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WESTKAM GOLD CORP–Continues to Deliver and Reward Shareholders

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WESTKAM GOLD CORP–Continues to Deliver and Reward Shareholders

Kal Kotecha PhD

Gold prices have been surging in recent days following Britain’s referendum decision to leave the European Union. Always a boon when global instability sets in, gold is valued at $1,317/ounce (Gold Price, 2016) as of my writing of this article – a price that hasn’t been seen for two years (mining.com, 2016). Granted, gold prices received a major boost when Brexit was first announced, analysts are forecasting a continuing upward trajectory for gold as the year progresses. Ned Schmidt, editor of the Value View Gold Report contends that Brexit is a once-in-a-lifetime event and stated that all arguments against holding gold have now been crushed. Schmidt expects gold to continue its climb and head to $1,400/ounce with prices eventually topping $1,900 next year (MarketWatch, 2016).

Global instability will continue, as nationalist groups in other member countries of the U.K. will push their populace to follow Britain’s lead in the form of “Brexit Contagion” (The Telegraph, 2016). The Telegraph reported that a survey published on June 27 by the European Council on Foreign Relations found that insurgent anti-EU parties are calling for a total of 33 popular referendums in the coming year to determine their people’s opinion on membership in the EU. The mere announcement of a referendum from any other major member of the European Union will have a growth effect on gold prices – and consequently on junior mining companies in the gold market.

One company positioned to benefit from gold’s rising price is WestKam Gold Corp. (TSX.V – WKG) (“WestKam” or the “Company”). WestKam is a Canadian gold exploration company focused on developing the 100% owned Bonaparte Gold Project Near Kamloops, British Columbia. We profiled WestKam in April, 2016 and since then the company has made exciting announcements that have catalyzed its stock price to nearly double over the course of three months. Having moved from a price of $0.04 per unit in April, the stock is now valued at $0.07. As stated by the Globe and Mail, Westkam’s “net income grew by 56.75%, year over year, to a loss of $0.00 per share during the most recently complete quarter. This was the among the strongest growth seen by any company in this industry” (The Globe and Mail, 2016).

Westkam pic 1

WestKam Gold Corp. (TSX.V – WKG) – Share price movement – The Globe and Mail

The Company’s stock price will continue to grow due to macro and microeconomic forces. As discussed above, gold’s continued surge will positively impact the junior mining sector as investors seek out stable companies associated with gold with which to store their assets. WestKam Gold Corp. is poised to benefit from these forces in particular, because the Company is prepared to take exploratory action on its Bonaparte property.

A leader in its sector, WestKam’s Bonaparte property offers value that will impact its stock price in the short and long term. The Bonaparte Property consists of diverse resources across its area, which are defined as the “Discovery Zone” and “Cooler Creek Zone”. Within the Discovery Zone, which is the area that has been primarily explored since 1984, a 3,425-ton bulk sample from one of the high grade vein systems produced a grade of 26 g/t Gold (0.75 oz/ton Gold). Within the Cooler Creek Zone, which is the area drilled and tested in 2015, a new vein assayed 7.88 g/t Gold (0.253 oz/t Gold), 38.4 g/t Silver, 0.33% Copper and 28.6 g/t Tellurium over 1.0 meters.

westkam pic 2

Map of WestKam’s Bonaparte Property – WestKam Gold Corp. website

As noted in our April article, it is important to consider the substantial mining entities in the region. Specifically, New Gold Inc. operates its Blackwater Project, an open-pit gold and silver mine, within an hour of the Bonaparte Property (as seen on map above). New Gold Inc. is working toward its growth strategy by achieving “External growth through additional value enhancing merger and acquisition opportunities” (New Gold, 2016). The logistical and resource advantages that the Bonaparte Property can deliver to New Gold Inc. indicates potential for a merger or acquisition to occur. This would significantly enhance WestKam’s share price in the long term – a clear win for all stakeholders involved.

