mining cart in a tunnel

Driven by foreign investment, mining has become one of Argentina's fastest-growing sectors; Australian companies make up a particularly large segment of this industry.

Mining in Argentina has become one of the fastest-growing sectors in the nation’s economy. Argentina’s ample and comparatively underexplored gold and precious metals resources are a valuable opportunity, and will likely drive considerable growth in the country’s mining sector in the coming years.

In comparison to its neighbour Chile, Argentina’s mining sector has a lot of room to grow. Attractive incentives, including favourable mining policies, competitive mining investment laws and mineral-rich geology, have been seen as positive steps towards a strong Argentinian mining industry.

Mining giants are definitely attracted. Barrick Gold (TSX:ABX,NYSE:GOLD) has staked a claim in Argentina alongside its partner Shandong Gold Mining (HKEX:1787), extending the life of the country's largest gold mine, Valadero, with a US$75 million investment. On the other hand, Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), the second largest metals and mining company in the world, recently acquired the Rincon lithium project. Formerly owned by Rincon Mining, the undeveloped lithium brine project is situated in Argentina's Salta province. It represents the latest in a series of acquisitions and developments in the region by Australian businesses.

Mining in Argentina: A brief history 

Unlike other regions, Argentina's mining sector doesn’t have a particularly long history. A 2016 study released by KPMG International notes that the Argentina mining sector's first significant milestone was the 1813 enactment of the Mining Promotion Law. Designed to encourage exploration, research and production of the country's extensive mineral wealth, this law ultimately laid the foundation for modern-day Argentina's welcoming attitude towards mining.

Argentina went on to adopt the Argentine Mining Code in 1887, a regulatory framework that established state ownership of the country's subsoil while still allowing for private exploration. The fledgling industry developed slowly over the next several years. Although it received some benefits due to increased demand and mineral prices during the First and Second World Wars, this was not enough to inspire significant growth.

It was not until near the end of the 20th century that the sector began to flourish. Constitutional reform in 1994 shifted ownership of natural resources from state to province, while a new regulatory framework attracted considerable investment from both Canada and Australia. Notably, from 1990 to 1999, joint production of minerals increased by 104 percent. During this period, the gross domestic product of Argentina's mining industry grew at a rate of between 5 and 7 percent per annum.

Mining in Argentina soon became the primary target of foreign direct investments. The production of common metals such as steel and aluminium were the primary beneficiaries of this surge of investment.

Unfortunately, growth soon slowed to the point of stagnation, the result of several factors. First, the country's mining code was unnecessarily complex and cumbersome to navigate. Second, socioeconomic strife created more risk than some investors were willing to accept. And finally, the introduction of controversial legislation such as the 2002 Glacier Protection Law alienated the mining sector, leading to multiple high-profile exits.

Mining in Argentina: The revitalization

In 2017, Argentina further deepened its trade relationship with Australia, signing a memorandum of understanding that saw the two countries collaborate on building education, research and capacity across multiple sectors. This agreement, which placed particular emphasis on mining, established a strong foundation for any Australian company looking to conduct exploration or production in the country. The 2019 election of a new president only further moved the dial, with President Alberto Fernández swearing to revise the country's mining code and reconsider its Glacier Protection Law.

Moreover, as the world has continued the push for cleaner energy and carbon neutrality, demand for battery materials such as copper and lithium — both of which are abundant throughout the country — has sharply increased.

Because Argentina is currently at the heart of a global lithium rush, it's easy to forget the fact that it also houses significant mineral wealth in both gold and precious metals. These ample, comparatively underexplored resources represent an incredibly valuable opportunity. It is likely that, alongside lithium, they will drive considerable growth in the country's mining sector.

Political instability in Chile may also contribute to Argentina's rise, as investors seek an alternative to its well-developed mining sector. Ultimately, Argentina has set a goal of US$10 billion in mining exports by 2030.

Mining in Argentina: ASX gold companies

Australian mining and exploration companies have a significant presence in Argentina and exert considerable influence over the country's mining industry.

Challenger Exploration (ASX:CEL) has also established itself in the gold-rich province of San Juan with the Hualilan project. Consisting of 15 mining leases and an exploration licence application over 26 square kilometres, Hualilan contains a high-grade historical resource of 627,000 ounces of gold that remains open in all directions.

The company has had nine rigs drilling at the project for almost a year, and is due to release its maiden resource estimate shortly. The project will use the same rail shipping methods as the highly successful Josemaria copper project, recently acquired by Lundin Mining (TSX:LUN,NASDAQ:LUMI).

Another ASX-listed explorer in Argentina, E2 Metals (ASX:E2M), which has the El Rosillo and Conserrat projects in Patagonia, counts Eric Sprott as one of its largest shareholders. This follows his decision to cornerstone a capital raise in March 2022. Sprott is a well-recognized investor with a strong history in mining.

When referring to its efforts to promote mining efforts, San Juan’s mining ministry said, “It has become a state policy. We provide the fiscal conditions, social licences and the legal certainty schemes necessary for the full development of mining. Our territory concentrates 50 percent of the country’s mining potential.”

Finally, Austral Gold (ASX:AGLD,OTC Pink:AGLDF) in 2019 acquired a 100 percent interest in the Casposo silver-gold mine through a share purchase agreement with Troy Resources (ASX:TRY). A combination open-pit and underground mine, Casposo began production in 2011. It is currently undergoing care and maintenance, and a reopening date has yet to be announced.


Despite a troubled political history, Argentina is incredibly well-positioned to turn this around, and the country maintains a strong relationship with Australian mining companies. Favourable mining policies and competitive mining investment laws, combined with mineral-rich geology, have the potential to greatly strengthen the country's mining industry.

This INNSpired article is sponsored by Challenger Exploration (ASX:CEL). This INNSpired article provides information that was sourced by the Investing News Network (INN) and approved by Challenger Exploration in order to help investors learn more about the company. Challenger Exploration is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Challenger Exploration and seek advice from a qualified investment advisor.

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gold bar with stock chart
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Gold and gold stocks have done well in every stagflationary period dating back to 1960, said Adrian Day of Adrian Day Asset Management.

Adrian Day: Recession, Stagflation, Crash? Where We're Going, What it Means for Gold

The US Federal Reserve hiked interest rates by 75 basis points last week in its ongoing fight against inflation, amping up its efforts to tame prices and leaving market watchers wondering what's next.

Speaking just ahead of the central bank's meeting, Adrian Day, president of Adrian Day Asset Management, said usually the Fed starts out hawkish and then backs off. But this time around the opposite is happening.

This is due to various factors, but US President Joe Biden's recent meeting with Fed Chair Jerome Powell is among them — in their discussion, Biden expressed that inflation is the Fed's responsibility.

