Tembo Gold and Barrick Drilling in Elephant Country

"If you're hunting elephants... you have to venture into elephant country" 
                                 - Mark Bristow, CEO of Barrick Gold Corp.


What the CEO of the largest gold producing company (by ounces produced)
is referring to is one of the most prolific gold bearing regions:
The Lake Victoria Goldfield in Tanzania.
Financial Benefits from US$60M Transformational Barrick Partnership
Visit tembogold.com to learn more about the Tembo Gold project.
 
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The mining industry likes to invest in juniors because they can’t explore themselves. Tembo is a very good example. We invest the high risk capital, and they explore their own target, and if they surprise us all and find a big one, then at least we’re the first in line.”
 

ADVERTORIAL

During the financial collapse at the end of 2008, gold plunged to below $700 as the panic took all asset prices lower. But then, as the scope and scale of the damage to the economy became apparent, gold raced to $1900 an ounce by 2012, out performing every other asset class in that timeframe.

Although governments and central bank's may not want to use the term "recession", we are entering the fourth consecutive quarter of economic downturn. 

So, while gold is starting to once again outshine any other asset class as a store of value (seen below) as it has done for 5,000 years, Tembo Gold and Barrick Gold will go about the business of finding more gold to the benefit of their shareholders.

Mark Bristow, CEO - Barrick Gold Corp.
 
Before recent drop in prices, there were many research reports suggesting Bitcoin could be treated as a safe haven play versus gold.

You don't hear too much about this now.

Gold has always and will continue to have significant uses in the economy. Central banks, investment banks and hedge funds all allocate gold into their portfolios.


While Bitcoin could have large future applications, it is currently highly speculative. The stability in gold has been proved invaluable throughout history - the latest highlight of this is when Russia invaded Ukraine while inflation ran rampant, Bitcoin capitulated while capital flowed into gold.

 
Barrick’s success here is already a matter of historical fact.


It produced 178,000 ounces of gold at its 100%-owned Bulyanhulu Gold Mine in 2021 and expects to produce 180,000 to 220,000 ounces of gold this year.

So, how does Tembo Gold fit into the picture? Well, they are right next door and have become partners.

Tembo just happens to own the land directly to the west and northwest. The exciting prospect is the area's geology is analogous to Barrick's.

So, unsurprisingly, Barrick purchased a 100% ownership interest in six of Tembo’s non-core prospecting licences and is now drilling those while Tembo is actively drilling on its core holdings.

And there lies the opportunity for investors.

Two very different scale companies pursuing the same objective, simultaneously, in the same place.

That convergence of circumstances couldn’t be more bullish for gold investors.

The challenge described by Barrick's CEO above is this: Barrick's current mill will deplete the remaining 2.5 million ounces relatively quickly.

Which means they need to find more gold.

And Tembo is the ideal partner to acquire it.

It's not a matter of if, rather than how many ounces Tembo will uncover.

Tembo is well funded with upcoming drill program preparation already underway.

Tembo Gold's drilling returned several exceptional results including: 12.96g/t Au over 5.54m from 89.01m and 29.67g/t Au over 2.35m from 91.44m at Nyakagwe Village.

Tembo is able to focus its exploration efforts towards the discovery of one or more multi-million ounce gold deposits, adjacent to Barrick’s 20 million ounces (Moz) Bulyanhulu mine.

The discovered gold will also have a lower threshold of economic viability to prove, since the mill at Bulyunhulu provides 100% of the infrastructure required to produce those ounces.

And the kicker for investors in Tembo that sets it apart from other gold juniors: when Tembo makes a discovery, Barrick is the likely buyer.


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Infogram

Provides Tembo with a significant upfront cash payment (US$6M) to advance development of core target areas

Barrick and Tembo have agreed to sliding scale contingent payments totalling US$45M based on resource definition milestones on the acquired concessions up to a maximum total of five million ounces of resources in all categories

Barrick has committed to spending US$9M on exploration efforts to define resources on the acquired concessions

Creates a meaningful and long-term partnership with world’s top gold producer and one of the most influential companies within the East African region (~6% proforma ownership or C$1.5M)

Barrick’s core strategy is one of long-term value creation and our focus remains firmly on this goal. We continue to maintain a strong balance sheet and to develop our wealth of organic growth projects. We also keep a sharp lookout for M&A opportunities, but those that could pass our strict investment filters are few and far between
 
Mark Bristow, CEO - Barrick Gold Corp.
 