On April 20, 2016, WestKam received a permit from the British Columbia Ministry of Energy and Mines for the purpose of extracting a 10,000 tonne bulk sample from the Company’s Bonaparte Project. The permitted design of the Bulk Sample program includes extension of the existing decline approximately 245m through to the Grey Jay / Crow Vein system. In early June, the Company reported that it had acted on its permit, as a crew had been mobilized to initiate dewatering of the existing underground decline and site commissioning on the Bonaparte property.  Dewatering of the flooded underground adit began on May 29th and was completed on June 1.

WestKam has since reported that they have earned approval for their 10,000 tonne bulk sample program and have mobilized their remaining mining equipment and personnel to arrive at the site this week. Compressed air, water, electrical services and ventilation will be installed and once in place, advancement of the decline will begin. Extraction of the resources will commence the week of July 4. These actions represent short term value for the Company’s stock price, as the announcements WestKam will be making in the coming months will legitimize the value of the Bonaparte property adding more resource measurements to its arsenal.

Westkam pic 3

Bonaparte Project IP Survey Results Diagram – Westkam Gold Corp. website

 

The Company has a history of marketing success both in its mining yields and in properties themselves. The last bulk sample that WestKam sold fetched nearly $150,000 for 161.950 Troy Ounces. Even more impressive, several members of WestKam’s management team, including President & CEO Matt Wayrynen, have had success in the junior mining sector in the past. As Director of his last venture, Quinto Mining, Mr. Wayrynen helped raise millions of dollars and advanced a Quebec iron ore property to a viable project. Quinto Mining sold to Consolidated Thompson Iron Mines in June 2008 for a share value equal to $175 Million. Later, Consolidated Thompson was sold to Cliffs Resources for nearly $5 Billion, thanks in large part to the efforts Wayrynen forwarded to advance the Quebec property. When WestKam’s bulk sample program has been completed, it may market the extracyed resources as it has done in the past to generate revenue for its long-term operations. Such a sale will directly benefit the Company’s shareholders, as its stock value will increase upon the announcements surrounding a sale.

With WestKam’s track record of adhering to strict timelines and meeting goals, we implore our readers to take action in the near future and invest resources in the Company as there is significant potential for short term gains. WestKam was recently profiled by Mining MarketWatch Journal with the publisher supporting this claim, stating that “within months we expect WestKam to have some spectacular new releases. More importantly, we see the big picture unfolding quickly as the develop cuts a 10 by 12 foot drift through a series of high-grade veins and stockwork, affirming in the process the findings of a British Columbia Geological Survey report that indicates the property has potential for large copper-gold porphyry, similar in nature as to what has been demonstrated at nearby Highland Valley Mine (Teck) and New Afton Mine (New Gold)” (Mining MarketWatch Journal, 2016).

As tangible minerals are extracted from the Bonaparte mine over the next three months and announcements are made regarding the resource measurements in the 10,000 tonne bulk sample, WestKam Gold Corp.’s (TSX.V – WKG) share price should continue its upward trajectory, benefitting shareholders who invest in this company now.

Happy Investing!

Kal Kotecha PhD

 

 

Works Cited

Foster, Peter et al. “Brexit Contagion: UK Vote Raises Fears of a Tsunami of EU Membership Referendums.” The Telegraph. Telegraph Media Group Ltd., 28 June 2016. Web. 28 June 2016. http://www.telegraph.co.uk/news/2016/06/28/brexit-contagion-uk-vote-raises-fears-of-a-tsunami-of-eu-members/

Saefond, Myra. “Why Gold May Hit $1,500 by Year’s End – and It’s Not Just About Brexit.” MarketWatch. MarketWatch, Inc. 26 June 2016. Web. 28 June 2016. http://www.marketwatch.com/story/why-gold-may-hit-1500-by-years-endand-its-not-just-about-brexit-2016-06-24

“Spot Gold.” Gold Price. Gold Price Pty. Ltd., 28 June 2016. Web. 28 June 2016. http://goldprice.org/spot-gold.html

“The Globe and Mail – News.” The Globe and Mail. 28 June 2016. Web. 28 June 2016. http://www.theglobeandmail.com/globe-investor/markets/stocks/news/?q=WKG-X

“WestKam Gold Corp. Prepares for 10,000t Bulk Sample, Last Two Bulk Samples Averaged 26.5 G/T and 16.28 G/T Gold.” Mining MarketWatch. 28 June 2016. Web. 28 June 2016. http://www.miningmarketwatch.net/

Disclaimer © 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

What can we expect from the Brexit blunder?

