The gold market is
hot right now, and gold companies have taken notice and picked up in action.
At first, the COVID-19 cornavirus pandemic weighed on the gold market, but now prices have consolidated above US $1,700/oz, operations are coming back online, and analysts foresee gold prices rising even further.
And as the action in the gold market has picked up, so has
investor interest in the precious metal and other mining projects. While the general market news has focused on the rise and actions of the well-known majors of gold mining, many small-and-mid-cap companies have also made strides worthy of attention.
One of the biggest highlights has been impressive and head-turning discoveries. Some, like the
strongdrill results from
Great Bear Resources Ltd. (
TSX-V:GBR) and
Wallbridge Mining Co Ltd. (
TSX:WM) strengthened
already impressive projects. But some elevated plays from relatively out of nowhere, including
Freegold Ventures Ltd. (
TSX:FVL) and
Melkior Resources Inc. (
TSX-V:MKR).
Freegold made a splash at the beginning of May with a
huge find at the company’s Alaska project: An intersection of 188 metres grading 3.69 g/t Au amongst a handful of strong assay results that are still only partially complete. Melkior also impressed with
two initial drill results on its Carscallen Gold project in Ontario, with intersections including 25.7 g/t Au over six metres as well as 8.7% copper and 33.9 g/t Ag over 0.5 metres, which quickly led to the company
optioning the project’s adjacent claims and a
new partnership with
Kirkland Lake Gold Ltd. (
TSX:KL) announced just this morning.
The strong market has also allowed existing operators to extract more value from their current holdings. In the case of
Victoria Gold Corp. (
TSX:VGCX) and its Eagle Gold Mine in Yukon, the company announced last week that it had significantly increased gold production and output and saw shares jump on the news.
While for others, it brought strengthening mergers back to the table.
Gran Colombia Gold Corp. (
TSX:GCM) and
Gold X Mining Corp. (
TSX-V:GLDX) looked to
make an intermediate gold producer in Latin America in a merge with
Guyana Goldfields Inc. (
TSX:GUY), but the latter opted to
stick with an earlier proposed transaction with
Silvercorp Metals (
TSX:SVM).
If you’re a small-cap investor, it’s a good time to keep a lookout on the gold market and what companies are doing. Exploration small-caps like
Turmalina Metals Corp. (
TSX-V:TBX) and
Blue Star Gold Corp. (
TSX-V:BAU) are
ramping upoperations and looking to make their own major discoveries, and existing operators are getting back into the swing of things and trying to expand their own footprints in the market.
New to investing in Metals & Mining? Check out Stockhouse tips on How to Invest in Metals & Mining Stocks and some of our Top Metals & Mining Stocks.
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FULL DISCLOSURE: Turmalina Metals Corp. and Blue Star Gold Corp. are clients of Stockhouse Publishing.