The junior gold stocks we wrote about in December 2019 have returned an average of 28% during the past four months
SmallCapPower | April 17, 2020: Back in December, we identified four junior gold stocks that we believed could have a big year in 2020. We are pleased to announce that the average return of these picks over the past four months has been 28%, this despite the COVID-19 stock market selloff.
*Returns are based on closing stock prices as of April 15, 2020
K92 Mining Inc. (TSXV:KNT) – $3.83
K92 Mining is focused on exploration and development of mineral deposits located in Papua New Guinea. The Company’s main asset is the Kainantu Gold Project, consisting of two gold deposits. The Kainantu property covers a total area of approximately 410 square kilometers and is located in the Eastern Highlands Province of Papua New Guinea. On March 27, 2020, KNT reported record 2019 revenue of US$101.7 million and a yearly profit of US$32.5 million, in addition to AISC of US$680 per gold ounce. Given its high-grade gold results thus far, K92 Mining could end up being acquired by a large-cap producer (the property used to be owned by Barrick).
BTU Metals Corp. (TSXV:BTU) – $0.21
BTU Metals’ flagship Dixie Halo project in Red Lake surrounds Great Bear Resources’ Dixie project. On September 3, 2019, Great Bear Resources reported multiple gold discoveries along 3.2 kilometres strike length of the approximately 18 kilometre long LP Fault target, which included 42 metres of 5.28 g/t gold at 80 metres depth. BTU Metals management believes LP Fault’s southeasterly trend appears to extend into BTU’s property. Historical results from several areas on Dixie Halo have shown up to 14 g/t gold in grab samples. On April 7, 2020, BTU Metals announced that its recent till sampling program yielded one sample that contained a total of 120 gold grains, including 99 gold grains that were classified as pristine. While BTU shares have disappointed since our December report, its stock price has more than doubled from its 2020 low.
Balmoral Resources Ltd. (TSX:BAR) – $0.46
Balmoral Resources is a junior resource company currently focused on the exploration and development of high-grade gold and base metals assets in major Canadian mining districts. The Company holds interests in each of the Fenelon, N2, and Martiniere Properties. The Fenelon Property is centrally located within the Company’s Detour Trend Project, over 65 kilometers east of the Detour Gold Deposit. The N2 Property is strategically located along the gold-bearing Casa Berardi Deformation Zone immediately east of the former-producing Vezza gold deposit in northern Quebec. The Martiniere Property is centrally located within the Company’s Detour Trend Project, over 45 kilometers east of the Detour Gold Deposit located in northeastern Ontario. BAR also holds an interest in the Northshore property in Ontario along with various surface rights attached to the property, located along the southern margin of the Hemlo-Schreiber greenstone belt. On March 2, 2020, Wallbridge Mining Company Limited (TSX:WM) announced that it had agreed to acquire Balmoral Resources in an all-stock transaction valued at about C$110 million. Balmoral shareholders will receive 0.71 of a Wallbridge share for each Balmoral common share held.
Teranga Gold Corporation (TSX:TGZ) – $10.10
Teranga Gold is a Canada-based mining company engaged in the production, sale and exploration of gold in Senegal, West Africa. The Company owns and operates a gold mine and mill, the Sabodala Gold mine, in Senegal, West Africa. The Company is focused on the exploration and development of Sabodala gold mine, which is located approximately 650 kilometers southeast of Dakar, the capital of Senegal. The Sabodala mine license covers an area of approximately 290 square kilometers. On March 25, 2020, Teranga Gold said Q1 2020 consolidated gold production is expected to be in the range of 85,000 to 90,000 ounces. During 2019, the Company reported net cash flows that surged 80% to $81.5 million.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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