Accelerating Ghana Gold Drilling | China Wiki Gold Angle

TCRs: New URANIUM material here.
Also: Ghana gold explorer-producer
GATA.org reminder: Wiki gold leak 
Trading this week

“Apparently, sell in May and go away has been adopted by a whole new generation of investors.” — Marc Henderson, Laramide Resources LAM

Weekend June 29-30 update

— A 5-photo-look at this week’s Ghana gold exploration by Xtra-Gold Resources. XTG XTGRF

View of Kibi Gold Belt and valley in southwest Ghana: Xtra-Gold Resources

 

— What else did we learn about China and gold from the 2011 Wiki-leaked diplomatic cables? Thanks, Chris Powell of GATA.org, for the reminder, pegged to Julian Assange‘s release. See: below and GATA here.

 

— Uranium updates from our trusted execs in the subdued June trading market for spot uranium and 5-year, 10-year contracts with utilities.F3 Uranium‘s FUU Dev Randhawa says, “I thought we would see better action on Athabasca Basin stocks this week with the proposed ($1.14 billion CAD) Paladin Energy takeover of Fission Uranium FCU.”

F3’s flagship holding in the basin, Patterson Lake North, originally spun itself out from Fission and is 12 miles from the Fission project, which is called  Patterson Lake South.

— Jordan Trimble of Skyharbour Resources SYH, largely in the Athabasca Basin: “There has been weakness in the equities across the entire sector — probably due to the slight pullback in the spot price and seasonality. We have seen softness in the uranium equities the last few summers but that can quickly reverse later in the summer as we approach the WNA (World Nuclear Association) conference and typically a more robust fall season.”

Jordan sees a “new base” above $80/lb for spot, with long term contract prices continuing to tick higher.”Needless to say, most uranium execs are looking to developments at or before the WNA Symposium September 4-6. More execs talking uranium below.

Also: see uranium notes please from The Calandra Report.


— Trading: I have this week, with abandon, been buying additional Ivanhoe Mines IV IVPAF shares (now 82,000 total). Sales to pay for the purchases,  as discussed, along with on-hand cash), come from Metalla Royalty & Streaming MTA, and also from partial stake sales of Ridgeline Minerals RDG, DHT Maritime, Skyharbour Resources SYH, Nuclear Fuels NF and Azimut Exploration AZM. Below, more detail. *

I also have been adding to my crushed Yukon producer and an explorer in the wake of the Eagle Gold Mine heap-leach containment rupture — Victoria Gold VGCX and Banyan Gold BYN BYAGF — see this week’s update please.

Also, see please Simplifying Trading update from The Calandra Report.

Suppressed Gold Price: China Road 

Chris Powell of Gold Anti-Trust Action Committee reminds us this week, “While it did not get much attention outside monetary metals circles, that “classified information” — the famous Wiki Leaks cables, dispatches taken from U.S. government computers by a disgruntled soldier Bradley (now Chelsea) Manning, and made public in 2011 — included information about U.S. gold price suppression policy.”

Some of those cables came from the U.S. embassy in Beijing, were sent to the State Department in Washington and included English translations of commentaries from Chinese government-controlled news organizations about U.S. gold price suppression policy.

The U.S. embassy cable’s summary of the commentary reads:

“According to China’s National Foreign Exchange Administration, China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries.

China gold reserves monthly thru May 2024 GoldChartsRUs and Gold Newsletter (Brien Lundin)

“The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency.

“China’s increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi (yuan).”

“The Wikileaks cables have plenty more like that,” Chris says. See:

https://www.gata.org/node/10380

https://www.gata.org/node/10416

Thanks again for the reminder, Chris Powell, who reported on the gold reserve info as early as 2011.

Xtra-Gold Resources, Ghana

The entirely self-funded Xtra-Gold XTG XTGRF I believe has a decent chance to notch a doubling of its current gold resource to 1.5 million ounces from its Kibi gold sites.

