The junior exploration arena promises to be a mosh pit of activity in 2020.
I’ve been to about a decade of Vancouver Resource Investment Conferences, the big Cambridge House BC mining convention that runs every year around this time and, for much of that decade, the mood has been fairly dour.
Gold is ending the year with a better than 17% gain, a move that has more than a few traders, fundamental and technical alike, glued to their screens, waiting for the (inevitable) assault on the $1560.00 – $15070 level.
Since our last dose of bullish commentary a few sessions back, the precious metal is still consolidating its dramatic gains registered earlier in the summer, but is in the process of testing higher ground, trading near the top of its range.
Close-ology is a mining term used to describe companies that are close to another company that is running red hot, and may justifiably make the case that they can be hot too. For some, like serial ring-staker Ryan Kalt, close-ology is a business model. The moment someone announces they've found something interesting in Dildo, Newfoundland or Punkydoodle Corners, Ontario, Kalt's crew hops on their laptops, busts out the credit card, and register claims all around it, sometimes without ever having walked the land.
On Dec. 02, Barrian Mining (BARI.V) announced an interesting acquisition. The company signed a definitive purchase option agreement with Liberty Gold (LGD.T) for a 79.1% interest in the high-grade Kinsley Mountain Gold project located in northwest Nevada.
There are a lot of eyes watching gold right now. A universe of traders—fundamental, technical and the like—are watching the malleable metal for any sign of strength.
Junior exploration companies—ExplorerCos, if you will—are high-risk propositions. It can take up to 1,000 grassroots projects to generate 100 targets worthy of a probe with the drill bit. Of those, perhaps five or ten will evolve into development projects. And of that small group, only one will become an actual (profitable) mine.
A couple weeks back we took a look at some of the more prospective (and active) exploration plays in Ontario and Quebec, particularly those along the prolific Abitibi Greenstone Belt.
Falcon Gold (FG.V), a company we featured in some detail a few months back, has been busy positioning itself in a region known as the High-Grade Gold Capital of the World—the Red Lake Mining Camp of Ontario.