Consumer prices have risen notably during recent months, linked by many to the United States’ involvement in launching the Iran War and the resulting strictures on international energy transports. Gold bullion prices have, with expected variations, enjoyed a significant rise since January of last year, and the precious metal is anticipated to continue acting as a long-term “hedge” or “safe haven” against inflationary pressures.
Near-term gold producer LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) is preparing to restart its recommissioned Beacon Gold Mill and to draw on mineralized material from its Swanson Gold Deposit in the Abitibi Greenstone Belt. LaFleur’s all-in sustaining cost estimates anticipate profits based on base case pricing of gold from before the recent growth factors, and economists expect the foundational upward pressure on gold prices to persist.
Consumers in the United States have watched prices grow at a “moderate to strong pace” in recent weeks as an apparent response to the ongoing Iran War, according to federal policy makers (https://ibn.fm/h06l8), which has a potential downstream effect on investor interest in precious metals such as gold that enjoy a reputation as a long-term “hedge” against currency debasement and inflation (https://ibn.fm/EeHdo).
LaFleur Minerals is on the cusp of restarting its Beacon Gold Mill during the next few months (https://ibn.fm/oF93j), initially processing material from its Swanson deposit. The company has secured strategic financing and completed asset acquisitions to support this restart. The mill’s recommissioning is expected to position LaFleur as a near-term gold producer, able to take advantage of the current market dynamics.
The Iran War has disrupted global energy markets, contributing to higher consumer prices. This inflationary environment has historically driven investors toward gold as a store of value. LaFleur’s low all-in sustaining costs relative to current gold prices suggest the company could generate significant profits even if gold prices moderate. However, with economists expecting continued upward pressure on gold prices, the timing of the mill restart could prove advantageous.
All scientific and technical information in this article has been reviewed and approved by Louis Martin, P.Geo. (OGQ), Exploration Manager and Technical Advisor of the company, considered a Qualified Person under NI 43-101.
