First Energy Metals Ltd. (ASKDF) On Watch as David Rosenberg, Chief Economist & Strategist of Rosenberg Research, sees Gold going to $3,000

Gold had a remarkable performance in the first half of 2020, increasing by around 25% from its low in March and significantly outperforming all other major asset classes. 

David Rosenberg sees gold going to $3,000/oz on the back of slowing global economic growth, exacerbated by the onset of the coronavirus, and artificially low interest rates were pointing to “a very bullish case” for the precious metal and equities this year.

Rosenberg added that investors shouldn’t expect to see a significant recovery anytime soon. He said that they should position their long-term portfolio to reflect an environment of long-term stagflation and added that it is only a matter of time before prices push to record highs. He is bullish on gold as inflation keeps real rates in negative territory.

“Central banks are going to hold interest rates constant near zero. It tells me that real interest rates are going to go further and further into negative territory, and there is no better correlation between the gold price and real interest rates,” he said.

Due to the recent Gold rally, it could be worthwhile for investors to have a look at First Energy Metals Ltd. (OTC: ASKDF).

The company recently announced that it has entered into a purchase agreement with Geomap Exploration Inc. (“the Seller”), a private Corporation registered in British Columbia, Canada, to acquire a silver  gold exploration property located in the Province of British Columbia, Canada. Pursuant to a property purchase  agreement (the “Purchase Agreement”) between the Seller and the Company, dated August 10, 2020, First Energy will acquire a 100% interest in the Bald Eagle Silver Property (“the Property”) consisting of three mining claims covering approximately 1,013.58 hectares area in Alberni Mining Division, British Columbia, Canada by way of issuing 550,000 common shares of First Energy, Geomap Exploration will retail a 2% NSR of which First Energy may purchase half (1%) of the NSR.

Property Details:

  • Bald Eagle Property is located 30 km to the northeast of Ucluelet and approximately 57km by road west of Port Alberni in the west coast of Vancouver Islands, on NTS map 092F013. The Port Alberni-Tofino paved highway runs 800m east of the property. It has an ideal location for shipping potential mineral concentrates by ocean freight to any destination in the world.
  • Geologically, the area is underlain by Karmutsen Formation volcanics of the Upper Triassic Vancouver Group, which have been intruded by the Early to Middle Jurassic Island intrusions consisting of granodiorite to quartz diorite. The quartz veins are a few centimetres to two meters in width with patches of pyrite, pyrrhotite and chalcopyrite. Tertiary silver- and gold-bearing quartz-sulphide veins are found primarily along faults within the area.
  • There are four mineral occurrences on the Property as documented in MTO database of BC Ministry of Mines records as Minfiles.
  • Kristen Occurrence: (1987-89) Golden Spinnaker Minerals optioned the property and completed programs of trenching, VLF-EM surveys and diamond drilling. In 1988 bulk sampling and fourteen diamond drillholes, totalling 819 metres, was completed on the Elite 1 vein and nearby Rachel vein. In 1991, Kancana Ventures optioned the property. From 1993 to 1995, the property was returned to and later prospected by K. Gourley. In 1993, chip sampling of the Kristen I vein assayed values up to 4.4 grams per tonne gold and 126.5 grams per tonne silver. In 1995, sampling of the vein assayed up to 9.8 grams per tonne gold and 31.5 grams per tonne silver (Assessment Report 25493). At Elite 1 Vein area disseminated pyrite occurs in bleached and silicified rock with irregular quartz lenses and pods; rock samples from here assay up to 0.508 oz/ton gold across 110 cm (Assessment Report 18218).
  • Bald Eagle Occurrence: Area was part of the same work program in 1987-89 by Golden Spinnaker Minerals. Mineralization is in 0.05 to 0.60 metre-wide quartz and/or calcite veins occurring in a quartz diorite rock and containing lenses of pyrite and pyrrhotite. In 1995 a 0.10 metre chip sample from this occurrence assayed 8.3 grams per tonne gold and 35.2 grams per tonne silver.
  • Frog Creek Occurrence: Area was part of the above-mentioned work program in 1987-89. In 1995, a 0.20 metre chip sample returned values of 2.6 grams per tonne gold and 2.7 grams per tonne silver (JK-167; Assessment Report 25493).
  • The Falcon occurrence: is located on the northern slopes of Hidden Peak at approximately 950 metres. Locally, a mineralized zone, striking 300 degrees and dipping 40 degrees southwest within altered volcanics, contains disseminated pyrite, chalcopyrite and minor galena and native copper. In 1984, Torhsen Energy Corp. completed a program of rock sampling and geological mapping on the area as the Falcon claim. A 30 centimetre channel sample of the zone assayed 0.37 per cent copper, 0.156 per cent zinc and 3.1 grams per tonne silver (Assessment Report 12769).

Two weeks ago, the company also announced assay results of exploration work from its recently acquired Scramble Mine gold property located in Northwestern Ontario, Canada. The work was carried out in June 2020 and included prospecting to locate historical mineralization areas, carry out channel and grab surface sampling, mapping historical gold mineralization veins and structures, and developing a detailed Phase 2 exploration work plan.

The Scramble Mine gold property is comprised of six mining claims covering approximately 140 hectares land, located in Jaffray Township, Kenora Mining District, approximately 8 kilometres east of the town of Kenora in Northwestern Ontario. The mine was discovered in 1894 but after an initial exploration phase remained essentially dormant until 1984 when Boise Cascade Canada Ltd. commenced an evaluation of the property. Since 1984, approximately 5,200 metres of diamond drilling, 250 metres of surface stripping with sampling and 450 metres of underground development have taken place. The zone of mineralization, including pyrite-gold enriched biotite-rich schist felsic units and veins, extends on surface and in drill holes for about 550 metres. Size of the deposit is 915 meters (m) long along strike, 3.7 m wide and 366 m to 475 m deep. Historical resource at the Property is estimated at 150,000 tons at an average grade of 0.24 ounces per ton (opt) (6.8 grams/ton) (having grades of up to 9.15 opt (259 grams/ton). The deposit is documented to have 70,000 ounces of contained gold using a cutoff grade of 0.05 opt (1.42 grams/ton).

High-flying and volatile Gold stocks have caught the attention of both the Main street and Wall Street this year. For investors ready to jump on Gold bandwagon, First Energy Metals Ltd. (OTC: ASKDF) is a great penny stock to consider buying at these levels.

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