Market moving trends for USD index, gold and gold stocks are all shaping up in a very bullish way for gold stocks.
The USD index has gone through a Death Cross in early 2023, following on a correction that started in November, 2022. This is very bullish for gold.
While the USD has been in correction for the past few months, gold is gaining strength. Gold is only a few days away from a Golden Cross. The Death Cross on the USD and Golden Cross for gold are trends that look to continue as the Federal Reserve is close to ending its USD supportive interest rate increase to fight inflation.
The Fed is having little success fighting the inflation they created with 14 years of near zero interest rates after the 2008 economic meltdown. They are breaking things, real estate sales are falling off a cliff and the yield curves are inverted and pointing toward a significant economic slowdown. The coming recession will cause them to stimulate the economy with lower interest rates in the second half of 2023.
When gold is strong, good gold stocks are even stronger. Galantas Gold (GAL.V) has an exceptional orogenic gold project in Northern Ireland.
I’m a big fan of orogenic gold systems because they are company makers as they are very low cost mines, with high grades that make them extremely profitable. When Kirkland Lake started mining their orogenic gold deposit at the Swan Zone at the Fosterville Mine, it made them one of the lowest cost gold miners, one of the best gold mining performing stocks and ultimately led to them being bought out.
Kirkland Lake was a huge winner for their shareholders and I think Galantas is on the brink of a powerful move as they advance their orogenic gold system. The image below really helps tell the story.
Their drilling has been focused at Kearney and Joshua zones. Were they have hit many holes with high-grade gold to bonanza grades over significant intersections in an orogenic gold zones. They have also hit a series of dilation zones, this is where the rocks open up and allow the gold bearing fluids to pool up.
The high-grade gold and the dilation zones help them to have excellent predictability to drill deeper. Orogenic gold systems are structurally controlled and go very deep as the faults or cracks in the earth are crustal faults that go down for thousands of metres. The faults are the cracks in the earth that the gold bearing fluids use as a path of least resistance to make their way up from much deeper.
More evidence they are onto a special orogenic gold system can be seen in the image above. The series of zones are tightly packed into a small area. Plus they are found just to the north of a key structure. It is my belief that the structure and secondary faulting is the source of the gold in the zones, and that as they go deeper they will start to come together into one key mineralizing gold system.
I think they are onto a big and very powerful orogenic gold system. As one follows orogenic gold systems deeper the zones and gold is somewhat compressed and the grade gets higher the deeper the drilling goes.
So far, the near surface drilling has been confined to the first couple hundred metres below surface. The depth potential remains wide open. I’m looking forward to deeper drilling as I think it will reveal a remarkable opportunity like the Swan Zone at the Fosterville mine.
Currently, Galantas Gold has a very modest valuation considering what they have already found with their drilling. Key catalysts going forward will be deeper drilling and a continuation of the bullish trend in gold and more attention that has been coming in for gold stocks with strong stories, such as is the case with Galantas Gold.
In Closing
Galantas Gold is a sponsor of my reports. This has enabled me the opportunity to do series of interviews with their CEO, Mario Stifano. In addition, they are featured regularly on my reports on the sector. You can find their interviews and in the reports on the sector here on my Youtube channel.
As always my reports are for research purposes only, before making any investment decisions you should speak with your financial advisors and do your homework. A good place to start your homework on the companies I follow is on my Youtube Channel. Then check out their websites where you should look at their news releases and corporate presentations.
I hope you are enjoying the holidays and I would also like to wish you a prosperous 2023.
All the best,
Allan Barry Laboucan
Founder
Rocks And Stocks News
Thank you Allen for this information.