Kingman Minerals Ltd. (TSX.V: KGS) Poised to Benefit as Goldman Sachs Raises Gold Price Estimates to $2,300/oz

  • Goldman Sachs has recently raised its 12-month forecast for gold to $2,300/oz, rising from its previous estimate of $2,000/oz
  • Gold prices touched historical high in August 2020, rising to $2,075/oz on back of dollar depreciation, growing economic uncertainty
  • Kingman Minerals is currently working to develop its mining interest in Arizona, USA as well as Quebec, Canada
  • A previous non-NI 43 101 compliant study of Kingman Mineral’s Arizona site carried out in 1985 found potential reserves of up to 664,000 ounces of gold, 2.6 million ounces of silver

Kingman Minerals (TSX.V: KGS), a Canadian-listed gold miner with extensive claims in key mining jurisdictions spanning the North American continent, finds itself in the middle of one of the most intriguing precious metal bull markets of all time with gold prices touching a record high in early August 2020 – rising to an intraday level of $2,075.47/oz. Investors have fueled a furious rally in the metal this year, as asset managers have sought relative safe havens in which to park their money with concerns rising about a resurgence in the coronavirus and the impact that it could have on the global economy.

Gold prices have been on a remarkable run in 2020, rising by $560/oz to $2,075/oz prior to peaking in early August. Global central banks have carried out over 150 interest rate cuts thus far in 2020, reducing their rates by a cumulative 5,100 basis points (http://ibn.fm/OQEje). Meanwhile, the IMF has estimated that global governments have introduced fiscal support measures amounting to over $9 trillion since the start of the COVID-19 pandemic (http://ibn.fm/mCYex). The resulting weakness in the U.S. dollar (the euro has appreciated over 10% relative to the US dollar since March) and eventual inflationary pressures stemming from these measures have led to a surge in demand for gold – with the two most popular gold ETFs adding nearly 400 tonnes or 12 million ounces of gold to their combined inventories over the past few months.

“Gold is the clear beneficiary of safe haven demand,” Stephen Innes, chief global markets strategist at AxiCorp, said in a research note last month (http://ibn.fm/Bqxtr). Remarkably, the record-breaking run may not yet be over.  Goldman Sachs has recently abandoned its previous gold forecast of $2,000/oz and now believes that the market will see $2,300 an ounce within the next 12 months. The investment bank has also lifted its silver outlook to $30 from $22 an ounce previously (http://ibn.fm/J4CW0).

Driven by “a potential shift in the U.S. Fed toward an inflationary bias against a backdrop of rising geopolitical tensions, elevated U.S. domestic political and social uncertainty, and a growing second wave of COVID-19 related infections,” the recent rally in the gold price has outpaced gains seen in a variety of other asset classes, noted a team of analysts led by Jeffrey Curie. Additionally, they added, “combined with a record level of debt accumulation by the U.S. government, real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,” which in turn have prompted a flight to gold as a relative safeguard versus potential currency debasement.

Kingman Minerals is currently operating within two key mining sites, namely – the Mohave Project located with Arizona’s Music Mountain range as well as the Cadillac East property, the latter of which lies approximately 500 kilometers north-west of the city of Montreal and is situated only a few miles away from the Canadian Malartic gold mine, the largest open-pit gold mine in Canada with total deposits estimated at close to 10 million ounces of gold (http://ibn.fm/LufqO).

The company has recently been focusing its efforts around investigating and confirming the viable ore deposits within its Arizona-based Mohave project, which is expected to be delivered in the near future. A previous study of the site, carried out in 1985 prior to the introduction of the current NI 43-101 regulations coming into force, found that the site’s potential assets – which included the historic Rosebud Mine – could amount to as much as 664,000 ounces of gold and 2,600,000 ounces of silver (http://ibn.fm/b0FxO).

As gold prices trade near record levels, and with demand from investors and end-consumers alike providing strong support to the precious metal, Kingman Minerals seems perfectly positioned to capitalize from the ongoing boom. With the company’s US and Canadian-based mining assets both holding significant promise in regards to their potential mineral deposits, Kingman Minerals may find its market value skyrocketing before long.

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://ibn.fm/KGS

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