In this article, I’ll walk you through Element79 Gold’s strategic position in the rapidly rising gold market, where prices have surged by about 20% this year. With even higher prices predicted, Element79 is well-prepared to take advantage of this favorable environment through its near-term production projects and exciting long-term exploration prospects. I’ll delve into the company’s key assets, including the Lucero mine and its Nevada portfolio, and explain how its experienced leadership team is driving growth and sustainability. I’ll also highlight Element79’s recent uplisting to the OTCQB Venture Market, a move designed to attract a wider range of investors and enhance market visibility.
Gold has surged by about 20% this year, outpacing even US tech stocks. Bank of America’s investment strategist, Michael Hartnett, suggests that investors should consider buying gold, despite its near-record high prices. He points to upcoming potential interest rate cuts from the Federal Reserve, which could reignite inflation in 2024. Historically, real assets like gold have performed well in inflationary periods, making it an attractive investment.
Interestingly, while gold has seen significant gains, it has also experienced $2.5 billion in net outflows, suggesting that investors are taking profits. Hartnett attributes the continued strength in gold prices to central bank purchases, particularly from China’s central bank, the largest buyer in 2023. He highlights that gold is now the second-largest global reserve asset, with a low correlation to other assets like stocks, adding to its appeal as a hedge.
Element79 Gold (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS) is a Canadian-based mining company that is making significant strides in the precious metals industry, with a focus on gold and silver. Through a combination of near-term production potential and long-term exploration projects, the company is positioned to generate immediate revenue while continuing to explore untapped resources. Element79’s flagship project, the Lucero mine, is expected to resume production soon, while exploration activities in Nevada provide further growth potential.
The Lucero Mine, situated in Peru, is renowned as one of the country’s highest-grade underground gold mines in history. A past producer, Lucero was famous for its exceptionally rich deposits, averaging a gold equivalent grade of 19.0 grams per ton (14.0 g/t of gold and 373 g/t of silver). During its last five years of operation, which ended in 2005, the mine produced approximately 40,000 ounces of gold equivalent annually. These high-grade results established Lucero as a key asset in the region, known for its reliability in delivering significant gold and silver outputs. The mine’s underground workings extend over 16 kilometers, showcasing the scale and depth of its mineral reserves.
In 2023, fresh assays and channel samples from Lucero’s underground workings confirmed the potential for a new high-grade mining phase. The samples yielded up to 11.7 ounces (374.4 g/t) of gold per ton and 247 ounces (7,904 g/t) of silver per ton, significantly validating the possibility of renewed operations. With over 600 new samples feeding into a 2024 drill plan, Lucero’s underground workings hold the promise of substantial future production.
Since acquiring a portfolio of 16 Nevada projects from Waterton Global Resource Management in December 2021, Element79 Gold (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS) has strategically managed and optimized its assets to maximize shareholder value. After reviewing and expanding historical data sets, the company divested several projects, including Stargo and Long Peak, which were sold to Centra in 2023. A 43-101 report for Long Peak is expected in late summer 2024. Element79 chose not to renew claims on eight early-stage projects but retained data rooms for potential future value.
The Maverick Springs project, initially purchased with a 1.8M oz AuEq historical resource, was reviewed and reworked, increasing its Mineral Resource Estimate to 3.71Moz AuEq. Maverick Springs was sold to Sun Silver in May 2024, with proceeds used to pay off debts while retaining 3.5 million shares in Sun Silver Limited as a long-term investment. Additionally, the Valdo portfolio is under negotiation, with an expected sale closing in 2024, while Clover and West Whistler are also under review, with discussions ongoing for potential sales.
James C. Tworek – CEO & Director
James C. Tworek, CEO and Director of Element79 Gold, has over 24 years of experience across industries like mining, project finance, oil and gas, and clean water technology. He has held senior roles in public and private companies, focusing on corporate growth, business operations, and investor relations. His leadership emphasizes transparency, integrity, and teamwork.
Tammy Gillis – CFO
Tammy Gillis, CFO of Element79 Gold, is a CPA (CMA) with over 20 years of experience in public markets. She has led financial reporting, regulatory compliance, and financing efforts. Her background includes working for a company with over $120 million in revenue, and she is well-versed in the financial demands of public companies.
Kim Kirkland – COO
Kim Kirkland, COO of Element79 Gold, is a Registered Professional Geologist with experience in top mining companies like Barrick Gold and Rio Tinto. He has led exploration and operations in South America, with expertise in extraction and optimization, ensuring efficient oversight of the company’s production.
Warren Levy – Board of Directors
Warren Levy, recently appointed to the Board, has a strong background in sustainability and operational efficiency in the energy and resources sectors. His experience spans Latin America and Asia, where he has led companies through successful capital raises and community engagement. He most recently led a major natural gas company in Mexico to a successful sale.
The leadership team at Element79 Gold brings a diverse range of expertise, positioning the company for significant growth and long-term sustainability. With extensive experience across various industries, including mining, finance, and operations, the team ensures a strategic approach to business development and exploration. Their deep knowledge in public markets, regulatory compliance, and global mining operations enables the company to navigate complex challenges effectively. A strong focus on sustainability, operational efficiency, and investor relations underscores the company’s commitment to responsible growth and community engagement, setting the foundation for future success in the mining sector.
Element79 Gold (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS) is well-positioned for near-term production, with a low-risk, low-capex heap leach project in Nevada set to begin next year. Along with its immediate production potential, the company boasts significant exploration upside across its key assets and associated targets. On August 23, 2024, the company uplisted its common stock from the OTC Pink Market to the OTCQB Venture Market, trading under the symbol “ELMGF” starting on August 26, 2024.
“We are thrilled to announce the uplisting to the OTCQB in line with our strategic growth objectives. This move is a direct result of our commitment to transparency and achieves our team’s goal to enhance our visibility with the investment community, and to all investors, through listing our shares on a larger, more accessible exchange. The OTCQB market has increased compliance and quality standards, broadens access and may improve liquidity for shareholders. We are confident this step will expand Element79’s visibility and attract a wider range of investors”
James Tworek Chief Executive Officer and Director
Element79 Gold (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS)’s narrative becomes even more compelling with gold (Au) prices near all-time highs, currently hovering around $2,420/oz. With many investment banks forecasting gold prices between $2,500 and $3,000/oz. by 2025, the timing of Element79’s near-term production projects positions the company to capitalize on this bullish market. Companies that enter production sooner will stand to benefit significantly from the anticipated surge in gold prices, increasing their value and potential returns for investors. Element79’s strategy to expedite production aligns perfectly with this favorable market outlook.