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Impact Minerals Managing Director Mike Jones

Impact Minerals Managing Director Dr. Mike Jones said, “We’re going to end up with 50-plus drill targets. I think we’ve got a very exciting future ahead.”

Impact Minerals Managing Director Dr. Mike Jones: Significant Expansion of Projects in Australia

Impact Minerals (ASX:IPT) Managing Director Dr. Mike Jones discussed the project generation company’s philosophy of identifying world-class, high-grade mineral deposits while mitigating risk.

The company owns five exploration projects, and was originally focused on Western Australia with three ventures in that area. In Q4 2021, the company engaged in an AU$18 million farm-in agreement with IGO (ASX:IGO,OTC Pink:IPGDF) to expand into New South Wales through four joint venture projects.

Speaking of drilling, Dr. Jones noted, “What we've done in the last 12 to 18 months is put together a fantastic portfolio of projects in the southwest of Western Australia. The region generally has what's called high-grade metamorphic terrain. It's been very poorly explored over the years, and yet it does host a number of world-class deposits. In particular, the Greenbushes lithium-tantalum mine, and there’s numerous million ounce gold deposits.”

The mining area is located approximately 18 kilometres north of Bridgetown. Dr. Jones said, “We've got about 3,000 square kilometres in there, and we do own 100 percent of most of it. We've got some joint ventures with a group that’s got some great target technology. What we're generating at this very early stage is a significant number of soil geochemistry anomalies. It’s very basic work and it's cheap to do. We can cover large areas, and we have a very high hit rate in terms of the targets we've identified and the solid numbers that we're generating. That’s the first step towards drilling, which will occur over the next couple of years.”

Speaking about plans for the company moving forward, Dr. Jones said, “I think the market is going to be pretty impressed over the next three to six months. We’ve got these early stage projects and lots of chemistry on the way that shows how many targets we're actually going to be able to generate. We're going to end up with 50-plus drill targets — and that's going to be way too much for a little company like Impact, so we'll probably end up looking to attract a partner for that.”

Dr. Jones also discussed focusing on principal commodities, including base and precious metals. “Impact has always been a nickel, copper and precious metals explorer. At least three of these commodities we can call battery metals, so we're as trendy as every other company that’s looking for those now. We're generating targets almost hand over fist at the moment in this very unexplored area. I think we've got a very exciting future ahead.”

Watch the full interview of Impact Minerals Managing Director Dr. Mike Jones above.

Disclaimer: This interview is sponsored by Impact Minerals (ASX:IPT). This interview provides information that was sourced by the Investing News Network (INN) and approved by Impact Minerals in order to help investors learn more about the company. Impact Minerals is a client of INN. The company’s campaign fees pay for INN to create and update this interview.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Impact Minerals and seek advice from a qualified investment advisor.

This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.

bitcoins against glittery backdrop

After a bounce over the next two to four weeks, Soloway sees the bitcoin price falling further, perhaps to the US$12,000 to US$13,000 range.

Gareth Soloway: Next Price Call for Bitcoin, Gold's Path to Major Upside Move

Gareth Soloway of has been calling for bitcoin to fall below US$20,000 for quite some time, and the key cryptocurrency recently did just that.

Speaking to the Investing News Network, he outlined how he projected the price drop well before it happened, mentioning the double top he saw in the bitcoin chart, along with elements like wild market hype.

"You have the four year cycles in bitcoin, so that tells you an 80 to 85 percent correction — so at a bare minimum I was thinking U$20,000, which was the 2017 high," Soloway explained.

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Interested in the relationship between the gold price and the ASX? Here’s how the two interact and how you can benefit from it.

As the gold space becomes more prominent in Australia, it can be beneficial for investors to understand the unique relationship between the gold price and the ASX.

The two sources of trade are able to push and pull one another, although in general the price of gold tends to indirectly follow the movements of the ASX.

Read on for a breakdown of gold’s history in Australia and what’s currently affecting the price of gold. We’ll also explain the relationship between gold and the ASX, and how you can benefit from it as an investor.

Gold price and the ASX: The history of gold in Australia

Gold’s significance in Australia began in 1832 with James McBrien, who found traces of the yellow metal near Bathurst, New South Wales. However, for the most part, early discoveries of gold were kept under wraps, because authority figures were concerned that convicts, soldiers and public servants would abandon their work and other responsibilities to search for the metal.

That changed in 1851 when Edward Hargraves and his colleagues found gold, again near Bathurst. This time, the discovery was made public, and within a month, close to a thousand men were searching for the metal in an area called Ophir, named after the biblical story about King Solomon’s gold city.

There were more gold discoveries in the state of Victoria in 1854 following the rush in Bathurst. Tens of thousands of immigrants from around the globe headed to the Australian colony in search of the yellow metal, with Ballarat and Bendigo in Victoria becoming major gold sites.

Between 1848 and 1858, Australia’s population tripled to more than 1 million people. Gold fever then hit Coolgardie and Kalgoorlie in Western Australia in the early 1890s, when key discoveries were made in those areas.

During this time, exciting gold finds were spurring the development of inland towns, communications, transport and foreign trade. In fact, since Australia’s first recorded gold discovery, the metal has changed where and how people live within the country. Many towns were developed using wealth generated from mining gold, and Australia is also home to ghost towns that were deserted when the gold sources that kept them afloat ran out.

Even though the precious metal has made large contributions to Australia’s development, its importance declined during most of the 20th century as other metals became more prevalent and economically significant. Gold later underwent a resurgence in the 1980s and 1990s, when the use of new technology allowed lower-grade ores to be processed economically.

Today, Australia is stepping back into the spotlight as one of the most prolific gold-mining regions in the world. In terms of gold prices throughout the years, the metal has experienced a mostly upward trajectory in Australian dollars.

Gold price and the ASX: What’s moving the gold price

At the start of 2022, the gold spot price was around AU$2,500 per ounce, which is much higher than it was almost 20 years ago. In the year 2000, gold hit AU$481.68, a high at the time, and 10 years later it was still climbing, breaching the AU$1,400 mark.

The metal made more gains between 2009 and 2011 before backsliding. However, the downturn did not last long, and by 2015 gold prices were slowly ramping up again, reaching its highest in August of 2020 at AU$2,618.67.

performance of gold price from 2006 to the present

Performance of gold price from 2006 to the present.

Chart via TradingView.

While there are a variety of factors that influence the price of gold, some have more weight than others. Below is a guide on the main elements that are shifting and shaping the price of metal.

