The junior gold stocks we’ve discovered could glister early in the New Year as a result of stock market volatility
SmallCapPower | January 2, 2019: Gold’s appeal as a defensive asset has returned due to the volatility experienced in global markets triggered by a potential trade war between the U.S. and China and the arrest of Huawei’s CFO by Canadian authorities. At a recent FOMC meeting the U.S. Federal Reserve was rather cautions about the pace of its interest rate hikes in 2019, and warned that it would continue to monitor economic data. This is a positive environment for gold-related companies as the gold price tends to rally with market uncertainty. Today, we have identified five junior gold stocks that could benefit from potential upside in gold prices.
*All share prices as at close 27-Dec-2018
Equinox Gold Corp. (TSXV:EQX) – $0.99
Gold
Equinox Gold engages in the acquisition, exploration, and development of gold, copper, and silver deposits. The Company’s properties include the currently under construction Aurizona project, which already has 270,000 tonnes of ore stockpiled and is expected to complete its first pour by Q1/2019. EQX just completed an acquisition of the Mesquite Mine located 200 miles south of the Castle Mine. The Mesquite Mine has had average annual production of 135,000 ounces of gold over the past 10 years.
- Market Cap: $512.7 million
- 1-month return: 13.8%
- 3-month return: 3.1%
- Average Daily Volume – last 30 days: 339,124
- Average Daily Volume – last 90 days: 393,859
Granada Gold Mine Inc. (TSXV:GGM) – $0.16
Gold
Granada Gold Mine is a developer advancing its ~2,500 Ha Granada Gold property located in Quebec, which includes two-exploration claims and two mining leases. The historical mine produced 51,500 oz Au, averaging 9.7 g/t Au and 1.5 g/t Ag, between 1930 and 1935, before a fire destroyed the mine’s surface structures. The property was sold to Granada in 2006. In 2007, the Company extracted a bulk sample grading 1.62 g/t of gold, with a 90% recovery rate. GGM is planning to release a Feasibility Study (FS) that aims to develop a producing mine with a capacity of 80,000-100,000 ounces of gold per year.
- Market Cap: $10.7 million
- 1-month return: 0%
- 3-month return: 23.1%
- Average Daily Volume – last 30 days: 46,598
- Average Daily Volume – last 90 days: 87,731
White Gold Corp. (TSXV:WGO) – $1.52
Gold
White Gold engages in the acquisition, exploration, and development of mineral properties in Canada. As of December 31, 2017, it owned a portfolio of 19,606 quartz claims across 30 properties covering approximately 390,000 hectares located in the Yukon’s White Gold district in Canada. The Company released the second round of drill results from the Vertigo target on its Ross property with samples returning assays up to 3.28 g/t Au.
- Market Cap: $175.1 million
- 1-month return: 15.2%
- 3-month return: 39.4%
- Average Daily Volume – last 30 days: 157,631
- Average Daily Volume – last 90 days: 90,763
Rupert Resources Ltd. (TSXV:RUP) – $1.02
Gold
Rupert Resources engages in the acquisition and exploration of mineral properties in Finland. It explores primarily for gold deposits. The Company owns the Pahtavaara gold mine (averaging 3.2 g/t Au), mill, and exploration permits, as well as a 124km2 land package that is located in northern Finland. RUP also has a 100% interest in the Gold Centre property, located in Balmer Township, Ontario.
- Market Cap: $109.7 million
- 1-month return: 20%
- 3-month return: 13.3%
- Average Daily Volume – last 30 days: 36,175
- Average Daily Volume – last 90 days: 34,570
Aurania Resources Ltd. (TSXV:ARU) – $2.80
Gold
Aurania is a junior mining company focused on the exploration of precious metals and copper. The Company’s flagship asset is the Lost Cities-Cutucu Project located at the base of the Andes Mountains in southeastern Ecuador. On November 27, 2018, the Company reported the discovery of gold elements typical of epithermal systems at the Tinchi target of the Cutucu project. On November 29, 2018, ARU also reported high-grade silver-zinc associated with the Tiria epithermal target. Following this press release, Aurania’s stock price jumped 13% in a single day.
- Market Cap: $89.6 million
- 1-month return: 23.9%
- 3-month return: 18.6%
- Average Daily Volume – last 30 days: 18,401
- Average Daily Volume – last 90 days: 15,535
Ubika Research/SmallCapPower has received compensation from Granada Gold Mine to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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