Gold Discovery in Ontario Unlocks New Digital Mining Potential

Source: Streetwise Reports 02/14/2025

Great Eagle Gold Corp. (GEGC:CSE; GEGCF:OTC; GI8:FRA) has secured mineral rights in Ontario for its digital mining strategy. Discover how this acquisition supports the company’s long-term growth.

Great Eagle Gold Corp. (GEGC:CSE; GEGCF:OTC; GI8:FRA) has entered into a definitive agreement to acquire a 100% interest in a mineral rights package from New Path Resources Inc. The acquisition includes three patented claims in Ontario’s Priske Township, containing an estimated 240,100 ounces of gold classified as NI 43-101 inferred resources.

The total purchase price for the mineral rights is set at CA$1,000,000. Great Eagle has already paid a 10% option fee of CA$100,000, with the remaining balance due within a year. The final purchase price is subject to an adjustment mechanism based on gold price fluctuations. If gold prices rise before Great Eagle completes the purchase, the total cost will increase proportionally.

Great Eagle plans to integrate these mineral rights into its digital mining strategy. The company aims to obtain Certified NatGold Resources™ certification for the gold resources, allowing tokenization through NatGold Digital Ltd.’s patent-pending digital mining ecosystem. This initiative is part of the company’s broader effort to provide a digital asset-backed gold investment.

According to Andrew Fletcher, President and Director of Great Eagle Gold, securing the mineral rights aligns with the company’s long-term strategy. He stated in the news release, “Finalizing this definitive agreement marks an important step in executing our long-term digital mining strategy. Having secured an exclusive supply relationship with NatGold Digital, we are focused on systematically acquiring high-quality, tokenization-ready gold resources to fulfill our commitment to supplying the first 2.5 million NatGold Tokens.”

In addition to this acquisition, Great Eagle Gold has closed the first tranche of a non-brokered private placement, issuing one million units at CA$0.20 per unit, generating gross proceeds of CA$200,000. Each unit includes one common share and one-half of a common share purchase warrant, exercisable at CA$0.30 per share until January 28, 2027. The company has also converted a previously announced CA$100,000 convertible loan into 500,000 units under the same terms.

Gold Market Dynamics Amid Rising Uncertainty

On January 30, Bloomberg reported that gold prices had surged to a record US$2,798.59 per ounce as the dollar weakened and concerns grew regarding potential tariff measures. The report quoted Phil Streible, chief market strategist at Blue Line Futures, who linked the rise in gold prices to renewed investor demand for safe-haven assets. Streible explained, “When you get rising inflation, and you get declining growth, you get stagflation, then gold is one of the best-performing commodities in that environment.” The uncertainty surrounding potential tariffs on key trading partners, including Mexico and Canada, has prompted increased gold buying as a hedge against economic disruption.

According to Technical Analyst Clive Maund, in a January 27 analysis, Great Eagle Gold Corp. is positioned as a leader in the shift from traditional gold mining to digital gold mining.

On the same day, Kitco Media described the recent gold rally as the result of a “perfect storm” of factors, including persistent dollar weakness, inflation concerns, and geopolitical uncertainty. The publication detailed how gold futures surged to US$2,852.40 following volatile market conditions, with central banks continuing to accumulate bullion. Ryan McIntyre, Managing Partner at Sprott, noted, “The latest rally in gold prices likely reflects a combination of rising uncertainty about U.S. policies and a weaker dollar following the disappointing fourth-quarter GDP report.”

On February 2, 321Gold reported ongoing bullish sentiment in the gold market amid technical shifts. The report highlighted how patterns in the COMEX market indicated a potential move toward US$3,101.20, with a notable increase in physical gold deliveries. This shift suggested that more investors were seeking tangible gold assets rather than relying on futures contracts, which historically kept physical gold within COMEX warehouses.