Xtra-Gold operates 5 concessions in west Africa’s Ghana and has been in country, regularly drilling, building roads and harvesting, then selling what amounts to approx. $15 million USD net of alluvial gold for more than a decade.

TCRs, I think the race is on: ​one of three or four possible buyers wil​l I hope one day purchase Xtra-Gold at $75 or more per ounce in the ground — 3 times its current $65 million CAD market worth. (I have owned XTG since 2009 and visited Apapam and its concessions four or five times.)

Samuel Asare, Ghanaian geologist, at active Kibi exploration drilling this week with Jim Longshore

Xtra-Gold uses a mounting $13 million USD cash and its held gold and securities to retire shares, buy all equipment, pay concession feeds and salaries. This has been going on for more than a decade.

Several of those held securities, including a nickel explorer and two energy-cos, at last look, I believe are accelerating in price.

“Our 100,000 meters of drilling at current prices would cost $30 million in Ghana.  We have financed the majority of these drilling costs with our alluvial mining project, for which we are getting zero value in our share price. Shareholders have had no dilution to their share ownership.” — James Longshore, CEO, founder, Xtra-Gold Resources

All Xtra-Gold photos are courtesy of James Longshore and Ghana staff. Please click on photos for larger size, clarity.

More Uranium Views

— “Following Fission & Paladin, I expect more M&A that might liven the markets up,” Daniel Major of GoviEx Uranium told me.

 

— Bill Sheriff of enCore Energy, a Texas producer, has been negotiating 3-year and longer contracts with buyers. He says contracting prices are firm not as weak as spot.”

Xtra-Gold’s James Longshore this week at Kibi Gold Belt core logging site
 — Cory Belyk of CanAlaska Uranium CVV, an explorer, concurs and says 10-year contracts (long-term) are getting fixed at slowly rising prices. See the UxC chart above.

 

As for what is deflating the enthusiasm we saw for the uranium price and uranium company stocks in the spring of this year, a uranium exec, wishing to remain unnamed, points to NexGen‘s NXE inflated purchase price for uranium for “strategic purposes;” that is, to boost inventory for the Athabasca Basin leader, which is not yet producing. The $250 million uranium purchase in May 2024 came via unsecured convertible debt at 9% interest.  “That was insane,” the exec says. “Punctured sentiment for uranium stocks (equities).”

 

Core logging at Xtra-Gold’s Apapam camp; VP of Exploration Yves Clement in center, taking notes
Bill Sheriff for his part senses a “buyer’s strike” this summer for spot uranium, whose price tends to set a guide for utilities and other nuclear users that must sew up their own inventories for future years.

 

Some execs who weighed in said they were taken by surprise by a Boss Energy BOE (Australia) sale of approx. $25 million of stock by insiders, including the CEO, in May. That damaged the appetite for uranium investing, two execs told me. Boss owns a third of enCore Energy’s Alta Mesa project in South Texas. See report.
I asked a Boss Energy director, Bryn Jones, one of those selling insiders, and The Calandra Report subscriber and an active uranium investor, how he sees it.

 

Bryn Jones, Boss Energy
“Our read on the overall shift in uranium sentiment was more based on the WNFC discussions where fuel buyers indicated they were likely to get significant relief from the Russian import sanctions, which led to holders of physical uranium to liquidate some of their position. The timing of this was coincidental with the announcement of some of our directors selling a portion of our holdings.”
Bryn, an industrial chemist based down under, said the majority of shares sold by the three were either bought or granted as incentives to achieve milestones. “Having reached those milestones and made significant money for investors, it seems fair to take some money off the table,” he said.

 

Nearly all of the stake sales above were small amounts, $1,000 or less. [Exception, half of quite profitable DHT Maritime stake, as discussed.]

In the case of Metalla, I intend to re-purchase, one hopes, at lower prices. Ditto, Ridgeline and ditto Skyharbour, whose Russell and Moore projects have 8,000 meters of drill results to come, and another 8,000 meters to be drilled.

 

— Thom Calandra 

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Thom Calandra ​is a ​writer and an investor. Research and material are meant as editorial opinion.​ He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.