Fed Cuts to Trigger Stagflation, 'Ideal Environment for GOLD'
Summary
Gold Market Dynamics: The podcast discusses the implications of Basel 3 on gold, highlighting increased interest from institutional investors viewing gold as a long-term holding rather than a speculative investment.
Gold-Backed Cryptocurrencies: There is a growing trend of gold-backed stablecoins, attracting crypto investors to the gold market, which could potentially broaden the market's appeal.
Gold Revaluation Speculation: The possibility of the US revaluing its gold reserves is debated, with opinions varying on its necessity and potential impact on the Fed's balance sheet.
Fed's Inflation Target: The Fed appears to be moving away from its 2% inflation target, which could lead to rate cuts and create an ideal environment for gold investment amid potential stagflation.
Mining Sector Performance: The mining sector, particularly gold miners, is outperforming the broader market, with companies focusing on cost management and strategic growth rather than overpaying for acquisitions.
Dryen Gold's Exploration Success: Dryen Gold has made significant discoveries, hitting visible gold in new targets, backed by structural breakthroughs that enhance the prediction of high-grade zones.
Infrastructure and Expansion: Dryen Gold benefits from excellent infrastructure, including highway access and logging roads, facilitating exploration and development activities.
Financial Position: The company recently closed a $7.8 million equity financing, ensuring continued drilling and exploration activities well into 2026, with major shareholders showing strong support.
Transcript
Hello everybody and welcome to commodity culture where our goal is to make you a better investor in the commodities sector. My name is Jesse Day. Before we dive in, standard disclaimer, nothing here is investment advice. Do your own due diligence. And today's guest is the CEO of Dryen Gold, an exploration company focused on the discovery of high-grade gold mineralization. We're going to be talking Basil 3. We're going to be talking gold revaluation. We're going to be talking the Fed seemingly abandoning their 2% inflation target and of course we're going to discuss the latest developments with Dry and Gold. It's Trey Waser. Great to have you back on the show. Hey Jesse. So last time you were on the show was about a month ago and we discussed Basil 3 and its potential implications for the gold price along with the Genius Act and how it could shape economic policy in the US. I know you're following both of these factors closely. Do you have any new insights to share with us? Really not too much. As far as Basel 3, I think the most uh most interesting thing that I I have not seen any evidence yet of of any of the US or other banks actually announcing that they are purchasing gold as ao as a tier one asset as a part of their you know reserves that that they are uh forced to hold uh um in under under the banking laws. uh but I I have seen uh a lot more interest coming out of institutional investors who you know the large scale invest institutional investors and sovereign funds and that type of thing that have that follow Basil 3 as a guideline for their portfolio holdings and development. In other words, they have a risk asset classes and their lowest risk. Uh some a lot of institutional investors do use Basil 3. So, you know, we're starting to see some interest on the gold side from institutional investors now that uh you know, that typically looked at it much more as a speculative uh investment and now we're looking at it as a long-term holding. And when it comes to the Genius Act, before we hit record today, you were talking about how all of this stable coin adoption and the level that crypto has gotten to now that it's being regulated in the US is starting to bring some of the crypto crowd into the gold space. Walk us through that. Well, you you're seeing more and more of these goldbacked uh uh stable coins and it you know uh uh I've I have never been a big crypto investor just a you know small amount of of of Bitcoin and and uh Ethereum in my portfolio. Uh and but since this stable coin and and doing the research around the different stable coins and some of the trading that's starting to go on uh beyond stable coins in the in the DeFi market uh I I think very important that JP Morgan who you Jamie Diamond of course one of the biggest haters of of uh crypto over the years JP Morgan just did their first very large trade on the blockchain using uh a a DeFi pro uh pro protocol in with tra the in the treasury market and for them it's you know it is it is a logical next step it can they can trade it much more easily the fees are much lower the settlements are much easier and they can trade they can trade it uh uh 24/7 so you know in doing the work there what I found is how intricate that market is and how sophisticated ated really some of these long-term uh crypto protocol investors and developers really are in in what they're putting together. I quite frankly still don't understand it and you wouldn't know how to invest in it. But I think the fact that, you know, now that we're starting to see more and more cryptobacked uh stable coins and even some uh deposit type of uh crypto DeFi exchanges with with gold backing and some of these are offering, you know, it's it's attracting that crypto crowd uh it in that normally, you know, would would not would not be looking at to be a gold investor, but the idea of being able to trade a cryptobacked uh currency or a stable coin and uh and actually that that within the intricacies of of these exchanges could actually generate some yield on a on their gold holding. I uh I mean I even there's uh even one cryptoback uh or goldback crypto Genesis now Kinesis I'm sorry Kinesis it is um that is actually paying if you use it for transaction so they're paying it in gold they pay they're paying a u u it a fee cashback fee if you will like a credit card so just very interesting and and and I think just one more way that the the gold market is again for all of us who really believe gold is the you know the ultimate uh currency and and the only real money uh that all of these things are just attracting a bigger and bigger crowd to the gold market. Yeah, I completely agree with that. I know a lot of the viewers of this show are very staunch gold bugs. the the you don't own it, you don't hold it, you don't own it type of mentality, which I ascribe to. But you have to get into the mindset of these young people who are entering the market in their 20s who have basically being exposed to crypto first before anything else. And so that's what they know more than anything else. And the fact that we are now seeing goldbacked crypto and potentially attracting this new area of the market is a very positive thing for the gold market overall. I do want