EDITOR: | June 12th, 2017 | 1 Comment

The Junior Gold Rally

| June 12, 2017 | 1 Comment

The gold market has seen somewhat of a resurgence this year, and interestingly, junior miners are receiving more of the attention than usual due to the widespread feeling that this may be the beginning of a sustained gain for both gold prices and stock markets. One of our favourite explorers, West Red Lake Gold Mines Inc. (CSE: RLG |  OTCQB: RLGMF) (“West Red Lake”), are beginning to dig into a geological intersection located close to their Rowan property, and with prices on the up, a positive discovery could initiate a buying frenzy on RLG stock. I already expect this drill to return significant values based on the historic and more recent results that we’ve seen from Rowan, but for sure this will be a pivotal news release for CEO Thomas Meredith.

The Rowan Mine is a joint venture with Goldcorp comprising of 119 claims lying on an east-west trending gold bearing structure known as the Pipestone Bay-St Paul Deformation Zone (PBS zone); the property hosts two significant regional gold bearing structures, one of which intersects the PBS zone not far from the former producing mine. Structural intersections such as these are known for their potential to collect large quantities of gold in the folds between two rock types of differing frailty and so represent a prime exploration target. On May 24th, West Red Lake released their plan to drill a single hole into the Rowan intersection, as well as several further holes where the PBS zone contacts with the company’s Mount Jamie Mine Property due to the apparent similarities to the geology of the Rowan Mines.

The Rowan Mine Gold Zone (RGZ) has 1200m of strike that has been explored to less than 500m, so plenty of opportunity remains to expand the resource as the particular geological formations that occur on the property are known to be prime hosts of significant gold mineralization to depths of up to 2000m. Furthermore, the Mount Jamie property retains significant potential for expansion, which features heavily in planned future exploration works.

Perhaps the largest attractors for this project are the involvement of expert Thomas Meredith and the history of the Red Lake Gold Zone itself. Meredith has a long history of success with bringing projects such as these to maximum fruition, and the area features some of the highest grade gold results ever seen. Combine this with the positive outlook that gold is currently experiencing, and we are looking at another winner at Red Lake.

Persistently low interest rates at the same time as rising political tensions has resulted in a continuing bull market on gold even though stock markets are experiencing consistent highs. Normally, growth in industry makes holding onto gold seem unnecessary, but more recently this has come alongside increasing terror attacks in Europe and the shambles that is currently Washington. Thought amongst analysts is that investors are looking to keep hold of a decent level of long-term security given the unsettling nature of current global affairs, and since stocks are continuing to perform, the juniors are seeing the money.

RLG stocks are currently trading at C$0.20, but the current rally around juniors could have significant impact on those prices very soon.



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  • Jeff Thompson

    Two very good explorers are Carlin Gold and Banyan Gold, both with very active drill programs this summer, Carlin in Nevada (jointly with Barrick on their property) and Banyan in two separate Yukon properties.

    But by far the best junior gold explorer I’ve come across after searching through more than 150 of them is New Oroperu, who have completed their drill program, have a defined M&I resource of 2.5 million ounces (pit-constrained), have a JV with Barrick, are located 10 km from Barrick’s core Lagunas Norte mine in Peru for which they are building the necessary sulfide processing plant, have as minimal quarterly expenses as you are likely to ever find, no debt, are free-carried to production, and is virtually unheard of while quietly trading at a market cap of under US$6 million.

    By far the most undervalued junior I’ve come across after years of searching.


    June 13, 2017 - 6:59 AM

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