Gold Producers Eye Near-Surface Discoveries as Record Cash Flow Fuels Exploration
Gold producers Agnico Eagle and Newmont reported record quarterly free cash flow in Q2, with gold prices above US$4,400 per ounce. To sustain this momentum, they're looking to explore new discoveries at a relatively low cost.
Agnico Eagle's all-in sustaining cost was US$1,459 per ounce, while Newmont's was US$1,621 per ounce. Meanwhile, Kinross Gold reported an attributable all-in sustaining cost of US$1,821 per ounce. Freeport-McMoRan Inc., a copper-gold producer, saw consolidated unit net cash costs of US$1.97 per pound of copper.
In this context, Yukon Metals Corp.'s latest assay results from the Birch copper-gold project in Yukon are significant. The company reported 23.5 meters grading 0.48 g/t gold, 0.11% copper, and 1.47 g/t silver from 39.5 meters in hole BR26-007.
The drilled strike length of near-surface mineralized skarn at Birch has been extended to approximately 1 kilometer, according to Yukon Metals CEO Jim Coates. The company's focus remains on the shallow skarn horizons while exploring deeper high-grade gold intervals and structural controls that may influence mineralization.