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The Gold Market Is Quickly Running Out of Steam

Things don’t look good for gold in the near term as last week’s momentum is gone. The yellow metal looks set to test the next support level at $1,755,…

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This article was originally published by Investor Place

Things don’t look good for gold in the near term as last week’s momentum is gone. The yellow metal looks set to test the next support level at $1,755, and inflation is triggering a mixed response in gold buying. Retail investors are snapping up gold coins to protect against inflation, but it isn’t enough to offset the selling in other areas of the market.

Source: allstars /

In a recent note, Ole Hansen of Saxo Bank noted that gold again failed to break through the particularly strong resistance level of $1,835 an ounce, just as it has done six other times since the middle of July. It looks like the Federal Reserve won’t start tapering until at least December, but gold has not done well despite the signs of a lackluster economy.

According to Hansen, the continued strength in global stocks reduces the need to hold gold for diversification purposes. Additionally, the dollar hasn’t broken through its support after its recent failure to penetrate its key resistance level. Bond yields have also climbed higher on the back of growing wage pressure and a heavy Treasury auction calendar.

Real yields sit at around -1% and could rise further, but Hansen believes the dislocation between gold and real yields this year could mean that a 20 to 25 basis point increase in yields won’t have a negative impact on gold. He believes the U.S. dollar will have a greater impact on the direction of gold, and that has been the case so far.

Retail Interest in Gold Has Picked Up

Hansen also reports that money managers have not been buying gold in recent months, although there has been some buying from other parts of the market. Key physical markets like India and China have especially been interested in the precious metal.

Meanwhile, retail investors have also been buying gold, scooping up coins from the U.S. Mint and Perth Mint faster than they have in years. Hansen noted that interest rates for bank accounts in some parts of the world are negative, which could be driving retail investors in those areas to buy gold as a hedge against inflation.

Central banks have also been buyers of the yellow metal, as the World Gold Council reported that net buying for the first 7 months of the year reached 347 tons. In all of 2020, central banks bought just 263 tons of gold.

Support and Resistance Levels

The technicals haven’t been good for gold either. Hansen warned that a close below the 200-day moving average at $1,810 an ounce on Tuesday would set gold up for another move lower, and that’s exactly what happened. He set the initial support at $1,793, but the yellow metal quickly broke through that on Wednesday, falling as low as $1,784 an ounce.

According to Hansen, the next area to watch is $1,770 an ounce. However, Edward Moya of OANDA said in an email that he’s watching $1,755. He warned that a break below could take the metal as low as $1,700 in the near term.

“Once the market can see past these next few months of pricing pressures, the reality of global disinflation forces will likely put an abrupt end to the move higher in Treasury yields, triggering a resumption of gold buying for many investors,” Moya said.

Gold Affected Little by ECB Meeting

Analysts were looking ahead to the European Central Bank’s meeting on Thursday for clues about what might happen to the gold price, but the commentary had little effect on the yellow metal. The ECB left interest rates the same and announced that it is trimming its emergency bond purchases but insisted that it isn’t tapering.

In another email Thursday morning, Moya noted that the ECB statement was “somewhat hawkish” due to the surprise about the reduced bond buying. However, he also said that good news for the euro is also good for gold prices. He warned that while the metal was hovering at around $1,800 an ounce, that could quickly fade. 

“If dollar resilience becomes the theme for the rest of the week, gold could see sellers take [the] price down to the $1750 level,” Moya said.

In the wake of the ECB meeting, the new resistance for gold prices appears to be around $1,800 an ounce, as the metal has bounced off that level a couple of times since the meeting.

Covid Remains the Biggest Factor

Perhaps the biggest concern for gold prices right now is the Delta variant of Covid-19.

