Analysts See 'Historic Dislocation' Between Gold Prices and Miner Valuations
Issued on behalf of RUA GOLD Inc.
VANCOUVER, BC, June 6, 2025 /CNW/ -- USA News Group News Commentary – Gold mining stocks are still too cheap, according to analysts at JP Morgan. In their latest note, JP Morgan tentatively sees $4,100 per ounce gold prices for 2026, and based on that estimate foresees plenty of value in gold mining shares from larger producers all the way down the chain to small- and mid-cap companies. Analysts at Jefferies still think things are out of balance, pointing to a historic valuation gap, with many gold equities still priced as if bullion were stuck at $2,500 an ounce. As gold rises, other analysts are calling for a mining equities breakout, leading to extra attention on miners of all sizes, including RUA GOLD Inc. (TSXV: RUA) (OTCQB: NZAUF), Great Pacific Gold Corp. (TSXV: GPAC) (OTCQX: FSXLF), 1911 Gold Corporation (TSXV: AUMB) (OTCBB: AUMBF), Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI), and Seabridge Gold (NYSE: SA) (TSX: SEA).
According to analysts at Goldman Sachs, it's the central banks acting as a driving purchasing force behind the current record-breaking gold bull market, accumulating roughly 80 metric tons of gold a month worth ~$8.5 billion at current prices. With all the global uncertainty and turbulence, it's no surprise to analysts like George Milling-Stanley from State Street Global Advisors that gold will continue to make sense for investors for its attributes and potential.
RUA GOLD Inc. (TSXV: RUA) (OTCQB: NZAUF) is advancing a portfolio of high-grade, district-scale gold projects in New Zealand—an emerging exploration hotspot with deep historical roots and modern infrastructure. The company recently announced new high-grade intercepts from its Cumberland project, including 1 metre at 26.9 g/t gold and another at 16.2 g/t, building on a previously returned 62.2 g/t gold, including a standout prior result of 1 metre at 1,911 g/t gold. These hits confirm the near-surface continuity of the Gallant vein system, which became RUA's first drill-tested target generated via VRIFY's AI-powered targeting platform.
"From the very first drill holes, we intersected significant, wide quartz veins hosting high-grade gold, confirming historical intercepts," said Robert Eckford, CEO of RUA GOLD. "This marks an exciting start, validating the effectiveness of the VRIFY AI targeting process and confirming near-surface mineralization with the potential to extend the envelope of known mineralization across a 2km structural zone.. It's a major step forward for our hub-and-spoke strategy in Reefton… The Gallant prospect represents the first VRIFY AI target that we have drilled so far. This structure is traceable on surface for over 600m and remains largely untested along strike and at depth."
Gallant sits just 3 km from the historic Globe Progress mine and features steeply dipping quartz veins up to 14 metres thick. Historic drill data from the area includes 20.7 metres of quartz with gold grades reaching 1,911 g/t near surface—highlighting the potential for a shallow, high-grade resource. RUA has now launched a follow-up program stepping 100 metres to the south, with assays pending.
Beyond Gallant, RUA GOLD holds commanding control of the Reefton Goldfield, covering roughly 95% of a district that historically produced more than 2 million ounces of gold at grades between 9 and 50 g/t. The Auld Creek project continues to deliver encouraging results as well, with recent intercepts of 9.0 metres at 5.9 g/t gold equivalent and 1.25 metres at 48.3 g/t. Notably, only two of the four known mineralized shoots are currently included in the working model. Previous drilling has returned 12 metres at 12.2 g/t gold equivalent, including a 2-metre stretch at 54.8 g/t.
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Auld Creek also hosts significant antimony mineralization—an increasingly strategic metal trading above US$50,000 per tonne. Surface samples have shown grades above 40% antimony, and drill holes have returned multiple intercepts over 8%. The New Zealand government's early 2025 declaration of antimony as a critical mineral further elevates the project's dual-metal value proposition.