to talk about the question of gold revaluation. This has been a hot topic lately. Um the Fed recently releasing a paper discussing other countries who have revalued part or all of their gold reserves and the implications of that. This has led many to speculate that the Fed is considering such a move. I've had such a range of opinions on this show regarding gold revaluation from it will never happen to it must happen and literally everywhere in the me middle. It's actually interesting how varied everybody has been wi with this. What are your thoughts? Is it realistic for the US to revalue their gold reserves? What would it actually accomplish? What would its implications be? Well, you know, that's that's what I have a hard time with. To me, it it appear it would seem to be just a balance sheet item. Would it make the Fed's balance sheet look stronger? Yes. Uh that's they don't own enough gold to balance out the 30 I don't know what is it today 38 trillion in debt. So I you know might it might help some you know make the balance the balance sheet look look a little better but I don't I to me it doesn't look like it it has any ramifications beyond that. Uh and it certainly I mean makes sense. I mean, I I don't I don't know that it has to happen, but it wouldn't surprise me if it did because an asset that's being valued at what are they valuing it at $35 or something an ounce? I mean, $42. Yeah. 42. Is that what it is? Then then yeah, to to revalue that. Uh, of course the other thing too is that they'd have to probably prove that it's all there, which, you know, that's a whole different topic that that that a lot of people uh uh so so I don't know. To me, it's just a balance sheet. It's a it's an accounting uh you know function and and I I think it it doesn't really change the dynamics of the uh of the fiat currencies or the US debt situation. Yeah. Yeah, if they were to mark the gold to market, it would be such a grain in the sand, a grain of sand in the hourglass of death that they're drowning in and they'd have to revalue it to 20,000 30,000, which has a lot of it doesn't make a lot of practical sense once you start doing crazy stuff like that. But who knows? I mean, we we'll we'll see. This administration has been anything if not unpredictable. Um, the latest Fed meeting in Wyoming has come and gone. It looks like they are abandoning their 2% inflation target without actually stating that directly. As we know, Fed speak tends to obfuscate everything. Here's what Fed Chair Jerome Powell had to say. With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance. So, it looks like the Fed is going to cut rates up ahead. That's everybody's expectation despite inflation being above their 2% target according to their own basically fake metrics and obviously massively above 2% for people who live in the real world and have to feed and clothe themselves and pay rent. A world to which the central bankers seem to be completely unfamiliar. What are your thoughts and how do you think this could affect the gold market? Could a rate cut up ahead be kind of the fuel that that leads to this next leg up? Well, look, I think uh that u and of course here we also have uh you know some some breaking news right with this uh Lisa Cook, one of the uh yes Fed U governors there uh that Trump is threatening or has fired and uh for mal some type of mal mortgage malfeasants. uh but uh which would you know maybe change the the balance of power there but it it looks like that you know the the I mean we've all known that they've been basically lying about employment numbers for quite a while. I mean, you see it with the, you know, the adjustments that are being done on a on a monthly basis and an annual basis that there's been really no or little employment grow growth, but at the same time, you know, just when it looks like the economy is about to fall off a cliff, you know, th those industrial production and other numbers come back. So, I think I think the economy still is is considering is is weakening. um you know this re predicting a recession and but but I think that with the with the resurgence we're seeing an inflation and and I think it's I think we've bottomed um and you know and and so that if the Fed starts cutting rates and and that and and and the economy is slowing down uh then we're going to be in a period of stagflation which is you know basically the ideal environment uh for holding gold. Let's talk about the mining sector. Uh continuing to massively outperform the broad market year to date. The GDX and GDXJ ETFs both up over 70% so far this year, completely destroying the broad market and obviously uh greatly outperforming the metal itself. It feels like we're really off to the races. This feels like that type of moment, the start of an epic bull run in the miners. What are your thoughts? How do you view this recent price action? Well, um I mean basically I I I felt it's been pretty predictable. Uh you know, ever since gold really broke out above 2500 here. So the last couple years has been a great time to be a minor. uh their input costs while affected by inflation and and gone up on some levels, you know, their biggest inflation or their biggest input cost being energy has uh has actually softened for them. So, it's it's been a kind of a perfect storm. A and you know you really have these companies doing something very different and it's across the board that you know we we typically when when gold prices go up and the and the uh you would see the companies starting to do dumb things uh you know they would they certainly wouldn't wouldn't be watching their cost uh they they start mining lower quality assets uh and you know cost uh their overall sustaining costs would would go up and capital costs and all-in sustaining costs. They do stupid acquisitions and overpay, you know, dramatically huge premiums for things. And we're just really not seeing that. We're seeing most of the companies focused on, you know, um, of course, Agniko and and and Alamos, uh, just really good the correct jurisdictions, the, you know, the right kind of organic growth and and just and really watching everything as far as cost. But even the bigger companies and I won't, you know, barracks start starting to perform a bit better here. you know, they had to get through this thing of losing their Molly mine. But New Pneumont's a very good example. I mean, pneumont is is, you know, instead of doing after the new crest acquisition, uh, they went through a period here of of selling off some non-key assets, focusing and focusing some capital costs here the last couple years really since the newest acquisition on really improving their 10 or so tier one mines uh, that they're going to be focused on and now announced uh, you know, that they're going to be doing a a lot of layoffs. So, you know, it's it's really uh it's really encouraging