It’s a volatile time in the markets right now, and investors are turning to their favourite safe-haven investment.
Gold has long been favoured as a more stable store of value and the companies that explore and produce this precious metal are in the spotlight.
So just what did ASX-listed gold stocks accomplish during the March quarter, and what’s on the horizon in the months to come?
Gold market flies high
War in Ukraine made a huge impact on gold over the March quarter as geopolitical uncertainty saw buyers flock to the established metal.
American investment bank Goldman Sachs (NYSE:GS) remains bullish about bullion. Back in March, the firm lifted its 2022 gold target to a staggering US$2,500 an ounce, citing a “perfect storm” as investor appetite for bullion rose.
Currently, gold is trading around US$1,891 an ounce, meaning there’s a lot of room to grow if the precious metal is to hit the US$2,500 price target by year’s end.
Source: Gold Price®.
In the spotlight: ASX gold stocks
From maiden mineral resources to project acquisitions, the local bourse’s gold picks had plenty to do over the March quarter.
Gascoyne Resources
Gascoyne Resources Ltd (ASX:GCY) tabled its strongest gold production on record in the March quarter, generating 21,669 ounces (a 32% quarter-on-quarter increase) over the three-month period.
The company poured 21,319 ounces of gold and sold 21,260 ounces at an average realised price of A$2,586 per ounce, generating close to A$55 million in revenue.
Gascoyne is now debt- and hedge-free after repaying its $20 million debt facility in full.
In the current quarter, Gascoyne plans to complete infill and extensional drilling at its Gilbey’s North gold discovery in the hopes of delivering a maiden mineral resource estimate.
Alto Metals
Explorer Alto Metals Ltd (ASX:AME) reported success in the field over the March quarter, upping its gold resource at the flagship Sandstone Project to 635,000 ounces.
The resource update represents an increase of 92% in open-pit, high-grade gold resources constrained within Sandstone’s A$2,500/ounce optimised pit shells.
It looks like there’s more gold to come from the ground: Alto’s 2022 drill campaign is well underway, with the first 7,000 metres of work already completed.
Managing director Matthew Bowles said this would be a year of drilling and exploration as Alto work’s to unlock the value in the Sandstone gold field.
Firefinch
Firefinch Ltd (ASX:FFX)’s ‘Morila the Gorilla’ gold camp in West Mali continued to hit its stride in 2022’s first quarter.
The gold miner met the top end of its 10,874-ounce quarterly production guidance — a figure that could nearly double come June thanks to FFX’s 17,000 to 20,000-ounce production forecast.
Firefinch also kicked off mine development at the Morila Super Pit and N’Tiola pit — two assets that are central to the wider mine production plan.
Mining commences at the N’Tiola pit. Source: Firefinch.
Over the current quarter, Firefinch is determined to update Morila’s mineral resources and reserves using data from drill programs in 2021 and 2022.
AuTECO Minerals
Gold stock AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) grew its gold resource at the cornerstone Pickle Crow camp in Canada to 2.23 million ounces over 2022’s first three months.
The company has grown its gold resource by 30% in the last six months, and it seems further updates are on the horizon.
Drill rigs were on-site over the March quarter and results from the company’s exploration and resource extension program are expected to tie into Pickle Crow’s next resource update.
AuTECO raised A$20 million in February to underpin its growth campaign, and it’s got A$24.5 million in the bank to fund the next stage of activity.
Tietto Minerals
Tietto Minerals Ltd (ASX:TIE) made tracks towards one overarching goal during the quarter: to produce its first gold bar at the Abujar project in quarter four of 2022.
The company advanced what it calls its ‘drill and build’ strategy, which involves shaping Abujar’s gold production infrastructure and exploring the West African gold project’s considerable tenure.
Post-quarter end, Tietto appointed a mining contractor and announced its maiden measured gold resource, clocking in at 7.7 million tonnes at 1.4 g/t gold for 350,000 ounces.
Aerial view of the Abujar Gold Project. Source: Tietto Minerals.
This quarter, the explorer plans to update its life of mine production plan, which will take the updated mineral resource, increased mill throughput and higher gold prices into account.
Kingston Resources
Acquisitions were popular among gold stocks in the March quarter, particularly with Sydney-based Kingston Resources Ltd (ASX:KSN).
The gold producer and explorer picked up the Mineral Hill Mine in New South Wales in January and generated 1,757 ounces of gold and 3,378 silver ounces over the quarter.
Across the sea, work ramped up on a definitive feasibility study for the Misima Gold Project in Papua New Guinea, while an updated ore reserve is also in the pipeline.
Managing director Andrew Corbett said the quarter saw Kingston take “significant steps” on its journey to become a leading mid-tier gold producer in the Asia-Pacific region.
West Wits Mining
South Africa’s newest gold mine got off the ground last quarter, and West Wits Mining Ltd (ASX:WWI) is at the helm.
The gold stock’s Witwatersrand Basin Project produced its first ore in February as part of an early mining initiative at the Qala Shallows asset.
First ore is out of the ground at Witwatersrand. Source: West Wits Mining.
In addition, some recent scoping study results demonstrate Witwatersrand’s potential to become West Wit’s cornerstone project as the company works to achieve mid-tier gold producer status.
WWI has since commenced a new initiative, known as Project 200, which aims to increase production at the Witwatersrand project to 200,000 ounces per annum.
Aurumin
Aurumin Ltd (ASX:AUN) had its eye on a new gold play in the March quarter: it officially bought the 784,000-ounce Central Sandstone project from Middle Island Resources in March.
Fieldwork got underway at the gold camp late last quarter and further exploration and drilling is planned through June.
With the acquisition under its wing, the company has more than 800,000 ounces in gold resources across the Central Sandstone and Johnson Range projects.
On the capital side, Aurumin raised $2 million via an entitlement offer during the quarter, meaning it’s cashed up to accelerate exploration across its multi-commodity portfolio.
Arrow Minerals
West African gold explorer Arrow Minerals Ltd (ASX:AMD) honed in on the Vranso project during the quarter, where drilling activity extended the known gold footprint by 30%.
The ASX-lister also encountered gold mineralisation at the Semapoun and Guido prospects, as well as a previously unknown 50-square-kilometre gold system at the Kordie target.
With its focus firmly tied to West Africa’s gold prospects, Arrow opted to divest its non-core Malinda Lithium Project in WA.
It’ll receive $500,000 in cash and retain a 10% free-carried interest in the Aussie lithium play.
Golden Rim Resources
Resource definition drilling paid dividends for Golden Rim Resources Ltd (ASX:GMR) in the quarter.
Not only did the company confirm multiple, broad sub-parallell gold zones at the flagship Kada Gold Project, it also released its maiden mineral resource estimate.
Kada is now reported to hold 25.5 million tonnes of inferred resource, grading at 1.1 g/t gold for 930,000 ounces — and there’s more to explore to the property’s north and south.
Given the findings, Golden Rim moved to increase its stake in the Kada gold play.
The explorer completed the required expenditure commitment to achieve its second earn-in during the quarter, acquiring a further 26% interest to bring its stake up to 51%.
At the same time, the company exercised its right to acquire a third earn-in interest — representing an additional 24% of the project — to secure 75% of the Kada gold camp.