The Australian dollar

The first element supporting the yellow metal is the fact that the Australian dollar did not have the strongest year in 2020. In general, as the dollar declines, the yellow metal will see an upward price movement.

performance of gold price and Australian dollar from 2006 to the present

Performance of gold price and Australian dollar from 2006 to the present.

Chart via TradingView.

Reserve Bank of Australia

Much like with the US, interest rates have been raised in Australia as of late. In May 2022, the central bank lifted rates for the first time since 2010 by a quarter point basis, with investors expecting it to continue to increase rates at that pace.

However, following its June policy meeting, the Reserve Bank of Australia moved its cash rate by 50 basis points to 0.85 percent — its highest hike in 22 years.

Gold tends to retreat directly after rates are increased, but it is not always the case. Higher interest rates make stocks, government bonds and other investments more attractive to investors.

reserve bank of australia\u2019s interest rates from the past five years

Reserve Bank of Australia’s interest rates from the past five years.

Chart via Trading Economics.

The United States

The ongoing trade war between the US and China has affected overall global markets, and in Australia it has sent investors running towards the safe haven nature of gold. The spat between the two powerhouse countries has been ongoing for four years, causing a tariff tit-for-tat that has resulted in volatility in the markets.

These tensions have been eased slightly in recent years by the signing of a phase one trade deal in January of 2020 between the two nations, and recent talks between the leaders of both countries.

Geopolitical events

Any time global tensions rise, the price of gold will rise as well. Usually, these events only trigger a short-lived rise in precious metals like gold, as investors turn to gold for a safe investment in the face of international conflict. Most recently, the war in Ukraine has caused gold prices to shoot up.

It’s likely that gold prices will continue to be volatile depending on how the war progresses. However, if historical precedent stands true, the support for gold will be short lived and drop once tensions ease and the need for a safe haven investment goes through a correction.

performance of gold price during the 2014 crimean annexation by russia

Performance of gold price during the 2014 Crimean annexation by Russia.

Chart via TradingView.

The above chart displays the price of gold in Australian dollars during the 2014 Russian invasion of Ukraine’s Crimea peninsula. It shows how the price of gold soared during February and March, when the invasion took place. After this period, gold returned to its previous trend. Although the current events are of a much larger scale and predicting how they will develop is impossible, the past history of gold’s price during geopolitical conflict is worth considering.

Bond market and exchange rate

Another element that is currently affecting the price of gold is a dwindling 10 year government bond yield. Since 2008, 10 year yields have dipped from over 6.59 percent to a low of under 1 percent in 2020. Currently, 10 year bonds are recovering from the pandemic low and sit at 2.77 percent.

australian government 10 year bond yields since 2006

Australian government 10 year bond yields since 2006.

Chart via Market Watch.

Compared to US 10 year yields, which have fallen from 4.05 percent to 2.47 percent over the same period, it is clear that the Australian bond market has taken a larger hit. Because of this, the exchange rate for Australian and US dollars has fallen and has led gold to outperform in Australian dollars.

“The bottom line is that, while the AUD gold price is high, it’s entirely justified why it is trading above AU$2,000 per ounce. Whether it’s a faltering local economy, a fragile property market, negative yield differentials, low and falling rates or a weakening currency, there are many good reasons why astute investors typically allocate 5 to 10 percent of a diversified portfolio to gold. The strategic case for gold is as strong as ever,” the World Gold Council explains.

Gold price and the ASX: How gold affects the market

Gold’s relationship with the ASX is unique in that the metal indirectly follows the movements of the market, as opposed to resources like oil and gas. The yellow metal has the tendency to be viewed as a counter-cyclical asset, which means that its value increases during market downturns.

Due to gold’s large global presence and high intrinsic value, the precious metal is often seen as a universal currency. When the outlook of the equity market looks bleak, or corporate earnings are destined for doom, investors will flock to the precious metal.

On the flip side, when the economy, and in turn the ASX, is on the rise, investors tend to abandon the yellow metal in favour of equities.

However, this is not to say that the relationship between gold and the ASX is a negative one. It is more of a give-and-take commitment. The metal continues to have an impact on jewellery and jewellery-related products. Additionally, gold is used in dentistry, aerospace and electronics — all of which affect publicly traded companies and as a result the ASX.

This relationship between the gold price and the ASX has turned the precious metal into something of a hedge when it exists within an individual’s portfolio as a source of diversification, which is when market participants hold investments that are not related to one another.

Since gold has a history of having a negative correlation to stocks, bonds and other financial instruments, it becomes important that investors get diversified by owning a portfolio that combines gold with stocks and bonds in order to reduce both volatility and risk. While it is true that the yellow metal goes through times of volatility, its spot price has always maintained its value over the long term.

This is an updated version of an article first published by the Investing News Network in 2020.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Matthew Flood, currently hold no direct investment interest in any company mentioned in this article.

gold bars with stock chart
Aleksandar Grozdanovski / Shutterstock

A stock market decline "of some substance" will send investors toward larger-cap gold stocks, said John Feneck of Feneck Consulting. Eventually juniors will also benefit.

John Feneck

Major miners like Newmont (TSX:NGT,NYSE:NEM) and Yamana Gold (TSX:YRI,NYSE:AUY) ran higher in the first few months of the year, but their gains didn't trickle down to gold juniors.

"I think now we can look back at the period of time from say, January to April, as a head fake in our space. It head faked me too," said John Feneck, portfolio manager and consultant at Feneck Consulting.

Speaking at the Prospectors & Developers Association of Canada (PDAC) convention, he told the Investing News Network that ultimately the juniors will follow their bigger counterparts along for the ride.

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Tempus Resources
Tempus Resources receives DTC eligibility in U.S.
Tempus Resources receives DTC eligibility in U.S.
Tempus Resources Ltd is pleased to provide a further update on the visible gold observed in Drill Hole EZ-22-03 at the Elizabeth Gold Project in Southern British Columbia, Canada As reported on 14 June 2022, drill hole EZ-22-03, intersected two zones of quartz veining that show the presence of visible gold at a down-hole depth of approximately 96.9 to 97.3 metres and with a second observation of visible gold around ...

Tempus Resources Ltd ("Tempus" or "the Company") (ASX:TMR)(TSXV:TMRR)(OTC PINK:TMRFF) is pleased to provide a further update on the visible gold observed in Drill Hole EZ-22-03 at the Elizabeth Gold Project in Southern British Columbia, Canada

As reported on 14 June 2022, drill hole EZ-22-03, intersected two zones of quartz veining that show the presence of visible gold ("VG") at a down-hole depth of approximately 96.9 to 97.3 metres and with a second observation of visible gold around 124.0 to 124.1 metres. See Image 1.

