Eight gold plays that may surprise you in 2020 – Part 2
Legendary investor and billionaire Ray Dalio recently stated: “The world has gone mad and the system is broken.” My personal favourite, renowned investor Jim Rogers recently stated: “Buy gold coins and silver coins as global crisis is coming.” Other big names in mining such as Frank Guistra, Rick Rule, and Eric Sprott are all saying we are likely about to begin a gold bull run. In September 2019 Frank Guistra stated: “This is going to be an explosive gold market”, heading towards US$1,900/oz. If that happens gold would set an all time record high breaking the past high of ~$1,890 an ounce in 2011. Gold mining CEO Rob McEwen thinks gold is going much higher, as high as US$5,000/oz. There are even others that have long been forecasting gold to go as high as US$10,000/oz.
Given the world’s enormous debt and political problems right now, it would certainly be wise for investors to hedge some of that risk by owning some gold stocks.
In Part 1 we looked at four small cap gold stocks, 2 in production, and 2 that are just a few years away from production. In Part 2 we look at four gold stocks, with good exploration potential.
Gold price 21 year history
Quebec Precious Metals Corp. – Market cap C$17 million
Quebec Precious Metals Corp. (TSXV: CJC) (QPM) is a new gold explorer with a large 874 sq kilometer land position in the highly-prospective Eeyou Istchee James Bay region, Quebec, Canada (not far from Newmont Goldcorp Corporation’s Éléonore gold mine). QPM’s flagship project is the 100% owned Sakami Project with well defined drill ready targets.
Sakami has already had some great drill results including 26.35g/t over 11 meters. More recent drill results include 3.89 g/t Au over 14.9 m, 3.22 g/t Au over 31.5 m, and 3.59 g/t Au over 27.0 m. So far the deposit is open in all directions, and the strike length of mineralization is an impressive 10 kilometers.
The Company was formed as a gold consolidation strategy combining gold assets from three companies listed on the TSXV and is recently cashed up after a $6.5 million private placement with Newmont Goldcorp increasing ownership to 19.9%. QPM’s goal is to rapidly explore this project to advance it to the mineral resource estimate stage.
Newmont Goldcorp increasing their equity interest in the last placement is a very positive sign that drilling is going well. Near term news flow will include drill assay results and a mineral resource estimate. Investors may need to move quickly before this stock takes off. Investors can learn more here.
Quebec Precious Metals tenements, projects, and some historical drill results
Granada Gold Mines Inc. – Market cap C$8 million
Granada Gold Mine Inc. (TSXV: GGM) is a Canadian junior mining and exploration company with gold and silver properties in Quebec and Ontario. The Company’s current focus is directed towards the development and continued exploration of the Granada Property situated in the heart of the famous Abitibi Greenstone Belt and along the prolific “Cadillac Trend”. The Cadillac Break Trend has produced >75 million ounces of gold in the past 100 years.
Recent drill results have been promising including from surface 7.67 g/t over 15 meters. When discussing the Companies recent drill results President and CEO Frank Basa stated: “These preliminary results highlight the potential of near-surface, underground high-grade potential and are in line with historic production grades of 8 to 10 grams per tonne gold when it was mined in the thirties from the two shafts.”
With such a small market cap and promising high grade drill results investors will need to be quick or risk missing out. Investors can learn more here.
Granada Gold Mines tenements sit along the prolific Cadillac Break Trend
West Red Lake Gold Mines – Market cap C$6 million
West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) is focused on gold exploration and development in the prolific Red Lake Gold District of Northwestern Ontario, Canada. The district is host to some of the richest gold deposits in the world and has produced 30 million ounces of gold from high grade zones. West Red Lake’s 3,100 hectare property has a 12 km strike length and 3 former gold mines (Rowan Mine, Red Summit Mine, Mount Jamie Mine), and contains 1.1 million inferred ounces of high grade gold (7.57g/t) which remain open at depth.
The Mount Jamie Mine and Red Summit Mine properties are 100% owned by the Company, and the Rowan Mine property is held in a 60%-owned joint venture with Goldcorp Inc. (40%).
Exceptionally low market cap given the 1.1 million oz inferred resource, high grade, and exploration potential. Investors can learn more here.
West Red Lake Gold Mines 3 main projects and tenements (shown in red)
Signature Resources Ltd. – Market cap C$4 million
Signature Resources Ltd. (TSXV: SGU |OTCQB: SGGTF) is a Canadian gold exploration company with advanced and early exploration assets. Their core asset encompasses the Lingman Lake Gold Mine in northwestern Ontario, Canada. Signature Resources has a historic resource estimate of 234,648 oz of gold, over an area of 9,896.8 hectares. The Company’s other assets include two new early exploration projects: Lingside West and Lingside East. All three projects are located within the Lingman Lake greenstone belt. Signature is poised to advance and expand these projects centering on targeted diamond drilling of the high-grade gold zones.
With such a tiny market cap any strong drill results could easily double or triple the stock from here. Investors can learn more here.
Signature Resources Lingman Lake Gold Mine location map
In this series (click here for Part I), I have covered eight gold companies, all with enormous potential. The experts all agree a gold bull run is coming. The question is what stocks to buy. Investors should be reminded that generally risk and reward gets higher in smaller companies. As we approach the festive season wouldn’t it be nice to have a few big wins in the gold sector, especially as insurance in this current debt-ridden world we live in.