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What can we expect from the Brexit blunder?

By Gaalen Engen, Stockhouse.com

It is doubtful David Cameron ever really wanted the Brexit vote. Back in 2013 he was head of a minority government, dealing with a fractious Conservative party and an aggressive UKIP which threatened to divide the party even further. He dropped the mic in January of that year on a promise to hold a referendum on whether Brits should remain in the EU. Perhaps at the time it seemed the safest card to play. It wasn’t a stellar term for the prime minister and polls were tight for the upcoming election. At best, he would be the head of another minority government and as such would never have the power to make good on the promise. Then he won a majority election in 2015…oops.

His foot firmly stuck in it, Cameron had to come through. He immediately changed his tune, however, hoping to head off this colossal mistake at the pass, but the fire had been set and the flames kept climbing until last Thursday’s vote. Both the “Leave” and “Remain” campaigns slugged it out and both took liberties with the facts, but the Leavers slung a little more crap and managed to motivate voters, mostly rural and older, to get to the polls and make their voice heard. And on Friday morning, much to Cameron’s chagrin, that voice said, “We’re outta here.”

Click to enlarge

Markets freaked out. People freaked out. I’m betting Cameron freaked out. He had authored the end of his own political career, dealt a critically damaging blow to his party and could have quite possibly pulled the pin on the EU. No matter what some fanatic Leavers say, the near-term for England doesn’t look good. There’ll be decreased foreign investment and less jobs – their GDP is going to take a serious hit. In fact, according to the National Institute for Social and Economic Research, a think tank, Britain’s GDP is expected to drop 2.9% over the near term.

England won’t be the only one feeling the pain, the EU is going to hurt with Britain out, but when push comes to shove, the degree of discomfort for the EU could be *fingers crossed* survivable. The problem now is France and Greece. Will this Brexit insanity grow into a Frexit and Grexit? Could this all spin out of control and as some extremists predicted, bring on a global depression?

All that’s certain at this point, is uncertainty. There’s no real safety in currency at the moment, the markets are addled and the analysts are divided. Probably the one thing people can agree on is the rising price of gold, good news for a mining industry that was living on red buttons and good looks since 2011 when the commodities market started to tank.

Click to enlarge

Junior miners like Aldershot Resources (ALZ.H, Forum), currently developing its highly prospective flagship Haultain Gold Project located in the storied Abitibi Greenstone Belt, have been watching all of this unfold closely, in fact, company CEO, Jeremy Caddy had this to say, “Uncertainty and the gold price are like kerosene being poured on smouldering tinder. As long as markets wonder how Britain’s leaving the European Union will work out we have uncertainty; as a result, the price of gold will continue to appreciate. Aldershot would far prefer political stability than the present state of uncertainty but it is an ill wind that brings nobody any good so we will take the good breaks when we can.”
image: http://www.stockhouse.com/getmedia/6a2cef01-ce2f-46c9-a4f9-8a114954598b/alexandria-minerals-logo?width=200&height=50

Click to enlargeEric Owens, CEO of Alexandria Minerals (TSX: V.AZX, Forum), a junior miner exploring and developing one of the largest properties in the prolific Val d’Or, Quebec, gold mining district, affirmed, “Clearly the uncertainty of what the Brexit vote means a strong interest in and demand for gold, as we don’t know yet how the outcome of the vote is going to play out. When superimposed on broader supply-demand issues, this will have a positive impact on gold-focused companies like Alexandria Minerals which will be good for the gold industry.”

