Staff Insights

NatGold Miners, often called natural gold or green gold miners, are primarily gold exploration companies or producers that focus on developing new or acquiring existing gold deposits with National Instrument 43-101 (NI 43-101) certified resources. Operating within jurisdictions with NatGold legislation, their main activity is “swapping or exchanging” mining titles for an equivalent quantity of NatGold coins through tokenization. This method bypasses traditional gold mining by utilizing legal frameworks that allow the digital tokenization of in-ground gold resources. Consequently, these resources are mined digitally in an ESG-friendly manner, avoiding the negative environmental and social impacts typically associated with physical extraction. This process effectively unlocks gold’s monetary value without the detrimental effects. NatGold Miners are instrumental in the expansion of the NatGold ecosystem, fostering the sustainable and digital monetization of gold resources.

FAQs

Why Must NatGold Legislation Ensure Perpetual-Like Protection for Titles?2024-04-20T23:28:00+00:00

Perpetual or perpetual-like title protection in NatGold legislation is vital to ensure that NatGold coins, which are backed by certified green gold resources, remain a reliable store of value. Traditional mining titles are generally issued by governments for fixed periods, such as 20 or 30 years, allowing companies to explore and exploit subsurface mineral rights. However, for a monetary asset like NatGold coins, the backing asset—certified gold resources—must not expire. Money, unlike perishable goods, should not have a shelf life.

Perpetual title protection ensures that the value represented by NatGold coins is enduring and stable, thereby upholding the monetary integrity of NatGold as a dependable and long-lasting store of value. This approach aligns with the foundational principles of sustainable and ethical finance, ensuring that NatGold remains a viable and attractive option for investors and stakeholders in the long term.

Why are NI 43-101 Technical Reports automatically accepted by the U.S. Securities and Exchange Commission (SEC) under Regulation S-K 1300, whereas technical reports from other nations are not?2024-04-20T23:32:08+00:00

NI 43-101 Technical Reports are automatically accepted by the SEC under Regulation S-K 1300 due to their strict adherence to the regulation’s rigorous standards, which prioritize detailed, transparent, and reliable disclosures of mineral resources and reserves. These reports are developed by the Canadian Securities Administrators and set a high standard for the public disclosure of scientific and technical information concerning mineral projects. This includes stringent requirements for the qualifications and responsibilities of “Qualified Persons” who verify the reports, ensuring that the disclosed information is both accurate and verifiable.

In contrast, reports from other standards like JORC (Australia) or SAMREC (South Africa) might require additional reconciliation to align with S-K 1300. While these standards are internationally aligned to the CRIRSCO templates, which share common core definitions and guidelines with S-K 1300, they often have slight variations in definitions and reporting criteria. These differences mean that technical reports from these and other non-Canadian jurisdictions may need to demonstrate their compliance with S-K 1300’s specific requirements through detailed reconciliation, making them not automatically acceptable like NI 43-101 reports.

What is Tokenization?2024-04-20T23:35:52+00:00

Tokenization is the process of converting rights to an asset into a digital token on a blockchain. These digital tokens represent ownership or a claim on the asset, enabling it to be traded or managed on digital platforms. This innovative approach offers a secure and efficient means of handling assets, utilizing the transparency, immutability, and distributive nature of blockchain technology.

In the context of the NatGold model, tokenization involves creating digital tokens that represent ownership of a certain amount of gold resources, as certified by NI 43-101 reports. Each NatGold coin is a digital representation of gold resources, making the intrinsic value of gold easily transferable and accessible without the need for physical handling. This process democratizes access to gold as an investment, making it possible for individuals and institutions to invest in gold resources with ease and confidence.

Tokenization transforms traditional asset management and investment by breaking down barriers to entry, reducing costs associated with transactions and storage, and enhancing liquidity in the market. By leveraging blockchain technology, tokenization introduces a new era of asset utilization and investment, opening up opportunities for innovation and value creation.

What is the NatGold Digital Vault?2024-04-21T19:41:01+00:00

The NatGold Digital Vault, operated by OroEx Corp., is a crucial component of the NatGold ecosystem, specifically engineered to tokenize, securely manage, and store NatGold Coins before their distribution, storage, and trading on the NatGold Multichain. These coins result from the tokenization of mining titles containing NI 43-101 certified gold resources. The vault utilizes ledger-based technology that incorporates some blockchain principles, such as ledgering and digital signatures. However, it remains a closed system to ensure controlled access and enhanced security, distinguishing it from public blockchains, which are accessible by the general public.

This Digital Vault is designed with a robust security architecture to safeguard sensitive information. It operates on a closed ledger system, which allows for stringent control over all transactions related to the creation and distribution of NatGold Coins. To maintain data integrity and prevent tampering, each transaction is securely hashed using advanced cryptographic algorithms. Additionally, comprehensive audit trails capture detailed logs of all operations, enhancing the vault’s compliance and auditability.

Access to the NatGold Digital Vault is tightly regulated through sophisticated authentication mechanisms, ensuring that only authorized personnel can interact with or access the system. This is further supported by role-based access control, which assigns different levels of permissions based on the specific roles of the participants. The physical and network security measures in place, including encryption of sensitive data and regular security audits, ensure that the vault remains not only compliant but also resilient against unauthorized access and data breaches. This combination of privacy, security, and transparency makes the NatGold Digital Vault a pivotal element in maintaining the integrity and trustworthiness of the NatGold ecosystem.

What is the gold-silver ratio utilized in the NatGold Model to calculate NI 43-101 certified gold equivalent resources, and how is it calculated?2024-05-01T18:14:09+00:00

Historically, the gold-silver ratio has been about 47:1 for most of the past century, but it has averaged around 60:1 over the past 20 years. In the last decade, this trend has widened, and it is not uncommon to see the ratio exceed 80:1. Most monetary metal analysts recognize that, due to the store of value nature of both gold and silver, when the ratio expands above 80:1, investors tend to sell their gold holdings to buy silver, and vice versa when the ratio falls below the 60:1 level.

For the NatGold tokenization model, the International NatGold Council has adopted a conservative approach by setting the gold-silver ratio at 90:1. This setting means that one ounce of certified gold resources is equivalent to 90 ounces of certified silver resources, regardless of the classification—whether inferred, indicated, or measured.

For example, if 90,000 ounces of NI 43-101 certified silver resources are present in the indicated resource category, the 90:1 gold-silver ratio set by the International NatGold Council would yield a 1,000-ounce certified gold equivalent in the indicated category. This enables the title owner to tokenize the 1,000 ounces of gold equivalent indicated resources according to the established exchange ratios used by OroEx Corp. when digitally mining the resources into NatGold coins.