Breaking
News
 
Press
Releases
 

Tembo's Future Resource Catalysts

Q2 2022 - Q4 2022
Extend drilling & follow-up exceptional intersections
Q1 2023
Develop ore models and start resource determination
H1 2023 - H3 2023
• Complete resource model
• Preliminary mine design
• Metallurgical characterization studies
• Process plant basic design
• Establish optimum production rate
• Estimate Capex & Opex costs
• Develop a PEA financial model
• Identify studies to complete a Pre-Feasibility Study
Gold
Industry News
 
Supporting
Articles
 

David Scott, B.Sc., M.Sc.

Former Technical Services Manager for Barrick Gold’s subsidiary Kahama Mining Corporation at Bulyanhulu Mine and Executive Director of Tanzania focused and London-listed Shanta Gold Limited.

Over 40 years of African exploration and mining experience with 22 years in Tanzania.

President, CEO and Director

Simon Benstead

CFO, VP Business Development and Director

Entrepreneur and investor with 20 years of capital markets and senior management experience, formerly with Merrill Lynch as Vice President Institutional Equity Trading, and BMO Capital Markets as Managing Director Institutional Trading focused on resources.

Hendrick Meiring

Exploration Manager

Exploration and mining geologist with 32 years of experience across the African continent and Australia Pacific.

Served as Exploration Manager for Ivanhoe Mines Exploration, Chief Geologist for Endeavour Mining, Project Lead for Barrick Exploration at the world's largest drilling program in 2011-2013, and Chief Geologist for Ivanhoe Mines. 

Frank Hoegel

Director

Currently serves as CEO of Peter Beck Performance Fonds GbR, and an advisory board of Concept Capital Management, an Asset Management Company.

Marc Cernovitch

Director

Served as a director and advisor to numerous small and mid-cap companies executing financing and M&A transactions.

Paul Magege

Country Manager

A founding shareholder with strong local community and government relationships and a skilled administrator.

Tembo Gold's high-quality management and advisory teams have extensive gold exploration and mining experience in Tanzania, Africa, and Worldwide.

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Supporting
Articles
 
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Supporting
Articles
 
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Barrick Gold
Transaction Highlights
 
Sale of 6 non-core licences to Barrick Gold;

Sale provides Tembo with a US$6M upfront cash payment to advance the development of core target areas;

Barrick has committed to spending $9M on exploration efforts to define resources on the acquired concessions.


Barrick and Tembo have agreed to sliding scale contingent payments based on resource definition milestones on the acquired concessions.

          $20/oz Au for the first million ounces
          $10/oz Au for the second million ounces
          $5/oz Au for the next three million ounces


Barrick has become a meaningful and long-term partner by investing a further C$1.5M into Tembo (5,518,764 shares for ~5.5% of Tembo).
Total Partnership Value
US$60M

+ C$1.5M Equity Investment

 
Any major drilling success by either Barrick or Tembo is likely to have a large uplifting effect on Tembo's share price.


The Barrick transaction allows Tembo to use large balance sheet to solely focus on new discoveries of multi-million ounce gold deposits in area rich with million ounce mines.


If a future multi-million ounce deposit is discovered, Barrick would be first in line for acquisition to replenish its own diminishing gold reserves. 

There Is No
Gold vs Bitcoin
Debate
 
Why Gold?
Why Now?
 
Why Gold is the Only Safe Haven Asset
 
Gold vs Other Asset Classes
Since the beginning of 2022, the gold price has stood up better to negative market conditions than other asset classes.

Gold has outperformed the major US indices and cryptocurrencies, demonstrating why the yellow metal has been used throughout history as a hedge against financial instability.

Gold prices skyrocketed in March mainly due to fears of market consequences from Russia's invasion of Ukraine.
US Dollar
The Federal Reserve has been hiking interest rates to try to control inflation - pushing the USD to reach new 20-year highs.

But, the US dollar has been losing its share of global foreign reserves - Peaking in 2015 while reserves in JPY and EUR have been increasing.

Gold transactions are expressed in dollars. So, while the volume of USDs has increased exponentially, the volume of gold only increased incrementally -making it appear the price of gold is not performing.

