After experiencing an online version in 2021 because of COVID-19, and an in-person conference in June last year attracting a modest 17,445 attendees, the Prospectors & Developers Association of Canada (PDAC) was happy to go back to normal again, scheduling in early March, and gathering a more average figure of 23,819 attendees to Toronto, enjoying beautiful sunny and dry weather, with comfortable temperatures all week, as opposed to freezing -10 to -30C ordeals in the not too distant past.
In a world where the Fed might be contemplating a 50 basispoint raise instead of the earlier communicated 25 points, because of persistent, higher than expected inflation, but macro economic fundamentals remain strong, the stock markets are side ranging as a result.
We are living in interesting times these days. Just as the world seemed to have overcome the COVID pandemic, China confused the markets again by massive lockdowns, after 28,000 new cases were reported on November 22, 2022 alone. It is estimated that restrictions are affecting productivity up to one fifth of GDP, and in turn this has significant effect on the world economy, and most metal prices for example.
As the world is battling record inflation at the moment, and central banks across the globe are rising rates left, shortages keep increasing, consumer confidence is sinking, and in the background the Russia-Ukraine conflict seems to have entered a new phase as the Ukraine just liberated several thousands of square kilometers, Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF) (FRA:TXO) surprisingly announced a 541koz Au maiden resource estimate on their Con Mine property, more specifically on Yellorex.
It took quite a bit of time before Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF) (FRA:TXO) released the first results of their much anticipated deeper drilling of the Campbell Shear, but on June 27, 2022 holes 029 and 037 were finally announced. The results weren’t spectacular, but CEO Gerald Panneton indicated that despite the low grades the intercepts confirmed the hitting of the Campbell Shear mineralized zone, and that was the most important.
Times are becoming pretty challenging around the world, as inflation gears up to levels not seen in 40 years, as supply chains across the entire economy are increasingly being disrupted through the Russia-Ukraine invasion and COVID-19 related lack of investments, while at the same time demand is recovering after COVID-19.
While Ukraine has been completely invaded by Russia further disturbing supply/demand chains around the world, which already see commodity prices soaring and consequently increasing inflation to levels not seen in decades, precious metals, and more specifically gold, are doing well with gold hovering at US$1,915/oz.
As inflation grows rampant across many sectors, to levels not seen in decades, it only seems a matter of time before gold leaves its side ranging pattern of late. Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF) (FRA:TXO) aims at making the most of it, as the current President and CEO David Suda is stepping down on December 31, 2021 to pursue other opportunities.
Following several weeks of lots of volatility in the gold price, caused by increasing inflation, a reshuffle at the Federal Reserve and most recently a brand new COVID-19 variant, Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF) (FRA:TXO) did a very important acquisition, by signing an option agreement with Newmont, to buy the Con Mine.
With the highly anticipated Phase 2 drilling program underway since July 16th, testing the Campbell Shear at the Yellorex zone immediately south of the Con Mine (Yellowknife City Gold project, Northwest Territories, Canada) and optioned from Newmont, Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF)(FRA:TXO) was finally able to announce the first drill results.