Pfizer and BioNTech's potential vaccine announcement may have knocked gold off of its high horse temporarily, but analysts say the lasting effects of the global health crisis and the timeline for a widely available vaccine will continue to support gold prices. Even if the virus goes away, the economic damage has already been done. Since the beginning of the pandemic, the Fed's balance sheet has ballooned to over $27 trillion and is expected to continue growing as the virus rages on. The dip in gold prices hasn't had a detrimental effect on gold stocks, with producer Barrick Gold (TSX:ABX) (NYSE:GOLD) recently beating earnings per share (EPS) estimates by 48%. In Q3 2020, IAMGOLD Corporation (TSX:IMG) (NYSE:IAG) experienced a 45% increase in operating cash flow quarter-over-quarter, while Agnico Eagle Mines Ltd. (TSX:AEM) (NYSE:AEM) increased its dividend by 75%. Kirkland Lake Gold (TSX:KL) (NYSE:KL) also posted strong earnings for Q3 2020 and is ramping up its expl oration efforts. Then, there is junior gold explorer GoldON Resources (TSXV:GLD) (NCMBF), which has secured funding and continues to advance exploration at its four discovery-stage properties in the prolific Red Lake Gold Camp of northwestern Ontario.

GoldON's immediate focus is on its flagship West Madsen Project, which is quite literally surrounded by recent high-grade gold discoveries. The original claim package is an option/JV with Great Bear Resources and adjoins the Pure Gold Red Lake mine project where they are gearing up for the first gold pour by Christmas.

Pure Gold's reserves and resources are hosted in a seven-kilometer-long gold system that follows the major crustal break or contact between the Balmer and Confederation rock assemblages. This same Balmer-Confederation contact has been exposed in outcrop 1.6 kilometers (km) west of the Pure Gold property boundary and is interpreted to continue for ~8 km across GoldON's property. In fact, GoldON's West Madsen property boundary is just 270 meters away from one of Pure Gold's most recent discoveries, the Wedge zone, where previous drilling has intersected bonanza-grade gold, including 108.5 g/t gold over 1.0 meter.

GoldON is gearing up for an extensive Phase 2 drill program at West Madsen to follow up on its Phase 1 drilling earlier this year that resulted in a new gold discovery and the identification of key Balmer Assemblage rocks that host all major gold deposits in the Red Lake Camp. A diamond drill will be mobilized later this month to focus on testing for the Balmer-Confederation contact across the eastern portion of GoldON's property from the boundary nearest Pure Gold's Wedge zone.

Wealth is created with the drill bit in the mining and exploration business, and GoldON's risk/reward ratio is compelling when you consider its current market cap is under CA$15 million versus Pure Gold with a market cap approaching CA$1 billion.

Gold Producers Report Gains Despite Gold Price Drop

The gold price just came off of a rocky week following news that Pfizer's potential COVID-19 vaccine had a 90% efficacy rate, but analysts warn that the economic damage from the pandemic will cause lasting effects and stimulus is likely to continue. What's more, a widespread solution is still months and months away, meaning things will likely get worse before they get better.

The gold price may have dropped from previous highs, but gold companies are still posting gains and continuing with business as usual. Barrick Gold (TSX:ABX) (NYSE:GOLD) reported record free cash flow of over $1.3 billion in the third quarter and increased its net earnings per share to $0.50, beating estimates by 48%.

Canadian gold producer Agnico Eagle Mines Ltd. (TSX:AEM) (NYSE:AEM) has also been faring well. The company reported net income of $222.7 million, or $0.92 per share, and near-record level gold production of 492,693 ounces in the third quarter.

During the same period, mid-tier gold miner IAMGOLD Corporation (TSX:IMG) (NYSE:IAG) increased its free cash flow to $80 million, a 51% increase from the previous quarter, and grew its revenue to $335.1 million, up $50.5 million from Q2 2020.

Kirkland Lake Gold (TSX:KL) (NYSE:KL) reported net earnings of $202 million in the third quarter and record free cash flow of $275.7 million, a 22% increase from the previous quarter. The company is also continuing to ramp up its exploration drilling at three of its properties, including Detour Lake in Northern Ontario, which produced 140,067 ounces in Q3 for a revenue of $262.5 million and free cash flow totaling $64.0 million.

Meanwhile, junior gold explorer GoldON Resources has assembled the same drillers and exploration team used by Great Bear Resources for their upcoming Phase 2 drill program at the West Madsen Project. The team is designing a comprehensive exploration program on a prime target area that sits right beside Canada's next gold mine in the heart of the Red Lake Camp.

For more information on GoldON Resources, please visit this link.

DISCLAIMER: Microsmallcap.com (MSC) is the source of the Article and content set forth above. MSC owns and operates Miningnewsdaily.com. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies a re a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issue r's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Else Nutrition Holdings.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identifie d in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

Media Contact:FN Media Group, LLCinfo@financialnews.com +1(561)325-8757

https://c212.net/c/img/favicon.png?sn=IO94271&sd=2020-11-17

View original content:http://www.prnewswire.com/news-releases/gold-stocks-remain-the-safest-bet-with-widespread-vaccine-still-months-away-301174317.html

SOURCE Microsmallcap.com