to see the gold companies, you know, acting like real companies in in a such a good gold environment. And I mean, they're basically the profits that they're showing and you know, they're doing a good job of debt reduction across the board. uh some are starting to pay better dividends and I think that will you know if prices stay up here or go higher they're going to be forced to even pay you know pay bigger dividends but uh I'm always impressed with Agniko Eagle you know because when they talk in their um their quarterly reports you know they they don't refer to their shareholders as shareholders they refer to them as our owners uh you know and uh and and you know That's that's I think a of course they they probably carry the best multiple and and probably a lot for those kind of reasons. But, you know, I I'm just very encouraged. And if you're bullish on gold and you think it could go to 4,000, I mean, these companies, you know, pneumont for example, I mean, their cost is 1,500 all-in sustaining costs and they are uh their number one goal now is getting those costs down. Uh, in a in a rising gold market, uh, this these are good companies to own. Yeah, absolutely agree with you. I want to shift over to Dry and Gold right now and start with a post you made on LinkedIn where you said Dry and Gold has hit visible gold in three brand new targets, each a kilometer apart. The kicker, they're backed by structural breakthroughs that help us predict high-grade zones like never before. Walk us through these new targets and how you are able to predict high-grade zones. You know, it it's very interesting. So, first of all, remember that Dry and Gold has a huge property package. It's all contiguous. It's all, you know, most of it stretches along the major deformation zone there. That would be it'd be like owning 70 kilometers of strike on the Porcupine Dester fault in Timmans. Uh, you know, most companies they're they're happy if they can own a few kilometers uh even a kilometer along the Porcupine Dester fault. Uh, and we're focused in one area where a lot of the historic work was done. We call it gold rock. And you know, it's where there was historic mining in the in the early 1900s. And most of that, all of that mining was really done on three major vein structures or or mineralized structures there. The Big Master 1 and Big Master 2, which are uh quartz veins with with halo, and the Allora structure, which is u more of a shear zone and and a little bit wider. Um, so as we've gotten the permits this year and allowed us to really expand uh to the north on Allora, we've now, you know, opened up a kilometer of strike there from the Jubilee zone at the south where we were drilling last year off the patented claims and then, you know, now been able to move to the north, a kilometer north to the Laurentian, which was the highest producing mine in the camp. we've just continued to find, you know, more of these high-grade zones. And most importantly, what we're finding is these stacked structures or hanging walls. I mean, typically, you know, uh, from my, you know, not being a geologist is, you know, you you you typically will have a hanging wall and footwell structure around a a vein. Uh but in in this camp, very much like Red Lake, we're seeing these multiple uh hanging wall structures uh next to Jubilee, next to Lurention. Um and these stack structures are you adding to the width. In other words, we started out with with the main Laurentian uh shear zone there being running anywhere from 4 to 12 mters, which is a nice size for a high-grade gold that starts at surface. But now that we're adding these stack structures which are are very close. I mean, some of them are just a few meters away, some of them, you know, maybe 50 60 meters away. And each one of these is showing high-grade gold. So the uh you know we we announced uh one of these hanging wall structures that u this was earlier this year had 300 g per ton over 3.9 m. You know when we stepped out to drill that deeper we hit another uh hanging wall structure because of course we moved to the we moved further away from the structure to uh to drill deeper. And then when we stepped out again, we hit another one. So we've hit four of these structures now uh uh that are parallel structures to the uh to to the allora. And we did we saw indications of that last year, but over at Big Master, but we thought it was just an you know, isolated hanging wall foot structures to to the veins over there. What we're what we're starting to believe now is that there's probably a lot more of these stack structures over there. So what we did just did and and you know this will be kind of upcoming news is we we stepped all the way across this this oh it's about a 500 meter uh uh distance between Big Master and and Elora and drilled what we call a gapold all the way across to see how many of these structures we might find because we were finding them one at a time as we stepped away from Elora. Now we just went all the way over to Big Master and drilled all the way through. So we're that this will be exciting, you know, to to see what we what we hit here and and exactly what's going on there. But all of a sudden, this area, which again, this is near surface high-grade gold and it's expanding not only along strike uh for a kilometer, but now uh all of these stack structures which are, you know, adding up to, you know, each one of those is four to 10 m thick. uh and it's really adding up to to volume in this one area. Now, keep in mind that also, you know, we'll be quickly the next place we're going to move the drill rig is up to Mud Lake, which is 2 kilometers to the north of where we're drill of the Gold Rock area. And so, and we think we have a very similar target up there. has no drilling to speak of, a little bit of historic mining, but we've mapped it out and tested it and it seems to have all the same characteristics and and and structures as the Gold Rock area. And then in the pipeline uh in around the Gold Rock to the we have one more target to the north, another kilometer north, and then to the south, we've got five or six more. So, you know, we we think, you know, we we'll continue to drill at Gold Rock and show, you know, because it just keeps growing. I mean, we have more and more targets every time we hit one of these uh structured uh you know, these stack structures. Uh but then we'll also show that we've got quite a few of these uh potential targets that look just like this. That's fantastic. And you guys are always advancing your projects. You're always putting the drill bit to work. Every time I speak with you, something new has occurred that is exciting with the company. So, that's fantastic. I do want to talk about the infrastructure you have in place, uh, which includes major highway access and logging roads with grid power. Break all of that down