Ice drilling at Regnault target, Frotet project, Quebec

As we seem to be at a pivotal point in the economy, with the Federal Reserve contemplating a halt in rate hikes, and potentially a more dovish stance for the second half of this year as a recession seems to be coming our way, sending the gold price to all-time highs recently, Kenorland Minerals (KLD.V)(3WQO.FSE)

After Aztec Minerals (AZT: TSX-V, OTCQB: AZZTF) commenced drilling at Tombstone in Arizona at the end of February, the first result came in on April 26, 2023, and it was pretty spectacular. As the company was drilling for oxidized gold in order to expand the mineralized envelope, estimated by me at about 600koz Au, high grade gold was also hit in first hole TC23-01, generating 125m @ 0.577g/t Au and 72g/t Ag from 53.3m depth, including an impressive 7.65m @ 733.92g/t Ag, which included an excellent 1.52m @ 3,477g/t Ag from 126.5m depth (residual grade of 54g/t Ag).

It is becoming harder and harder to navigate the economic environment these days. There are so many contradictory factors at play that nobody knows anything for sure these days. The Federal Reserve is contemplating one last rate hike in May on mixed but overall positive data coming in on Friday April 16, 2023, which might be followed by a pause and even rate cuts, in order to provide the economy with a “soft landing”.

The markets keep generating mixed to negative signals: on one side you have high inflation causing lowering demand, higher interest rates, the Federal Reserve shrinking its balance sheet, a record credit crunch, banking crisis, deflating bubbles like real estate, decreasing manufacturing, port activities, lowering wages (although in Europe there is a wage-price spiral going on), in short everything points towards a recession.

In an uncertain time where 3 substantial US regional banks collapsed and European system bank Credit Suisse was on the verge of a meltdown but got sold just in time to Swiss counterpart UBS for just $3B, all banks supported by substantial packages by other banks and the Swiss Central Bank, gold is doing well, and is hovering around the US$2,000/oz.

As banks are getting into trouble left and right, with central banks saving bank customers (SVB) and lending up to US$54B (Credit Suisse) at the last minute in order to avoid a financial Armageddon, gold is doing well as the fear trade is on again, Goldshore Resources (TSXV:GSHR)(OTCQB:GSHRF)(FWB:8X00) keeps on churning out solid drill results at their fully owned flagship Moss Lake project in Ontario.

During the last PDAC, CEO Greg Ferron of Platinex (PTX:CSE)(9PX:FRA) was busy working with the regulators, Fancamp and investors to close the South Timmins JV and the C$2.5M financing as soon as possible. As there were lots of moving parts at work, CEO Ferron preferred to come out with all relevant news at once, but as the first tranche (C$1.25M) of the financing closed on March 10, 2023, 2 weeks after the intended (and disclosed) closing date but before the Fancamp transaction could be closed, separate news releases had to be announced.

After hitting impressive intercepts like 25m @ 46,3g/t Au at Homestake Ridge and 15,94m @ 1499g/t Ag at the Wolf Vein, Dolly Varden Silver (DV.V)(DOLLF.US) seems to have taken the main stage of successful exploring juniors.

Beside the headline-grabbing results, this has also a lot to do with the increasing tonnage potential because of these stellar results, as beforehand years of drilling under different management didn’t seem to make much of an impact, since the resource barely increased.

At a time where sentiment seems to be turning into risk-off, with the markets contemplating whether the Fed options for a 50 basis points rate hike instead of the earlier telegraphed 25p raise as the latest inflation figures came in higher than expected despite solid market fundamentals, Aztec Minerals (AZT: TSX-V, OTCQB: AZZTF) doesn’t seem to bother too much, as it raised C$1.1M, outlined drill programs for their Cervantes and Tombstone projects, and very recently commenced drilling at Tombstone in Arizona.

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.