GLOBAL MONEY SUPPLY EXPLOSION: Gold's Set to Play Catch-Up! -- Looking at the Markets with David Moadel
hello and welcome to looking at the markets with david modell i am so lucky that i get to speak
with the experts in gold and in resources around the world today uh we're all the way in canada
and we're speaking with dr quinton henny director at newfound gold and you're going to want to check
this out it's a newfound gold.ca i'll put it on the screen but i am so excited about what's coming
with gold and resources and miners generally and i want to talk to you about it and maybe mention
an opportunity in a stock that i'm super excited about uh dr henny welcome to looking at the market
sir thank you very much absolute pleasure to be with you yeah it's a pleasure to speak with you
you've been in the resource sector for quite a while and you're right in the thick of it and you
have your ear to the ground as far as what's going on in gold in mining we all know that the fed has
given the green light to let inflation run hot what do you think is going to happen with the gold
price i don't expect any specific price targets for gold but where do you think we're headed
oh well david uh let's see like the crystal ball is uh is a bit foggy but i think it's clearing
very quickly um i think everybody can see that we're heading to uh a unique situation on the
planet with uh i'm not even gonna call this quantitative easing it's not it's this is uh
extraordinary the measures that are that governments are going to to
ensure economies stay upright right now is kind of jaw-dropping so i'm going to say that
it it's i've talked about this before it's an an emotional inflation it sounds weird but this is
what it is you know when you start to see everyday people realize that what is being done right now
is unsustainable uh it it causes a bit of fear in folks you know how do you how do you run deficits
like we are how do you print money like we are how do you do this on a sustainable basis a lot
of people are asking those questions right now and unfortunately it leads to nowhere good um i'd like
to say that uh we're we're headed to uh you know an inflationary period where things like precious
metal will benefit dramatically and i i think we are but i don't think it's going to be quite as
simple as a lot of people make out i think there are you know uh some deflationary forces at work
for the interim um we've obviously got a strong economic headwind on many fronts in the economy
and um that leads to uh you know a deflationary pressure but i think that that will be overcome
at some point by this uh absolute flood of money that's being brought and that's going to lead to
a sustained increase in in prices and as people start to panic um you know you'll
start to see it manifest itself in different ways let me give you an example back in march
when here in the united states when uh covet hit you know what's the first thing people did well
they went out and grabbed as much toilet paper as they could it's just astonishing what happens
to when when people start acting on their brain stem um i think the same thing's gonna happen
but at a different level here soon in fact i think i think we already see it people are
running they they don't want to keep their money in the bank they don't want to keep their money
they don't want to uh you know use traditional investment practices that that have been
you know around for many decades now they are literally going out and scooping up
anything they can grab you know in other words they're putting it into the hard tangible assets
or i shouldn't say necessarily hards in some cases but assets where um you know it's got they've got
that hoarding mentality going so you know what's why is the bubble in tech happen here recently
well it's because there's a lot of money available and people are are truly panicky you know they're
they're looking around what's the best industry well tech is let's all jump in there you know it's
like the the lemming phenomena or something um you know tech is basically the toilet paper investment
of of this uh cycle you know i hate to say i mean there's a lot of good tech companies but
you know the way people are approaching it is just completely irrational um i think you're seeing it
to a degree in housing as well you look here in the united states and you know it's actually
there's actually a shortage of houses in many places people are moving around there's a lot of
people leaving cities new york and the west coast and so forth trying to find a new home in suburban
areas in the midwest and stuff it's causing a severe shortage of housing once again that
mentality oh we must have we must have uh it's driving prices upwards and it's astonishing you'd
think my gosh in the middle of a severe recession house prices should be going down they're not
they're going up in fact in places they're going up dramatically this is bizarre okay so
again emotional inflation that sounds wacky but that's what it is when people start operating
on the brain stem but you know by the whatever stimulus their brain stem gives them that day
then you see a lot of wonky things happen it will come to gold as well look i don't want to see gold
go up to 3 000 an ounce overnight that would be not so good uh a nice sustained price increase in
in precious metals where mining companies can see a sustainable uh you know healthy margin
uh you know in mining this product i think that would be a welcome relief to the sector and um
quite frankly i'd be happy if gold hit 2200 late this year and then if it hit 2500 you know a year
after that and 3000 a year after that in other words a nice steady increase again healthy margin
uh increase in margins for gold mining companies and really see that capital come in that we need
yeah i like those price targets as well if gold let's say it gets to 2200 this year
that will have a huge influence on the mining sector and mining stocks such as newfound gold
if people are interested in the stock make sure you research it research before you buy anything
folks but on the tsx venture exchange it is ticker symbol nfg on the otc market it is nf
gff and newfound gold dot ca is the website you want to check out now dr henny you've been
involved in several major successes in the mining industry what is the most important
feature of success as an investor in this sector in your opinion uh when you say feature i guess
what you're getting at is is probably what do you look for to to measure success yeah
this company newfound is in an early stage okay let's be real clear here
they drilled 10 holes late last year had a stellar result they had 19 meters of 93 grams in
in a hole in the keyed zone which was phenomenal i mean you don't see growth many geologists don't
see a drill hole like that in their lifetime okay so fantastic results they have started a hundred
thousand meter program a couple of months ago and they're aggressively drilling right now but
results uh you know our slow to come assay labs are backed up and so forth they have put out
very good numbers recently uh they had i think 4.7 meters of 42 grams and then
uh five meters in the in a bit of uh 25 grams in a new hole two kilometers away from that previous
hole i talked about so you know uh their fantastic results today what are what are we looking at it's
still an early stage of the story okay it's going to take a lot of drilling you know they have 100
000 meter program slated right now but uh what i look for are the early results okay oftentimes