A safe haven should hold value over time. Gold is backed by its finite material in the ground. The value of a currency, now pegged to nothing, is controlled by central bank decision-making.
Supply & Demand
The drop in USD sentiment globally, rising inflation and economic recession negatively impacting stock markets, could force the Fed to change current hawkish policies.

The volume of gold can't be manipulated and value derives from supply and demand.

There is a massive undersupply of physical gold.

244,000 metric tons of gold have been discovered on earth. Only 57,000 tons of underground gold reserves are left.

Goldman Sachs analysts predicted there are 20 years of gold reserves that can still be mined. As gold reserves diminish, the price could rise dramatically.
Need for a Safe Haven
Further Fed rate hikes present a large risk with the current economic climate.
Economies are extremely indebted and reliant on monetary stimulus.
Inflation hasn't yet been controlled.
Gold is the only safe haven asset and the monetary standard by which all currencies, extant and defunct, have been measured for at least 5,000 years.
Gold Investments
Other than gold, alternative diversifying investments aren't attractive.

Crypto drew capital away from gold for a short while, but its speculative nature and regulatory pressure negate it being a safe haven.

Government bonds aren't appealing as yields are low with the added uncertainty that the debt can't actually be paid - not exactly a "risk-free rate of return".

Gold is the only portfolio diversifier.

So, how to invest in gold?

Safest option: Physical gold.

To take advantage of a bullish gold market: Junior Gold Miners as they tend to outperform gold during price increases in the commodity.
Find out why Barrick is backing Tembo Gold!
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Barrick/Tembo Gold Partnership!
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Disclosure: Global Financial Network Ltd, (GFN) and its affiliate MidasLetter.com, (ML) have been compensated for the production of this landing page and other content production and distribution services as to a monthly fee of CA$15,000, as well as an option to purchase 150,000 common shares of Tembo Gold, in addition to 150,000 Restricted Share Units (RSU's).

The information herein presented here is based on publicly available information, and may contain forward looking information as defined by the Ontario Securities Commission in Staff Notice 51-721. (https://www.osc.ca/sites/default/files/pdfs/irps/sn_20130613_51-721_forward-looking.pdf)

This content is presented as an advertisement to assist Tembo Gold Corp in the presentation of its corporate activities to interested parties, and as such, should not be relied on to make any investment decision in regard to Tembo Gold Corp or any publicly traded security.

Investing in junior mining stocks is risky and you could lose all of your invested capital. Always consult an appropriately accredited financial advisor in your jurisdiction prior to making any investment decision.

Breaking News
Outstanding Drill Results
 
If you listen to the G7 Summit, there are a lot of very important politicians working really hard to get gold to $5,000.”
 
Mark Bristow, CEO - Barrick Gold Corp.
 
Tembo Gold just published initial results from its 2022 drilling program on the Lake Victoria Goldfield in Tanzania, and they are pretty impressive.

The marquis result – 12.96g/t Au over 5.54m from 89.01m including 29.67g/t Au over 2.35m from 91.44m at Nyakagwe Village – demonstrates the prospectivity of the Tembo project, and shows that the geology supporting neighbouring Barrick Gold Bulyanhulu’s gold resource trends across Tembo’s project.

This has always been the expectation of both Barrick Gold, who besides owning 5.5 percent of Tembo, is also a partner in exploration and the logical buyer of the Tembo Gold Project should exploration continue to produce good results.

More drilling is expected to continue through into 2023, with Barrick expected to begin drilling on its Tembo prospects then.


Barrick has been very vocal about their reliance on relationships such as Tembo, as disclosed in a press release on October 22, 2022 where the CEO stated the following:


"The management of Tembo looked at the ground, looked at Bulyanhulu, looked at Barrick and said we know this is a good deal. The structure that starts at Bulyanhulu runs right through the Tembo ground. There's absolutely zero question there's gold there, there's a lot of gold there, you just have to spend money to drill it.
- 321gold.com Founder Bob Moriarty 
 
Expert Interview
"Gold Will Explode Higher"
 
Top 5 Catalysts
Behind Gold’s Outperformance of Markets in 2022
Few recognize that, on a relative basis, gold has outperformed literally every other asset class on Earth in 2022. 

