Gold Weekly Report

January 28, 2022

  With the anticipated end to the COVID-19 pandemic we’ve seen over the last quarter the price of gold has
moved to the downside as the federal reserve has tapered the bond buying program (QE) which was
started during the early part of 2020 in the beginning of the COVID-19 pandemic, we believe the spot
price of gold currently remains at undervalued levels. With rising tensions in Eastern Europe as the
military build-up comes underway for Eastern Ukraine and in the far east with respect to the south china
sea. We feel inflationary concerns remain front and center going forward. 

Over the last few days US President Joe Biden has been put under pressure by Democrats and
Republicans to beef up the American Military presence in the region to combat the and offset the buildup
from the Russian military. At the same time, we’ve notice 4 American aircraft carrier divisions in the
south china sea to combat Chinese aggression against Taiwan. In addition, there have been joint military
drills in the middle east with the Iranian, Russian and Chinese Militaries. Which have created further
concerns for instability in their respective regions.
 
With the stage set and as tensions grow we see a very large financial challenge for the USA. With the
American economy standing at 140% debt to GDP, the United States will most likely have to return to a
very accommodative interest rate strategy due to an American economy that has not recovered to prepandemic levels. Two major indicators of this have been low job production and sluggish earnings after
the holiday season due to supply chain issues coupled with heightened levels of inflation.
 
This leads us to believe that Gold at this stage is a very undervalued asset class going into these uncertain
times. Janet Yellen, Treasury Secretary has been very adamant about the creation of a FED COIN system
that would allow for the USA to phase out a paper currency system as well as a very accommodative
interest rate strategy. With a digital currency strategy that mirrors the Chinese digital Yuan system, this
would allow for significant data collections and possible controls put on the public given the increasing
authoritarian American system. Many people in the USA are skeptical of utilizing such a system and has
pushed states like Texas to look at creating a separate gold backed currency system. Such a system would
utilize blockchain for the purchase and sales of a gold backed crypto currency.
 
The individual states in the USA under the American Constitution are allowed to create such coinage that
are minted in gold or silver. But the adoption of a gold backed crypto currency would be something very
unique in this space. Texas legislatures are drafting legislation that would allow for anonymity and have
vowed not collect data on the buyers and sellers. Even as such speculation looms. We see gold and silver
has massive upside potential near to long-term.

One company that has caught our eye in a very big way is Fairchild Gold Corp. (TSX-V: FAIR) Recently,
major veterans in the gold minings space have come together to form Fairchild which was incorporated in
2019. They’re currently in the process of underwriting a warrants deal with LEEDE JONES GABLE
INC. out of British Colombia as Agent. With a new warrants deal in hand that could lead to a possible
acquisition in Nevada USA and further expanding their operations in the Fairchild Lake Property located
in Northwestern Ontario, Fairchild has the potential to increase output for the company exponentially
which would be a game changer for the stock long-term and after reviewing the extensive resumes of the
key players and their past successes such as Luis Martins, Victor Cantore and Perry English, this sets the
company up for tremendous success.
 
Luis Martins, the CEO, was a former Director of the Mineral Resources Department at the Geology and
Mining Institute (the Geological Survey) and a former Director of the Mines and Quarries Department at
the Directorate-General of Energy and Geology (the Mining Authority). He has participated in several
national and international research projects, especially in the mineral exploration, environmental geology
and mining heritage fields, the majority of them with co-ordination functions and coordinated several
international working groups, like the "Mineral Resources Topic Network" and the "Minerals Policy
Sector" of the EuroGeoSurveys (1997- 2002) and the CYTED Ibero-American Network "Land Use and
Mineral Resources" (2002-2007).

Victor Cantore, who is a Director of Fairchild, is a seasoned capital markets professional specializing in
the resource and hi-tech sectors. He has more than 20 years of advisory and leadership experience having
begun his career in 1992 as an investment advisor and then moving into management roles at both public
and private companies. During his career he has organized and structured numerous equity and debt
financings, mergers and acquisitions, joint venture partnerships and strategic alliances. Mr. Cantore serves
on the boards of various companies both private and public.
 
Finally, Perry English, also a Director of Fairchild, is a successful prospector having been extensively
involved in Ontario’s mineral exploration industry for over 35 years. He was honored with the Ontario
Prospector Association’s Prospector of the Year Award in 2007 as well as the OPA’s Lifetime
Achievement Award in 2014. Perry has been very active with claim staking in Northwestern Ontario and
has often been among the largest private claim holders in the province. He sold his portfolio of 90 mineral
properties to Rubicon Minerals in 2003 and his portfolio of 60 mineral properties to EMX Royalty last
year.