July Insights and August Outlook: Navigating Market Challenges with Resilience

To our Acuity Community,

As we make our way into August, we recognize the challenges the market is currently facing. However, we encourage resilience in the face of adversity. The market's dynamic nature requires us to stay informed, adaptable, and optimistic about the future. Here’s a look at the latest industry updates and the exciting advancements our partners have made this past month.

Industry Updates:

Global Market Sell-Off and Gold’s Resilience

• The price of gold decreased by 1% on Monday, August 5, falling below $2,400 per ounce for the first time since July due to a global market sell-off of raw metals. Weak economic data from the US and recession fears have led to this sell-off.
• Despite the dip, the World Gold Council's Q2 report shows a 4% year-on-year increase in gold demand, supported by healthy OTC transactions, central bank purchases, and rising Chinese retail demand. The average gold price reached a record $2,338/oz in Q2, with an all-time high of $2,483/oz on July 17.
• Louise Street, senior markets analyst at the World Gold Council, highlighted that strong demand from central banks and the OTC market has consistently supported gold prices throughout the year. (Source: Mining Technology)

Does the Recent Stock Market Dive Indicate a Recession in 2024?

• The recent plunge in the stock market has sparked speculations about a potential recession in 2024. While geopolitical tensions and disappointing economic indicators have fueled uncertainty, the stock market has shown resilience with year-to-date gains.
• Economic indicators such as rising inflation, tightening monetary policies, and concerns over global economic growth contribute to negative sentiment. Additionally, geopolitical events and market speculation play significant roles in current market fluctuations.
• Key economic indicators to watch include consumer confidence and spending, business investment, and job market trends. Despite these challenges, the market’s ability to maintain long-term gains suggests underlying strength. (Source: Forbes)

Partner Updates:

Sun Summit Minerals Corp. (TSX-V: SMN; OTCQB: SMREF)

July was a transformative month for Sun Summit Minerals Corp. and their exploration advancements at their JD Project in British Columbia.

• July 9th: Announced the mobilization of field crew to the JD Project for the inaugural drill campaign. The JD Project spans 15,000 hectares and hosts numerous under-explored epithermal-related gold-silver and porphyry-related copper-gold targets. Read more here
• July 12 - 24: Increased the size of their non-brokered private placement twice, once on July 12 and again on July 17, closing the private placement on July 24. The Company raised $1,229,160 through the issuance of FT Units and NFT Units. President Sharyn Alexander stated, “We are very pleased with the level of interest in Sun Summit and the oversubscribed financing, which has strengthened our balance sheet and positions us for a very active exploration season.” Read more here
• July 30th: Commenced inaugural drill program targeting high-grade gold mineralization at the JD Project. The first five planned drill holes at Creek will target extensions of high-grade gold mineralization. Read more here

Headwater Gold Inc.?(CSE: HWG; OTCQB: HWAUF)

• July 18th: Headwater Gold Inc. announced the commencement of drilling at the Spring Peak project in Nevada. The program is designed to follow up on Headwater’s 2022 and 2023 drill programs which discovered high-grade epithermal veins in two distinct target areas. Read more here
• July 23: Granted 1,700,000 incentive stock options to directors, officers, employees, and consultants of the Company. Each Option is exercisable to purchase one common share of the Company at a price of $0.20 for a five-year term. Read more here

Inflection Resources Ltd.?(CSE: AUCU; OTCQB: AUCUF; FSE: 5VJ)

• July 10th: Inflection Resources Ltd. completed a large-scale Ambient Noise Tomography (ANT) survey across the Inflection portfolio of projects in New South Wales, Australia. The survey was designed to collect large-scale, 3D subsurface data to identify belt-scale architecture of the prospect basement rocks, including potential cross-arc structures. Results are expected in the coming weeks. Read more here
• July 30th: Provided a drilling update from the Phase I exploration program in New South Wales. Recent drilling focused on ten target areas, including Canonba and Longstowe, where significant hydrothermal alteration and mineralization suggestive of a porphyry proximal environment were intercepted. Read more here

Acuity Update:

Interview w. Brien Lundin

We had the pleasure of conducting an insightful interview with Brien Lundin. This interview delved into the current political environment in the US and Canada and its impact on the metals market, specifically gold. Brien's insights were invaluable in understanding the broader economic landscape and the strategic opportunities that lie ahead. For those who missed it, you can watch the full interview here:

The Power of Effective Investor Relations Services: Unlocking Value for Public Companies

In today's complex financial landscape, strong investor relations (IR) services are more crucial than ever for public companies. Effective IR enhances a company's market valuation, fosters trust with investors, ensures compliance, and aids in crisis management. At Acuity Advisory Corp., we specialize in providing tailored IR solutions for mining and mineral exploration companies. Learn more about how robust IR services can benefit your company in our latest article:

Despite market setbacks, the past month was strong for exploration initiatives, and our partners are eager to share their advancements with interested investors. Connect with our team to arrange an interview and learn more about what’s to come for the remainder of 2024.

As we face market uncertainties, we find strength in resilience. As the renowned industrialist Henry Ford once said, "When everything seems to be going against you, remember that the airplane takes off against the wind, not with it."

Wishing everyone a wonderful August, spent enjoying the last true month of summer amongst friends, family, and the promise of what lies ahead.?

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Sincerely,

Jeffrey Wilson, Co-Founder and Partner

&

Roger Blair, Co-Founder and Partner

Vancouver, BC