It’s a good time to be looking at gold and silver
Given the recent volatility in equity markets and concern over the US-China trade war it is a good time to relook at some gold and silver stocks, especially as successful precious metal miners can outperform in tough times.
Goldplay Exploration Ltd. (TSXV: GPLY | OTCQB: GLYXF) is not purely just a gold player, they have silver too, as well as lead and zinc. The Canadian based company is focused on the discovery of gold-silver deposits in the historically prolific Rosario Mining District in Sinaloa, Mexico. The district has been, and currently is, host to many world class precious metal mines and projects, notably the historical multi-million ounce Rosario Gold-Silver Mine, whose operation life spanned over 250 years.
The Company has been busy in its 100% owned land package covering more than 250 sq km in the heart of Mexican world class gold-silver deposits. Goldplay has what they consider two perfect projects, San Marcial Silver and El Habal Gold.
San Marcial Silver-Lead-Zinc project
The project is a near surface, high grade, silver-lead-zinc project targeting open pit development. The project has a 2008 historical resource NI 43-101 estimate of 30 Moz AgEq.
Announced on November 1, 2018 were high-grade results from a historical underground tunnel that the Company has re-opened. The tunnel cuts the San Marcial main fault and associated silver-bearing wide breccia approximately 80 meters below the surface near the center of the 500-meter-long historical NI 43-101 resource area. A sample high grade result for silver was 13.0m @ 1,048 gpt AgEq (550 gpt Ag), including 3.0m @1,934 gpt AgEq (1,127 gpt Ag).
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Goldplay President and CEO Marcio Fonseca commented: “We recently re-opened a historical underground tunnel that cuts through the foot wall sequence of the San Marcial deposit and through the silver-lead-zinc-gold bearing hydro-thermal breccia. The tunnel results support continuity of the poly-metallic mineralization from surface and provide positive correlation with our current 3D modelling, which will lead into a new NI 43-101 resource estimate, expected in January 2019.”
The Company noted these findings demonstrate a doubling of the footprint of the modeled historical resource, with much wider and continuous mineralization along strike. This shows potential for expansion and further exploration upside reinforcing open-pit mining potential for the historical resource area.
El Habal Gold-Silver project
A gold-silver exploration project located within a multi-million ounce historical district. Comprising 3,700 hectares El Habal’s mining concessions cover a 6 km long by 1 km wide trend, containing a series of historical shallow and small-scale underground artisanal mining sites.
On 1 August 2018, the Company announced initial results of four drill holes in the first phase of its core drilling program. The program has successfully identified near surface continuity of gold mineralization. Below shows a sample result.
Goldplay is well funded for fast tracking the expansion of potential multi-million ounce silver and hopefully gold projects in Mexico. They have an experienced board and management team with proven track records in exploration, discovery and successful exit strategies for shareholders. Goldplay also have a solid shareholder base and a tight capital structure. Shareholders include Sandstorm Gold (TSX: SSL) and SSR Mining (NASDAQ: SSRM, TSX: SSRM). These two companies have market caps of over $1 billion. And JDS Mining, a well-known engineering company that recently sold its Silvertip mine for $250 million dollars. A near term catalyst is a resource upgrade due in January 2019, with a target of 45-60 Moz AgEq.
Gold with its shine that never tarnishes has created gold fever and a gold bug among the fans that love the precious metal. Even InvestorIntel Corp. CEO Tracy Weslosky admits to having such a bug and recently stated: “I love gold and I think more people should be looking at this market right now.”
With a market cap of C$ 7.5 m Goldplay Exploration is continuing to explore their sites in Mexico which have huge exploration potential in the historically prolific Rosario Gold Mining District. Indeed it is a good time to be looking for gold and silver.
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>