Expert: Gold 'Essential' as Banks Signal an Accelerating Money Reset

1. West Red Lake Gold Mines Ltd., Western Exploraiton Inc., and Liberty Gold Corp. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake Gold Mines Ltd. and Western Exploration Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Gold has surged past US$3,500 as central banks move away from treasuries, signaling an accelerating monetary reset, Taylor Kenney of ITM trading noted in a YouTube video on September 4.

For the first time since 1996, central banks hold more gold than U.S. treasuries, positioning themselves for future changes.

Kenney called the situation "historic."

"Gold isn't just rising to record highs, it's doing so at the exact same time that the stock market has reached its most dangerous valuation, greater than the dot-com bubble and the run-up to the Great Depression," she said. "Add in record debt issuance and a surge in physical gold delivery demands, and you have the clearest signal yet that the reset is accelerating."

But this isn't just about gold's price or its 34% year-to-date increase as one of the top-performing assets, Kenney said. This is about why the timing of gold's surge is crucial and what it signals for the future — something that will undoubtedly impact the economy, the U.S. dollar, and our wallets.

"The mainstream news will tell us that it's all because of rate cuts," Kenney noted. "That is why gold is doing well, because rate cuts signal a weaker economy and therefore a weaker dollar, and people are going to move into safe haven assets. But there is so much more going on behind the scenes that they don't want you focusing on."

She continued, "Let that sink in." She quoted Analyst Tavi Costa, who compiled the data. "He says this is likely the beginning of one of the most significant global rebalancings we've experienced in recent history."

U.S. treasuries are supposed to be the foundation of the global monetary system, but for the first time in decades, "gold is overtaking dollars," she said.

Nations are gradually reducing their holdings of dollars.

"They are done with dollar dominance," Kenney said. "They are over it. Nations are tired of the West controlling the entire global monetary system."

Those nations are "actively choosing to move into gold" and not another fiat currency, she said.

Gold Can't Be Weaponized, Printed, Inflated

Unlike the dollar, gold can't be weaponized, printed more of, or inflated away, Kenney said. These are all reasons nations are choosing gold, just as individuals do to protect their wealth. These banks are positioning themselves for the reset that is already unfolding but is now accelerating. They are preparing for a new monetary system.

The COMEX is signaling trouble, she wrote in a companion piece on ITM Trading's website. As of early September, physical gold and silver delivery requests have already surpassed all of 2024's totals.

"As foreign demand for treasuries dries up, interest costs will spike," Kenney noted. "The Fed's only play? Inflate the debt away. Not just via money printing, but by deliberate devaluation. Your dollar is going to buy a lot less. This is how all fiat currencies die. Slowly at first. Then all at once."

She predicted a "great melt-up," an unsustainable surge in asset prices that ends in a catastrophic bubble burst.

"Except this time, it would be by the Fed's own doing, and the fallout would be far worse than 2008 or any other kind of crisis we've seen," she said. "We're seeing homes that are completely out of anyone's price ranges. These homes are sitting on the market for longer. … The stock market is completely overvalued."

The world is witnessing a systemic reset in real time, she said. Central banks aren't just hedging with gold; they're preparing for what's next. The government isn't just borrowing more; it's doing so while running out of options and buyers. Markets aren't just high; they're overvalued and speculative.

"The bubble is going to burst," Kenney said. "When we see the dollar be devalued, that is not only going to hit Wall Street and our government; it is going to hit everyday Americans. That is why, when I look at all of this, when I look at the facts, when I look at the data, it becomes so clear that, while central banks aren't telling us what they're doing, they are showing us with their actions. All of these pieces come together and tell me that the reset is accelerating."

She continued, "And gold, in my opinion, is not just an option. It is essential."

'Gold Does Not Lie'

Throughout history, crises end in disaster for those who remain in the system, but they offer opportunities for those who are aware and act before the reset hits, Kenney said.

"The bottom line is that gold does not lie," she said. "What we're seeing today with gold and with all these other facts is telling us that, yes, there are people out there who are enjoying and profiting off of the great melt-up, but make sure you have your insurance policy in place. Physical gold and silver."

