Staff Insights

The classification of certified gold resources into Measured, Indicated, and Inferred categories provides a structured approach to understanding the probability of quantifiable gold existence. This system allows for:

Measured Resources: These represent the highest certainty regarding the quantity and quality of gold, based on detailed and reliable exploration data.

Indicated Resources: These offer a moderate level of certainty, with enough exploration to assume the continuity of mineralization but less detail than measured resources.

Inferred Resources: These have the lowest level of certainty, based on limited data, suggesting the presence of gold with the least precision.

This distinction emphasizes the progression from speculative estimates to highly reliable quantifications as exploration advances, aligning with NatGold’s tokenization model that values the quantification of gold resources without necessitating physical extraction.

FAQs

What are the gold resource exchange ratios employed in the NatGold tokenization model?2024-04-20T23:36:12+00:00

The gold resource exchange ratios in the NatGold tokenization model reflect the NatGold Council’s approach to categorizing gold resources based on their certification level: Measured, Indicated, and Inferred. These ratios determine the number of NatGold coins created for each ounce of gold resource, adhering to industry-standard certifications to maintain the integrity and reliability of NatGold as a digital asset:

Measured Resources: With the highest degree of certainty and detail in gold existence estimates, Measured resources are exchanged at a 20% tokenization discount. Thus, one ounce of Measured resources is equivalent to 0.80 of a NatGold coin.

Indicated Resources: Positioned between Measured and Inferred in terms of accuracy, Indicated resources undergo a 60% tokenization discount. This translates each ounce of Indicated resources to 0.40 of a NatGold coin.

Inferred Resources: As the category with the lowest precision, Inferred resources are allocated an 80% discount in tokenization, valuing every ounce at 0.20 of a NatGold coin.

This structured approach ensures that the NatGold tokenization model is grounded in established mining and financial practices, offering a trustworthy and stable digital asset based on gold’s intrinsic value.

Why are NI 43-101 certification standards essential in NatGold legislation?2024-04-20T23:30:11+00:00

Certification standards play a pivotal role in the NatGold ecosystem, with only titles containing certified gold resources under the National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects being eligible. Established by the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM), NI 43-101 certified gold resource reports are the benchmark in global gold mining and finance and the most widely accepted reporting standard by all major world stock exchanges.

The meticulousness of NI 43-101 in auditing and validating the existence of gold resources ensures unparalleled reliability, making it the most trusted metric for mining financiers worldwide. This level of certainty and quality is crucial for NatGold legislation, ensuring that only the most accurately quantified and scientifically backed gold resources are tokenized, maintaining the highest standards of integrity and trust in the NatGold ecosystem.

What is Regulation S-K 1300? How important a role did CRIRSCO’s International Reporting Template (IRT) play in its development?2024-04-20T23:39:39+00:00

Regulation S-K 1300 is a set of regulations implemented by the U.S. Securities and Exchange Commission (SEC) to modernize and improve the disclosure and reporting standards for mining properties. It replaced the previous Industry Guide 7, aiming to align U.S. reporting requirements more closely with global standards.

CRIRSCO’s International Reporting Template (IRT) played a significant role in the development of Regulation S-K 1300. The IRT provided a framework that helped harmonize the various national and regional reporting standards into a globally accepted guideline. This alignment was crucial in informing the SEC’s approach, ensuring that S-K 1300 would facilitate greater consistency and comparability in the reporting of mineral resources and reserves, aligning it more closely with international standards and enhancing the transparency of disclosures to better serve global investors.

How is the baseline intrinsic value of NatGold calculated?2024-05-18T12:55:00+00:00

How is the baseline intrinsic value of NatGold calculated?

The baseline intrinsic value of NatGold is calculated using a global per ounce average profit comparative methodology developed by the International NatGold Council. This method assesses the profit potential of NatGold by comparing the global average cost of gold production, as indicated by the All-In Sustaining Cost (AISC), against the current market price of gold. This approach provides a robust framework for establishing the minimum intrinsic value of NatGold coins, emphasizing their potential profitability in the global market.

Calculating Production Costs: The All-In Sustaining Cost (AISC) is used as a key metric in this comparison. AISC is a global weighted average calculated quarterly by the World Gold Council, based on the reported costs of each publicly reporting mining company for that period. This figure reflects the comprehensive cost faced by publicly reporting gold mining companies to mine, refine, and market one Troy ounce of gold.

Above Ground Market Price Reference: The market price used in this calculation is derived from the latest daily average price for a Troy ounce of gold, as reported by authoritative sources like the London Bullion Market Association and the NYMEX spot gold price.

Intrinsic Price Value Baseline: For example, employing a 90-day AISC of US$1,342 for Q4, 2023, and a hypothetical market price of US$2,200 per ounce, the intrinsic profitability is calculated by subtracting the most recent quarterly global weighted average AISC from the market price. In this instance, the average global profit would be $858 per ounce. This serves as the baseline intrinsic value of gold before the expenditure of US$1,342 to physically extract the gold via traditional mining methods.

NatGold’s approach diverges from traditional practices by focusing exclusively on digital mining certified gold resources in an ESG-friendly way. Essentially, the intrinsic baseline value of an ounce of NatGold is theoretically equal to the average per ounce profit realized by global gold producers, which is calculated by subtracting the average global cost of extraction from the prevailing market price of gold.

This positions NatGold as a sustainable crypto-commodity, capable of attracting a significant ESG premium, potentially even surpassing traditional gold’s market value as global sustainability awareness increases. This valuation transcends conventional production cost-profit analyses, advocating for NatGold’s price to be independently determined by its own merits as a sustainable and innovative financial asset.

Why do U.S. Patented Land Claims align with NatGold legislative policy, enabling them to qualify for NatGold tokenization?2024-04-21T13:15:45+00:00

U.S. Patented Land Claims align well with NatGold legislative policy primarily because they provide comprehensive ownership rights that include both surface and subsurface mineral rights. This dual ownership structure allows holders to fully control their property without the complications of ongoing fees or royalties that are common with traditional mining titles. Moreover, the associated costs, primarily property taxes, can be significantly reduced or even eliminated by severing the subsurface rights from the surface rights, thereby assigning the tax liability solely to the surface rights holder.

Additionally, these claims are perpetual and fully transferable, which are crucial attributes for the NatGold industry. The perpetual nature of these claims ensures that there are no expiry dates on the rights to the resources, aligning with NatGold’s requirement for a stable and lasting resource base. The ability to freely transfer these claims supports the continuity and integrity of title transfers, a fundamental requirement for tokenizing these assets within the NatGold ecosystem. Together, these features provide a stable foundation for the NatGold industry, facilitating the seamless integration of real-world gold resources into the digital economy.