Strategic Land Acquisition Expands Gold Exploration Potential in Key District

Source: Streetwise Reports 10/21/2024

Dryden Gold Corp. (DRY:TSXV; DRYGF:OTCQB) has announced a strategic acquisition of 41 mineral tenures from Shear Gold Exploration Corp. as part of its ongoing efforts to consolidate key assets in the Lower Manitou project area. Read what this deal grants Dryden and how it affects plans for 2025.

Dryden Gold Corp. (DRY:TSXV; DRYGF:OTCQB) has announced a strategic acquisition of 41 mineral tenures from Shear Gold Exploration Corp. as part of its ongoing efforts to consolidate key assets in the Lower Manitou project area. The purchase, valued at US$80,000, grants Dryden Gold a 100% interest in the Shear Gold Claims, which are free from any royalty obligations. The company expects to finalize the acquisition on October 22, and this latest acquisition builds on Dryden Gold’s earlier purchases in the Gold Rock Camp as another step in its efforts to expand its district-scale land holdings.

According to CEO Trey Wasser in the company news release, “The Shear Gold Claims represent another strategic acquisition as Dryden Gold continues to consolidate its important district-scale land package (see Figure 1). Having completed our recent upsized financing, we are now fully funded for an aggressive exploration program in 2025. While our main focus will remain the expansion of mineralization on the Elora and Big Master gold systems at Gold Rock, we also plan to expand and upgrade our district-scale project pipeline . . . We still have drill samples in the lab from fall drilling at Gold Rock, and drilling is scheduled to resume early next month. 2025 will be an extremely exciting year for Dryden Gold”.

Gold Sector Rallies Amid Global Uncertainty

On October 17, Goldfix reported that analysts at Bank of America predicted gold could reach US$3,000 per ounce by the end of next year, driven by soaring US debt levels. They emphasized that gold had become the “last ‘safe-haven’ asset,” with central banks and traders increasing their exposure to it as a hedge against inflation and debt risks from rising government borrowing.

Later that same day, Barchart highlighted that gold’s bull market was firmly intact, with prices reaching new highs throughout 2024. The report noted that gold hit a record of over US$2,700 per ounce in September, driven by inflationary pressures and market instability. Barchart pointed out that gold’s unique position as both a commodity and a currency continued to fuel its growth, with the potential for even higher prices as global uncertainties persist.

On October 18, Reuters reported that gold had surged past US$2,700 per ounce, fueled by escalating tensions in the Middle East and uncertainties surrounding the upcoming US presidential election. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, explained that investors were turning to gold as a “safe-haven asset” amid mounting geopolitical risks. This, combined with expectations of looser monetary policies, propelled gold’s value, making it one of the top-performing assets in 2024.

What’s Driving Dryden

The acquisition of the Shear Gold Claims significantly strengthens Dryden Gold’s strategic land position, adding to its already expansive district-scale land package in the Gold Rock Camp. According to the company’s investor presentation, this acquisition allows Dryden Gold to continue its focus on expanding the Elora and Big Master gold systems. Both of these areas have demonstrated high-grade mineralization. The newly acquired claims are contiguous with Dryden’s existing Sherridon and Gaffney projects. It makes them a key addition to the company’s exploration pipeline.

Following a recent upsized financing, Dryden Gold is fully funded for an aggressive exploration program in 2025. This funding will support expanded drilling, with pending fall drill results expected to provide additional insights into the project’s potential. As the company continues to consolidate its land holdings and execute its exploration strategy, Dryden Gold is well-positioned to capitalize on the significant gold-bearing structures in the region.[OWNERSHIP_CHART-11012]

Analysts on Dryden Gold

*Technical Analyst Clive Maund, in a report from September 10, remained optimistic about Dryden Gold Corp.’s future performance, reiterating his Strong Buy recommendation. According to Maund, Dryden Gold’s stock had been steadily improving in its technical condition, with the price breaking above the 50-day moving average and the momentum indicators, such as the MACD, turning positive. He pointed out that the company’s stock had been building a base pattern since February, and despite a brief dip in mid-year, it continued to present an attractive buying opportunity for investors. Maund highlighted that Dryden Gold’s broad-ranging exploration program, combined with its district-scale land package, positioned the company for a sustainable advance.

Additionally, Maund emphasized that Dryden Gold’s land package in a favorable mining jurisdiction, surrounded by major industry players like Kinross and NexGold, increased the company’s chances of significant discoveries. He noted that the company’s ongoing exploration efforts in the Gold Rock Camp. The program has included cost effective relogging, impressive results from new drill core and field work.

In summary, despite the company’s stock price being higher than when initially recommended, Maund maintained that Dryden Gold’s fundamentals and improving technical condition made it a Strong Buy for both fundamental and technical reasons.

Ownership and Share Structure

According to Refinitiv, Strategic entities own 31.10% of Dryden.  Alamos Gold Inc. (AGI:TSX; AGI:NYSE) holds an almost 10.73% stake in it. EuroPac Gold Fund owns 5.43%. Eric Sprott owns 2.97%, Rob McEwen owns 2.48 %, Dynamic Funds owns 3.38%, and other important stakeholders, including management and insiders, own 9.02%, with Director Robert Quartermain holding .74%. Only 60% of the 134.53 million shares are available to retail investors.

Its market cap is CA$21.52 million, and it trades in a 52-week range of CA$0.40 and CA$0.10.

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Important Disclosures:

1. Dryden Gold Corp. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own Dryden Gold Corp. securities.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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* Disclosure for the quote from the Clive Maund article published on September 10, 2024

1. For the quoted article (published on September 10, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: DRY:TSXV; DRYGF:OTCQB, )

Source: https://www.streetwisereports.com/article/2024/10/21/strategic-land-acquisition-expands-gold-exploration-potential-in-key-district.html