for us. You know, uh, interestingly, I just got back from there. We did a site visit with the whole board, uh, uh, here a couple weeks ago. Uh so it give you an idea of where this is in the world. Me being from from the United States, you know, I actually flew to Minneapolis and then took a small u a regional plane up to International Falls, which is right on the border of Canada in Minnesota. And then it's only about a two and a half hour drive to drive on a on a you know paved highway uh the entire way. So uh you know that access to the north south and then of course east west the property uh the transcananda highway runs from Thunder Bay to Winnipeg and that's what goes right through Dryen. So that goes through the northern part of our property and then the the access uh you know whether it's uh you know we went to uh out to the Gold Rock area and you know there's quite a few logging roads in there that have given us access. They've opened that up uh quite a bit. Not as much as as some of the areas, but uh you know, we we there there's been that paper mill in Dryen for the last 20 years. And you because the highways, you know, it's so close to the highways, these areas have gotten a lot of uh uh you know, more than their share of logging activity, which you know, opens up clears they clear out the the for the dense forest there and uh also put in the roads for us. So, it's it's been great. And when we went down to like over to Henman uh which is a regional project uh property and Target and down to Sheridan, literally we could drive you could drive a Volkswagen Beetle in there on these roads are so good and this and then get out and walk on the structures. I mean, you can see the you can where we drilled at Sheridan, you you drive along the road and and you can see the drill pad right off the road. Uh the structure actually runs right right through the road and the same up out at Henman. So incredible access and you know the team has done such a good job. I mean the um you know a year ago we took possession of a property out there uh under a lease and it was an old golf course that we've developed into our core shack and cutting facilities and so we're doing everything oursel now. We broke ground while I was there on a on a second core shack. Um, we have the office there where the old clubhouse was for the golf course and it's just a beautiful piece of property. So, it's a nice place to be and work for everybody. So, you know, we really are building a great team out there. It's a very young team. Uh, but, you know, they're very motivated. A lot of them are, you know, they're they're uh not tied down anywhere. So, you know, our exploration manager and our one of our newest geologists are actually moving to Dryden, uh, relocating their young families and and, you know, really making a a big career move with us. So, it's it's very exciting, uh, you know, to have the facilities there and and be able to do this and and, you know, we get a compared a lot to companies that have been out there for four, five, six years working on their properties. And of course, we've been public just a little over a year and a half. Um, and and of course, a lot of those other companies also are dealing with recycled projects. So, their infrastructure is already there. Somebody built that for them and you know, it's a property that somebody else explored and and and and built the infrastructure. We didn't have that. So, we've we've kind of had to start from scratch. But, you know, we I think uh you know, I I don't know if you you know, we Also, you know, of course, we we we just closed a uh $7.8 million financing. Yeah, I I wanted to talk about that next. Yeah, you closed a recent equity financing with participation from Cinta Gold. So, yeah, walk us through the details of that and and how you plan to put that capital to work. Well, you know, we had some of our major shareholders come to us and say, "Look, let's uh uh you know, the the the stock had had a nice run earlier in the year and and you know, it it it settled back a little bit and said, "Look, let's let's let's look at doing a financing now, even though we haven't spent. you know, we we're we've still got about 3,000 mters to drill and about 3,000 mters in the lab or the uh at the at the core shack being logged for from our um you know, fully funded budget for this year. So we still have money from that and and yet no you know we've put this money in the bank which will keep us drilling you know for a fall drill program uh continue drilling and in well into 2026. So it was total 7.8 8 million u uh asset management came in for a nice piece. uh several other uh uh Dundee and and u and and some of the Dundee people personally and uh the uh uh our major shareholder Dell Brook was the was the anchor the lead order on that and um so it's nice you know we'll be going to Beaver Creek here in uh week after next and it'd be nice be nice for the first time going to Beaver Creek and not having our hand out but we've so if If you look at the at the potential here, we have all of these catalysts. I mean, we've got channel sampling at Henman. We've got, you know, uh the the drilling that's going on both a long strike and and uh in these stack structures at Gold Rock. Uh we've put in a few first pass holes at Sheridan uh which are in the lab and have like I said 6,000 mters of drillings uh either uh to to finish or uh you know to finish drilling is about 3,000 meters of the 15,000 meter program and then about 3,000 of that still to report. So a lot of a lot of drilling news to come out. Um this gap hole I talked about, we're very excited. Hopefully, I'm I think we'll have that uh out next week uh before uh Beaver Creek. uh and that I think that's the one where that that hole should wake the market up to you know really what we're dealing with as far as these stack structures and you know uh because we'll be able to show them all in one hole where we've been kind of showing them one at a time and and and uh I think I think this will have a much more impact as as to what's going on and then of course I mean it'll probably be uh next year middle of next year before we we need to raise more money. So, anybody who likes the story is pretty much going to have to buy it in the open market. Trey, this has been a fantastic conversation. As always, I love talking about the gold market and Dryen with you. I'm going to put a link in the description below to the Dryen Gold website as well as social media profile for people who want to follow along with the company. Thank you once again, Trey, for coming on and sharing your knowledge with the audience. All right. Thanks, Jesse. Commodity Culture is a series on commodities and natural resources. If you would like to see more, be sure to subscribe and hit the bell notification so you're always up to date with the latest episodes.
