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A dangerous development I am already seeing in Europe (my home base) is the development of a so-called wage-price spiral, with lots of sectors increasing salaries to repair loss of purchasing power. This isn’t positive as it fans inflation further as it enables people to buy at higher prices.  

In the meantime lots of sectors like food, supermarkets, DYI, lots of retail and energy are raking in record profits at the cost of the average consumer who can buy less and less for their currencies, as I am very suspicious about those sectors using high commodity prices as an excuse to increase their overall pricing in an opaque way to ridiculous levels. For example meat and fish pricing in my country (Netherlands) has increased 50-100% YOY, you can’t tell me that farmer salaries, animal food, preparation, packaging, storage, transport and supermarkets had to increase with 50-100% to justify this Zimbabwean-style price increase. This is an extreme example, but many products and services have seen price increases that defy imagination for western countries.  

Governments really have to look into this as I see this as bordering on criminal. Fortunately certain initiatives around this (price controls for energy) are being conducted at the moment in Europe, but it should be researched far more widespread. A free market is fine, but within limits and certainly not leading to potential system failure. I am not under the impression that the slowly but locally escalating Russia invasion has a profound impact on the entire world economy anymore as it has become business as usual, neither does the China involvement. The US Dollar is slowly recovering again (although I don’t understand why it broke down on ever increasing rates, but I am no economist), and as a potential consequence gold didn’t break through the US$2000/oz threshold, and is on its way to US$1800/oz again, causing problems for gold related stock charts. Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF) (FRA:TXO) is no exception in this regard, but since they are decently cashed up they can continue with their winter drilling program at the Con Mine Option, drilling their Campbell Shear targets. A new phase of drilling is underway, with the first 8 holes being completed, and assays are expected sometime in March.  

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All currencies are in US Dollars, unless stated otherwise.

Please note: the views, opinions, estimates, forecasts or predictions regarding Gold Terra’s resource potential are those of the author alone and do not represent views, opinions, estimates, forecasts or predictions of Gold Terra or Gold Terra’s management. Gold Terra has not in any way endorsed the views, opinions, estimates, forecasts or predictions provided by the author.

It was good to see Gold Terra announcing their 2023 drill program on December 1, 2022, just over a week after closing their C$3.78M non-brokered private placement. C$2.4M of this round was budgeted for the ongoing 8,000m drill program, that commenced on January 18, 2023. Interesting tidbits of information (at least for me) were the mentioning of the retirement of the founder Joe Campbell, plus a deeper target in the main plunge of the Con deposit, where previous mining was stopped in high-grade shoots below 1900m, where the Robertson shaft is located, more on this later.

I asked Chairman & CEO Gerald Panneton about Campbell, as I found it remarkable as he has been around for so long, and why retire when he could be so close to a major discovery here. Panneton explained: “Joe is 65 years old, and his wife retired earlier in the fall of 2022. They want to spend more time together after a very hectic working life, and Joe stays involved as a senior technical advisor, while keeping all of his shares.” That was good to hear for sure.

The Robertson shaft can be observed below relative to the Campbell Shear:  

hit the targeted Campbell Shear, for a total of 3076.53m drilled. This Shear is characterized by typical smokey quartz veining with strong sericite alteration, often in addition to strong pyrite, arsenopyrite, stibnite and sometimes sphalerite mineralization. The intercepted quartz zones were hit at 234m-382m depth, and the intercepts had lengths of 4 to 8.70m. Chairman & CEO Gerald Panneton was pleased with the outcome:

 "We are extremely pleased with the Yellorex North drilling as all eight holes have hit the targeted Campbell Shear with the drill core showing significant intersections of multi-metre veining and sulphide mineralization. The objective of the winter drill program is to expand the current near-surface mineral resources on the CMO, and the initial visual observations of the core indicate that we are on track. The Campbell Shear structure is our highest priority target as the Con Mine produced more than 5 million ounces of high-grade gold (16 g/t Au).”

I wondered if 3 highlighted drill hole assays were sufficient for Panneton, but he assured me that the exploration drilling for the Con deposit hit 1 good hole out of 5, so a ratio of 3 out of 8 which seems likely here, is actually a very good ratio.

Disclaimer:

The author is not a registered investment advisor, and currently has a long position in this stock. Gold Terra Resource is a sponsoring company. All facts are to be checked by the reader. For more information go to www.goldterracorp.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

For more information please see the attached file.