Following the cutting of the core in preparation for assay, several more grains of visible gold have been observed on the inside of the cut core at the down-hole depth of approximately 96.9 to 97.3 metres. See Image 2.

Image 1. EZ-22-03. Blue Vein with visible gold in uncut core at 97m and 124m

Tempus Resources Ltd, Monday, June 20, 2022, Press release picture

Image 2. EZ-22-03. Blue Vein with visible gold in cut core at 97m

Tempus Resources Ltd, Monday, June 20, 2022, Press release picture

With reference to the AIG 2015 guidance for visual reporting of massive sulphide mineralisation, the Company reports it has not encountered any massive sulphide mineralisation in drill hole EZ-22-03. While it is not possible to accurately estimate the percentage of visual gold present though out the drill core, the Company suggests that the percentage would be less than the 0.01%. The Company cautions that visual observations of visible gold are not a proxy or substitute for laboratory analysis. Laboratory assays and analysis will be required to confirm the visual interpretations presented in this news release.

The core from the first three drill holes is being prepared for transport to SGS Laboratories in Vancouver, Canada for assay. Assay results will be released when received and are will be received in approximately 1 to 2 months from the time the core is received by the lab.

The Blue Vein was discovered in 2021 (EZ21-12 including 1.0m at 33.7g/t Au) with a total of 7 holes intersecting the vein to date (including three holes with ‘bonanza' grade intersections, i.e., greater than 1oz per tonne), high-grade gold mineralisation was identified over a strike length of over 80 metres in 2021. Approximately fifteen (15) holes have been planned this year to target the expansion of the Blue Vein high-grade gold mineralisation along strike and down dip. The drilling will test the Blue Vein gold mineralisation over a total strike length of approximately 400 metres.

Figure 1 - Elizabeth Plan View Showing 2022 Drill Locations

Tempus Resources Ltd, Monday, June 20, 2022, Press release picture

Figure 2 - Elizabeth Blue Vein Long Section (looking Northwest)

Tempus Resources Ltd, Monday, June 20, 2022, Press release picture

This announcement has been authorised by the Board of Directors of Tempus Resources Limited.

Competent Persons Statement

Information in this report relating to Exploration Results is based on information reviewed by Mr. Sonny Bernales, who is a Member of the Engineers and Geoscientists British Columbia (EGBC), which is a recognised Professional Organisation (RPO), and an employee of Tempus Resources. Mr. Bernales has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves, and as a Qualified Person for the purposes of NI43-101. Mr. Bernales consents to the inclusion of the data in the form and context in which it appears.

For further information:

Tempus Resources LTD

Melanie Ross - Director/Company Secretary Phone: +61 8 6188 8181

About Tempus Resources Ltd

Tempus Resources Ltd ("Tempus") is a growth orientated gold exploration company listed on ASX ("TMR") and TSX.V ("TMRR") and OTCQB ("TMRFF") stock exchanges. Tempus is actively exploring projects located in Canada and Ecuador. The flagship project for Tempus is the Blackdome-Elizabeth Project, a high grade gold past producing project located in Southern British Columbia. Tempus is currently midway through a drill program at Blackdome-Elizabeth that will form the basis of an updated NI43-101/JORC resource estimate. The second key group of projects for Tempus are the Rio Zarza and Valle del Tigre projects located in south east Ecuador. The Rio Zarza project is located adjacent to Lundin Gold's Fruta del Norte project. The Valle del Tigre project is currently subject to a sampling program to develop anomalies identified through geophysical work.

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Tempus's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein may include, but are not limited to, the ability of Tempus to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Tempus to control or predict, that may cause Tempus' actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein and the other risks and uncertainties disclosed under the heading "Risk and Uncertainties" in the Company's Management's Discussion & Analysis for the quarter and nine months ended March 31, 2022 dated May 16, 2022 filed on SEDAR. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Tempus believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Tempus does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Tempus or persons acting on its behalf are expressly qualified in its entirety by this notice.

Neither the ASX Exchange, the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Appendix 1

Table 1:Drill Hole Collar Table



Hole ID


Easting (NAD83

Northing (NAD83

Elevation (m)

Length (m)






Blue Vein








Blue Vein








Blue Vein







Appendix 2: The followingtables are providedto ensure compliance with the JORC Code (2012) requirements for the reporting of Exploration Results for the Elizabeth - Blackdome Gold Project

Section 1: SamplingTechniques and Data

(Criteria in this section apply to all succeeding sections.)


JORC Code explanation


Sampling techniques

  • Nature and qualityof sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gammasondes, or handheld XRF instruments, etc).These examples shouldnot be taken as limiting the broad meaningof sampling.
  • Include reference to measures taken to ensuresample representivity and the appropriate calibration of any measurement tools or systemsused.
  • Aspects of the determination of mineralisation that are Materialto the Public Report. In cases where ‘industry standard' work has been done this would be relatively simple(eg ‘reverse circulation drilling was used to obtain1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types(eg submarine nodules) may warrant disclosure of detailed


  • HQ(63.5 mm) sized diamond core using standardequipment.
  • Mineralised and potentially mineralised zones, comprising veins, breccias, and alteration zoneswere sampled.
  • Samples were half core.
  • Typical core samples are 1m in length.
  • Core samples sent to the lab will be crushed and pulverized to 85% passing75 microns. A 50g pulp will be fire assayedfor gold and multi-element ICP.Samples over 10 g/t gold will be reanalysed by fire assay withgravimetric finish

Drilling techniques

  • Drill type (eg core, reversecirculation, open-hole hammer,rotary air blast, auger, Bangka,sonic, etc) and details (eg core diameter, triple or standardtube, depth of diamond tails, face-sampling bit or other type, whethercore is oriented and if so, by

what method, etc).

  • Diamond Drilling from surface(HQ size)

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.
  • Measures taken to maximise samplerecovery and ensurerepresentative nature of the samples.
  • Whether a relationship exists between samplerecovery and grade and whethersample bias may

have occurred due to preferential loss/gain of fine/coarse material.

  • Detailed calculation of recoverywas recorded, withmost holes achieving over 95%
  • Norelationship has yet been noted between recovery and grade and no sample bias was noted to have occurred.


JORC Code explanation



  • Whether core and chip sampleshave been geologically and geotechnically loggedto a level of detailto support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
  • The total length and percentage of the relevantintersections logged.
  • Detailed geological and geotechnical logging was completed for each hole.
  • All core has been photographed.
  • Complete holes were logged.