“Gold prices rebounded as investors grew cautious over the COVID impact on the economy after NIAID director Fauci reiterated we’re still in pandemic mode,” Moya added. “He told Axios that Americans are now getting infected with COVID-19 at 10 times the rate needed to end the pandemic. The Fed’s Beige Book showed economic growth is getting rattled by the Delta variant, and that will continue to weigh on the outlook.”

Moya also said the stimulus trade isn’t dead yet, which is also good news for gold. He expects the metal to see support as central banks slow their stimulus reductions. Moya pointed out that the Bank of Canada has become cautious on growth concerns, while both the ECB and Federal Reserve will have “gradual taper plans that won’t really get going until next year.” 

What’s Next for the Gold Market?

It seems clear that the gold trade won’t be going away anytime soon, especially as consumers snap up the metal to hedge against inflation. Central banks will also continue to support gold prices with their buying.

There are plenty of economic concerns to drive gold prices, especially as the Delta variant spreads. However, it seems clear that these concerns aren’t what’s driving the precious metal right now. The dollar remains important for gold prices, although even its impact on the metal appears to have weakened. 

The fact that the Fed and the ECB are leaving interest rates low could provide support for gold alongside weak economic growth. However, gold appears to be in a holding pattern for now without any factors being strong enough to pull it outside of its range.

On the date of publication, the author did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Michelle Jones is editor-in-chief for and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at

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Precious Metals

Selloff Puts All Eyes on the Fed

Looking for a dovish Fed … the crypto sector suffers another drawdown … will gold ever register a pulse?

Tomorrow, all eyes are on the Fed.

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Looking for a dovish Fed … the crypto sector suffers another drawdown … will gold ever register a pulse?

Tomorrow, all eyes are on the Fed.

It’s the most anticipated Fed announcement in recent memory. Investors are expecting hints about the timing and scope of a Fed bond-purchase tapering.

Economists surveyed by Bloomberg expect the November meeting is when we’ll get a formal announcement on the Fed reducing its monthly purchases of $80B of Treasurys and $40B mortgage-backed securities.

Of the 52 economists surveyed, two-thirds expect November. More than half of them believe the taper will begin in December.

But as we noted in yesterday’s Digest, Louis Navellier believes we’ll get more information tomorrow, which will calm markets.

From Louis’ Platinum Growth Club Flash Alert yesterday:

I am expecting a dovish statement.

I am expecting the Fed will clarify that they will begin tapering.

But it’s probably just going to be a mini-taper, not a big one. And so, I think it will be interpreted as dovish, and the market will rally.

***Louis isn’t the only one expecting a dovish Fed

Our hypergrowth expert, Luke Lango, also expects the Fed will tell the market what it wants to hear, resulting in a late-week rebound.

Interestingly, Luke points toward yesterday’s volatility as a clear signal to Federal Reserve Chairman, Jay Powell.

From Luke’s latest update of Hypergrowth Investing:

The Fed is slated to meet today and tomorrow to discuss monetary policy. Many Fed members have voiced a hawkish tone ahead of that meeting, advocating for some tightening via a tapering of asset purchases.

Wall Street is braced for this – investors are largely “OK” with a gradual and smooth taper.

But Wall Street doesn’t want anything more, and they’re letting the Fed know by selling stocks ahead of the meeting, basically saying: “Hey, Fed, if you tighten more aggressively than you’ve signaled, the stock market’s going to collapse, and the whole world is going to blame you.”

It’s a warning shot.

And it’ll work.

Luke believes that today and tomorrow could be choppy in the markets. But tomorrow at 2 p.m. ET, Powell will take the stage. Luke anticipates he will announce a taper, while delivering it in an ultra-dovish tone – pleasing the markets.

That will lead to a market rebound to close out the week.

***If you follow the money-flows, U.S. investors are also expecting this “Wall-Street-friendly” Fed

From Seeking Alpha:

The market is seeing a “monster reallocation cash-to-stocks as tax redistribution threat recedes & Fed expected to remain Wall St-friendly (liquidity easiest since Jul’07),” Michael Hartnett, BofA chief investment strategist, wrote in the “Flow Show” note on Friday.

