NEW YORK, Aug. 7, 2020 /PRNewswire/ -- Gold prices have continued to hit all-time record highs, with December gold reaching an astounding $2,027 on Tuesday as traders assessed the weakening dollar, continued monetary stimulus and of course, the ongoing pandemic. The gold frenzy is helping boost profitability for major gold producers and is starting to benefit mid-tier and junior gold exploration companies, particularly those in prolific gold regions across Canada. While some mining regions faced pandemic-related setbacks, miners in Canada continued with operations. Gold producer Yamana Gold (TSX:YRI) (NYSE:AUY), which owns one of Canada's largest gold mines with Agnico Eagle Mines (TSX:AEM) (NYSE:AEM), just exceeded production expectations and increased its annual dividend by 12%. Centerra Gold Inc. (TSX:CG) also boosted its quarterly dividend by 25% after reporting record Q2 net earnings of $80.7 million. Meanwhile, Pretium Resources (TSX:PVG) (NYSE:PVG) has continued to have steady production at its Brucejack Mine in British Columbia and remains on track to meet 2020 production guidance. Then, there is gold exploration company Portofino Resources Inc. (TSXV:POR) and its two very promising projects in one of Canada's largest and highest-grade gold producing districts.
The Red Lake Mining District in northwestern Ontario has produced approximately 30 million ounces of high-grade gold, most of which came from the iconic Campbell and Red Lake gold mines. However, a series of recent discoveries in the region suggest that miners have just barely scratched the surface of what Red Lake has to offer.
Unlocking the Potential of the Red Lake Mining District
Renewed interest in the Red Lake Mining District came after Great Bear Resources made multiple discoveries of high-grade gold at its flagship Dixie Project, which has been touted as one of Canada's largest new gold discoveries. Now, Portofino Resources Inc. (TSXV:POR) has begun exploration on two promising gold projects in very close proximity.
Located just 9 kilometers east of the Dixie Project is Portofino's South of Otter Property, which comprises 5,363 hectares and shares similar geology and structures. Then, there is the company's recently acquired 1,428-hectare Bruce lake property, which is located only 1.5 km northeast of Great Bear's Pakwash Property and 11 km southeast of Dixie.
Since acquiring the South of Otter property in 2019, Portofino Resources Inc. (POR.V) has been hard at work exploring and mapping the area and has already garnered some positive results. On August 5, the company reported impressive assay results from 12 samples taken from its South of Otter property during recent exploration, which identified two gold-bearing quartz veins sampling 18.0 grams per tonne (g/t) and 8.19 g/t gold.
The company also just increased the size of its South of Otter property from 5,207 hectares to 5,363 ha. by staking 2 additional, (contiguous) mining claims. The South of Otter property contains excellent targets for Red Lake-style gold mineralization and gold-bearing base metal prospects.
Just days later, Portofino announced an exciting milestone with the receipt of drill permits for the South of Otter property. The field crew has now mobilized to siteand is focused on expanding the new gold zone.
Apart from its work at South of Otter, Portofino Resources Inc. (POR.V) has also just completed initial exploration work at Bruce Lake, which included prospecting, rock, soil and glacial till sampling, and geological mapping.
Gold Mines Across Canada
Another highly gold-endowed region in Canada is the Abitibi Greenstone Belt, which is home to one of Canada's largest gold mines, the open pit Canadian Malartic. The open pit mine was jointly acquired by Yamana Gold (TSX:YRI) (NYSE:AUY) and Agnico Eagle Mines (TSX:AEM) (NYSE:AEM) and has continued to deliver strong production and cash flow, with the potential to expand both the mineral resources and mine life.
Despite experiencing a temporary suspension due to the COVID-19 pandemic, Canadian Malartic ramped up faster than expected and exceeded production expectations with mill throughput in both May and June surpassing 60,000 tons per day.
Across the country in northwestern Canada is Centerra Gold's (TSX:CG) Mount Milligan property, which is located in the easy-access mining-friendly region of Prince George, British Columbia. The project contains 2.4 million ounces of gold and 959 million pounds of copper in proven and probable reserves and has an estimated 9-year mine life.
Also in Canada's northwest is Pretium Resources' (TSX:PVG) (NYSE:PVG) Brucejack mine, a high-grade gold underground mine that contains total mineral reserves of 4.2 million ounces of gold. In Q1 2020, gold production at the Brucejack mine was 82,888 ounces of gold at all-in sustaining costs of $996 per ounce of gold sold. Pretium expects to produce 325,000 to 365,000 ounces of gold in 2020 at all-in sustaining costs between $910-$1,060 per ounce.
It's evident that Canada's rich gold regions offer investors a chance to capitalize on rising gold prices and protect themselves from stock market volatility. From established gold producers like Pretium Resources and Agnico Eagle Mines to junior exploration companies like Portofino Resources Inc. (.VPOR), which is on the edge of the next big discovery in Ontario, there are plenty of opportunities to get in on Canada's booming gold market.
For more information about Portofino Resources Inc. (TSXV:POR), click here.
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