of 0.54 g/t Au and 4.78 g/t Ag, and for the Hercules Target 89.92 meters of 0.65 g/t Au and 12.51 g/t Ag. The area between the two targets, which are approximately 600 m apart, has not been tested by drilling to date.
Dr. Warwick Board, Vice President of Exploration for the Company commented, “These results will guide our next phase of geophysical surveying and drilling on the Hercules Gold Project. The newly identified and relatively untested Hercules Structural Zone extends for more than two kilometers and remains open beyond the survey area. The trend and scale of the resistivity anomalies and targets bodes well for future discoveries on the Project.”
Several anomalies remain open for further expansion. Geophysical data will be incorporated into the Company’s geological model and used to target the next phase of geophysical surveying and drilling with the latter expected to launch in late summer 2020.
When evaluating the potential for any mining exploration investment, it’s important to examine the quality of the company’s management.
It’s common knowledge that the bulk of the wealth created in the mining space has been produced by only a handful of management teams.
Investors should look for a history of success and efficiency in the mining exploration space in order to feel confident about a company’s future prospects. And in the case of Eclipse Gold, the company has a goldmine of both experience and success.
Marcel De Groot – Chairman
Marcel De Groot is the co-Founder and President of Pathway Capital, a founding director of Equinox Gold, and currently a Director of Asanko Gold.
Michael G. Allen – President, CEO and Director
Michael G. Allen is the former CEO of Northern Empire, which was sold to Coeur Mining in 2018 for C$117 million. Allen is a professional geologist with 20 years of mining experience, in addition to 10 years of Nevada exploration, evaluation, and development experience.
Douglas J. Hurst – Director
Douglas J. Hurst is the former executive chairman of Northern Empire, and current director of Calibre Mining. Hurst was also the founder of International Royalty which was sold to Franco-Nevada for $700 million. In addition, Hurst was the found of Newmarket Gold, which was sold to Kirkland Gold for $1 billion.
Dr. Warwick Board – Vice President, Exploration
Dr. Warwick Board is the former VP Geology and Chief Geologist of Pretium Resources, and Sr. Resource Geologist of Silver Standard Resources. In addition, Board holds a B.Sc. (Hons.), M.Sc., and Ph.D. degrees in geology from the University of Cape Town, South Africa, as well as a Citation in Applied Geostatistics from the University of Alberta.
Top Reason No. 1 — Potentially Massive Resource
Eclipse Gold Mining Corp. is drilling into a large gold system that has never been looked at from a system-wide scale because of historical fractional ownership of the property.
Historic drilling and company sampling have already confirmed the presence of a large-scale gold-silver system. The Company has consolidated an approximately 85 square kilometer land package and has initiated systematic exploration.
Top Reason No. 2 – Ideal Spot for Gold Mining
Everyone knows Nevada is one of the top mining jurisdictions in the world. Gold deposits in Nevada are primarily found in three belts, including the Carlin Trend, the Battle Mountain-Eureka-Cortez Trend and the Walker Lane Trend. All of which have given rise to some of the world’s most important gold mining districts.
Top Reason No. 3 – Proven, Experienced Leadership Team
Eclipse Gold Mining Corp. is led by a commercially-minded group of experienced veterans in the gold industry with a proven track record of crystalizing profit for shareholders.
Top Reason No. 4 – Potential for Significant Valuation Growth
Eclipse Gold Mining Corp. has the potential for significant growth in valuation on positive news in the coming months, especially with a sizable gold boom. At the moment, the company only carries a market cap of $25 million. However, if it’s right about the potential scale of the project, investors could expect to see growth inline many other advanced gold developers valued north of a $100 million market cap.
Top Reason No. 5 – A Red Hot Gold Market
Coupled with plenty of economic uncertainty on the heels of the coronavirus threat, tensions with China, and even upcoming U.S. elections, gold prices could accelerate higher. No wonder Bank of America just raised its 18-month gold price target to $3,000 an ounce. Others believe gold is on the cusp of a very long bull market that will send it to $5,000.