How big is this reallocation?

Last week, investors dumped cash in favor of stocks at the greatest pace of the entire year. The outflows from money market funds registered $43.5 billion, the biggest of 2021, according to Refinitiv Lipper.

It also marked the largest inflow into U.S. large-cap funds ever. It was $28.3 billion, to be exact. Growth funds saw nearly $7 billion, with small-caps getting $4.2 billion.

So, the results of tomorrow’s FOMC meeting could be a market-mover. We’ll let you know how it goes here in the Digest.

***Stocks aren’t the only asset class in the red recently – the crypto sector has been suffering a sell-off

It feels like bitcoin and the crypto sector had finally begun turning the corner after the 50%+ drop from the spring. That was, until a flash crash from two weeks ago ushered in more weakness.

Yesterday’s multi-asset class selloff hit crypto as well.

From Forbes:

Cryptocurrency prices plunged Monday morning during a widespread market sell-off sparked by concerns of a potentially catastrophic debt default in China, pushing many of the world’s largest digital currencies to their lowest levels in more than a month.

The value of the world’s cryptocurrencies plunged to a low of less than $1.9 trillion by 8:45 a.m. EDT on Monday, nearly 11% less than 24 hours prior and reflecting a loss of more than $250 billion, according to crypto-data website CoinMarketCap.

Pullbacks like this are never fun to sit through, but they’re not unusual. So, it’s critical to avoid interpreting “temporary weakness” as a sign of “impending doom.” This is just standard crypto volatility.

Luke, who is also our crypto specialist, echoed this same point in his Saturday update of Ultimate Crypto. And this was before yesterday’s sector weakness.

After highlighting bullish adoption news about several holdings in the Ultimate Crypto portfolio, Luke wrote:

That’s not to say we won’t get a big sell-off here soon. We may.

That’s what cryptos do – from time to time, they plunge.

But it is to say that consumer adoption is progressing at breakneck speed, and consumer adoption will ultimately determine the long-term price trajectory of cryptos.

That’s why we’re more bullish than ever, and why we will be huge buyers on any future plunges in cryptos.

By the way, if you missed it, last week, Luke sat down with fellow crypto expert, Charlie Shrem, to discuss the huge opportunities in the crypto sector.

In short, they believe a new massive crypto bull market is forming, and certain cryptos are likely to go parabolic. Weakness like we’re seeing right now is offering investors greatly-discounted entry prices to top-tier cryptos.

If you’ve been looking for a time to begin a crypto portfolio, this is a good opportunity. To watch the free replay of Luke and Charlie’s event, just click here.

***Meanwhile, even with stocks and cryptos down and anxieties up, gold still can’t catch a bid

There was a time when steep selloffs in stocks and other asset classes would frighten investors, resulting in huge inflows into the “chaos hedge” of gold.

Though that time may return, it’s not here right now.

Yesterday, as all three major stock indexes dropped more than 2%, gold yawned, barely inching higher (and silver actually lost 0.6%).

Our macro specialist and the editor of Investment Report, Eric Fry, put a poetic spin on this…

The yellow metal is barely registering a pulse at the moment. Most of the wax figures inside Madame Tussauds museum seem more vibrant and lifelike.

But the thing about gold is it tends to come back from the grave at the exact moment that dejected investors finally leave it for dead.

Back to Eric:

After gold’s decade-long dormancy from 1991 to 2001, for example, it suddenly sprung to life and soared 500% over the ensuing decade.

More recently, the gold price drifted 40% lower during the seven-year span from 2011 to 2018. But then it revived once again and rallied as much as 70% from its 2018 low.

That rally was probably the first phase of what will become a much bigger move. Now that the gold price has spent more than a year going nowhere, it has gained plenty of rest for its next major move higher.

