Kingman Minerals Ltd. (TSX.V: KGS) Ideally Positioned as Investors Seek ‘Safe-Haven’ Assets

  • Gold prices have gained 15% so far this year, surpassing $1,700 per ounce threshold.
  • Yahoo Finance article concludes that gold will continue to be preferred investment option.
  • KGS is dedicated to acquisition, exploration and development of gold, silver properties in North America

As the economy struggles to regain stability in the fragile environment created by a global pandemic, gold has emerged as a highly preferred investment option. The precious metal has long been recognized for being one of the most consistently performing investments over time, a fact that puts Kingman Minerals (TSX.V: KGS) in an attractive position for those looking for an investment foothold in the gold or silver industry.

“Gold prices have gained 15% so far this year and surpassed the $1,700 an ounce threshold for the first time in seven years,” a recent Yahoo Finance article reported (http://nnw.fm/xFmr6). “This was primarily driven by the coronavirus-induced crisis that triggered apprehensions regarding the global economic growth. This, in turn, sent investors scurrying for safe-haven assets like gold.

“The Fed has slashed interest rates to zero,” the article continued. “Notably, lower the interest rates, lesser will be the opportunity cost of holding non-yielding bullion, making gold an attractive option for investors holding other currencies. Further, lower oil prices and fears of supply crunch with miners halting their operations as per government mandates to stem the coronavirus spread have also contributed to the price movement. Further, mining companies are major consumers of energy with around 50% of their production costs closely linked to energy prices. The current combination of higher gold prices and lower oil prices will translate into improved operating margins and higher free cash flow for miners.”

The Yahoo article, titled “Gold Mining Stocks’ Outlook Bright on Coronavirus Fears,” noted that, because of COVID-19, the global economy has been upended, resulting in gold seeing its best performance since 2010, increasing as much as 20%, with analysts predicting a continued increase. Calling gold a “safe-haven asset,” the article concluded by stating, “Gold will continue to be the preferred investment option supported by the environment of low interest rates and coronavirus-induced global slowdown. Lower mined gold supply, higher demand and geopolitical tensions are likely to drive prices north, which bodes well for gold-miners.”

With two current mining operations in place — the Mohave Project and the Cadillac East Property — Kingman Minerals appears ideally positioned in today’s volatile investment world. KGS is focused on sourcing and developing high-quality, nongrass-roots properties in favorable mining jurisdictions, and has entered into option agreements to purchase 100% of the properties within its portfolio.

Kingman’s Mohave Project is located in the Music Mountains in Mohave County, Arizona, and is comprised of 20 lode claims, including those from the Rosebud Mine. In addition, KGS has entered into an option agreement with two arms’ length vendors to acquire a 100% interest in 52 nearby lode claims covering an area of 1,071.2 acres. High-grade gold and silver veins were discovered in the area in the 1880’s and were mined into the late ‘20s and ‘30s.

The company’s Cadillac East Property is located east of Val d’Or, a hub for exploration and mining activities in the Canadian province of Quebec. The property consists of 12 claims, and KGS has an option agreement to earn 100% over three years. Recent exploration reported multiple potential targets for future investigation, as results from the soil program identified value in gold, silver, copper, zinc and nickel.

Formerly known as Astorius Resources Ltd., Kingman Minerals is engaged in the acquisition, exploration and development of gold and silver properties in North America. Based in Canada, KGS is focused on sourcing and developing high-quality properties with significant mining potential as part of its strategy of developing a diverse portfolio of low-cost, lifelong assets.

For more information, visit the company’s website at www.KingmanMinerals.com.

NOTE TO INVESTORS: The latest news and updates relating to KGS are available in the company’s newsroom at http://nnw.fm/KGS

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