with uh with the old discoveries in particular you can look at at certain
aspects of the the data that's coming in and start to gauge what this might turn out to be
and i'll give you an example when you take the the grade and the thickness you multiply those so
in the case of that first hole 19 meters times 93 grams you know do that math
or in this in this most recent hole with the two intervals you know 4.7 times 42 and then add
5 meters and change times 25 i mean you're looking at what we call grade thickness intervals okay and
those grade thickness intervals uh give you a pretty good indication of where a deposit might
head or a discovery might head and when you start to see numbers in the hundreds
and even thousands of gram meters that's usually a very good sign it means this system could be very
big and the discovery could be a multi-millionaire system so that's what i look for in early
uh discoveries i look at what the company's announced i do a great thickness on it i think
in context of other world-class discoveries that have been made over time does this fit the mold
some don't some do you know more often than not they don't obviously but when they do boy
do they ever and newfound is one of them yeah fantastic now from what i understand newfound
gold has some huge backers uh eric sprott rob mcewen i mean this is like warren buffett uh
you know getting into uh gold well so are these other big names novo resources uh tell
me about some of the the backers and some of the support that uh that newfound gold has received
certainly look uh eric you know has been a long time investor in the gold space or precious metal
space in uh in mining for for decades now and uh look eric invested in newfound while it was
a private company this was last year prior to the drilling of these uh high grade holes
he called it right eric has he kind of operates by instinct and he called it right in this case
and he's going to see a massive return from this that really already has rob mcewen also
identifies stuff early on robs get a good nose for identifying good high grade projects so
you know that's what attracted those two to this noble resources look i'm chairman of nova that's
my company and why did i take a big steak or why did we take a big steak i i can tell you as soon
as i saw that core and the similarities to the fossil bill deposit in australia
uh i was convinced you know i decided that newfound is on to what could be a discovery of
you know a generation or something like this is not small stuff here this is a big discovery and
the opportunity this is pre-ipo the opportunity came about for noble to to acquire a 15 million
share stake in newfound absolute delight with our delighted with our investment it's performed great
today i see this as exposure to what could be the one of the biggest discoveries in in the past few
decades yeah absolutely um huge backers including yourself you're actually you have a stake yourself
and i like it when people uh have some skin in the game so to speak that makes me feel more confident
uh before i investigate investing in anything uh so since the ipo recently shares are up uh well
they've doubled actually 100 already um can you tell us about the company going forward the plans
uh the shareholder base and just generally the potential for newfound gold yeah look uh it's
really going to be driven by what's found by the drill bit uh you know this this story is
is going to unfold over the next few months and years it's uh it's a big system they have
110 kilometers of strike along the appleton fault this corridor of you know high grade prospectivity
they've found high grade now in two areas two areas that are two kilometers apart
ketone and the lotto zone in and this is just in the north area they haven't even begun really to
explore the southern part of their property position you know what uh what does this mean
look i i am a big cheerleader is it all discovery requires a bit of patience okay but i think
uh people will be uh greatly rewarded over time i think uh you know a lot of people say oh my
gosh they've already doubled since ipo you know they must be getting um topping you know like
maybe this is a peak or something no way this is a beginning you know so uh in this case uh they've
just started in the grass bureau program again to reiterate i love to see companies that drill
these guys are committed committed to drilling they have an aggressive program going right now
and i think that that will unlock value over the next few months and few years yeah absolutely
as far as i know newfound gold is the largest landholder uh in newfoundland in this space
with over 1500 square kilometers of prospective land i mean this is huge um so
if you could tell me a little bit about just uh a brief overview of a couple of projects the queen's
way project and the lucky strike project uh what are the specs of these two projects
look uh the queen's way to put in perspective you're looking at a structural zone okay it
trends north northeast uh it's along a a series of very deep rooted structures that they go down into
the crust and and tap the fluids that generate the deposits okay so what do we see at service
and at queen's way we see uh we see high grade gold occurrences some of them not even
really drilled or or tested by other means yet okay so you have
the two discoveries that have been made through the drill bit uh at keats and lotto but we have
numerous other showings that indicate we have further high grade across the property
the thing is really interesting about the geology here is that the erosional level of this system is
just perfect in other words in in the profile of the gold deposit as you go down into the ground
in these type of systems get into a very very high grade regime within them and what mother nature
has done is it's it's eroded the surface down to the very tippy top of that high grade regime so
you basically have right at very close to surface these exceptionally high grades in this system
and they're showing up all over the property we have till samples that are yielding very coarse
grain gold we have uh you know rock floats which are pieces of rock that have broken off very
high grade uh you know visible gold in in rock pieces but this thing is is just beginning um i
you know the structural system underneath the property has just barely been scratched i mean
you look at the appleton fault 110 kilometers of strike that's a long way okay that would take you
um a bit over a bit over an hour to drive from one end of the property to the other that's crazy
yeah you know so it really is the beginning as far as lucky strike goes like uh um i'm not i'm
mostly up to speed with queensway so i can't i can't speak much besides that but uh i would say
the company's future is probably going to be dictated by the discovery queensway yeah huge
land assets here and mineral rich potentially i'm bullish on gold and even more bullish on
select miners including newfound gold once again on the tsx the exchange nfg
is the ticker on the otc exchange nfgff check out newfound gold dot ca uh i am so lucky that i get
to speak with the you know the greatest minds in gold and in resources so dr clinton henny director
newfound gold thank you so much for coming on looking at the markets we'll have to have you back
when gold hits your price targets and my price targets which might be even a little bit higher
so thanks a lot for coming on i appreciate today sir thank you david