If you’re a gold bug, or think you may be one, you might want to consider this. Any post-Brexit re-negotiation between Britain and the EU will be years in the making with no guaranteed outcome. Also, any political fallout, such as the destabilization and dissolution of the EU, will also be years in the making. Then there’s the fate of Scotland and Ireland now that Britain has bid a not-so-found adieu to the EU.

All of this uncertainty is most likely going to last and gold will probably get a good run because of it. Now I’m not dancing on Cameron’s political grave, nor do I have a callous disregard for the profound effect Brexit will have on a global economic community, but if the world is going to take a trip on the crazy train, investors should have a safe place to put their money and right now gold is shining brighter than ever.

–Gaalen Engen

full article: http://www.stockhouse.com/news/newswire/2016/06/27/what-can-we-expect-from-brexit-blunder
http://twitter.com/gaalenengen

FULL DISCLOSURE: The opinions expressed herein are the author’s and don’t necessarily reflect those of Stockhouse Publishing or any of its employees. Alexandria Minerals and Aldershot Resources are Stockhouse Publishing clients.
Read more at http://www.stockhouse.com/news/newswire/2016/06/27/what-can-we-expect-from-brexit-blunder#CjzColxMm2L2iflV.99

Disclaimer © 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

Faber Says Own Gold, Prepare for QE4 as Easing Follows Brexit

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Faber Says Own Gold, Prepare for QE4 as Easing Follows Brexit

by  and 

Gold’s investment case has been strengthened by the U.K.’s vote to quit the European Union as the fallout may spur the world’s central banks to step up easing, hurting currencies and favoring bullion, according to Marc Faber, publisher of the Gloom, Boom & Doom Report.

The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said.

Gold has soared after the U.K.’s vote last week as investors seek a haven from financial turmoil and contemplate the possible implications, including additional steps from central bank policy makers in Europe, the U.S. and Asia. Holdings in bullion-backed exchange-traded products have swelled to the highest level since September 2013 as banks including Goldman Sachs Group Inc. have boosted their price forecasts.

‘Print More Money’

“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said in the interview from Hong Kong. “In that situation, you want to own some gold.”

Bullion for immediate delivery rose as much as 0.7 percent to $1,321.55 an ounce, and traded at $1,321.24 at 1:57 p.m. in Singapore, according to Bloomberg generic pricing. In the immediate aftermath of the vote on Friday prices surged to $1,358.54, the highest in more than two years.

Gold has advanced 25 percent this year as the European Central Bank and Bank of Japan embraced negative rates to kick start growth and the Fed pauses after its first hike since 2006 last December. The U.S. central bank undertook three rounds of quantitative easing starting in 2008 to overcome the impact of the global financial crisis.

New Headwinds

Fed Governor Jerome Powell said Tuesday the vote has the potential to create new headwinds for economies, including the U.S., introducing uncertainties that may merit reassessing policy. Traders now see a greater probability the bank will cut rates in upcoming meetings than raise them.

Faber’s views add to a bullish chorus about bullion in the wake of the poll. The metal may stand at the start of a major bull market should the Brexit vote prove to be a forerunner of greater political and financial instability around the world, Evolution Mining Ltd.’s Jake Klein said on Tuesday.

Still, not every one is optimistic. Veteran investor Jim Rogers said this week that he’d rather seek haven in the dollar than gold, given that bullion had already rallied in 2016 before the referendum. Credit Suisse Group AG has said it’s neutral on gold over the next three to six months.

“Global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already. That has nothing at all to do with Brexit,” Faber said. “Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.”

full article: http://www.bloomberg.com/news/articles/2016-06-29/gold-may-prosper-as-brexit-will-spur-more-stimulus-faber-says

Disclaimer © 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

MGX Minerals Retains ChemCognition LLC to Provide Lithium Marketing and Product Development Services

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MGX Minerals Retains ChemCognition LLC to Provide Lithium Marketing and Product Development Services

VANCOUVER, BRITISH COLUMBIA – June 29, 2016 – MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG /FKT:1MG) is pleased to announce the Company has retained ChemCognition LLC (“ChemCo”) of Huntersville, North Carolina to provide strategic marketing and product development services for MGX’s Alberta lithium properties.