Frankly, the pessimism has grown so intense that gold is beginning to resemble a dream-trade for a contrarian investor.

Back to Eric to put some numbers on this:

Most folks want little to do with gold at the moment.

On a net basis, investors have withdrawn more than $15 billion from the SPDR Gold Shares ETF (GLD) during the last 12 months. That’s the most rapid and sizable retreat from this gold fund since 2013.

To summarize today’s approximate investor attitudes, they like stocks, adore cryptos, and feel sorry for gold and silver.

“Both metals are suffering from a complete lack of investor interest,” griped Ole Hansen, head of commodity strategy at Saxo Bank A/S, during Thursday’s abrupt selloff.

But remember, there are two macro factors in gold’s corner – inflation and soaring government debt.

Eric notes that the 12-month federal deficit stands at $2.8 trillion…which is a whopping 12.5% of U.S. GDP. Meanwhile, the six-month average U.S. inflation rate is hitting levels not seen in 30 years.

Back to Eric:

Historically, great, big governments deficits, coupled with great, big inflation readings, trigger great, big gold rallies.

Perhaps this time is different. But there’s a reason why many seasoned investors say that “This time is different” is the most expensive phrase in finance.

Because it is…

We’ll keep checking for a pulse here in the Digest and will let you know.

See you back here tomorrow for the post-mortem on the Fed announcement.

Have a good evening,

Jeff Remsburg

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Here’s Why Evergrande Is NOT the Next Lehman Brothers

Thirteen years ago, on September 15, 2008, Lehman Brothers, one of the largest banks in the U.S., collapsed. The reality is the bank was overleveraged…

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Thirteen years ago, on September 15, 2008, Lehman Brothers, one of the largest banks in the U.S., collapsed. The reality is the bank was overleveraged in the real estate market during the housing boom, as it invested in risky real estate and subprime mortgages. When the housing bubble burst, Lehman Brothers didn’t have the cash to cover its loans. As a result, the big bank went bankrupt.

Source: Shutterstock

While the “Great Recession” was already underway, it was Lehman Brothers’ mighty fall that was the straw that broke the stock market’s back. Stocks initially chopped around on hopes that the Senate would bail out the big bank, but when they decided not to, stocks were sent into a tailspin. On September 29, 2008, the Dow plummeted 777 points and the S&P plunged 8.8%. At the time, this was both indices’ biggest one-day selloffs in history.

So, when it was announced yesterday that Chinese real estate company Evergrande was on the verge of defaulting on its nearly $300 billion in debt, Wall Street felt a little déjà vu. As a result, investors knee-jerk reacted, causing the Dow to fall as much as 970 points and the S&P 500 to slip 2.9% during intraday trading.

Suffice it to say, it was a bad day for the market, though I must admit I did find it ironic that the financial markets in China and Taiwan were closed while the U.S. markets sold off.

The reality is that China has a debt bubble that’s being pricked. A few weeks ago, its junk bond market was showing some cracks. But is Evergrande China’s Lehman Brothers? And, more importantly, is now the time to sell and sit on the sidelines?

Personally, I don’t think so.

The fact of the matter is Evergrande is too big to fail — and I’m not alone in this thinking. My favorite economist Ed Yardeni commented yesterday morning that the Chinese government is likely to intervene in order to protect the Chinese economy and global markets from the fallout. He noted that Evergrande management is likely to be replaced, and the company will probably be restructured.

Yardeni compared the current Evergrande situation to what occurred in 1998 with Long-Term Capital Management. At that time, the Federal Reserve and other major financial institutions stepped up to protect the U.S. economy — and global economy — from a major collapse when the hedge fund’s leveraged trading strategies failed.

This is why I believe yesterday’s sharp pullback is a prime example of Wall Street’s tendency to “act first” and “think later.” Yes, the Dow’s nearly 1,000-point plunge was gut-wrenching, but I suspect clearer heads will prevail and the stock market will firm up in the upcoming days.

