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Which Smallcap Gold Companies Saw a Solid Run in November?

Stockhouse Editorial
0 Comments| November 25, 2020

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The gold market has been under the eye of investors with greater focus this year than it has been in the past. As a stable safe haven asset under COVID-19, its spot price hit a new record earlier this year above $2,000 / Oz. (see chart below) but seems to be stabilizing around $1,800 for the rest of the year. This could prove to be a good time to invest in the precious metal, as many companies in the market are rolling out their quarterly financial results and releasing news on new discoveries. As November comes to a close, let’s take a look at a few gold miners who have reported significant news this month.

(Gold spot price chart – Nov 2019 – Nov 2020. Click to enlarge.)

Let’s start with the latest news this week; Golden Lake Exploration Inc. (CSE: GLM, OTC: GOLXF, Forum) reported encouraging drill results on Tuesday from its keystone Jewel Ridge gold property, located near the town of Eureka, Nevada.

Click here to read full up-to-date details on this project.

Investors have been turning heads when they hard about this news of the Toronto-based public mining company reporting a new mineralized zone that was intersected at a depth of 160 metres, averaging 1.48 grams per tonne gold (g/t Au). The four completed holes wrap up the summer program results, with assays pending.

Next up is Nexus Gold Corp. (TSX-V: NXS, OTC: NXXGF, Forum), who recently mobilized its crew and drill equipment to the Dakouli 2 Gold Concession, located in Burkina Faso, West Africa.

For the full story, click here.

This maiden Dakouli drill program consisted of approximately 3000 meters of Reverse Circulation (RC) drilling to test depth extensions of geochemical gold anomalies identified through termite mound sampling, soil gold geochemistry – which identified three trends intersecting the property back in June 2019 – as well as rock geochemistry, which has returned higher grade gold results from selective grab samples extracted from Artisanal mining areas earlier in 2020 and 2019.

Finally, we have Canadian junior mineral exploration company Falcon Gold Corp. (TSX-V: FG, OTC Pink: FGLDF, Forum), who announced that it had mobilized a diamond drill and a crew team for the second stage of its 2020 drilling program at its Central Canada Gold mine near Atikokan, northwestern Ontario.

(Image via Falcon Gold Corp.)

The Central Gold property is located roughly 20 kilometers southeast of the Hammond Reef Gold Deposit operated by Agnico Eagle Mines Limited (TSX / NYSE: AEM), which has a measured and indicated estimated resource of 208 million tonnes containing 4.5 million ounces of gold.

This is significant news, as the project lies on a major structure, the Quetico Fault, a transcurrent fault in the southern Canadian Shield in northwestern Ontario, where a lot of activity has gone on during the project’s history:

  • 1901 - 1907 - Shaft to a depth of 12 metres and 27 ounces of gold from 18 tons using a stamp mill
  • 1930 - 1935 -Central Canada Mines Ltd. deepened the shaft to 40 metres with about 42 metres of crosscuts and installed a 75 ton per day gold mill
  • 1965 -Anjamin Mines completed diamond drilling and in hole S2 returned a 60-centimetre section of 37.0 grams per tonne (g/t Au) and hole S3 assayed 44.0 g/t Au across 2.1 metres
  • 1985 -Interquest Resources Corp. drilled 13 diamond holes totaling 1,840 m in which a 1.15 metre intersection showed 30.0 g/t Au

Experts forecast prices from $2,300 / Oz., via Goldman Sachs in the coming months to as high as $3,000 / Oz. from Bank of America. Silver prices also show signs of maintaining stability above the $20 / Oz level. For small-cap investors, now is a good time to keep a lookout on the gold market and on what companies are doing. Exploration small-caps like Gespeg Resources Ltd. (TSX-V: GCR, Forum) are ramping up operations and looking to make its own major discoveries, while existing operators are getting back into the swing of things and trying to expand their own footprints in the market.

FULL DISCLOSURE: Golden Lake Exploration Inc., Nexus Gold Corp., Gespeg Resources Ltd., and Falcon Gold Corp. are clients of Stockhouse Publishing.

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