Fed Cuts to Trigger Stagflation, 'Ideal Environment for GOLD'
Summary
Transcript
Hello everybody and welcome to commodity culture where our goal is to make you a better investor in the commodities sector. My name is Jesse Day. Before we dive in, standard disclaimer, nothing here is investment advice. Do your own due diligence. And today's guest is the CEO of Dryen Gold, an exploration company focused on the discovery of high-grade gold mineralization. We're going to be talking Basil 3. We're going to be talking gold revaluation. We're going to be talking the Fed seemingly abandoning their 2% inflation target and of course we're going to discuss the latest developments with Dry and Gold. It's Trey Waser. Great to have you back on the show. Hey Jesse. So last time you were on the show was about a month ago and we discussed Basil 3 and its potential implications for the gold price along with the Genius Act and how it could shape economic policy in the US. I know you're following both of these factors closely. Do you have any new insights to share with us? Really not too much. As far as Basel 3, I think the most uh most interesting thing that I I have not seen any evidence yet of of any of the US or other banks actually announcing that they are purchasing gold as ao as a tier one asset as a part of their you know reserves that that they are uh forced to hold uh um in under under the banking laws. uh but I I have seen uh a lot more interest coming out of institutional investors who you know the large scale invest institutional investors and sovereign funds and that type of thing that have that follow Basil 3 as a guideline for their portfolio holdings and development. In other words, they have a risk asset classes and their lowest risk. Uh some a lot of institutional investors do use Basil 3. So, you know, we're starting to see some interest on the gold side from institutional investors now that uh you know, that typically looked at it much more as a speculative uh investment and now we're looking at it as a long-term holding. And when it comes to the Genius Act, before we hit record today, you were talking about how all of this stable coin adoption and the level that crypto has gotten to now that it's being regulated in the US is starting to bring some of the crypto crowd into the gold space. Walk us through that. Well, you you're seeing more and more of these goldbacked uh uh stable coins and it you know uh uh I've I have never been a big crypto investor just a you know small amount of of of Bitcoin and and uh Ethereum in my portfolio. Uh and but since this stable coin and and doing the research around the different stable coins and some of the trading that's starting to go on uh beyond stable coins in the in the DeFi market uh I I think very important that JP Morgan who you Jamie Diamond of course one of the biggest haters of of uh crypto over the years JP Morgan just did their first very large trade on the blockchain using uh a a DeFi pro uh pro protocol in with tra the in the treasury market and for them it's you know it is it is a logical next step it can they can trade it much more easily the fees are much lower the settlements are much easier and they can trade they can trade it uh uh 24/7 so you know in doing the work there what I found is how intricate that market is and how sophisticated ated really some of these long-term uh crypto protocol investors and developers really are in in what they're putting together. I quite frankly still don't understand it and you wouldn't know how to invest in it. But I think the fact that, you know, now that we're starting to see more and more cryptobacked uh stable coins and even some uh deposit type of uh crypto DeFi exchanges with with gold backing and some of these are offering, you know, it's it's attracting that crypto crowd uh it in that normally, you know, would would not would not be looking at to be a gold investor, but the idea of being able to trade a cryptobacked uh currency or a stable coin and uh and actually that that within the intricacies of of these exchanges could actually generate some yield on a on their gold holding. I uh I mean I even there's uh even one cryptoback uh or goldback crypto Genesis now Kinesis I'm sorry Kinesis it is um that is actually paying if you use it for transaction so they're paying it in gold they pay they're paying a u u it a fee cashback fee if you will like a credit card so just very interesting and and and I think just one more way that the the gold market is again for all of us who really believe gold is the you know the ultimate uh currency and and the only real money uh that all of these things are just attracting a bigger and bigger crowd to the gold market. Yeah, I completely agree with that. I know a lot of the viewers of this show are very staunch gold bugs. the the you don't own it, you don't hold it, you don't own it type of mentality, which I ascribe to. But you have to get into the mindset of these young people who are entering the market in their 20s who have basically being exposed to crypto first before anything else. And so that's what they know more than anything else. And the fact that we are now seeing goldbacked crypto and potentially attracting this new area of the market is a very positive thing for the gold market overall. I do want to talk about the question of gold revaluation. This has been a hot topic lately. Um the Fed recently releasing a paper discussing other countries who have revalued part or all of their gold reserves and the implications of that. This has led many to speculate that the Fed is considering such a move. I've had such a range of opinions on this show regarding gold revaluation from it will never happen to it must happen and literally everywhere in the me middle. It's actually interesting how varied everybody has been wi with this. What are your thoughts? Is it realistic for the US to revalue their gold reserves? What would it actually accomplish? What would its implications be? Well, you know, that's that's what I have a hard time with. To me, it it appear it would seem to be just a balance sheet item. Would it make the Fed's balance sheet look stronger? Yes. Uh that's they don't own enough gold to balance out the 30 I don't know what is it today 38 trillion in debt. So I you know might it might help some you know make the balance the balance sheet look look a little better but I don't I to me it doesn't look like it it has any ramifications beyond that. Uh and it