Countries Shunning Russian Resources Good for Canadian Gold as Next Great Discovery Looms

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Wednesday, June 1, 2022

Russia has been hit with sanctions from countries around the world for its invasion of Ukraine, although nothing has been effective to dissuade Russian President Vladimir Putin’s attack on the country. What’s next is anyone’s guess as global leaders consider new, stricter economic penalties and companies look to re-route supply chains to exclude Russian goods. Commodities are a huge part of the Russian economy as a world-class producer of natural gas, crude oil, uranium (through its allies), and gold.

Russia’s dominance in energy commodities is common knowledge, yet many don’t realize that the country was the world’s number 2 gold producer in 2020, only marginally trailing China for the top spot. If countries want to hit Russia in the wallet, gold could be a good way to go. The answer to a gold supply chain disruption is to bring business back to North America, where the U.S. and Canada currently hold the number 4 and 5 positions with room to climb.

Canada is famously known for some massive gold mineralization regions, including the Abitibi, Red Lake, and the Golden Triangle, to name a few. More recently, Newfoundland is emerging as potentially home to the next great Canadian discovery in the Gander Gold Belt. Billionaire gold and silver investor Eric Sprott has gone headlong into the region, trumpeting it as possibly not only the biggest discovery in Canada, but perhaps one of the biggest compilations of high-grade gold in the world. For a man that has made a career out of finding gold, that’s saying something.

For investors, the Gander Gold Belt is a risk-mitigated ground floor opportunity. Historic work indicates gold mineralization, which is being validated through modern work that has money pouring into the region to advance properties. For the most part, valuations remain low, but that will change with the land grab as one property after another delivers survey and drill results that further support project and mine development. 40+ companies are now active in the area from majors like Teck Corp (TSX:TECK.B) (NYSE:TECK) to promising upstarts.

A prime example of this situation and opportunity is King Global Ventures Inc. (TSX-Venture: KING) (OTC: KGLDF). Trading around 4.5 Canadian cents per share and a market capitalization of just C$6.8 million, the Toronto-based company has assembled a portfolio of properties covering over 4,100 hectares in the Gander Gold Belt region while being on trend with producing and upcoming mines that are capitalizing on the mineralization trapped in the Cape Ray fault.

Sprott last year invested over C$1.0 million in King to help advance its projects.

The company is initially focusing on its Golden Nugget and Miss Pickle properties on the Cape Ray fault where channel samples have returned values of 50.2 g/t gold over 1.1 meters, 87 g/t over 0.8 meters and 29.2 g/t over 2.5 meters at Golden Nugget and 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 at Miss Pickle. The properties cover 2,800 hectares of bonanza-grade potential following the trend of the Cape Ray, Valentine Lake, and Duck Pond mines. King added to its land package with the acquisition of the 1,300-hectare Chapel Island project, giving it a commanding position in the region.

As it prepares to initiate its maiden drilling program on the properties this summer, King is awaiting data from a recently completed M-PASS (Multi-Parameter Airborne Geophysics Survey). This data is being analyzed using Artificial Intelligence and aggregated with data collected by Rubicon Minerals, which spent $500,000 on prospecting, sampling, and mapping the projects from 2002-2007, to best identify drill targets.

Amongst other things already discovered are a 10-kilometer strike containing visible gold at Golden Nugget and a 2-kilometer strike at Miss Pickle, as well as a new gold zone at Miss Pickle that was identified during exploration work last summer by King.

Golden Nugget and Miss Pickle may garner the headlines, but the company quietly has value in its final property, Golden Boulder to the east of the other three. This project is completely surrounded by New Found Gold’s (NYSE American:NFGC) (TSX-Venture:NFG) Queensway Project, an early-stage, high-grade property widely touted as a bellwether for the great things to come from the Gander Gold Belt. Every discovery at Queensway defining the direction of gold mineralization should add value to Golden Boulder for King, a fortuitous position to be in for any young resource company.

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

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