3 Resource Juniors Flying Under the Radar

The Canada-listed resource juniors we’ve dug up are not well known to investors despite enjoying superior stock-price performances of late

SmallCapPower | April 14, 2020: Recent COVID-19 stock market volatility has hurt the share-price performances of many junior resource stocks, yet some have done well recently. Today we have discovered three Canada-listed resource juniors that have enjoyed significant under the radar stock-price gains over the past month.

*Returns are based on closing stock prices as of April 13, 2020

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Teranga Gold Corporation (TSX:TGZ) – $9.51
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. Teranga 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.

  • One-Month Return: 98%

Robex Resources Inc. (TSXV:RBX) – $0.245
Robex Resources is a Canadian mining company based in West Africa that operates the Nampala mine in Mali, which reached commercial production on January 1, 2017. During 2019, Robex achieved better-than-expected gold production of 55,685, up 20% from 2018, while targeting all-in-sustaining production costs of less than US$900 per ounce. On March 18, 2020, the Company announced the first dividend payment in its history and declared an extraordinary dividend of $0.02 for each outstanding common share, payable on April 7, 2020 to shareholders of record at the close of business on April 1, 2020.

  • One-Month Return: 36%

BTU Metals Corp. (TSXV:BTU) – $0.235
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. The Company says Great Bear is actively exploring the LP Fault with three drills working towards BTU’s boundary. BTU Metals’ current drill program has focused on testing IP anomalies near the north boundary about 1.5 km south of GBR’s Hinge Zone. Historical results from several areas on Dixie Halo have shown up to 14 g/t gold in grab samples. There is one important distinction, however, between the exploration that Great Bear Resources is doing compared with that of BTU Metals. GBR is exploring a quartz-hosted hydrothemal gold deposit similar to other mines and deposits in the Red Lake camp, while BTU is exploring volcanogenic massive sulphide (VMS) mineralization. VMS deposits have been historically rich in copper and zinc yet also have contained gold and silver concentrations that could be as rich as those found in hydrothermal deposits. 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.

  • One-Month Return: 96%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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