Chemco is spearheaded by Mr. Claudio Manissero who holds over 40 years of global experience in the chemical industry, including significant involvement in the mining, environmental and oilfield industries. Mr. Manissero also spent 21 years at FMC Corporation (“FMC”), where he served as Sales and Marketing Manager. FMC is the second largest producer of lithium globally and the only mine-to-metal producer of lithium in the world.

While at FMC Mr. Manissero oversaw the market development, technical logistics and sales efforts of a wide range of lithium based products. He also directed a technical team on new technology developments that resulted in a number of patents and government and industry approvals. Mr. Manissero obtained a B.S. Degree from Duke University and a M.S. Degree in Organic Chemistry/Biochemistry from Marshall University.

Mr. Manissero is currently the President and co-founder of ChemCo, a private consulting firm designed to provide innovative and sustainable solutions for lithium-based technologies. ChemCo also provides access to a synergized network of specialized firms and manufacturers within the industry.

About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. The Company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta, including the Driftwood magnesium project. MGX has recently received approval of a 20 year mining lease for Driftwood and bulk sampling is currently underway.

For more information please visit the Company’s website at www.mgxminerals.com.

Contact Information
Jared Lazerson
Chief Executive Officer
Telephone: 604.681.7735
Email: jared@mgxminerals.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company’s profile on SEDAR at www.sedar.com.

Disclaimer © 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

GOLDCORP’S McPherson joins MX Gold as President and COO

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  • Mine Manager of Goldcorp’s Peñasquito Mine (2nd largest mine in Mexico), having 1400 employees reporting to him
  • Former VP/GM of Kinross’ Tasiat Mine in Mauritania
  • Mine Manager of Barrick Gold’s Alto Chicama Project in Peru

Vancouver, B.C. – MX Gold Corp. (TSX-V: MXL) (FSE: ODV) (OTCQX: DTVMF) (the “Company” or “MX Gold”) is pleased to announce that Hugh (Bert) McPherson has joined the Company as President and Chief Operating Officer in charge of all operations at the Company’s Max and Willa mining and milling operation located in the Kootenay region of British Columbia.  Along with the responsibility of managing the operations, Mr. McPherson will be involved in the evaluation and acquisition of future projects.

Mr. McPherson stated, “After months of project due-diligence and a site visit, I am excited to join the team and advance the Willa Property to the next level.  I will look forward to developing safe and efficient mining programs along with a first class production team.”

Bert McPherson is a Sr. Mining Engineer and has 37 years’ experience in managing projects for major mining companies.  Bert holds a B.Sc. Applied Science in Mine Engineering from Queen’s University and is a Registered Professional Engineer in the province of British Columbia.  He has successfully added value to mine management teams worldwide, focusing on the implementation of industry leading mine management standards, safety awareness, team building, assembly, mentoring and the development of functional mine management operations.

Bert McPherson has most recently been the Mine Manager of Goldcorp’s Peñasquito Mine in Mexico having over 1400 employees directly reporting to his office.  The Peñasquito mine is Mexico’s second largest mine and it’s largest gold producer.  In 2015, The Peñasquito Mine delivered record gold production of 860,300 ounces and record silver production of 25,926,600 ounces.  A total gold equivalent production figure, including by-product metals, was 1,688,600 ounces of gold.

Previously, Bert held the following positions with the following projects: Vice President & General Manager for Kinross Gold Corporation at theTasiast mine, in Mauritania; Mine Manager at Barrick Gold Corporation’s Pierina Mine, in Huaraz, Peru; Mine Manager of Barrick Gold’s Alto Chicama project in northern Peru; Chief operating officer for Starcore International Mines, San Martin Mine in Mexico; Mine manager at XStrata Copper’s Alumbrera Mine in northern Argentina; and Project/Mine Manager, Morrison Knudson Venezuela at their Carbones de la Guajira coal mine in Venezuela.  Mr. McPherson has also provided Mine Management Consultation services to several other mining projects worldwide under HC McPherson Consulting Inc.
“After a two-year search for a President and COO with the skill set to advance the Willa/Max project, we are very excited to have Bert join MX Gold Corp.,” said Akash Patel, “…and we are looking forward to many years of strong growth with Bert leading our operations.”