certainly I mean makes sense. I mean, I I don't I don't know that it has to happen, but it wouldn't surprise me if it did because an asset that's being valued at what are they valuing it at $35 or something an ounce? I mean, $42. Yeah. 42. Is that what it is? Then then yeah, to to revalue that. Uh, of course the other thing too is that they'd have to probably prove that it's all there, which, you know, that's a whole different topic that that that a lot of people uh uh so so I don't know. To me, it's just a balance sheet. It's a it's an accounting uh you know function and and I I think it it doesn't really change the dynamics of the uh of the fiat currencies or the US debt situation. Yeah. Yeah, if they were to mark the gold to market, it would be such a grain in the sand, a grain of sand in the hourglass of death that they're drowning in and they'd have to revalue it to 20,000 30,000, which has a lot of it doesn't make a lot of practical sense once you start doing crazy stuff like that. But who knows? I mean, we we'll we'll see. This administration has been anything if not unpredictable. Um, the latest Fed meeting in Wyoming has come and gone. It looks like they are abandoning their 2% inflation target without actually stating that directly. As we know, Fed speak tends to obfuscate everything. Here's what Fed Chair Jerome Powell had to say. With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance. So, it looks like the Fed is going to cut rates up ahead. That's everybody's expectation despite inflation being above their 2% target according to their own basically fake metrics and obviously massively above 2% for people who live in the real world and have to feed and clothe themselves and pay rent. A world to which the central bankers seem to be completely unfamiliar. What are your thoughts and how do you think this could affect the gold market? Could a rate cut up ahead be kind of the fuel that that leads to this next leg up? Well, look, I think uh that u and of course here we also have uh you know some some breaking news right with this uh Lisa Cook, one of the uh yes Fed U governors there uh that Trump is threatening or has fired and uh for mal some type of mal mortgage malfeasants. uh but uh which would you know maybe change the the balance of power there but it it looks like that you know the the I mean we've all known that they've been basically lying about employment numbers for quite a while. I mean, you see it with the, you know, the adjustments that are being done on a on a monthly basis and an annual basis that there's been really no or little employment grow growth, but at the same time, you know, just when it looks like the economy is about to fall off a cliff, you know, th those industrial production and other numbers come back. So, I think I think the economy still is is considering is is weakening. um you know this re predicting a recession and but but I think that with the with the resurgence we're seeing an inflation and and I think it's I think we've bottomed um and you know and and so that if the Fed starts cutting rates and and that and and and the economy is slowing down uh then we're going to be in a period of stagflation which is you know basically the ideal environment uh for holding gold. Let's talk about the mining sector. Uh continuing to massively outperform the broad market year to date. The GDX and GDXJ ETFs both up over 70% so far this year, completely destroying the broad market and obviously uh greatly outperforming the metal itself. It feels like we're really off to the races. This feels like that type of moment, the start of an epic bull run in the miners. What are your thoughts? How do you view this recent price action? Well, um I mean basically I I I felt it's been pretty predictable. Uh you know, ever since gold really broke out above 2500 here. So the last couple years has been a great time to be a minor. uh their input costs while affected by inflation and and gone up on some levels, you know, their biggest inflation or their biggest input cost being energy has uh has actually softened for them. So, it's it's been a kind of a perfect storm. A and you know you really have these companies doing something very different and it's across the board that you know we we typically when when gold prices go up and the and the uh you would see the companies starting to do dumb things uh you know they would they certainly wouldn't wouldn't be watching their cost uh they they start mining lower quality assets uh and you know cost uh their overall sustaining costs would would go up and capital costs and all-in sustaining costs. They do stupid acquisitions and overpay, you know, dramatically huge premiums for things. And we're just really not seeing that. We're seeing most of the companies focused on, you know, um, of course, Agniko and and and Alamos, uh, just really good the correct jurisdictions, the, you know, the right kind of organic growth and and just and really watching everything as far as cost. But even the bigger companies and I won't, you know, barracks start starting to perform a bit better here. you know, they had to get through this thing of losing their Molly mine. But New Pneumont's a very good example. I mean, pneumont is is, you know, instead of doing after the new crest acquisition, uh, they went through a period here of of selling off some non-key assets, focusing and focusing some capital costs here the last couple years really since the newest acquisition on really improving their 10 or so tier one mines uh, that they're going to be focused on and now announced uh, you know, that they're going to be doing a a lot of layoffs. So, you know, it's it's really uh it's really encouraging to see the gold companies, you know, acting like real companies in in a such a good gold environment. And I mean, they're basically the profits that they're showing and you know, they're doing a good job of debt reduction across the board. uh some are starting to pay better dividends and I think that will you know if prices stay up here or go higher they're going to be forced to even pay you know pay bigger dividends but uh I'm always impressed with Agniko Eagle you know because when they talk in their um their quarterly reports you know they they don't refer to their shareholders as shareholders they refer to them as our owners uh you know and uh and and you know That's that's I think a of course they they probably carry the best multiple and and probably a lot for those