Even with year-to-date performance of 6 percent, gold has outshone Bitcoin (-55% YTD), the S&P500 (-23.52% YTD), the Dow Jones Industrial Average (-19.38% YTD) and the NASDAQ100 (-30.83% YTD).

Even fewer recognize the geo-political factors behind fold’s relative outperformance, which collectively bear scrutiny as those trends are poised to define the financial markets landscape in 2023. So here they are, as I see it, in order of magnitude of impact on gold’s strength:


Multiple mainstream news channels are reporting that  the usual buyers or US debt are largely absent from markets, while wildly fluctuating futures prices in treasuries add to the reluctance. With the Fed officially in “quantitative tightening” mode, where they seek to reduce the US debt on their balance sheet by finding new buyers, it underscores how the market is not willing to act as the Fed’s exit strategy for its excessive gorging on debt, which is part and parcel of the illusion that the $32 trillion US debt is in fact not unserviceable.

This, in turn, as implications for the entire global financial system, since, by the UK’s example, they can broadcast QT all they want. But they might still have to buy government debt if nobody else is willing to take it. The result is that gold, from the perspective of “safe haven asset” looks more solid than gilts or treasuries.
1.  Evaporating demand for US bonds:
2.  Geopolitics
The reason China is so silent on the Russian invasion of Ukraine is because it plays into their longer term interest in a militarily weakened West. Since China became Russia’s biggest natural gas customer in 2014, the orbit of these two historically ideologically aligned superpowers has only grown tighter.

And now with Saudi Arabia and  its murderous leader Mohammed bin Salmon (MBS) gravitating naturally toward oppressive governments of China and Russia, the alliance of the western nations versus those of the east are starting to take on the contours of the new Allies vs Axis. Even Vladimir Putin is vocalizing increasingly about nuclear strikes and World War III.
3.  Inflation
Central banks sewed the seeds of runaway price inflation with their own runaway money inflation.

And now, as is in the 1980’s, their only available avenue to induce a reduction in inflation is by spiking interest rates. Which in turn begins to undermine every aspect of financial market positive catalysts.
Housing prices: down. Stocks? Plummeting. Commodities: crashing (except gold). Bonds? See section 1 above.
4.  Crypto rugpull by central banks imminent
Just as it served the interest of central banks to permit the unregulated proliferation of crypto currencies when it was inflating the monetary supply, it now is adverse to central bank interests to allow crypto currencies to compete with sovereign currencies during quantitative tightening.

Bitcoin was an acceptable sponge of plenty of the excess liquidity created by central banks, and was at least in part responsible for delaying the onset of runaway inflation. As the G7 moves closer toward the rollout of their own Central Bank Digital Currencies, you will see that the rules enacted around cryptos of every flavour will tend incrementally toward defining them as securities, and outright barring their use as a currency.

As this intention becomes the reality, all of the trillions wrapped up in shitcoins and the lesser shitcoins, the cyrpto crowd will be forced to acknowlege reality, and will likely gravitate toward gold, since it exhibits the properties that attracted them to crypto in the first place.

No sovereign nation will permit the privatization of the monetary system simply because it is the means of control over their populations and political systems.
4.  Scarcity
Since 2010, annual total mine production has remained more or less constant between 2,200 and 3,500 tonnes per annum. In that same timeframe, the averagre price of gold per ounce has nearly doubled. Yet the doubling of the sale price per ounce fails to catalyze new production on any sort of scale.
Why? Because gold resources just can be extracted any faster than they are currently. And the average grade of gold being mined has been drastically falling within that time frame, meaning that the ounces of gold are increasingly more expensive to produce.

The World Gold Council states that there are roughly 53,000 tonnes of gold in the ground in the form of proven reserves. Given the annual gold demand of roughly 5,000 tonnes, this means that gold from mines will last no more than another ten or eleven years. Without gold recycling, which provides around 1,000 tonnes per year, that supply could be exhausted much sooner.
No matter how you look at it, and compared with the alternative safe haven assets like cryptos, gold’s appeal as a preservation of purchasing power has only strengthened during the last 10 years.
With geo-political tensions rising quickly and on many fronts, don’t be surprised if gold has another breakout run before the end of 2022. 
And look for its relative outperformance to remain solid throughout 2023.