In a report from February 5, John Newell of John Newell & Associates wrote that gold had been following a consistent technical pattern for several years. He pointed to the historical precedent of gold’s 750% rise in the late 1970s and suggested the metal’s recent trajectory reflected similar conditions. Newell noted that technical analysis showed potential breakout levels at US$2,875 and US$3,150, which, in the past, had been indicators of substantial upward movements. He attributed the current pattern to factors such as high inflation, currency devaluation, and central bank buying, which have driven long-term demand for gold.

On February 9, Matthew Piepenburg wrote that global gold demand had been increasing as central banks sought physical reserves. He observed that the COMEX warehouse stockpile had grown by 75%, with over 400 metric tons of gold transferred from London since November. Piepenburg argued that these movements signaled a broader trend of investors seeking physical assets in response to concerns about currency stability and geopolitical risks.

Digital Mining Strategy Targets Environmental and Market Advantages

Great Eagle Gold Corp.’s website highlights the company’s focus on pioneering an eco-friendly, digital-first approach to gold mining through its partnership with NatGold Digital Ltd. The company aims to capitalize on a growing demand for environmentally responsible and socially conscious investment opportunities.

The company’s digital mining model avoids the environmental damage associated with traditional gold extraction. Mining a single kilogram of gold typically requires 265,000 liters of water and produces substantial toxic waste. By leaving gold in the ground and extracting its value through tokenization, Great Eagle seeks to eliminate these environmental costs while tapping into the latent value of underutilized gold deposits.

Tokenization, achieved via NatGold Digital’s patent-pending process, can be completed within days—far faster than the years often required for traditional mining projects. This speed of execution provides flexibility in responding to market demand without the operational risks and capital costs of physical extraction.

With ESG activism making the approval of new mining projects increasingly difficult, Great Eagle’s strategy aligns with evolving investor preferences. The company plans to build a portfolio of tokenization-ready gold resources, positioning itself as a leader in what it describes as the digital gold mining revolution.

Third-Party Expert Suggests Great Eagle Gold Positioned for Innovation and Growth

*According to Technical Analyst Clive Maund, in a January 27 analysis, Great Eagle Gold Corp. is positioned as a leader in the shift from traditional gold mining to digital gold mining. He described the company’s approach as “revolutionary” due to its focus on acquiring and preparing certified underground gold deposits for tokenization into NatGold coins. This process assigns value to the gold while it remains in the ground, eliminating the need for extraction.

Maund highlighted the significance of the company’s recent announcement regarding a letter of intent to acquire patented mineral rights titles containing NI 43-101 certified gold resources. He noted that the development “positions [Great Eagle Gold] as a key player” in supporting the launch of NatGold’s patent-pending digital gold mining ecosystem.

In the same analysis, Maund drew attention to the technical indicators reflected in Great Eagle Gold’s stock charts. He observed a positive volume pattern, with “nearly all of the volume since late September” being upside volume, which he described as “very bullish.” He stated that the stock appeared to be “building up to breaking out of its recent base pattern into a new bull market” and rated it an “Immediate Strong Buy.” [OWNERSHIP_CHART-11183]

Maund also referenced the environmental and economic challenges facing the gold mining industry, such as high extraction costs and ESG-related backlash. He indicated that Great Eagle Gold’s digital mining model addresses these concerns by aligning with ESG principles while unlocking the value of trapped resources without the environmental impact of physical mining.

Ownership and Share Structure

According to Refintiv, 37.03% of Great Eagle Gold Corp. is owned by management and insiders. Of them, Azim Dhalla owns the most with 26.94%. Yari Nieken holds 7.18% and Andrew Fletcher holds 1.79%. The rest is retail.

The company has 29.84 Free Float Shares and a market cap of CA$6.92 million. The 52-week range for GEGC is CA$.07-0.58.

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Great Eagle Gold and Nat Gold.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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* Disclosure for the quote from the Clive Maund article published on January 27, 2025

1. For the quoted article (published on January 27, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: GEGC:CSE; GEGCF:OTC; GI8:FRA, )

Source: https://www.streetwisereports.com/article/2025/02/14/gold-discovery-in-ontario-unlocks-new-digital-mining-potential.html