After a number of years of service with MX Gold, Akash Patel has stepped down as President and has been appointed as Vice President, Corporate Affairs.  Mr. Patel will maintain his position on the board of directors.  The Company wishes to thank Mr. Patel for his work as President of MX Gold in the development of the Willa/Max project.

Mr. McPherson was appointed President and Chief Operating Officer on June 27, 2016.  Effective September 1, 2016, the Company has agreed to pay Mr. McPherson a base salary of $180,000 per year.  The Company has also agreed to grant him 1,000,000 stock options at the exercise price of $0.25 per share with 250,000 options vesting on each of the following dates: December 1, 2016, June 1, 2017, December 1, 2017 and June 1, 2018.  In addition to the base salary, the Company has agreed to pay Mr. McPherson $100,000 on or before February 28, 2017 to reimburse Mr. McPherson for certain costs incurred by him as a result of his new appointment.  Lastly, the Company has agreed to vest any outstanding stock options and pay Mr. McPherson an amount equal to two times his base salary in the event there is a change of control of the Company.

About MX Gold Corp.

MX Gold Corp is a junior mining company focused on the mining, exploration and development of advanced projects located in the Kootenay region of British Columbia. The Company’s primary focus is its high-grade Willa gold and copper project located 12 kilometers south of Silverton, BC.  In 2015, MX Gold owns 100% of the Willa Project and the Max Molybdenum Mine and Mill Complex.  The Max is a fully permitted 1000 ton per day mill and tailings facility, with major federal and provincial permits in place.  The Willa mine is located 135 kilometers south of the Max Mill.

 

On behalf of the Board of Directors,

“Akash Patel”

For further information, please contact

SkanderBeg Capital Advisors
604-687-7130
Ext 104 or Ext105

Dan Omeniuk
Phone: 204-697-7740
Email: dano@trapperstransport.com

Ron Birch
Phone: 250-545-0383
Toll Free: 1-800-910-7711
Fax: 604-926-4232

 

For further information, please contact Ron Birch: 250-545-0383 or by email at info@mxgoldcorp.com

Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.

 

This press release contains forward-looking information that involves various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of MX Gold Corp, such as statements regarding the terms of the debt settlement. There are numerous risks and uncertainties that could cause actual results and MX Gold’s plans and objectives to differ materially from those expressed in the forward-looking information, including approval from the TSX Venture Exchange. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Discovery does not intend to update these forward-looking statements.

Disclaimer © 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

Why gold may hit $1,500 by year’s end—and it’s not just about Brexit

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Why gold may hit $1,500 by year’s end—and it’s not just about Brexit
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Published: June 26, 2016 4:22 p.m. ET

Gold’s impressive rally Friday offered a taste of what may be in store for the precious metal, as some analysts say it’s just a matter of time before prices top $1,500 or even $1,900 an ounce.

Futures prices for the metal  soared by as much as $100 an ounce on an intraday basis Friday as the United Kingdom’s historic vote to leave the European Union sent investors scrambling for a safer place to park their money.

But the decision, known as Brexit, has vast implications for global financial markets, economies and currencies as well as for monetary policies among the world’s major central banks. That means gold could soon have many more reasons to rally.

“The market’s fearful reaction has made Brexit the most stressful event investors have seen since the Lehman Brothers bankruptcy in September 2008,” said David Beahm, chief executive of Blanchard and Co. “This is a major negative for global markets, and gold is positioned for long-term price growth because of … the Brexit vote and other negative global financial conditions.”

While the outcome of the U.K.’s historical referendum roiled stock markets around the world and European stocks posted their worst daily drop in nearly eight years on Friday, gold benefited from its perceived safety in financial crises.