On the North Island, RUA GOLD is progressing its Glamorgan project in the Hauraki Goldfield, where a second surface campaign outlined three distinct gold-arsenic anomalies across a 4-kilometre corridor. Rock chip sampling returned up to 43 g/t gold, and CSAMT geophysical surveys identified resistive zones typical of quartz-rich vein systems. Drill access is in the final stages of approval, with targets prioritized through VRIFY's DORA AI engine.
Backed by $5.75 million in capital and led by a leadership team with over $11 billion in past mining exits, RUA GOLD is aiming to uncover high-grade discoveries in underexplored terrain. With multiple active programs, AI-guided targeting, and a pipeline of assays and agreements on the horizon, the company is positioning itself as one of New Zealand's most advanced early-stage gold explorers heading into 2025.
In other industry developments and happenings in the market include:
Great Pacific Gold Corp. (TSXV: GPAC) (OTCQX: FSXLF) recently intersected 7.0 metres grading 10.3 g/t gold equivalent (including 2.0 metres at 14.3 g/t AuEq) at its Wild Dog project in Papua New Guinea.
"The first drill results from our Phase 1 drill program at Wild Dog did not disappoint," said Greg McCunn, CEO of Great Pacific Gold. "We now have a drill rig on the ground, a highly experienced technical team, and the infrastructure support in place to explore the potential of this system."
The intercept came from WDG-02, drilled beneath a historic pit, confirming the presence of high-grade sulphide mineralization near surface. The current 2,500-metre drill campaign spans 16 planned holes across a 3-kilometre segment of a 15-kilometre target zone. Assays are pending from WDG-03, and hole WDG-04 is now in progress.
1911 Gold Corporation (TSXV: AUMB) (OTCBB: AUMBF) continues to expand its San Antonio West target at the True North project, returning standout grades such as 1.0 metre at 62.40 g/t gold and 2.1 metres at 8.81 g/t.
"These follow-up holes at the San Antonio West target show evidence of several shear structures and also higher grades as we extend drilling to depth," said Shaun Heinrichs, CEO and President of 1911 Gold. "The results continue to show another parallel ore shoot to the San Antonio Mine vein system, similar to what we are seeing on the San Antonio Southeast target."
The zone, hosted within the historically productive San Antonio gabbro, now shows gold mineralization across three parallel vein systems traced over 500 metres laterally and 260 metres vertically. The program supports the presence of a new ore shoot west of the historic San Antonio Mine, bridging toward the Cartwright resource. With 39 holes drilled to date and a 30,000-metre campaign planned, the company is prioritizing underground access and resource expansion.
Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI) is advancing its Diamba Sud Project with fresh intercepts from the Southern Arc prospect, where drilling returned 13.6 meters at 8.6 g/t gold and 11.8 meters at 9.3 g/t. Infill drilling at nearby deposits also yielded high-grade intervals, such as 113.7 g/t gold over 6.4 meters at Area D and 28.8 meters at 3.0 g/t at Area A.
"Our exploration work at Diamba Sud continues to yield strong results, particularly from areas with limited historical drilling," said Paul Weedon, Senior Vice President of Exploration at Fortuna Mining Corp."These results further reinforce the project's potential for near-term resource growth."
Exploration remains active across several zones, including Moungoundi and Western Splay, where mineralization appears open along strike and at depth. All results will be included in the next resource update.
Seabridge Gold (NYSE: SA) (TSX: SEA) has begun drilling at Snip North, a new copper-gold porphyry discovery at its Iskut Project in northwest British Columbia.
"Last year's discovery at Snip North has given us clear direction on where to focus to deliver new resources in this year's program," said Rudi Fronk, Chairman and CEO of Seabridge Gold. "We are also targeting the source intrusion for this prospective resource which we expect to be rooted in a district-scale structural trend, named the Bronson Trend."
The company plans to complete 8,000 metres of core drilling using three helicopter-portable rigs, targeting a maiden resource estimate and deeper source intrusions. Exploration will also assess other porphyry prospects within the district-scale Bronson Trend, where recent geophysics and mapping indicate multiple mineralized systems. The $13.4 million program builds on last year's success and reflects Seabridge's broader strategy to uncover large-scale porphyry systems beyond KSM.
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