Phase 5 Drilling Uncovers Visible Gold as Exploration Expands at Ontario Project

1. Dryden Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own Dryden Gold Corp securities.
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* Disclosure for the quote from the Clive Maund article published on September 10, 2024

1. For the quoted article (published on September 10), the Company has paid Street Smart, an affiliate of Streetwise Reports US$1,500.
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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.

Dryden Gold Corp. (DRY:TSXV; DRYGF:OTCQB), in a news release, updated shareholders on the progress of its Phase 5 drill program at the Gold Rock Project in Dryden, Ontario. Starting in July, the program aimed to explore high-grade gold shoots within the Elora and Big Master Gold Systems. Nine drill holes, totaling approximately 1,600 meters, are complete. Visible gold was observed in multiple holes, including KW-24-017 and KW-24-024 at depths below 200 meters. The drill holes follow uped on earlier promising results, including KW-24-008, which returned an impressive 14.10 grams per tonne (g/t) of gold over 7.54 meters.

Based on this year's findings, Dryden's technical team has also identified multiple new targets for their upcoming fall drill program. CEO and Director Trey Wasser expressed optimism, stating, "The Elora Gold System has over two kilometers of known strike length. It is exciting to see these intercepts at depth as Archean systems in Ontario tend to have very deep roots." Results from the current drilling are pending, and Dryden Gold plans to continue its exploration efforts later this year.

Golden Outlook

The gold sector, viewed as a safe haven in economic uncertainty, has seen a rise. As Barrons reported on September 9th, "The precious metal's upward rally is just getting started, with the most anticipated U.S. interest rate cut in decades set to bring fresh impetus to gold prices in September," according to ING analysts. Gold has also benefited from Federal Reserve rate cut expectations, strong bank purchases, and geopolitical risks.

Technical Analyst Clive Maund, who first recommended the stock in May when it was priced lower, maintained a "Strong Buy" rating at the time due to both technical and fundamental factors. 

Gold-backed ETFs have also seen a resurgence, with global inflows for four consecutive months. According to ING, demand for these ETFs is reviving, bolstered by Asian purchases and continued interest from investors seeking a hedge against uncertainty.

ING estimated that gold prices would average US$2,580 per troy ounce in the fourth quarter of 2024 and continue to rise, possibly reaching US$2,700 per ounce in 2025.

In a Yahoo! Finance report from September 3, Goldman Sachs analysts echoed the bullish outlook, advising investors to "go for gold" as the metal's notable performance appeared far from over. Goldman Sachs analysts highlighted that central bank purchases, which hit a record in the first quarter of 2024, have been one of the major drivers behind gold's 2024 price increase.

US Global Investors also emphasized the potential of gold stocks, stating on September 3, "Gold stocks . . .  offer not just a hedge but also a means of participating in the upside of gold prices." This is particularly important for Dryden Gold Corp., which is well-positioned in Ontario's gold-rich region. With current market conditions favoring gold equities, Dryden could benefit significantly from both gold price increases and investor interest in gold exploration companies.

Driving Dryden Forward

Efforts by Dryden Gold in exploring the Elora Gold System and Big Master Gold System have been key to driving growth and interest in the company. Identifying and targeting new high-grade shoots and the presence of visible gold at depth enhance the potential of the Gold Rock Project's present opportunities, especially with these systems appearing to extend deeper than previously explored. Now that is drilling complete and sampling of analysis is underway, the company is poised to release assay results that could further boost investor confidence.

Dryden's recent announcement of ongoing engagement with MI3 Financial Communications will also enhance its visibility in the sector. MI3's market awareness program aims to communicate with shareholders, analysts, and prospective investors. This partnership is expected to expand Dryden Gold's presence in key industry events, including the Precious Metals Summit in Beaver Creek and the Noble Capital Markets Virtual Equity Conference. Trey Wasser commented on this strategy, emphasizing the importance of investor communication as the company continues to grow. 

Analysts on Dryden Gold

*According to Technical Analyst Clive Maund in a report on September 10, Dryden Gold showed significant potential despite its price increase earlier in the year. Maund, who first recommended the stock in May when it was priced lower, maintained a "Strong Buy" rating at the time due to both technical and fundamental factors.

He noted that while Dryden Gold's stock traded sideways for several months, its technical condition had steadily improved. He explained that "the price breaking clear above the 50-day moving average, which had turned up," along with positive momentum (MACD), indicated that the stock was in a better position to advance. 

Maund emphasized that the company's long-term value was underpinned by its exploration program at Gold Rock and the broader improvement in gold market conditions. At the time of his analysis, Maund noted that "the continuing improvement in the technical condition of the stock" supported his Strong Buy recommendation, anticipating potential gains if resistance levels were surpassed. His analysis pointed to Dryden Gold's attractive position for investors seeking exposure to the gold sector during that period.

Ownership and Share Structure

According to Refinitiv, Stategic entities own 15.27% of Dryden with Alamos Gold Inc. (AGI:TSX; AGI:NYSE) has an almost 15.4% stake in it, Eric Sprott owns 4.26%, Rob McEwen owns 3.55%, and other important stakeholders including management and insiders own 11.87%. Less than half of the 93.89 million shares are available to retail investors.

According to Reuters, Euro Pacific Asset Management also owns about 8.48% of the company.

Its market cap is CA$10.33 million, and it trades in a 52-week range of CA$0.40 and CA$0.10.