Tuesday, July 9, 2024

Anticipated Imbalance in Gold Supply & Demand, Portends Market Boon for Emperor Metals Inc. (CSE: AUOZ) (OTCQB: EMAUF) (FRA: 9NH) Exploration Project

 

  • The demand for gold continues to increase while new resource supply remains scarce, creating the potential for a supply chain imbalance in the future
  • Emperor Metals is a Canada-headquartered explorer, working to develop a storied resource in southwest Quebec that contains an estimated mineral resource of 727,000 ounces of gold identified at a grade of 5.42 g/t Au
  • The company’s flagship project exhibited new possibilities in 2023 when Emperor discovered the potential for a large-scale open pit above a high-grade underground gold deposit
  • Emperor followed on last year’s landmark development with an 8,000-meter drill program into the deposit launched last month along with an 8,000-meter core sampling project in the open pit

A demand-supply imbalance appears to be developing in the gold market as the precious metal sees increasing use in the energy, healthcare, and technology sectors, and its growing safe-haven investment status, results in a continuing increase in demand from central banks despite a scarcity of gold deposits entering the market.

“The bigger picture, I think about mine production is that, effectively, it plateaued around 2016, 2018 and we’ve seen no growth since then,” World Gold Council (“WGC”) Chief Market Strategist John Reade stated in a Zacks report on the market (https://nnw.fm/WGZDQ).

Advanced stage gold explorer Emperor Metals (CSE: AUOZ) (OTCQB: EMAUF) (FRA: 9NH) is envisioning a potential new source in southwest Quebec, where it is developing its flagship Duquesne West Gold Project.

Emperor is working to update and prove the historical mineral resource estimate at its flagship project covering 1,389 hectares (3,432 acres) to comply with modern standards by the first quarter of next year. The site’s 38 claims host a historical inferred mineral resource estimate of 727,000 ounces of gold in 4.17 million tonnes of material grading 5.42 g/t gold.

The company launched an 8,000-meter drilling program with 8,000 meters of core sampling for historical assaying last month. A discovery last year pointed to the potential that a large-scale open pit exists above a high-grade underground gold deposit. The discovery had originally captured Emperor’s interests and drove a redirection of the exploration program, with “70 to 80 percent” of the drilling looking at the open pit potential this year, according to Emperor Metals President and CEO John Florek (https://nnw.fm/rG2sT). 

“(The open pit boundary) is really kind of still open to the east and to the west. But we also want to drill some of that underground stuff because right below the open pit is those underground, high-grade ounces,” he said. “This gives Emperor the ability to add ounces more rapidly on this project due to the capability of adding potentially open pitable mineralization above the high-grade historical resource,” Florek added in a company news release last month (https://nnw.fm/zug8I). “Emperor is well funded with approximately $4 million in working capital.”

McEwen Mining Inc. CEO Robert McEwen, the founder of Goldcorp, invested $1 million for 8 percent of the company during a recent private placement financing round, a sign of optimism for Emperor’s potential. “He sees the opportunity for this district,” Florek said during a May Mining Book interview (https://nnw.fm/j4EBr). “He sees the growth potential that we’re showing, and the value and the success that we’re having from using AI (to create 3D modeling).”

Public documents show exploration at the Duquesne West property began around 1927 and various companies have undertaken the complicated task of gold exploration during the years since (https://nnw.fm/6gN2x).

The project has a year-round maintained road near a highway that connects it to an international airport, and also has access to a local power supply. It lies within the historic Duparquet gold mining camp in the southern portion of the Abitibi Greenstone Belt.

For more information, visit the company’s website at www.EmperorMetals.com.

NOTE TO INVESTORS: The latest news and updates relating to EMAUF are available in the company’s newsroom at https://nnw.fm/EMAUF

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