High-Grade Gold Strikes in Brazil as New Drilling Results Reveal Untapped Potential

Source: Streetwise Reports 11/11/2024

GoldMining Inc. (GOLD:TSX; GLDG:NYSE.American) released results from its ongoing 2024 auger drilling program at the Sao Jorge Project in the Tapajos gold district, Para State, Brazil. Read more about high-grade gold intercepts and new exploration targets at So Jorge as GoldMining extends its search in Tapajs.

GoldMining Inc. (GOLD:TSX; GLDG:NYSE.American) released results from its ongoing 2024 auger drilling program at the São Jorge Project in the Tapajós gold district, Pará State, Brazil. The company reported multiple new high-grade gold intercepts from the auger program. These were primarily focused on the William South zone located approximately 2 km north of the São Jorge deposit. The auger drilling identified several gold-in-bedrock targets beneath extensive high-tenor soil anomalies, achieving intercepts such as 1 meter at 10.2 g/t Au (grams per tonne of gold) from 14 meters depth, 5 meters at 2.78 g/t Au from 10 meters depth, and 3 meters at 1.05 g/t Au from 12 meters depth.

The auger drilling program comprised 206 holes covering 3,098 meters, concluding in September 2024. Preliminary results show that only 13% of the soil anomalies have been tested so far. Notably, at least three contiguous bedrock targets within the William South zone have been prioritized for further exploration. GoldMining plans to extend the auger drilling systematically in 2025, with follow-up core drilling to explore deeper mineralization across the 45,997-hectare São Jorge land package, 90% of which remains unexplored. These findings are viewed as supportive of the regional-scale exploration potential in Tapajós, one of Brazil’s historically productive gold districts, known for yielding over 20 million ounces of gold.

The Gold Market

On October 29, Kitco Media reported that gold neared US$2,800, driven by a “perfect storm” of geopolitical tensions, the upcoming U.S. election, and sustained demand from central banks. This confluence of factors, alongside a weak dollar, contributed to bullish sentiment. This is evidenced as the metal demonstrated a 35% rise for the year. Kitco stated, “multiple geopolitical flashpoints have intensified investor concerns,” further supported by central bank purchases aimed at diversifying reserves away from U.S. dollar dependency.

“This, therefore, looks like a good time to buy GoldMining,” Technical Analyst Clive Maund wrote.

In a November 4 report, Egon von Greyerz emphasized gold’s unique role as a stable asset against fiat currency depreciation. In his article for von Greyerz AG, he explained that “gold will rise by multiples in the coming years,” attributing this to exponential debt growth, persistent inflation, and declining trust in fiat currencies.

He underscored that no fiat currency has retained its original value throughout history, suggesting that gold’s recent gains represented a response to governments’ ongoing devaluation of paper money.

Yahoo! Finance’s Ambrose Evans-Pritchard discussed the unexplained surge in gold prices on November 5. The report noted that gold had hit an all-time high of US$2,790. Evans-Pritchard pointed to large, opaque purchases that “have geopolitics and fiscal revulsion written all over [them],” interpreting the trend as a shift away from dollar-denominated assets, especially by authoritarian regimes and nations wary of U.S. fiscal and monetary policy.

He concluded that these moves reflected rising global anxieties, describing gold’s rally as a forewarning of “fiscal ruin and global dystopia.”

GoldMining Catalysts

According to GoldMining’s November 2024 Investor Presentation, the São Jorge Project is positioned to benefit from its location within the Tapajós gold district, where infrastructure such as paved highway BR-163 and a 138 kV power line support operational feasibility.

GoldMining’s ongoing exploration strategy is aimed at unlocking value across its extensive holdings, capitalizing on high-priority targets that emerged through systematic soil sampling and auger drilling. The additional exploration planned for 2025 aligns with GoldMining’s goal to further delineate the São Jorge mineral system and build on high-grade intercepts as indicated in the current drilling phase, with potential implications for expanding gold resources on the property.

Analyst Opinion on GoldMining Inc

Ownership and Share Structure

According to Refinitiv, 5.14% of GoldMining Inc. is held by management and insiders. Of those, Amir Adnani has the most, with 3.49%.

Institutions hold 8.49%. Of institutions, those with the most are Van Eck Associates Corporation with 4.79% and Commodity Capital AG has 1.53% The rest is retail.

GoldMining has a market cap of CA$163.94 million and a 52-week range of CA$0.75–$1.08.

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1) James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.

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( Companies Mentioned: GOLD:TSX; GLDG:NYSE.American, )