She continued, "When it all comes crashing down, you do not want to be left there kicking yourself thinking, 'I wish I had protected my wealth sooner,' right?"

Gold exploration companies offer unique exposure to new gold discoveries for investors, including the following three looking for gold in Canada: West Red Lake Gold Mines Ltd., Western Exploration Inc., and Liberty Gold Corp.

West Red Lake Gold Mines Ltd.

West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) submitted its independent Preliminary Economic Assessment (PEA) technical report for its fully owned Rowan Project, situated in the Red Lake Gold District of northwestern Ontario. The company is already producing gold at its nearby Madsen Mine, where ramp up to commercial production is underway. 

The Rowan PEA consisted of 476,323 indicated tonnes with a grade of 12.87 grams per tonne (g/t) gold, totaling 195,746 contained ounces, and 410,794 inferred tonnes at 8.76 g/t gold for 115,719 ounces. The PEA considers a potential underground toll milling operation, projecting an average annual production of 35,200 ounces of gold over five years.

Economic highlights include a post-tax net present value (NPV) of US$125 million and an internal rate of return (IRR) of 42%, based on a gold price of US$1,800 per ounce and a capital cost estimate of US$70 million.

In an August 7 update, Jeff Clark of The Gold Advisor reported that West Red Lake Gold produced 3,800 ounces of gold in July across three pours at its Madsen operation. The company sold 3,595 ounces at an average realized price of US$3,320 per ounce, generating US$12 million in revenue. He observed that production was primarily sourced from sill development material blended with stockpiled ore, yielding a combined head grade of 5 g/t. The average mined grade from sill material was 8.9 g/t.

In his July 24 commentary, Clark noted institutional support for the company, including Summit Royalty's acquisition of a 1% net smelter returns royalty on the Madsen Mine from Sprott Resource Lending for US$9.9 million, describing it as "a good sign from an institutional lender."

Clark also noted that drill spacing had been reduced from 20 meters to 7 meters to improve geological modeling and pointed to ongoing development work on shaft utilization and cemented rock fill systems. He added that the company's recent updates had coincided with a 15% increase in share price over five trading days.

On September 4, 2025, Cantor Fitzgerald Analyst Matthew O'Keefe reaffirmed a Buy rating for West Red Lake, maintaining a target price of CA$2.20. This target suggests a 124% increase from the share price of CA$0.98 at the time of the report. O'Keefe highlighted the positive advancements in mill operations, definition drilling, and mine development since the official restart in May, setting the stage for the company to announce commercial production by the first quarter of 2026.

O'Keefe noted that to declare commercial production, "WRLG wants to demonstrate steady throughput and mill performance for at least three months as well as complete several capital projects to ensure cost stability and firm up confidence in its near-term mine plan so it can provide 2026 guidance," he wrote.

Taylor Combaluzier of Red Cloud Securities reiterated a Buy rating on West Red Lake Gold in a June 26 research note, maintaining a price target of CA$2.50. At the time of the update, shares were trading at CA$0.88, implying a potential return of 184%.

He reported that ramp-up at the Madsen Mine began on May 11 using lower-grade sill material and transitioned to higher-grade stope material by June. This transition resulted in mill head grades increasing from 3 g/t to an average of 6.5 g/t by mid-June. Combaluzier noted that mill throughput averaged 650 tonnes per day with gold recoveries near 95%, approaching prefeasibility benchmarks of 800 tonnes per day and 95.7% recovery.

Combaluzier also addressed the integration potential of the Rowan and Fork deposits into a hub-and-spoke model centered around Madsen.

West Red Lake Gold's latest investor presentation highlights several operational catalysts, including the significant progress being made at the company's flagship Madsen Mine, situated 80 kilometers from Rowan by road. Madsen yielded 5,350 ounces between January and mid-June 2025. The mill has processed an average of 650 tonnes per day, with gold recovery rates approaching 95%.