kind of reasons. But, you know, I I'm just very encouraged. And if you're bullish on gold and you think it could go to 4,000, I mean, these companies, you know, pneumont for example, I mean, their cost is 1,500 all-in sustaining costs and they are uh their number one goal now is getting those costs down. Uh, in a in a rising gold market, uh, this these are good companies to own. Yeah, absolutely agree with you. I want to shift over to Dry and Gold right now and start with a post you made on LinkedIn where you said Dry and Gold has hit visible gold in three brand new targets, each a kilometer apart. The kicker, they're backed by structural breakthroughs that help us predict high-grade zones like never before. Walk us through these new targets and how you are able to predict high-grade zones. You know, it it's very interesting. So, first of all, remember that Dry and Gold has a huge property package. It's all contiguous. It's all, you know, most of it stretches along the major deformation zone there. That would be it'd be like owning 70 kilometers of strike on the Porcupine Dester fault in Timmans. Uh, you know, most companies they're they're happy if they can own a few kilometers uh even a kilometer along the Porcupine Dester fault. Uh, and we're focused in one area where a lot of the historic work was done. We call it gold rock. And you know, it's where there was historic mining in the in the early 1900s. And most of that, all of that mining was really done on three major vein structures or or mineralized structures there. The Big Master 1 and Big Master 2, which are uh quartz veins with with halo, and the Allora structure, which is u more of a shear zone and and a little bit wider. Um, so as we've gotten the permits this year and allowed us to really expand uh to the north on Allora, we've now, you know, opened up a kilometer of strike there from the Jubilee zone at the south where we were drilling last year off the patented claims and then, you know, now been able to move to the north, a kilometer north to the Laurentian, which was the highest producing mine in the camp. we've just continued to find, you know, more of these high-grade zones. And most importantly, what we're finding is these stacked structures or hanging walls. I mean, typically, you know, uh, from my, you know, not being a geologist is, you know, you you you typically will have a hanging wall and footwell structure around a a vein. Uh but in in this camp, very much like Red Lake, we're seeing these multiple uh hanging wall structures uh next to Jubilee, next to Lurention. Um and these stack structures are you adding to the width. In other words, we started out with with the main Laurentian uh shear zone there being running anywhere from 4 to 12 mters, which is a nice size for a high-grade gold that starts at surface. But now that we're adding these stack structures which are are very close. I mean, some of them are just a few meters away, some of them, you know, maybe 50 60 meters away. And each one of these is showing high-grade gold. So the uh you know we we announced uh one of these hanging wall structures that u this was earlier this year had 300 g per ton over 3.9 m. You know when we stepped out to drill that deeper we hit another uh hanging wall structure because of course we moved to the we moved further away from the structure to uh to drill deeper. And then when we stepped out again, we hit another one. So we've hit four of these structures now uh uh that are parallel structures to the uh to to the allora. And we did we saw indications of that last year, but over at Big Master, but we thought it was just an you know, isolated hanging wall foot structures to to the veins over there. What we're what we're starting to believe now is that there's probably a lot more of these stack structures over there. So what we did just did and and you know this will be kind of upcoming news is we we stepped all the way across this this oh it's about a 500 meter uh uh distance between Big Master and and Elora and drilled what we call a gapold all the way across to see how many of these structures we might find because we were finding them one at a time as we stepped away from Elora. Now we just went all the way over to Big Master and drilled all the way through. So we're that this will be exciting, you know, to to see what we what we hit here and and exactly what's going on there. But all of a sudden, this area, which again, this is near surface high-grade gold and it's expanding not only along strike uh for a kilometer, but now uh all of these stack structures which are, you know, adding up to, you know, each one of those is four to 10 m thick. uh and it's really adding up to to volume in this one area. Now, keep in mind that also, you know, we'll be quickly the next place we're going to move the drill rig is up to Mud Lake, which is 2 kilometers to the north of where we're drill of the Gold Rock area. And so, and we think we have a very similar target up there. has no drilling to speak of, a little bit of historic mining, but we've mapped it out and tested it and it seems to have all the same characteristics and and and structures as the Gold Rock area. And then in the pipeline uh in around the Gold Rock to the we have one more target to the north, another kilometer north, and then to the south, we've got five or six more. So, you know, we we think, you know, we we'll continue to drill at Gold Rock and show, you know, because it just keeps growing. I mean, we have more and more targets every time we hit one of these uh structured uh you know, these stack structures. Uh but then we'll also show that we've got quite a few of these uh potential targets that look just like this. That's fantastic. And you guys are always advancing your projects. You're always putting the drill bit to work. Every time I speak with you, something new has occurred that is exciting with the company. So, that's fantastic. I do want to talk about the infrastructure you have in place, uh, which includes major highway access and logging roads with grid power. Break all of that down for us. You know, uh, interestingly, I just got back from there. We did a site visit with the whole board, uh, uh, here a couple weeks ago. Uh so it give you an idea of where this is in the world. Me being from from the United States, you know, I actually flew to Minneapolis and then took a small u a regional plane up to International Falls, which is right on the border of Canada in