Rising Inflation Sends Gold Demand Soaring 34% As Investors Scramble For A Safe Haven
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NEW YORK, May 17, 2022 /PRNewswire/ -- Investors once again looked to gold as a safe haven to protect their hard-earned cash in Q1 2022 as record inflation pummeled other investment vehicles. Physical demand for gold jumped 34% year-over-year to 1,234 tonnes in the first three months of 2022, according to the World Gold Council, marking the highest quarterly demand increase the gold market has seen since 2018. Demand for physical gold climbed even higher in April to a 10-month high, as global bond prices and stock markets dropped on expectations of higher interest rates. According to BullionVault's Head of Research Adrian Ash, "devaluation continues to push investors to diversify into gold as inflation hits currencies, bonds and stocks," creating an opportunity for gold companies like New Pacific Metals Corp. (NYSE:NEWP) (TSX:NUAG), AngloGold Ashanti Limited (NYSE:AU), Yamana Gold Inc. (NYSE:AUY), SSR Mining (NASDAQ:SSRM) (TSX:SSRM) and Filo Mining Corp. (OTCQX:FLMMF) (TSX:FIL).
On May 17, New Pacific Metals and its local Bolivian partner announced the assay results of the last ten drill holes from the 2021 discovery drill program at the Carangas Silver-Gold Project, Bolivia. Assay results of all 35 holes drilled in 2021 have now been received and released. Highlights from the last ten holes include Hole DCAr0031 intersecting 595.7 m (from 161.55m to 757.25m) grading 1.25 grams per tonne (g/t) gold (Au) and 7 g/t silver (Ag), including 98.9 m (from 457.3m to 556.2m) grading 2.58 g/t Au, 6 g/t Ag and 42.11m grading 3.51 g/t Au, 2 g/t Ag and 0.1% copper (Cu) (from 711.0m to 753.11m). This broad gold zone occurs beneath a silver horizon of 41.63 m grading 41 g/t Ag, 1% lead (Pb) and 1.72% zinc (Zn) from 62.37m to 104m.
Drilling is underway on the 2022 drilling program of up to an additional 40,000 meters (m), with four drill rigs turning at the Carangas Project. Of the four drill rigs, two rigs are testing the shallow silver horizon and the other two rigs are testing the gold mineralization at depth. So far, approximately 10,000 m have been completed in 15 holes. Assay results of 15 drill holes completed in 2022 are pending.
This isn't the first time New Pacific has achieved promising assay results from the Carangas Project. On February 10, New Pacific Metals received the assay results from six drill holes from the 2021 discovery drill program, revealing an expansive, near-surface silver-rich zone of mineralization stacked above a broad zone of gold mineralization. Highlights include silver mineralization of 148m interval grading 78 g/t Ag and 2.07% Pb+Zn and a higher grade gold mineralization interval of 95m (from 35.35m to 630.35m) grading 1.14 g/t Ag, 0.77% Pb and 1.13% Zn.
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