Institutions own about 30%, while management, insiders, and advisors hold around 10%. The remaining shares are held by retail investors.

The company's market capitalization is CA$366.98 million, with a 52-week stock price range of CA$0.52 to CA$1.18.

Western Exploration Inc.

Results from Western Exploration Inc.'s (WEX:TSX.V; WEXPF:OTC) fully funded 2025 drilling campaign at the high-grade Aura Project in Elko County, Nevada, could be a coming catalyst for the company. The 4,000-meter reverse circulation drill program aims to explore a 1.3-kilometer section of the Tomasina Fault zone, extending downward from the existing Wood Gulch and Saddle NI 43-101 resource areas, according to the company.

Historically, the Wood Gulch Open Pit, operated by Homestake Mining Company from 1988 to 1990, produced some of the highest-grade drill intercepts on the Aura Property, including 13.72 meters at 79.26 g/t gold equivalent (g/t AuEq) and 9.45 meters at 26.56 g/t AuEq.

"The 2025 Aura reverse circulation drill program aims to build upon the exploration successes that have already led to a 54% increase in inferred Au-Ag resources at the Gravel Creek and Jarbidge target areas," stated Chief Executive Officer Darcy Marud. "The Tomasina target is directly analogous to the structural and stratigraphic setting of the Gravel Creek deposit, but with the potential added benefit of a 3.0 km strike length and shallower targets ranging from 100-450 meters in depth. Successful discoveries here could significantly extend Western's mineralization across several key zones, potentially redefining the scale and importance of the Aura district."

In June, Western Exploration submitted a National Instrument 43-101 technical report that included a preliminary economic assessment (PEA) for the Doby George Deposit and an updated mineral resource estimate (MRE) for Gravel Creek. The updated MRE revealed a substantial increase in both the quality and quantity of inferred mineral resources, significantly influenced by the discovery of a high-grade vein within the Jarbidge rhyolite east of Gravel Creek. The inferred gold content increased from 367,000 ounces to 571,000 ounces, and inferred silver content jumped from 5,307,000 ounces to 9,726,000 ounces, marking an 83% increase in silver content and a 28% enhancement in silver grade, according to the company.

Key points from the Doby George PEA included a base case after-tax Net Present Value (NPV) of US$70.7 million and an Internal Rate of Return (IRR) of 25.4% (based on a gold price of US$2,150, escalating to US$211.2 million with a potential IRR of 62.2% at a gold price of US$3,000), an estimated total Life-of-Mine (LOM) after-tax net cash flow of US$271.2 million over a five-year project timeline, and projected average annual operating cash flow of US$112.1 million and a payback period of less than 18 months, assuming a gold price of US$3,000.

The report highlighted new exploration opportunities along the GC Fault at Gravel Creek and the potential for expanding high-grade veins in the Jarbidge rhyolite. Management remains optimistic that Western's successful drilling history could lead to further resource expansion with continued drilling and exploration activities. Gravel Creek remains open along strike and downdip, while Jarbidge is open in all directions.

The company said Wood Gulch is the primary focus of Western Exploration's exploration initiatives in 2025, alongside Doby George, for which the PEA was released in May.

On July 31, the Gold Newsletter noted the start of the drilling campaign. "The objective is to expand the known high-grade gold-silver mineralization along the Tomasina Fault zone," the report stated. "Successful high-grade discoveries from this drilling could potentially rekindle interest in Western, which currently holds an impressive 1.5-Moz inferred resource at Aura. Given its current market valuation relative to this existing resource, and considering the project's substantial potential for further expansion, Western Exploration represents a compelling buy at its present trading price."

Chen Lin of What is Chen Buying? What is Chen Selling? expressed optimism about the company, applauding the resource report that showed increased grades and ounces in the Gravel Creek and Wood Gulch deposits.

According to Western Exploration, directors and management own 3% of the company, high net worth individuals hold 9%, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) has 12%, Auramet holds 4%, and institutions own 48%. The rest is in retail.

