Global Unrest, Currency Instability, & Massive Slowdowns Across Global Economies Could Create Immediate Opportunity for Junior Gold Stocks Like:
Freeman Gold Corp.
(CSE: FMAN) (OTC: FMANF) (FSE: 3WU)
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This year has been one for the history books. Wildfires, China trade wars, and coronavirus are just a few of the big-ticket items from 2020. I mention this because this unique mix of historic events has culminated into one giant financial mess.
It has ultimately resulted in the central bank lowering rates to 0% while the government has flooded the markets with trillions of dollars in stimulus to not repeat another Great Recession. The long-term ramifications of these moves have shaken the economy to its very core as investors grapple with slowing economic growth data and abysmal corporate earnings results.
Is the stock market dead? Absolutely not and these major disruptions could have made a perfect storm for one industry: Gold Mining!
The 2008 financial crisis left a wake of destruction and scorched earth but out of the ashes rose massive opportunity for those that had the foresight to think ahead and ultimately realize the opportunity in front of them and as a result REAL WEALTH WAS BUILT!
The Last Financial Crisis Created Some of The World’s Biggest Opportunities To Capitalize On Commodities With Gold Leading The Charge
During the 2008 financial crisis companies like Barrick Gold Corporation, Wheaton Precious Metals, and Newmont Corp. saw massive gains. It doesn’t take a certain skill set to see that financial unrest and a global economic meltdown triggered a huge flight to safe haven investment like gold stocks:
|Company||Price In 2008||Gain During Last Gold Rush|
|Barrick Gold||$17.27 (Oct 24)||224% @$55.95|
|Newmont Corp.||$21.47 (Oct. 24)||237% @$72.42|
|Wheaton Precious Metals||$2.91 (Nov. 25)||1,536% @$47.60|
Junior Gold Stocks Could Stand to Present the Biggest Opportunities
Obviously, you have the gold mining giants like Barrick Gold (GOLD) and Newmont Goldcorp (NEM) that rallied hundreds of percentage points during the last gold boom. But we can clearly see that the one that presented the biggest percentage gains for investors was junior gold stock, Wheaton.
That 1,500+% move wasn’t a stand-alone either. Investors also saw gold stocks like New Gold run from $0.75USD to highs of $14.15USD and Novagold jump from $0.37USD to highs of $16.90USD. There’s no arguing the explosive potential of the juniors especially during times of bull markets for gold stocks.
The Primary Goal for Investing is to Buy Low and Sell High
What has been the single-most important factor of profiting from gold sector rallies? Being early! Notice that “early investors” in every case managed to reap the most rewards along the way. The fact that not one but multiple stocks (including many not mentioned here) produced thousands in percentage gains means that there is likely a huge focus on what’s next and which junior gold stocks to watch right now.
(CSE: FMAN) (OTC: FMANF) (FSE: 3WU)
Freeman Gold Corp. (CSE: FMAN) (OTC: FMANF) (FSE: 3WU) is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in Canada and the USA. Its latest acquisition, however, could put the company right in the middle of one of the most gold-rich areas of the world. Believe it or not, Idaho is one of the top-ranked jurisdictions globally with an extensive and rich mining history. It was ranked No. 8 in the world and No. 3 in North America on the 2019 Fraser Institute rankings of mining attractiveness index.
Despite its early stage status, Freeman has already begun its acquisition strategy in Idaho. The company recently completed the acquisition of the parent company of Lower 48 Resources Ltd. and indirectly Lower 48 Resources LLC. The significance of that is Lower 48 just acquired the right to acquire the Lemhi Gold Project located in Lemhi County, Idaho, USA.
Freeman’s Lemhi Gold Project Present Uncapped Potential
The Lemhi Project is comprised of 99 unpatented claims and 11 patented claims subject to certain existing encumbrances, which have over 10,000 meters of historic drilling. Of the 99 unpatented claims, 53 are owned directly by Lower 48 and 46 optioned claims are held subject to an agreement with BHLK-2 LLC.
Lower 48 has the right to earn a 100% interest in the claims subject to the Option Agreement upon making an aggregate of $1,000,000 in payments to BHLK over a seven-year period. Upon earning a 100% interest in the Optioned Claims, BHLK will be granted a 2% net smelter return royalty.
It’s no coincidence that potential exists in Idaho as some of the biggest gold mining companies are focusing on the region. Agnico Eagle, Midas Gold Corp, Liberty Gold, Revival Gold, and Excellon Resources are just a few to name. Even major gold mining companies like Barrick Gold are flooding the region with millions of investment dollars to get in on the action. The company has spent over $30 million already to buy up interests in some of the gold mining companies in the area that show promise.
Freeman Gold Corp. (CSE: FMAN) (OTC: FMANF) (FSE: 3WU)’s Lemhi Gold Project Could Be A Force to Reckon With
As far as Freeman Gold’s Lemhi Project is concerned, it could stand to rival some of its market-leading peers. Lead by an experienced team stacked with mining industry veterans, the company is focused on extracting the true potential of its claims.
Lemhi has over 355 holes drilled in the deposit area. Furthermore, the historical data suggests the potential for gold discovery in the area. According to the company, the Lemhi Gold Project has the potential to develop a 1.5 to 2M ounce plus resource. Furthermore, the peer comparable demonstrate that there is a premium for a US-based gold company with 1.5-2m oz. with grades around 1 gram per ton.
