Four Cent Miner Rubbing Shoulders With Mining Majors; Gold Continues To Be A Hedge Against Inflation

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Tuesday, May 10, 2022

Temperature, humidity, and wind speed are some of the factors that meteorologists use for predicting a hurricane. When these align, a storm is coming, and all people can do is try and get out of its way. In the world of finance, low interest rates, protracted quantitative easing, excessive money printing, and outsized stimulus are a recipe for spiking inflation. It’s coming and Wall Street knows it, no matter how much central bankers try to convince otherwise.

Sandbags and plywood can mitigate hurricane damage, but nothing tops insurance. For inflation insurance, investors often look to gold and mining stocks. The reputation as an inflation hedge was developed over hundreds (and even thousands) of years owing to debasement of coins and later by the U.S. Treasury suspending conversion of USD into gold during periods of runaway inflation.

In North America, the place to look is Newfoundland, a region that billionaire gold and silver investor Eric Sprott thinks could be home to certainly Canada’s, and perhaps the world’s, greatest gold discovery. Sprott has not been shy about putting his money where his mouth is, pouring over $200 million into companies in an area known as the Gander Gold Belt Region.

Home to operating mines and tens of dozens of promising early-stage projects, the area has become a hotbed of activity in Canadian mining. Sprott has his money in more than one, including King Global Ventures Inc. (TSX-Venture: KING) (OTC: KGLDF), which holds 100% interest in four highly prospective and previously explored gold exploration projects covering 4,100+ hectares in the region.

King management initially is focusing on developing Golden Nugget (1,850 hectares) and Miss Pickle (950 hectares). Exploration at Golden Nugget has unearthed channel samples returning up to 50.2 grams per tonne (g/t) gold over 1.1 meter, 87 g/t gold over 0.8 meters and 29.2 g/t over 2.5 meters. In addition to the high-grade discoveries, research suggests that the entire 10-kilometer-long structural corridor contains low- to medium-grade gold values.

Miss Pickle is part of a structure running parallel to Gold Nugget known as the Coaker Trend. Historical grab samples returned 7.3 g/t gold over 2.05 meters, 8.3 g/t gold over 1.9 meters, and 7.1 g/t gold over 1.2 meters. Work last summer discovered a new gold zone with samples up to 0.96 g/t over 7.5 meters that remains open in all directions.

King is staring down some important milestones as it completes airborne studies and embarks on its maiden drill program, inflection points that generally build value for an explorer. This should be particularly true for King, considering many of its neighbor’s command exponentially higher market capitalizations than King’s paltry $5 million.

In fact, if you follow the Cape Ray fault from its southern tip, you’ll run across Marathon Gold’s (TSX: MOZ) (OTCQX: MGDPF) ($423 million market cap) Cape Ray mine, then Marathon’s Valentine Lake mine, Teck’s (NYSE: TECK) (TSX: TECK.B) ($20.3 billion market cap) Duck Pond mine, followed by Sokoman Minerals’ (TSX-Venture: SIC) (OTCQX: SICNF) ($49.1 million market cap) Moosehead project.

Next in line: Miss Pickle and Golden Nugget. Knowing this, perhaps it isn’t a big surprise that an independent director of King recently bought shares in the open market. Miss Pickle and Golden Nugget are also next to Prospector Metals’ (TSX-Venture: PPP) (OTCQB: ETHOF) ($24.7 million market cap) Toogood project, while its Gold Boulder Project is surrounded by Newfound Gold’s (NYSE American: NFGC) (TSX-Venture: NFG) ($1.1 billion market cap) Queensway project.

If a company is judged by the company it keeps, King is in an envious position.

King has already filed its permit application with the province and is just waiting for the green light to start drilling. A drill contractor is engaged and poised to commence drilling holes on 11 prospective targets at Miss Pickle and Golden Nugget where gold has been found before at surface.

King has also engaged GoldSpot Discoveries (TSX-Venture: SPOT) (OTCQX: SPOFF) for the purpose of utilizing the latest technologies to help direct upcoming exploration. Last week, GoldSpot completed a Multi-Parameter Airborne Geophysics Survey (M-PASS) on the two properties. GoldSpot’s is on the leading edge of exploration, using a combination of technologies to collect a multitude of data from a single helicopter by making passes surveying the land. The data is subsequently input for analysis using Artificial Intelligence to identify optimal exploration targets.

Armed with this data, King’s team will begin new programs mapping and sampling the ground ahead of the next batch of drilling. Giving the prolific findings along the fault and by nearby (and adjacent) properties, expectations are high for King’s upcoming drill program, which should catch the attention of those looking for upside while protecting against inflation.

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King Global Ventures Inc. (TSX-Venture: KING) (OTC: KGLDF) Full Corporate Write-Up: Click Here.

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