Remember, we have the Federal Open Market Committee (FOMC) statement on Wednesday (I’ll share my thoughts on the FOMC statement in Thursday’s Market360 article, so stay tuned for that!), and I expect the Fed to remain dovish, which should trigger a nice relief rally.

The reality is the Fed has to remain accommodative. As I explained to my Growth Investor subscribers last Friday, in 2020 only 39% of Americans paid income taxes. So, even if the federal government taxes all of us at 100%, the federal budget deficit will still be more than $8 trillion. The federal government has essentially reached the point of no return, and it is following the same path as Japan and Europe. It simply cannot tax its way out of the deficit conundrum. I should also add that the Social Security Trust Fund ran a deficit in 2020 and will be out of money in 2034.

Given the massive federal budget deficit, I don’t expect the Fed to raise key short-term interest rates much higher. We may see the Fed raise the Fed Funds Rate from 0.25% to 0.5% in late 2023 and then to 0.75% in 2024. But rates aren’t likely to go much higher than that. Due to the dire U.S. fiscal situation, the Fed has no choice other than to print money and keep interest rates artificially low.

As a result, the U.S. stock market should remain an oasis in the ultralow interest rate environment. The S&P 500 and Dow continue to yield more than Treasuries and the banks, which is driving yield-hungry investors back to the stock market to high-quality stocks. This is especially great news for my fundamentally superior Growth Investor stocks. During the second-quarter earnings season, my average Growth Investor stock posted a 26.9% second-quarter earnings surprise, and many rallied on their strong results.

Considering this, I am looking forward to the third-quarter earnings season and what it has in store for my Growth Investor stocks. I should add that my Growth Investor stocks are characterized by 46.9% annual sales growth and 57.2% annual earnings growth, and I fully expect them to post wave-after-wave of positive earnings results, which, in turn, should dropkick and drive them higher.


Louis Navellier

P.S. John F. Kennedy once famously implored us to “ask not what your country can do for you; ask what you can do for your country.”

Now a new generation has turned that statement on its head.

We’ve reached a point of no return.

Our country has been taken over by a gang of folks who would rather take money from us than earn it themselves.

We have become what our forefathers feared:

A nation of takers.

If you’re a believer in financial responsibility and the ideals of the Founding Fathers like George Washington, this should scare you.

If you have any money in savings, in the stock market, in a 401(k) or even cash stuffed under the mattress, this should make the hair on your neck stand up.

I recently recorded a video to explain exactly what’s happening… and why it’s so dangerous to your wealth.

And I’ll share what I’m doing with my money to protect myself. (Hint: It has nothing to do with gold, precious metals or cryptos.)

Click here to see this urgent video message now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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Vior Prepares To Drill Prospective Belleterre Gold Project; Samples Return Strong Results Up to 274.9g/t Au

Source: The Critical Investor for Streetwise Reports   09/20/2021

The Critical Investor explains why he thinks Vior (TSXV:VIO) has a good risk/reward…

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Source: The Critical Investor for Streetwise Reports   09/20/2021

The Critical Investor explains why he thinks Vior (TSXV:VIO) has a good risk/reward investment profile, with its flagship Belleterre in Quebec, which contains the historic Belleterre Mine (produced 750koz Au @ 10.7g/t Au between 1936 and 1959), and very recently provided excellent sampling results, with results up to 274.9g/t Au.

Vior Inc. (TSXV:VIO; FRA:VL51) currently has an attractive project portfolio, a prospective flagship gold project, capital structure and high-quality core investor base for its market capitalization. The stock has consolidated on improving trading volume since February 2021 and is at an attractive entry point for new investors. Based on its current market capitalization, Vior seems to be one of the better risk/reward exploration plays in the sector. Cash and investments at A4M, its outstanding portfolio of projects, the flagship project Belleterre which contains the historic Belleterre Mine (produced 750koz Au @10.7g/t and 95koz Ag between 1936 and 1959) with recent and excellent sampling results (up to 274.9g/t Au), safe jurisdiction (Quebec), strong management team and cornerstone investor base including Osisko Mining Inc. (OSK:TSX) are all arguments that support the investment thesis. It is anticipated that strong drill results, positive gold price movements and potential asset sales/spin-off are potential catalysts which could drive the price higher throughout the balance of 2021.