What’s more, is that the majority of historical drilling shows many holes ending in mineralization; a key indicator that this area could be a prime candidate for gold discovery. Readers are cautioned that there is no resource associated with the Lemhi Gold Project, National Instrument 43-101 compliance or otherwise. The statement of potential to develop a resource or a resource with associated grades are solely provided for purposes of context. The Lemhi Gold Project may never develop a resource of any magnitude or at all.
Near-Term Potential Of Lemhi
This summer, Freeman began a 5,000-meter diamond drill program at Lemhi. This is intended to confirm historical data and allow the use of over 355 historical drill holes in a National Instrument resource estimate. Results include 1.80 grams per tonne gold over 193 metres, 3.94 gpt Au over 56 meters, and 1.81 gpt Au over 179.83 meters. Major Drilling America Inc has been awarded the diamond drill contract.
Will Randall, President & CEO of Freeman Gold, commented, “We intend to commence drilling during the first week of September with the goal of completing the twin and infill program by November 2020, and the maiden resource estimate before year end.”
Best of all is that even with historical drilling, the area is relatively unexplored in the surrounding areas. Based on these factors Freeman sees this as an opportunity to follow up on key drilling intercepts. In light of this being a recently acquired claim, the timing could be perfect as gold prices continue moving higher this year and Freeman has stated it’s ready to implement an “aggressive exploration program” followed by “potential M&A.”
In late, Q3, Freeman also acquired and extinguished a back-in right from Yamana Gold Inc. over the Lemhi Project in consideration of the issuance to Yamana of 4,035,273 common shares of Freeman, representing 5% of Freeman’s issued and outstanding shares. Not only does the transaction remove the existing back-in agreement on five of Freeman’s patented claims, but it also brings in a Leading Gold Producer as a significant shareholder of Freeman Gold. The transaction also further de-risks the Lemhi project and frees it of all back-in rights.
Key Expansionary Acquisitions
During the second half of the third quarter, 2020, Freeman acquired the Moon #100 and Moon #101 unpatented mining claims, located within the historical resource area of its Lemhi project. The Moon Claims are located towards the northern portion of the historical resource area in the immediate vicinity of historical drill holes 86065, 93002 and 93005 which contain significant gold mineralization including both broad (193.55 meters of 1.8 grams per tonne gold (‘g/t Au’)) and high grade (57.91 meters of 4.09 g/t Au) gold intercepts.
The Moon Claims have historical drilling with significant intercepts within and in the immediate vicinity of the claims that we can now incorporate into future work. Freeman now has a complete property package without any back-in rights. As a result, we can focus on our ongoing drill campaign without property constraints to maximize the potential resource.”Will Randall, President & CEO
Why Is Timing So Important for Gold Stocks Right Now? You Be the Judge
Billionaire investor Ray Dalio recently explained at the World Economic Conference how we could have a big problem on our hands and said to look beyond the next 12 months to see what’s really on the horizon. Dalio explain exactly why gold is the one of the most important things investors should have in their portfolio right now based on key drivers that have historically led to gold price breakouts:
- Mounting economic debt
- Low & potentially negative interest rates
- Quantitative easing
- Weakening currencies
- Massive geopolitical stress
Dalio isn’t alone either. Billionaire hedge fund manager and DoubleLine Capital founder, Jeffrey Gundlach said in an interview, “I am certainly long gold…Gold and commodities broadly should benefit this year.”
Legendary investor Paul Tudor Jones said that gold is his favorite trade for the next year or two, “I think one of the best trades is going to be gold. If I had to pick my favorite [bet] for the next 12 to 24 months, it’d probably be gold.”
Now, with the U.S. and China at each other’s throats, Central Banks opting for low or even negative rates, and quantitative easing which essentially is banks buying bonds to boost the economy, there’s a real risk ahead and timing could be perfect for gold stocks.
Gold has long been a safe haven for investors. But we have a serious problem that could begin to appear right now, and the writing seems to already be on the walls. The timing of gold’s next bull run could be perfect right now. These aren’t things that can be remedied overnight. What that could mean is that the bull market for gold could just be getting started.
Why Freeman Gold Corp.
(CSE: FMAN) (OTC: FMANF) (FSE: 3WU)
- Freeman Gold Corp. (CSE: FMAN) (OTC: FMANF) (FSE: 3WU) just closed the acquisition of the parent company of Lower 48.
- Lower 48’s Lemhi Project gives Freeman direct access to a property that could have the potential to develop a significant resource.
- This area of Idaho and surrounding regions are home to some of the biggest gold companies in the world all looking to swallow up or grab considerable interest in any gold companies showing promising gold production potential. Barrick’s previous $30+ million investment into the region is just one recent example
- Freeman Gold Corp. (CSE: FMAN) (OTC: FMANF) (FSE: 3WU) is led by a leadership team with a wealth of experience in mining and resource exploration, one of which managed a team on the discovery of a 4 million-ounce gold mine in Western Australia and credited with the greenfields discovery of a 3 million ounce gold mine in Ontario.
- The current economic climate may suggest perfect timing for gold mining companies right now.
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