Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
Quebec’s Bachelor Lake gold mine is set to restart high-output commercial production, reports the Montreal Gazette.
Metanor Resources Inc. (TSXV: MTO) spent $100 million to revamp the underground mine and mill, about 225 kilometres northeast of the town of Val-d’Or.
“Bachelor Lake will become a key low-cost player … with strong growth prospects,” vice-president Roy Perry told the Gazette, adding the mine has been producing gold since last summer.
The company said it targets annual output at 50,000 to 60,000 ounces of gold and it projects a mine life of seven to 10 years based on existing reserve estimates. In February, it poured 3,000 ounces with some silver content.
In the short term, the company is cautious about gold prices but, in the longer term expects prices to surge higher as governments debase currencies.
Bachelor Lake mine started in 1973 and operated until 1989 before closing due to cost. Metanor Resources bought the property in 2005 after it had changed hands several times.
The company also owns the Barry open-pit gold mine, which is about 65 kilometres away from Bachelor.
Image courtesy Sandstorm Gold
