High-Grade Gold Discoveries Boost Market Confidence

1. Renegade Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
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 announced further drilling results from its Newman Todd Gold Project in Red Lake, Ontario. These numbers show significant high-grade gold intersections. The standout result comes from Hole NT-24-019, which intersected 14.0 grams per tonne (g/t) gold (AU) over 7.3 meters, including a higher-grade section of 28.3 g/t Au over 3.5 meters at 200 meters below the surface. The second phase of drilling has successfully expanded the known mineralization, now reaching over 800 meters below the surface, further confirming the potential of the deposit.

Nav Dhaliwal, President and CEO of Renegade, expressed confidence in the company's progress, stating in the news release, "These new results are further confirmation that the mineralized system at Newman Todd is far larger and much higher grade than was previously understood." The results are expected to provide strong support for the company's ongoing exploration efforts at the site.

Gold Price Momentum

As Kitco reported on September 26, gold prices continue to surge, with futures approaching an upside target of approximately US$2,730. This strong momentum reflects the broader strength in the sector, as gold reached new highs, signaling significant potential for further gains. Przemyslaw Radomski emphasized that "gold is making new highs," with prices now just 1.3% away from their target. This bullish trend aligns with Radomski's view that "the greatest potential is currently in the precious metals sector," reinforcing the sector's appeal to investors.

Stockhead similarly reported on September 13 that gold had reached a new high of US$2,568 per ounce (since rising even higher to US$2667), driven by positive U.S. economic data and growing expectations that the Federal Reserve would lower interest rates. The rally was also spurred by investors buying back previously bearish bets, with money managers' net short positions in Comex gold futures standing at their highest level in four weeks. This buying activity has contributed to a robust outlook for the gold sector, particularly as companies continue to explore new opportunities and expand their production capabilities in key regions.

As Reuters wrote on September 19, gold prices continued to rise, reaching an all-time high and nearing the key US$2,600 mark. The U.S. Federal Reserve's monetary easing cycle has boosted the metal's appeal, with UBS analysts projecting that the rally could extend further, stating, "We target US$2,700/oz by mid-2025." The report also highlighted gold's exceptional performance in 2024, noting that "Gold prices have hit record highs in six months and gained about 24% so far this year." UBS further pointed to increased demand for gold ETFs in the coming months, emphasizing that the sector's momentum is expected to accelerate as gold thrives in a low-rate environment. This robust outlook signals that gold remains a key focus for investors looking to hedge against broader market volatility.

Renegade's Catalysts 

The results from the Newman Todd Project are seen as a key catalyst for Renegade Gold's ongoing drilling strategy, which is focused on further exploration of the high-grade zones. According to the company's investor presentation, the Newman Todd deposit remains open at depth and along strike, with a 25,000-meter drill program actively testing untested high-grade targets. The intersection of multiple faults, including the Hinge Fault, is believed to offer additional expansion potential, as highlighted in the recent drilling results.

Further exploration efforts will focus on down-plunge areas from the Hinge Fault and on previously undrilled zones within the hanging wall and footwall. The investor presentation indicates that the ongoing drilling campaign, along with a solid capital structure and strategic location near major discoveries, positions Renegade to capitalize on new gold discoveries at Newman Todd and surrounding properties.

Experts on Renegade

John Newell of RSD Discovery Group highlighted the strategic opportunities in gold-related equities in June due to the seasonality of gold prices. Newell noted that gold typically hits a low in early July, followed by a rise through the late summer and fall, offering investors an attractive entry point to capitalize on potential stock price appreciation. He emphasized that "understanding these patterns and their underlying causes can provide investors with strategic insights for timing their investments in gold and gold-related equities," citing Renegade Gold Inc. as one of the companies that may benefit from this seasonal trend.

Additionally, McEwen Mining Inc. was recommended by Newell as a company to watch due to its diversified portfolio of operating gold and silver mines, alongside its stake in McEwen Copper Inc. He identified the cyclical low in gold prices during the summer as an optimal time for investors to position themselves, expecting a rise in stock value as gold prices typically increase toward year-end. In a broader context, Newell's analysis reinforced that exploration success, particularly during the summer months, can be a rewarding factor ahead of potential discoveries.

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.