Refinitiv reports that Western Exploration has 52.58 million outstanding shares and 24.96M free float traded shares. Its market cap is CA$52.35 million. Its 52-week range is CA$0.58–1.49 per share.

Liberty Gold Corp.

Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) announced September 8 that it has entered into a subscription agreement with Centerra Gold Inc. (CG:TSX; CADGF:OTCPK)a, under which Centerra will acquire 9.9% of the issued and outstanding common shares of the cmpany.

"We are thrilled to welcome Centerra as a strategic investor in Liberty Gold," Chief Executive Officer Jon Gilligan said. "Their investment is a strong endorsement of our progress and the compelling potential of our flagship U.S. oxide gold project, Black Pine. With Centerra's technical depth, operational experience and existing presence in Idaho, we see a clear path to unlocking value and de-risking Black Pine's development timeline. We look forward to collaborating closely as we accelerate Black Pine towards feasibility and on to a construction decision."

Paul Tomory, CEO of Centerra, added: "Liberty Gold's 2024 pre-feasibility study on Black Pine, combined with the recent drill results from the legacy heap and Rangefront, demonstrate the potential of the asset and highlight areas where future resource growth may be possible. As the project moves through development, we believe our regional and operational expertise can complement Liberty Gold’s efforts and create meaningful synergies to bring Black Pine into production."

Under the subscription, Centerra has agreed to purchase, through a private placement, 50,025,230 Common Shares at a price of CA$0.56 per share, resulting in gross proceeds of CA$28.01 million. The issue price represents a 10% premium to the 5-day volume-weighted average price of the Common Shares as traded on the Toronto Stock Exchange ("TSX"). Proceeds from this strategic investment will be used to advance technical studies at Black Pine and for general corporate purposes. The subscription is expected to close on or about October 1, 2025, subject to customary conditions, including TSX approval.

Last month, the company released the results from its recent sonic drilling program on the legacy heap leach pad (L-HLP) at its flagship Black Pine Oxide Gold Project in southeastern Idaho. The drill assays confirmed the presence of residual, cyanide-soluble gold in the legacy heap, which offers a dual opportunity to recover additional gold ounces while repurposing the legacy material for constructing the new heap leach pad (N-HLP) at Black Pine.

An August 27 flash note update by Analyst Lauren McConnell for Paradigm Capital noted that the drilling provided a "potential economic and strategic boost" for the company. "In the 2024 PFS, the Rangefront pit design required a 50-meter setback from the toe of the L-HLP," she wrote. "This limited access to ~250Koz of oxide gold currently classified as resource on the pit's northern margin. Relocating the heap eliminates this restriction, enabling potential reserve conversion of these ounces."

McConnell continued, "For investors, this update reinforces Black Pine's status as a large, flexible oxide system in the Great Basin. Near-term catalysts will be metallurgical results from the heap material and updated mine optimization studies. Success here could modestly lift project NPV while also strengthening the investment case for eventual M&A interest, given the district-scale profile and oxide heap-leach optionality."

National Bank of Canada Financial Markets Analyst Rabi Nizami's research flash note on August 27 noted that the assay results "confirm the presence of partially recoverable gold in the legacy heap leach pad, portions of which could be reprocessed, or otherwise repurposed as construction material for the future new leach pad."

Nizami continued, "Moreover, the legacy pad overlies a portion of the current Rangefront Zone resource pit which could be unlocked (~250 koz) once the legacy pad is relocated."

The analyst rated the stock Outperform with a price target of CA$0.70, a more than 84% return on its price at the time of writing.

According to Refinitiv, about 3% of the company is with management and insiders and about 28% is with institutions. The rest is with retail investors.

Top shareholders include Van Eck and Associates Corp. with 11.62%, Franklin Advisers Inc. with 8.75%, Konwave AG with 3.25%, Merk Investments LLC with 2.74%, and Calvin Everett with 2.4%.

Its market cap is approximately CA$276.44 million, with about 455.2 million shares outstanding. The company trades in a 52-week range from CA$0.25 to CA$0.64​.