Gold is acting like a moody teenager. It’s up. It’s down. It’s insufferably braggadocios. Suddenly – it hates itself.
Over the last 12-months, bullion is up USD $125/ounce (+7%), over the last 30 days, it’s down $52/ounce (-2.7%) to $1,900.
“Gold and silver prices are sharply down and hit two-month lows in midday U.S. trading Monday,” reported Kitco News, “Gold dropped below the psychologically important $1,900 level.”
“The entire raw commodity sector was hit hard today by concerns regarding demand as Covid cases in China, the world’s second-largest economy, are spreading rapidly. Serious near-term technical damage was inflicted in gold and silver today,” added Kitco.
Despite April 2022’s pull-back, gold is in a long-term uptrend.
SKRR Exploration (SKRR.V) is a $5.4 million explorer focusing on the Trans-Hudson Corridor in Saskatchewan in search of world class precious metal deposits.
“Saskatchewan is ranked #3 in the world for Mining Investment Attractiveness,” reported Equity Guru’s Chris Parry, “Saskatchewan loves a mine, can’t get enough of them, would marry them in a heartbeat if they were asked”.
“SKRR’s projects are hosted ‘in close proximity and in the same regional geology as the Santoy Mine and Seabee Mill, operated by SSR Mining Inc,” continued Parry, “both high grade/high margin gold mining operations.’ When an existing mine or two are pounding ore out, that means you’ve got power, roads, people, and transport nearby”.
As SKRR’s stock price declined from .11 to .07, SKRR management continued to buy aggressively in the open market.
On March 22, 2022, SKRR Exploration announced the start of an airborne magnetic survey at SKRR’s 100% owned Father Lake Project in north-central Saskatchewan.
The Father Lake Project is about 40 kilometers to the northeast of the historic Axis Lake Nickel-Copper-Cobalt deposit, recently optioned by Rio Tinto Exploration Canada.
SKRR cautions that past results or discoveries on proximate lands are not necessarily indicative of the results that may be achieved on the Father Lake Property.
Historical drilling on this project returned 2.36% Ni & 0.26% Cu over 0.5m, 1.34% Ni & 0.94% Cu over 2m, and 0.26% Ni & 0.07% Cu over 14.6m. These results were collected and reported by past operators and have not been verified nor confirmed by a Qualified Person, but form a basis for ongoing work at the Father Lake Project.
Precision GeoSurveys has been contracted to fly a 1,042 line-km high-resolution, low-level helicopter-borne geophysical magnetic survey over the Father Lake project with flight lines spaced at 50m.
The survey will help to define areas within the Project of increased pyrrhotite sulphide mineralization, which is the primary sulphide component of magmatic nickel-sulphide deposits, and to map structural elements which are often the loci of mineralizing fluid events. It will also help direct work by field crews during future exploration programs.
On March 16, 2022 SKRR Exploration announce the start of an airborne magnetic survey at SKRR’s 100% owned Irving Lake Project in east-central Saskatchewan, located within 10km to 20km of SSR Mining’s very successful Seabee and Santoy mines – Saskatchewan’s largest gold mining operation.
We are excited to have commenced the airborne survey over the Irving Lake project area to identify and prioritize gold targets,” stated Sherman Dahl, CEO of SKRR, “This is a proven geophysical method for identifying structural, lithological and alteration features often associated with orogenic gold mineralization and aims to assist in prioritizing drill targets.”
On March 9, 2022 SKRR published an update on intersections of arsenopyrite-bearing sulphides, along with disseminated arsenopyrite and quartz veining, in the now completed drill program at the flagship Olson Gold property in the Trans-Hudson corridor in Saskatchewan, with assay results pending.
“Company Chairman, Ross McElroy, a highly regarded professional geo with over three decades of kicking rocks in the province, supplied several projects of his own to set the SKRR vehicle in motion,” wrote Equity Guru’s Greg Nolan on September 20, 2021
McElroy has been instrumental in several major uranium discoveries in Saskatchewan and three major high-grade gold deposits.
Call him the Sidney Crosby of resource extraction, McElroy is a gifted player who elevates the game of his teammates. Like Crosby – he has a cabinet full of trophies.
“I’ve spent the better part of my career in Saskatchewan,” McElroy told Equity Guru, “We have excellent opportunities in our own backyard. The ground is easily accessible and we’re comfortable operating in this area”.
“Gold is an important commodity that comes to the forefront every time that there’s uncertainty in the economy,” stated McElroy, “Gold has had a great history for thousands of years and it’s just as important in today’s economy as it as it ever was”.
“The price of most commodities is strong now. If you look at a chart path over the last year or two, gold is up substantially. Investors are probably wise to be taking a look at gold as part of their portfolio”.
Many investors have strong concern for the environment and for community governance.
“That’s where Canada ranks very highly,” confirmed McElroy, “The province of Saskatchewan is right up there in the upper two or three places in which to conduct mining. So, it’s an investment friendly environment.”
Although the Fed is raising interest rates, with inflation running hot at 7.9% real rates are negative (investors buying bonds are guarantee to lose purchasing power) – a positive environment for gold.
SKRR is aggressively advancing a small galaxy of metal projects in Saskatchewan. With a market cap equivalent to two 3-bedroom Burnaby condos, the value is staring at you in face.
Full Disclosure: SKRR Exploration is a past Equity Guru marketing client.
