Video News/Digging Deep

Exploration geologist Jeff Pontius says gold’s move back toward a US$4,000 base is a major shift for producers, developers and explorers, with many companies producing around US$2,000 per ounce or lower. Speaking with Kitco Mining’s Digging Deep on August 13, Pontius said a US$4,000 base would be “exceptionally good” for the sector and that US$5,000 gold by year-end is “probably a pretty good estimate.” Pontius also explained why he came out of pseudo-retirement to chair Mackay Gold & Silver and advance the consolidated Comstock district near Reno, comparing the opportunity to Cripple Creek before modern district-wide exploration. He discussed Mackay’s 20,000-meter drill program, large oxide targets at surface, and why strong treasuries let explorers drill faster while balancing dilution against discovery speed. Pontius also weighed the Barrick-Newmont Nevada agreement, government ownership in African mining projects, spinouts, research funding, permitting reform and flow-through-style tax incentives for U.S. exploration.