Sub- sampling techniques and sample preparation

  • If core, whethercut or sawn and whetherquarter, half or all core taken.
  • If non-core, whetherriffled, tube sampled,rotary split, etc and whethersampled wet or dry.
  • For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.
  • Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.
  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance resultsfor field duplicate/second-half sampling.
  • Whether sample sizes are appropriate to the grainsize of the material being sampled.
  • Half core was sampled, using a core saw.
  • Duplicate samples of new and historical core are Quarter core or half core where not previously sampled
  • Sample sizes are considered appropriate for the grain size of the material being sampled.
  • Itis expected that bulk sampling will be utilisedas the projectadvances, to more accurately determine grade.

Quality of assay data andlaboratory tests

  • The nature, qualityand appropriateness of the assaying and laboratory procedures used and whetherthe technique is considered partialor total.
  • For geophysical tools,spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, readingtimes, calibrations factorsapplied andtheir derivation, etc.
  • Nature of qualitycontrol procedures adopted(eg standards, blanks,duplicates, external laboratory checks) and whetheracceptable levels of accuracy (ie lack of bias) and precision have been established.
  • Core samples that have been sent to the lab for analysis includecontrol samples (standards, blanks and prep duplicates) inserted at a minimumrate of 1:5 samples.
  • Inaddition to the minimum rate of inserted control samples, a standard or a blank is inserted following a zoneof mineralization or visible gold
  • Further duplicate samples were analysed to assess variability

Verification of sampling and assaying

  • The verification of significant intersections by either independent or alternative companypersonnel.
  • Theuse of twinnedholes.
  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
  • Discuss any adjustment to assay data.
  • Re-assaying of selected intervals of historic corehave been sent for analysis.


JORC Code explanation


Location of data points

  • Accuracy and qualityof surveys used to locatedrill holes (collarand down-hole surveys), trenches, mine workings and other locations used in MineralResource estimation.
  • Specification of the grid system used.
  • Quality and adequacyof topographic control.
  • Allsampling points were surveyed using a hand held GPS.
  • UTMgrid NAD83 Zone 10.
  • A more accurate survey pickup will be completed at the end of the program, to ensure data is appropriate for geological modelling and Resource Estimation.
  • Down hole surveys have been completed on all holes.

Data spacing and distribution

  • Data spacing for reporting of Exploration Results.
  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied.
  • Whether sample compositing has been applied.
  • Most drilling is targeting verification and extension of known mineralisation.
  • Itis expected that the data will be utilised in a preparation of a MineralResource statement.
  • Additional drilling is exploration beneath geochemical anomalies, and would requirefurther delineation drilling to be incorporated in a MineralResource.

Orientation of data in relation to geological structure

  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering thedeposit type.
  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias,this should be assessed and reported if material.
  • Ingeneral, the aim was to drill perpendicular to the mineralised structures, to gain an estimate of the true thickness of the mineralised structures.
  • At several locations, a series (fan) of holes was drilled to help confirm the orientation of the mineralised structures and to keep land disturbance to a minimum.

Sample s Security

  • Themeasures taken to ensure samplesecurity.
  • Samples from Elizabeth were delivered to the laboratory by a commercial transport service.

Audits or Reviews

  • Theresults of any audits or reviews of sampling techniques and data.
  • Anindependent geological consultant has recently visited the site as part of preparing an updated NI43-101Technical Report for the Project.

Section 2: Reportingof Exploration Results

(Criteria listed in the preceding section also apply to this section.)


JORC Code explanation


Mineral tenement andland tenure status

  • Type, reference name/number, location and ownership including agreements or material issueswith third partiessuch as joint ventures, partnerships, overriding royalties, nativetitle interests, historical sites, wilderness or national park and environmental settings.
  • The security of the tenureheld at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
  • TheBlackdome-Elizabeth Project is comprised of 73 contiguous mineral claims underlain by 14 Crown granted mineral claims and two mining leases.
  • TheProperty is locatedin the Clinton and Lillooet Mining Divisions approximately 230 km NNE of Vancouver
  • Tempus has exercised the option to acquire the Elizabeth Gold Project and has completed an addendum to the original Elizabeth Option Agreement

(refer to ASX announcement 15 December 2020)

  • Anet smelter royaltyof 3% NSR (1% purchasable) applies to severalclaims on the Elizabeth Property.
  • Noroyalties apply to the Blackdome Property or Elizabeth Regional Properties.
  • There are currently no known impediments to developing a project in this area, and all tenure is in good standing.

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.
  • Inthe 1940s, placergold was discovered in Fairless Creek west of Blackdome Summit.Prospecting by Lawrence Frenier shortly afterward led to the discovery of gold-bearing quartzveins on the southwest slopeof the mountain that resulted in the stakingof mining claimsin 1947. EmpireValley Gold Mines Ltd and Silver Standard Resources drove two adits and completed basic surface work during the 1950s.
  • TheBlackdome area was not workedagain until 1977 when Barrier Reef Resources Ltd. re-staked the area and performed surface work in addition to underground development. The Blackdome Mining Corp. was formed in 1978 and performed extensive surface and underground work with variousjoint venture partnersthat resulted in a positive feasibility study. A 200 ton/daymill, camp facilities and tailings pond were constructed and mining operations officially commenced in 1986. The mine ceasedoperations in 1991,having produced 225,000oz of Au and 547,000oz of Ag from 338,000tons of ore (Godard et al., 2010)
  • After a period of inactivity, Claimstaker Resources Ltd. tookover the project, reopening the mine in late 1998.


JORC Code explanation


Mining operations lastedsix months and ended in May of 1999. During this period,6,547 oz of Au and 17,300 oz of Ag were producedfrom 21,268 tons of ore. Further exploration programs were continued by Claimstaker over the following years and a Japanese joint venture partnerwas brought onboardthat prompted a name changeto J-Pacific Gold Inc. This partnership was terminated by 2010, resulting in another name change to Sona Resources Corp.

  • Gold-bearing quartz veins were discovered near Blue Creek in 1934, and in 1940-1941 the Elizabeth No. 1-4 claims were staked.
  • Bralorne Mines Ltd. optioned the property in 1941 and during the period 1948-1949, explored the presently- named Main and West Veins by about 700 metresof cross-cutting and drifting, as well as about 110 metres of raises.
  • After acquiring the Elizabeth Gold Project in 2002, J- Pacific (now Sona) has conducted a series of exploration programs that included diamonddrilling 66 holes totalling 8962.8 metres (up until 2009) Other exploration work by Sona at the Elizabeth Gold Project has included two soil grid, stream sediment sampling, geological mappingand sampling, underground rehabilitation, structural mapping and airborne photography and topographic base map generation.


