Newman Todd Drilling Uncovers Significant Gold Expansion in Red Lake

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2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Renegade Gold Inc.
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Renegade Gold Inc. (RAGE;  TSX: TGLDF;  OTC: 070:FSE) has released initial results from the second phase of drilling at its Newman Todd Deposit in Red Lake, Ontario. The results confirm a significant expansion in both the width and depth of the deposit. Drilling has increased mineralization depth by an additional 500 meters, extending the structure to just over 800 meters. Notably, the mineralized width near the surface has expanded by up to 100 meters, as shown by two holes, NT-24-017 and NT-24-018, which intersected strong gold mineralization in previously underexplored areas. Hole NT-24-017 recorded 9.2 grams per tonne (g/t) gold over 2.7 meters, while NT-24-018 intersected 9.8 g/t gold over 1.5 meters. These findings underscore the potential for further discoveries in the Newman Todd Structure and confirm high-grade gold corridors within the hanging wall.

Renegade Gold's President and CEO Nav Dhaliwal stated in the press release, "Renegade Gold's 2024 drilling at the high-grade Newman Todd deposit has been a huge success . . . We have extended mineralization by an additional 500 meters in depth and 100 meters in width and have identified a number of new mineralized areas."

The Gold Sector Shines On

Driven by a combination of geopolitical and financial risks and the investor demand for a safe-haven asset, the gold market has been seen as a favorable asset.

According to a report from Barron's on September 9, gold has seen significant gains both on a weekly and yearly basis, driven largely by expectations of the most anticipated U.S. interest rate cut in decades. ING analysts noted that this rate cut, expected to occur in September, would provide fresh impetus for gold prices. Factors such as strong central bank buying, increased demand in Asia, and heightened geopolitical risks have all contributed to the bullish outlook for gold.

Gold's performance has been robust, with Reuters reporting on September 10 that gold prices held firm above the US$2,500 level, supported by investor anticipation of lower interest rates from the Federal Reserve.

"Spot gold remains supported above the psychological US$2,500 level," said Han Tan, chief market analyst at Exinity Group, further reinforcing the bullish sentiment within the sector. 

321Gold noted in a September 10th research note that any potential pullbacks in gold prices, such as a correction to US$2,450, could present one of the "greatest buying opportunities in the history of gold stocks." This optimistic outlook suggests that gold mining companies like Renegade may experience further investor interest and opportunities for growth, particularly as they continue to produce high-grade gold discoveries at the Newman Todd Deposit.

According to Goldman Sachs analysts in a September 3 Yahoo! Finance article, "Investors should 'go for gold' as the precious metal's stellar run isn't over," with gold futures hovering above US$2,515 per ounce as of early September 2024. The analysts maintained that gold is their "preferred hedge against geopolitical and financial risks" and emphasized that imminent Federal Reserve rate cuts and ongoing emerging market central bank buying provided further support for the metal's rise.

Goldman Sachs has also issued a "long gold" recommendation with a 2025 target price of US$2,700 per ounce. Today, September 13, 2024, gold hit over US$2,600, just US$100 short of Goldman Sachs' target price.

Renegade Catalysts

The recent drilling results provide significant catalysts for Renegade Gold. These results demonstrate both the expansion and untapped potential of the Newman Todd Deposit. Overall, the project has revealed a substantial increase in mineralization, particularly at depth and near the surface, with holes NT-23-017 and NT-23-018 intersecting high-grade gold mineralization that increases the width of the structure by up to 100 meters. On top of that, the identification of new mineralized zones within the structure strengthens the deposit's potential for future exploration.

Renegade's geological analysis has also drawn parallels between Newman Todd and other significant gold zones in the region, including West Red Lake Gold's Rowan Deposit, which may guide future exploration. These ongoing efforts could further unlock value at the Newman Todd Project, providing potential upside for investors.

Ownership and Share Structure

According to the company, around 3.44% of the company is with management and insiders. 

The rest is with retail.

It has 45.3 million shares outstanding with a market cap of CA$9.3 million. It trades in a 52-week range of CA$0.72 and CA$0.21.