Investors are encouraged to review the Key Points at the end of this article for a quick snapshot of the company.


Not often do you see a junior explorer consolidating prospective grounds in the backyard of Osisko companies the way Vior Inc. (TSXV:VIO)(FRA:VL51) has. This Montreal based explorer has assembled some impressive property packages, most notably their flagship Belleterre gold project and Skyfall project (on trend with Osisko’s Windfall gold project), both in Quebec. Belleterre has been consolidated into an impressive 291 sq km land package (531 claims), as the company recently negotiated an Option agreement to acquire up to 75% ownership from Osisko Mining Inc. for the last significant piece of the historic Belleterre mining camp.  Vior raised CA$2.4M on March 31, 2021, and recently announced strong gold. sampling results at Belleterre. All but one sample contained gold, and 20 out of 38 samples returned gold values above 10g/t Au, with the three highest grade samples coming in at 274.9g/t Au, 121.3g/t Au and 77.4g/t Au. These impressive results validate 10 historic gold showings, and confirm the high exploration potential at Belleterre.

All pictures are company material, unless stated otherwise.

 After a month of field exploration at Skyfall, which included till and grab samples, the company is expecting results this Fall. The success of the results will dictate the next steps in the exploration process. Management’s expectations are high and the next phase could include the generation of drill targets. Vior also has an equity investment in Ridgeline Minerals Corp (TSXV:RDG) valued at CA$1.82 million. Ridgeline is exploring 4 highly prospective gold projects in Nevada and plans to spend over CA$5M on exploration in 2021.  

There are 72.94M shares outstanding (fully diluted 92.79M), 14.87M warrants (@CA$.15 to CA$0.30 and expiring in July/2022 and March/2023) and several option series to the tune of 4.98M options in total, the majority priced at CA0.10 and CA$0.13 and expiring in 2024 and 2027.  Vior has a current market capitalization of CA$15.32M based on the September 17, 2021 share price of CA$0.21. 

The current cash position of Vior is approx. CA$2.2M, and the company is looking to raise more soon. The all-in cost of diamond drilling in the lower Abitibi region of Quebec is extremely cheap at approx.  CA$160/m. In addition, there are significant tax incentives for Flow Through capital raises dedicated to exploration in Quebec. Vior is looking to raise another CA$1M+ sometime this Fall, as it prepares to commence drilling on their Belleterre project in early November, 2021. Management holds no less than 16% of the current shares outstanding (CEO Fedosiewich holds approx. 10.5%), close strategic holders own approx. 30%, and the company also enjoys approx. 16% institutional ownership (including SIDEX, a Quebec sponsored junior exploration fund, FTQ, the labour sponsored pension fund and 2 other regional Quebec based funds). Osisko Mining owns a 6.7% non-diluted position.


President and CEO Mark Fedosiewich: 35 years of experience in investments and mining. Former First Vice President of CIBC, very extensive business network.

Chairman Claude St-Jaques: Founder of Vior, Mazarin and Virginia Gold Mines, also has a strong network. Very close to the Osisko team.