‘All arguments against holding gold have now been crushed.’
Ned Schmidt, Value View Gold Report

On Friday, August gold surged $59.30, or 4.7%, to settle at $1,322.40 an ounce, logging the highest most-active futures settlement since July 2014.

“Brexit is a once-in-a-lifetime event,” said Ned Schmidt, editor of the Value View Gold Report. “All arguments against holding gold have now been crushed.”

He expects gold to continue its climb, and head to $1,400 an ounce, with prices eventually topping $1,900 next year.

And with other EU nations potentially following the U.K.’s lead, the situation in Europe is set to get worse, said Naeem Aslam, chief market analyst at ThinkForex.

Given that, Aslam sees gold “easily touching” $1,500 by the end of this year.

Currency devaluation
But expectations for more rallies in gold aren’t just borne from the Brexit news. What happens in other markets, including equities and currencies, will impact gold’s outlook more directly.

Brexit is “a global monetary event, with destructive effects in individual economies,” said Brien Lundin, editor of Gold Newsletter.

‘If everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?’
Brien Lundin, Gold Newsletter

“The standard central-bank prescription is to ease, to depreciate their currency,” he said. “But if everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?”

“Only gold will stand tall during the turmoil. And over the long term, it won’t because it’s supposed to be a ‘safe haven’, but because it’s the only safeguard against fiat currency depreciation,” said Lundin.

On Friday, the British pound saw its largest-ever one-day drop against the U.S. dollar and fell to its weakest level versus the greenback since 1985. The euro also tanked compared with the dollar, while the Japanese yen which is seen as a haven asset, climbed to its strongest level versus the dollar in more than 3½ years.

There is “no reason” for gold to rise on such as event as Brexit itself, said Lundin. Such “geopolitical flashpoints” are short lived.”

Instead, sustained gains for gold are “based upon currency debasement almost exclusively,” he said.

Recession risks and central banks
Following the U.K.’s shocking news, central banks around the world, including the Bank of England and U.S. Federal Reserve, have promised to provide more liquidity in the markets when needed.

“This is the biggest risk to markets right now—a possible lack of liquidity like we got during the Lehman crisis,” said Chris Gaffney, president of EverBank World Markets.

The U.K. vote outcome will “definitely make it very difficult for the [Federal Open Market Committee] to raise [interest] rates this year,” he said. In fact, the CME Group 30-Day Fed Fund futures are “currently giving better changes of a rate cut in the U.S. than a rate hike.”

Higher interest rates lift the appeal of holding dollars. That also means that a stronger dollar cuts the worth of holding non-yielding gold that’s priced in this denomination. Lower interest rates tend to have an opposite effect.

Gaffney said there’s speculation surrounding a rate cut in the U.K., and the European Central Bank could “flirt” with moving rates even further into negative territory.

“Lower [rates] for longer is what we continue to expect. The global economy is going to face lower growth prospects and rates are therefore going to be kept lower for longer,” he said.

Blanchard and Co.’s Beahm pointed out that central banks have “little ammunition left to fight” a possible economic recession. “They will have to turn to other extraordinary means to keep markets calm and provide necessary liquidity to keep the financial system from stalling,” he said.

All in all, that spells out further gains for gold.

The metal’s $100 trading range on Friday following Brexit wasn’t unprecedented, but it was “dramatic,” said Adrian Ash, head of research at BullionVault. He noted that prices made a similar sized one-day move in April 2013, when prices plunged on the back of big declines in gold holdings in exchange-traded funds.

And “the uncertainty has only begun—not least about what now happens to the broader European and especially eurozone projects,” said Ash.

“It’s all just a taste of the volatility which gold and other markets could see in November” during the U.S. presidential election, he said.

This story was first published on June 24, 2016.

Full Article: http://www.marketwatch.com/story/why-gold-may-hit-1500-by-years-endand-its-not-just-about-brexit-2016-06-24

Disclaimer © 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

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