Minnesota. And then it's only about a two and a half hour drive to drive on a on a you know paved highway uh the entire way. So uh you know that access to the north south and then of course east west the property uh the transcananda highway runs from Thunder Bay to Winnipeg and that's what goes right through Dryen. So that goes through the northern part of our property and then the the access uh you know whether it's uh you know we went to uh out to the Gold Rock area and you know there's quite a few logging roads in there that have given us access. They've opened that up uh quite a bit. Not as much as as some of the areas, but uh you know, we we there there's been that paper mill in Dryen for the last 20 years. And you because the highways, you know, it's so close to the highways, these areas have gotten a lot of uh uh you know, more than their share of logging activity, which you know, opens up clears they clear out the the for the dense forest there and uh also put in the roads for us. So, it's it's been great. And when we went down to like over to Henman uh which is a regional project uh property and Target and down to Sheridan, literally we could drive you could drive a Volkswagen Beetle in there on these roads are so good and this and then get out and walk on the structures. I mean, you can see the you can where we drilled at Sheridan, you you drive along the road and and you can see the drill pad right off the road. Uh the structure actually runs right right through the road and the same up out at Henman. So incredible access and you know the team has done such a good job. I mean the um you know a year ago we took possession of a property out there uh under a lease and it was an old golf course that we've developed into our core shack and cutting facilities and so we're doing everything oursel now. We broke ground while I was there on a on a second core shack. Um, we have the office there where the old clubhouse was for the golf course and it's just a beautiful piece of property. So, it's a nice place to be and work for everybody. So, you know, we really are building a great team out there. It's a very young team. Uh, but, you know, they're very motivated. A lot of them are, you know, they're they're uh not tied down anywhere. So, you know, our exploration manager and our one of our newest geologists are actually moving to Dryden, uh, relocating their young families and and, you know, really making a a big career move with us. So, it's it's very exciting, uh, you know, to have the facilities there and and be able to do this and and, you know, we get a compared a lot to companies that have been out there for four, five, six years working on their properties. And of course, we've been public just a little over a year and a half. Um, and and of course, a lot of those other companies also are dealing with recycled projects. So, their infrastructure is already there. Somebody built that for them and you know, it's a property that somebody else explored and and and and built the infrastructure. We didn't have that. So, we've we've kind of had to start from scratch. But, you know, we I think uh you know, I I don't know if you you know, we Also, you know, of course, we we we just closed a uh $7.8 million financing. Yeah, I I wanted to talk about that next. Yeah, you closed a recent equity financing with participation from Cinta Gold. So, yeah, walk us through the details of that and and how you plan to put that capital to work. Well, you know, we had some of our major shareholders come to us and say, "Look, let's uh uh you know, the the the stock had had a nice run earlier in the year and and you know, it it it settled back a little bit and said, "Look, let's let's let's look at doing a financing now, even though we haven't spent. you know, we we're we've still got about 3,000 mters to drill and about 3,000 mters in the lab or the uh at the at the core shack being logged for from our um you know, fully funded budget for this year. So we still have money from that and and yet no you know we've put this money in the bank which will keep us drilling you know for a fall drill program uh continue drilling and in well into 2026. So it was total 7.8 8 million u uh asset management came in for a nice piece. uh several other uh uh Dundee and and u and and some of the Dundee people personally and uh the uh uh our major shareholder Dell Brook was the was the anchor the lead order on that and um so it's nice you know we'll be going to Beaver Creek here in uh week after next and it'd be nice be nice for the first time going to Beaver Creek and not having our hand out but we've so if If you look at the at the potential here, we have all of these catalysts. I mean, we've got channel sampling at Henman. We've got, you know, uh the the drilling that's going on both a long strike and and uh in these stack structures at Gold Rock. Uh we've put in a few first pass holes at Sheridan uh which are in the lab and have like I said 6,000 mters of drillings uh either uh to to finish or uh you know to finish drilling is about 3,000 meters of the 15,000 meter program and then about 3,000 of that still to report. So a lot of a lot of drilling news to come out. Um this gap hole I talked about, we're very excited. Hopefully, I'm I think we'll have that uh out next week uh before uh Beaver Creek. uh and that I think that's the one where that that hole should wake the market up to you know really what we're dealing with as far as these stack structures and you know uh because we'll be able to show them all in one hole where we've been kind of showing them one at a time and and and uh I think I think this will have a much more impact as as to what's going on and then of course I mean it'll probably be uh next year middle of next year before we we need to raise more money. So, anybody who likes the story is pretty much going to have to buy it in the open market. Trey, this has been a fantastic conversation. As always, I love talking about the gold market and Dryen with you. I'm going to put a link in the description below to the Dryen Gold website as well as social media profile for people who want to follow along with the company. Thank you once again, Trey, for coming on and sharing your knowledge with the audience. All right. Thanks, Jesse. Commodity Culture is a series on commodities and natural resources. If you would like to see more, be sure to subscribe and hit the bell notification so you're always up to date with the latest episodes.