  • Deposit type, geological setting and styleof mineralisation.
  • TheBlackdome property is situated in a regionunderlain by rocks of Triassicto Tertiary age. Sedimentary and igneous rocks of the Triassic Pavilion Group occurring along the FraserRiver represent the oldest rocks in the region. A large, Triassic age, ultramafic complex(Shulaps Complex) was emplaced along the Yalakomfault; a regional scale structure locatedsome 30 kilometres south of the property. Sediments and volcanics of the Cretaceous Jackass Mountain Groupand Spences Bridge/Kingsvale Formations overlie the Triassic assemblages. Some of these rocks occur several kilometres south of Blackdome.
  • Overlying the Cretaceous rocks are volcanics and minor sediments of Eocene age.These rocks underlie much of

Blackdome and are correlated with the KamloopsGroup seen in the Ashcroft and Nicola regions.


JORC Code explanation


Geochemical studies (Vivian,1988) have shownthese rocks to be derivedfrom a "calc-alkaline" magma in a volcanicarc type tectonicsetting. Eocene age granitic intrusions at Poison Mountain some 22 kilometres southwest of Blackdome are host to a gold bearing porphyry copper/molybdenum deposit. It is speculated that this or related intrusions could reflect the source magmas of the volcanic rocks seen at Blackdome. There is some documented evidenceof young graniticrocks several kilometres south of the mine near Lone Cabin Creek.

The youngest rocks present are Oligocene to Miocene basalts of the Chilcotin Group. These are exposed on the uppermost slopes of Blackdome Mountain and Red Mountain to the south.

  • Transecting the property in a NE-SWstrike direction are a seriesof faults that range from vertical to moderately westerly dipping. These faultsare the principal host structures for Au- Ag mineralisation. The faults anastomose, and form sygmoidal loops.
  • Thearea in which the Elizabeth Gold Project is situated is underlain by Late Paleozoic to Mesozoic rock assemblages that are juxtaposed across a complexsystem of faultsmainly of Cretaceous and Tertiary age. These Paleozoic to Mesozoic-age rocks are intrudedby Cretaceous and Tertiary-age stocksand dykes of mainly felsicto intermediate composition, and are locallyoverlain by Paleogene volcanic and sedimentary rocks. The Elizabeth Gold Project is partly underlain by ultramafic rocksof the Shulaps Ultramafic Complex,which include harzburgite, serpentinite and theiralteration product listwanite.
  • Thegold mineralisation foundon the Elizabeth Gold Project presentcharacteristics typical of epigenetic mesothermal gold deposits. The auriferous quartz vein mineralisation is analogous to that foundin the Bralorne- Pioneer deposits. Gold mineralisation is hosted by a seriesof northeast trending, steeply northwest dippingveins that crosscut the Blue Creek porphyry intrusion. The Main and West vein systems displaymesothermal textures, including ribboned-laminated veins and comprehensive wall rock breccias. Vein formation and gold mineralisation were associated with extensional-

brittle faulting believed to be contemporaneous with mid- Eocene extensional faulting along the Marshall Creek,Mission Ridge and Quartz Mountain faults.


JORC Code explanation


Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
    • easting and northing of the drill hole collar
    • elevation or RL (Reduced Level- elevation abovesea level in metres) of the drill hole collar
    • dip and azimuth of the hole
    • down hole lengthand interception depth
    • hole length.
  • If the exclusion of this information is justified on the basisthat the information is not Material and this exclusion does not detractfrom the understanding

ofthe report, the Competent Person should clearlyexplain why this isthe case.

  • Refer to Appendix 1 for drillhole collar information

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum and/orminimum grade truncations (eg cutting of high grades)and cut-off gradesare usually Material and should be stated.
  • Where aggregate intercepts incorporate short lengthsof high grade results and longer lengthsof low grade results, the procedure used for such aggregation shouldbe stated and some typicalexamples of such aggregations shouldbe shown in detail.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.
  • Intervals reported using severalsamples are calculated using a weighted average.
  • Calculated intervals using a weighted averagedid not use a top cut on high-grade samples.High-grade samples are reported as ‘including'
  • Calculated weighted average intervals are continuous intervals of a mineralized zone and do not includeunsampled intervals or unmineralized intervals.

Relationship between mineralisation widthsand intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralisation with respect to the drill hole angle is known,its nature shouldbe reported.
  • If it is not known and only the down hole lengthsare reported, thereshould be a clear statement to this effect(eg ‘down hole length, true width not


  • Ingeneral, drilling is designed to intersect the mineralized zone at a normal angle,but this is not always possible.
  • Forthe reported intervals, true widths are reported where mineralized core was intactand possible to measure the orientation. Otherwise the true widthis left blank


  • Appropriate maps and sections (with scales) and tabulations of intercepts shouldbe included for any significant discovery being reportedThese should include, but not be limited to a plan view of drill

hole collar locations and appropriate sectional views.

  • Refer to maps withinannouncement for drillhole locations.


JORC Code explanation




  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widthsshould be practiced to avoid misleading reporting of Exploration


  • Where broader low-grade intervals are reported the high-grade intercepts are reported as ‘including' within the reported interval

Other substantive exploration data

  • Other exploration data, if meaningful and material, shouldbe reported including (but not limitedto): geological observations; geophysical survey results;geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating


  • Tempus recently completed an airborne magnetic and radiometric survey over the Elizabeth Gold Project (refer to ASX announcement 02 August 2021) by completing 97 lines for a total of 735 line-kilometres. Flight lines are oriented east-west with north-south tie lines and spaced 200 metres across the entire 115km2 Elizabeth property. Line spacing of 100 metres was flown over the Elizabeth Main and Elizabeth East Zones.
  • The airborne magnetic survey data was reviewed and interpreted by Insight Geophysics Inc. using 3D magnetization vector inversion (MVI) modelling.
  • The geophysical surveys identified the Blue Creek Porphyry, which is the known host of the high-grade Elizabeth gold-quartz veins, as a relative magnetic low anomaly within the Shulaps Ultramafic Complex. From this correlation of geology and geophysics it was determined that the Blue Creek Porphyry, originally explored / mapped to approximately 1.1km2 in size, is likely much larger. The airborne magnetic survey and MVI 3D modelling interpret the Blue Creek Porphyry to be at least four-times the size at approximately 4.5km2.
  • This interpretation of the Blue Creek Porphyry is also extensive at depth extending to at least 2km deep

Further work

  • The nature and scale of planned furtherwork (eg testsfor lateral extensions or depth extensions or large- scale step-out drilling).
  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drillingareas, provided this

information is not commercially sensitive.

  • Tempus plans to updatehistorical NI43-101 foreignresource estimates to current NI43-101 and JORC 2012 standards
  • Tempus is also seekingto expand the scale of the mineralisation at the projectthrough further exploration.

