Will 2019 see a gold price recovery again?
Late 2018 has seen a surge in the price of gold, rising 7% in just the past 6 weeks. After a mid-year slump gold has made a recovery from around $US1200 in November to near $US1300 during the festive season. Has this made gold the ideal season gift?
Perhaps the biggest gold trend of 2018 has been companies revisiting historic gold mine sites where defined resources had previously existed in several mine districts around the globe.
Canadian companies searching for gold
Angkor Gold Corp. (TSXV: ANK) has been a leading Canadian gold and copper mineral explorer in the Kingdom of Cambodia since 2009. The government has implemented and upgraded infrastructure to undertake improvements to attract industry, including the adoption of Anti-Corruption Laws in 2010. The Company has been having some exploration success from their enormous tenement package in Cambodia.
Eastmain Resources Inc. (TSX: ER | OTCQX: EANRF) is pursuing existing and new opportunities within the James Bay region in Québec Canada. The Company’s primary focus is in the Eastmain/Opinaca areas. Eastmain’s district scale land package in the James Bay gold camp totals 109,000 hectares with a focus on three main projects and a new discovery. The Eau Claire Project has a M & I Resource of 853,000 ounces of gold grading 6.18g/t Au. The May 2018 PEA results were very positive with a low CapEx (C$175m), solid NPV (post-tax NPV5% C$260m), and very low AISC (US$574/oz) due to the high grade.
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Golden Arrow Resources (TSXV: GRG | OTCQB: GARWF) is a Vancouver-based explorer, actively exploring on their more than 200,000 hectares of properties in Argentina. Golden Arrow holds a 25% share of Puna Operations Inc., a joint venture company operated by SSR Mining (75%). The joint venture is producing silver concentrate from the Pirquitas operation and developing the nearby Chinchillas silver-lead-zinc project, which has more than 8 years of forecast production, and potential to extend on this. Golden Arrow has also formed a 100% owned subsidiary called New Golden Explorations Inc., which is currently exploring and has plans on drilling three very advanced prospects to achieve new discoveries.
Goldplay Exploration Ltd. (TSXV: GPLY | OTCQB: GLYXF) is unlocking proven historical gold in their 100% owned 250 square km exploration portfolio in the Rosario Mining District in Sinaloa, Mexico. They have two very promising projects, San Marcial Silver and El Habal Gold.
Harte Gold Corp. (TSX: HRT) is Ontario’s newest gold producer with its 100% owned Sugar Zone Mine. The Company had been very busy in the last quarter in 2018 with their Sugar Mill having been energized and then starting ore processing from its surface stockpile. Within 12 days an actual pour was announced. The project advanced from permitting to gold production in less than four weeks with mining operations expecting to run for 12 years.
Signature Resources Ltd. (TSXV: SGU | OTCQB: SGGTF) is a Canadian gold exploration company that owns a 100% interest in the Lingman Lake gold property including 4 freehold patented claims and 50 staked claims covering an area of 9,896.8 hectares. Signature’s focus is on its core historical asset, the Lingman Mine Project, located in the Lingman Lake greenstone belt of northwestern Ontario. Based on prior data and reports obtained and prepared by previous operators the project hosts a historic estimate of 234,684 oz of gold over 606.8 hectares.
West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) has assembled a 3,100 hectare property which has a 12 km strike length and 3 former gold mines. The Red Lake Gold District in North West Ontario is not just one of the largest gold districts in Canada, but it is also has one of the largest gold mines in the world. The Red Lake Gold District is host to some of the richest gold deposits in the world and has produced nearly 30 million ounces of gold from high grade zones.
There seems to be many Canadian gold companies developing historic projects in not only Canada, but in many other global sites. This of course makes perfect sense as the gold price is starting to rise again. 2018 saw Canadian company RNC Minerals discover one of the biggest gold nuggets ever found. Will 2019 be the year of further large gold discoveries, or at least a gold price recovery?
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>