Executive VP : Laurent Eustache: Professional geologist with 15 years of progressive experience including Agnico-Eagle Mines , Aurizon Gold Mines and as former Portfolio Manager at SIDEX ($100M + AUM)


Vior owns a portfolio of ten projects, however, it’s exploration focus is clearly on the Belleterre and Skyfall projects as mentioned. The Company also views the Ligneris project as a strategic asset in the portfolio as it comprises a near district scale gold rich VMS target and is located near Amex’ Perron project. A disciplined approach and strategy has been deployed to acquire their recent projects, and these need to comply with the following strict criteria:

  • Safe and mining-friendly mining jurisdictions
  • In close proximity to an existing mine, historic mine or an advanced project
  • Good infrastructure nearby and easy accessibility
  • Project potential to go from an early to a more advance exploration stage

Nine out of Vior’s 10 projects are located in Quebec, one of the most mining friendly jurisdictions worldwide. Vior also has their early stage Tonya project in Nevada, USA,  which is the top ranked jurisdiction according to the Fraser Institute Survey.

Belleterre Project

The current focus for Vior is clearly locked on their flagship Belleterre property. After consolidating the last and central piece of the puzzle, the company has assembled a district-scale land package with a strike length of 37km:


This land package has never been consolidated on this scale before, is located on a Greenstone Belt with favorable mafic volcanics, includes the historic high grade Belleterre Gold Mine (produced 750koz Au @10.7g/t and 95koz Ag between 1936 and 1959), has good infrastructure and has several gold milling facilities with available capacity nearby, and the entire area is very underexplored ever since. Adding to this, previous drilling did not exceed 250 meters. Notwithstanding this, numerous gold showings have been detected in limited sampling in the recent past (2019). Vior has completed several reconnaissance exploration programs this year, among those an airborne magnetic survey in May, and field work in July and August with the aforementioned, impressive sampling results.

The company has also recently completed a validation of the historical data at and around the former Belleterre Gold Mine which will help in completing their new 3D Model. This compilation and validation work will assist in better defining priority targets for an upcoming 4,000m drill program that will commence in November 2021.

The Belleterre project is, aside from the majority of the claims already 100% owned by Vior, largely subject to 3 Option agreements: with JAG Mines Ltd, 9293-0122 Quebec Inc. and Osisko Mining Inc. The Option with JAG allows Vior to acquire 100% of this specific land package for CA$2.3M in cash and/or shares, and CA$2M in exploration expenditures, over the course of 4 years, with CA$2M of the CA$2.3M in cash or shares scheduled for the last year, representing very little payment obligations until June 31, 2025. JAG holds the equivalent of a 1% NSR over the property.

The purchase option with 9293-0122 Quebec Inc, which covers the Belleterre Gold Mine and its direct surroundings, allows Vior to purchase a 100% interest, by paying CA$2.1M in cash and/or shares before 2023 year end or thereabouts, and with no exploration expenditures. There will be no royalty involved on these claims. This purchase option was arranged during the main consolidation acquisition phase for the Belleterre project, when numerous other claims were acquired from other parties. Most of these parties were granted a 1% NSR, and Globex was granted a 2% gross metal royalty.


The option agreement with Osisko Mining allows Vior to acquire up to 75% of Osisko’s current interest in their Belleterre properties (see above at the map claims Osisko in black). 51% can be acquired by issuing CA$225k in shares over 3 years and by incurring CA$1.25M in exploration expenditures before August 2024. Vior has the right to acquire another 24% by incurring another CA$1.75M in exploration expenditures within 3 years after exercising the 51% option. No royalty is part of this deal, unless the interest of one of the JV partners drops below 10%.

The most impressive feat for me is that Vior managed to consolidate this entire district play right under the nose of Osisko Mining, as Osisko was obviously interested. Maybe Osisko didn’t have the best negotiation position with all the vendors, as a rising gold price and a big name probably drives up prices to the point that Osisko decided to wait, and focus on other projects. A small stake in the project, and an equity stake in Vior might prove to be an interesting alternative for Osisko.