SOURCE: Tempus Resources Ltd

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What is decentralised finance and what should investors know about this space in Australia? Find out here.

DeFi, short for “decentralised finance,” is a promising component of our brave new crypto world. The DeFi sector in Australia is here to stay, but what should investors know about this space?

DeFi offers an alternative to traditional financial services and institutions by bypassing banks, brokers, exchanges, and other “middlemen” which serve as financial intermediaries that regulate the markets. In effect, DeFi is evolving into a parallel financial framework that facilitates and records transactions involving financial instruments and payment mechanisms chiefly related to trading and lending operations.

The DeFi market is currently expanding at an explosive rate. According to figures released by DeFi Llama, cryptocurrency investors have put up $250 billion worth of assets as collateral in various DeFi projects, funds which are then lent out in the form of cryptocurrency loans. As more and more institutional investors enter the DeFi sector, the market is expected to expand to $800 billion by the end of 2022.

Bitcoin and Ethereum, the world’s two leading cryptocurrencies with market caps of $882 and $421 billion, respectively (as of the beginning of April), are digital assets whose ownership is documented in a public transaction ledger known as the blockchain. A traditional financial institution such as a bank, credit card provider or payment facilitator like PayPal, maintains its own private records and uses its own servers to process transactions. Cryptocurrency transactions, by contrast, are processed on the computers of a global network of users and recorded publicly (though pseudonymously) for the entire network to see.

As currently constituted, the emerging DeFi sector provides holders of cryptocurrency the ability to bypass the world’s traditional network of bank and other financial gatekeepers by means of independent, self-regulating computer programmes that rely on blockchain technology.

These decentralised applications (DApps) of blockchain technology offer a more efficient and streamlined mechanism to access financial services by creating an alternative ledger system known as “distributed ledger technology” (DLT) as opposed to VISA, PayPal, or other legacy digital payment services. By harnessing the power of blockchain, a new global ledger system has taken shape that relies on a global web of interconnected computers to record and track all transactions. Not only does DLT store such transaction data but it also identifed the parties involved in any transaction.

This allows anyone with a crypto wallet and an internet connection unlimited access to DeFi services. Users can trade currencies and move assets whenever and wherever they want and avoid antiquated and cumbersome bank transfer protocols and related fees. DeFi users are however required to pay “gas fee” charges for crypto transactions in many cases.

DeFi is thereby expanding the fundamental premise of digital money – Bitcoin and other cryptocurrencies – by allowing individuals and companies alike to execute financial transactions by means of a new and fully transparent system.

DeFi Applications

Lending platforms

The DeFi market is currently expanding at an explosive rate. According to figures released by DeFi Llama, cryptocurrency investors have put up $250 billion worth of assets as collateral in various DeFi projects, funds which are then lent out in the form of cryptocurrency loans.

Parallel to the expansion of the cryptocurrency market, DeFi will become increasingly able to provide loans via the various lending platforms that are popping up around the world. In effect, DeFi lending platforms are digital banks, taking money from cryptocurrency depositors and lending it out to borrowers.

Instead of traditional bank loans, the DeFi platforms rely on “smart contracts” – primarily the Ethereum blockchain – which uses computer code to authorize, execute and verify transactions.

Lending markets serve as one of the most intriguing and promising applications of DeFi by connecting borrowers to lenders of cryptocurrencies by means of platforms that enable individuals or companies to either borrow cryptocurrencies or provide crypto loans.

In order to obtain a loan, borrowers must put up collateral – usually ether, the crypto currency issued by Ethereum, the principal system on which all cryptocurrency applications are based. Borrowers tend to receive loans in the form of stablecoins pegged to traditional currencies like the dollar.

Alternatively, borrowers can post collateral in the form of Bitcoin, which then gets depositied in a crypto pool that is overseen by a smart contract. Should the price of Bitcoin take a precipitous fall, the smart contract automatically liquidates the collateral to protect depositors who have provided the loan funds in the form of stablecoins. Meanwhile, lenders earn money from the interest rate the platforms charge for lending out their funds.

Decentralised exchanges

Decentralised exchanges use smart contracts to enable traders to execute orders without an intermediary. Users trade directly from their wallets by exchanging one currency for another, e.g. Bitcoin for US dollars, euros for Ether, by means of the smart contracts behind the trading platform. Traders are solely responsible for managing and securing their funds and risk losing their holdings if they lose their private keys or send funds to the wrong addresses. The advantage of bypassing financial intermediaries and preserving anonymity is offset to a degree by the lack of security a bank or a centralized exchange provides.


A stablecoin is a cryptocurrency pegged to the value of a non-crypto asset (i.e. the US dollar) that offers price stability which in turn provides greater security for DeFi collateralized lending. Tether is one of the leading stablecoins.

Australia: Making a splash in DeFi

Australia currently ranks 12th out of 154 countries according to the Global DeFi Adoption Index published by Chainanalysis. This index uses three metrics in its assessment of DeFi adoption: On-chain cryptocurrency value received by DeFi platforms weighted by PPP per capital; total retail value received by DeFi platforms; and individual deposits to DeFi platforms.

Australia’s DeFi sector is currently experiencing a boom led by various companies such as Synthetix (SNX), which hopes to become a decentralised version of derivatives exchange BitMEX, Maple Finance (MPL), which offers loans for crypto institutions, and newly launched Tiiik, which offers a digital wallet that allows investors to earn interest on DeFi products. Other new Australian DeFi players include Thorchain, Ren and mSTABLE.

While the DeFi sector is currently in its first develomental phase much like Bitcoin in its early days, individual investors have three main ways of investing in this evolving industry. First, one can obtain cryptocurrency-based loans; second, one can earn interest (by lending (staking) their crypto holds, looking to invest in DeFi coins. (Block Earner, for example, is an Australain fintech outfit that provides a DeFi online savings platform which pays 7 percent interest on deposits.) Third, investors can simply invest in DeFi coins in the same way that one can purchase cryptocurrencies.

Evolving market

Investors willing to take a plunge in DeFi should be aware that the underlying volatility of the cryptocurrency markets can rattle the DeFi sector in the event of sharp declines in Bitcoin, Ethereum and other cryptos. There is also the added spectre of rug pulls, a relatively rare but catastrophic form of fraud.

Rug pulls see unscrupulous DeFi developers create a new token, pair it to a leading cryptocurrency such as tether, set up a liquidity pool, and then use secret back doors encoded into the coin’s smart contract to mint millions of new coins before liquidation. This was the case in 2020 when SushiSwap developer Chef Nomi cashed in his SUSHI tokens after raising over a billion dollars in collateral finance which caused the price of SUSHI to crash to near zero.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Harold Von Kursk, hold no direct investment interest in any company mentioned in this article.

silver bars

Here's everything you need to know about investing in silver bullion in Australia.