Skyfall Project

The second most important project for Vior is the Skyfall project, also located in Quebec. This is an equally large land package of 26,758 ha (260.6 sq km), and 100% owned by Vior. It is located adjacent to the East of the Windfall deposit (6M+ oz Au resource, owned by Osisko Mining), and the Gladiator and Barry deposits (combined 2Moz Au resource, owned by Bonterra). Management could consider doing a JV with players in the area which include Osisko and Bonterra.  The interesting thing is that this package covers the eastern extension of the Urban-Barry Greenstone Belt, and is very under-explored, due to limited land access until a few years ago. As can be seen, it isn’t directly next door to Windfall but the geologic makeup of the property (Greenstone) combined with the inclusion of a major fault zone and gold showings makes this land package at the very least reasonably prospective for gold exploration.


A till sampling program from March of this year provided lots of gold samples, and on top of this 7 clusters were identified which created lots of enthusiasm with company geologists and management, but unfortunately this type of sampling cannot be translated or extrapolated into g/t Au samples, so there is gold, but how much exactly will have to be verified by standard sampling first. The till sampling results can be seen on the map.


Vior commenced field exploration in May of this year on Skyfall, and completed this program in August. It consisted of prospection, mapping, stripping, channel sampling and more till sampling. The company expects to release results from their Skyfall field program when received this Fall. These results will determine the next phase of exploration which may include drill target generation.

Other Projects

Vior sees their Ligneris project in Quebec as their third priority, and has budgeted CA$250k for exploration expenditures. It was optioned out to Ethos Gold Corp, but they decided to return it to Vior for a compensation of 1M Vior shares (plus 1M full 3 year CA$0.30 warrants, for exploration expenditures incurred) in April of this year, as 2020 drill results did not generate sufficient economic grades, after historic drilling returned impressive results like 13.5g /t Au over 10.5m, 62.1 g/t Au over 2.9m and 5.1g/t Au over 5.9m.

Other projects which will see limited exploration (sampling) this year are Mosseau and Mirabelli (both in Quebec) and Tonya (Nevada, US), of which Mosseau has already seen some drilling in 2017 by Vior, intercepting 2.93g/t Au over 4.5m from 40m and hosting an approx. 40,000 oz Au non-compliant resource.

Key Points

  • Vior seems to be making a fresh start, after advancing several lower-profile projects in the last 5 years. It is now focusing all of its new energy on two impressive district-scale land packages, being Belleterre which surrounds a historic former high grade mine, and Skyfall, which is on trend with a large fault that hosts the Windfall, Gladiator and Barry deposits.
  • The company has just recently completed the consolidation of the Belleterre Mine region, by arranging an option agreement with Osisko.
  • The region has been very underexplored even though it hosts a historic gold mine and many gold showings. Management believes that there is significant exploration potential at Belleterre. Skyfall is even less explored, but the geological conditions are favorable.
  • Vior just announced stellar gold sampling results at Belleterre, with results up to 274.9g/t Au.
  • Drilling at Belleterre is about to commence in November 2021, the first results will come out in January 2022. An initial drilling program at Skyfall is likely sometime in 2022.
  • Vior is backed by Osisko Mining, and a few powerful Quebec institutions. Adding to this are the CEO and Chairman with their large networks in mining finance, so money will likely not be a problem.
  • Vior management is very much aligned with shareholders, as CEO Mark Fedosiewich owns approximately 10.5% of outstanding shares.
  • A wildcard for Vior is their early investment in Ridgeline Minerals, which could provide lots of cash in case of a re-rating, potentially caused by exploration success in Nevada.

As with all early stage explorers, chances of success are almost binary. In the case of Vior there are several chances for a discovery, and with Belleterre lots of brownfield exploration could lower the risks considerably. And I wouldn’t underestimate Skyfall or their investment in Ridgeline either.  Stay tuned!

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The author is not a registered investment advisor, currently has a long position in Vior and Osisko stock, and Vior Inc. is a sponsoring company through a third party. All facts are to be checked by the reader. For more information go to and read the company's profile and official documents on, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

Timeframe advanced chart, Vior Inc, 5 year timeframe (Source:

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