When one thinks of investing in precious metals, gold is often seen as the main option owing to its historical profile as a safe haven metal and hedge against inflation and stock market volatility. However, investors should also consider silver as an attractive alternative to gold with equal if not greater upside potential.

In a February interview with Investing News Network, David Morgan of the Morgan Report said he expects silver to break through the US$30 per ounce mark in 2022 and trade in the US$33 range. That would represent a gain of more than 30 percent over the current price of silver, which was trading in the range of US$24 to US$25 as of April.

While the price of silver tends to rise and fall alongside that of gold, silver's valuation is generally more volatile — slower to move in either direction, but more prone to abrupt spikes and plunges. Interestingly, over the last five years, the price of silver has risen by approximately 25 percent, an almost identical increase to that of gold. In addition, silver has tended to outperform gold during bull markets.

More recently, silver prices soared more than 45 percent in 2020, fell about 10 percent in 2021 and were up roughly 7 percent as of April 2022 compared to only a 5 percent gain in gold prices for the current year.

Another interesting point in favour of silver investing is how it has outperformed gold by a wide margin over the course of the precious metal rally that got underway in earnest in mid-July of last year. Since then through April 2022, silver had risen by over 30 percent as compared to only 8 percent for gold.

Certainly, most analysts expect commodity and precious metals prices in general to continue rising in 2022 in the wake of ongoing supply chain disruptions and further uncertainty due to the Russian invasion of Ukraine. This is all the more reason for investors to consider silver as an alternative investment.

One characteristic of silver that distinguishes it from gold is its far greater role as a key industrial metal. It is estimated that industrial usage accounts for about 50 percent of overall demand for silver with the other 50 percent accounted for by silver investors and speculators, including jewelry and silverware.

Rising industrial demand for silver ― apart from being caught up in the overall rally in precious metal prices since mid-2021 ― is a major reason why the metal has outperformed gold lately. Silver is also an essential component in clean energy, particularly in the fast-growing solar energy and electrical vehicle (EV) sectors. Silver's conductivity and corrosion-resistant properties make it essential for the manufacture of conductors and electrodes.

Virtually every electrical connection in an EV uses silver, and the auto sector overall uses 55 million ounces of silver annually. Additionally, almost every computer, mobile phone and appliance is made with silver, not to mention radio frequency identification device (RFID) chips, which are currently replacing barcodes used in supermarkets and for general inventory purposes.

Australian silver market

Some shrewd investors are looking to Australia for their silver picks. A country whose silver mines continued to flourish even when most of the world was in a precious metal slump, Australia has emerged from the COVID-19 pandemic as a major player in the global silver market.

When you think of mining in Australia, you may not think of silver, especially since the country is a top global producer of several other metals, including gold and iron ore. Yet silver mining has a rich history in Australia, and Australian mining and metals giant BHP (ASX:BHP,NYSE:BHP,LSE:BLT) started out as a silver operation in the 1920s.

Today, silver is back on the rise in Australia. Several important new silver mines have recently been opened and the potential for further exploration and production is even higher in the wake of the recent price surge of the precious metal over the last two years.

Australia is now tied with Poland and Russia as the fifth largest silver producer globally as of the end of 2021. Mines in Australia churned out 1,300 tonnes of silver in 2021, a slight drop from 1,340 tonnes in 2020.

Those looking at the Australian silver market have options. There are plenty of big players with interests in Australian silver, and many smaller players for investors to consider researching too.

Most silver comes from mines dedicated to other metals ― Glencore's (LSE:GLEN,OTC Pink:GLCNF) Mount Isa in Queensland produces mainly copper, zinc and lead, but silver is separated by the company's integrated processing streams. Glencore also operates the McArthur mine in the Northern Territory, which is primarily zinc. Between its copper and zinc assets, Glencore produced 7,404,000 ounces of silver in Australia in 2020 ― over 200 tonnes.

Elsewhere, BHP produces a lot of silver as well at the Olympic Dam operation in South Australia. Perhaps best known for the production of uranium and copper, it also yields significant silver resources to the tune of 984,000 ounces in 2020, or almost 28 tonnes.

South32 (ASX:S32,OTC Pink:SHTLF) runs Queensland's Cannington mine, which produces more silver than any other in the country. The company claims it is one of the world’s largest and lowest-cost silver producers.

Meanwhile, global demand for silver is on the rise and is expected to reach 1.11 billion ounces in 2022, an increase of nearly 100 million ounces compared to last year's record figure of 1.03 billion ounces.

All this bodes well for the price of silver in 2022 as both industrial demand and consumer demand ― in particular from India, where COVID-19 limited silver purchases in 2021 ― are expected to rise this year.

Investing in silver bullion in Australia

Investing in physical silver is the most straightforward option: you simply buy a tangible piece of the precious metal in the form of bullion, official coins or medallions. Bullion comes in the form of bars or solid silver coins with at least 99.9 percent purity. Official silver coins are currency produced by a government mint, while silver medallions resemble coins, but lack monetary value.

The price of physical silver will rise and fall alongside the metal's spot market value. Physical silver is a relatively safe investment, although if you plan to trade often, the added costs of buying, selling and storing physical silver may make the investment not worth your while.

Investments in physical silver rose by 8 percent last year, boosted by silver's status as a safe asset and market bullishness on gold. In Australia, coins and medals fabrication increased by 35 percent year-over-year.

Silver bullion bars

Minted silver bars are available for purchase in various sizes. The 1,000 ounce silver bar is the industry standard for trading, but will normally oblige an investor to pay for storage fees at a reputable bullion dealer. For investors wishing to buy silver in large quantities, cast and minted bars are the best option.

Many investors, however, will prefer to buy bullion in smaller quantities ranging from 1 ounce to 100 ounces. While some individuals may choose to store these bars in home safes, it is recommended that silver bars be kept in safety deposit boxes in banks or with the secure storage facilities provided by bullion dealers such as the Royal Australian Mint, Perth Mint, Sydney Mint and Melbourne Mint.

Silver coins

Purchasing silver coins offers the advantage of being able to buy silver bullion in smaller quantities anywhere from 1/10th of an oz to 1 oz, thereby making it easier to accumulate physical silver over time. Many minted silver coins comes with various design features that add to the cost of the coin above spot price.

Be wary of premiums

As mentioned above, purchasing special coins will cost extra compared to a basic silver ounce coin. Additionally, accumulating small amounts over time will cost more than buying the same amount in silver bars all at once.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Harold Von Kursk, hold no direct investment interest in any company mentioned in this article.

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