The Canadian junior resource stocks we’ve dug up have rallied on average ~90% over the past month and could continue to surge in 2020
SmallCapPower | January 3, 2020: According to data from Bloomberg, there was about ~60B in M&A in the mining sector during 2019. Some notable deals include the Barrick Gold/Newmont deal, the Kirkland Lake/ Detour Gold deal as well as the recently-announced Equinox Gold (TSX:EQX) acquisition of Leagold Mining (TSX:LMC), in addition to the Endeavour Mining/Centamin and the Zijin Mining/Continental Gold deals. With many commodity strategists touting the emergence of a new commodity bull market in 2020, these Mergers & Acquisitions may be the catalyst to reinvigorate the mining market. Today we have uncovered four junior resource stocks that have seen strong price momentum over the past month and could continue the rally into 2020.
*Share price data as at December 31, 2019, data obtained from S&P Capital IQ
Sitka Gold Corp. (CSE:SIG) – $0.19
Gold
Sitka Gold is a junior gold and copper explorer focused on four properties -two in the U.S., Alpha Gold in Nevada and Burro Creek Gold in Arizona; and two in Canada, RC Gold in Yukon and the Coppermine River project in Nunavut. SIG is currently focused on expanding the existing historical mineral resource at Burro Creek and drill testing its Carlin-type gold target at Alpha Gold in Nevada, the world’s second-most prolific gold producing region with 84M oz/Au produced from the Carlin Trend. On October 31, 2019, Sitka announced that it had closed a $1.1M private placement to be used to conduct drill programs at the Company’s Burro Creek Gold property in Arizona and its Alpha Gold property in Nevada and for general working capital.
- Market Cap: $5.8M
- 7-Day Return: +29.7%
- 30-Day Return: +45.5%
- 90-Day Return: +77.8%
- 90-Day Average Trading Volume: 48,690
Advantage Lithium Corp. (TSXV:AAL) – $0.36
Lithium
Advantage Lithium is a Canada-based company with a total of five assets in Argentina and the United States. The Company’s flagship asset, the Cauchari project, is 75% owned and part of a joint venture between the Company and Orocobre Limited (TSX:OR). The project comprises 28,500 hectares and is located 10 kilometers south of Orocobre’s LCE production plant in the Jujuy Province, Argentina. On October 22, 2019, AAL announced results of a Pre-Feasibility Study, which estimated Proven & Probable mineral reserves of 1.02Mt of LCE grading 480 mg/l Lithium, sufficient to support 30 years of production.
- Market Cap: $58.6M
- 7-Day Return: +105.1%
- 30-Day Return: +150.0%
- 90-Day Return: +40.4%
- 90-Day Average Trading Volume: 98,000
GFG Resources Inc. (TSXV:GFG) – $0.37
Gold
GFG Resources is a Canada-based gold exploration company focused in Ontario and Wyoming. In Ontario, GFG owns the Pen and Dore gold projects, west of the historical gold district of Timmins, which has produced over 70M oz/Au. In Wyoming, the Company owns the Rattlesnake Hills Gold Project, which is a gold exploration project that is located approximately 100 kilometers southwest of Casper, Wyoming. The Rattlesnake Hills Project is centrally located within an approximately 1,500-kilometer-long belt of alkalic intrusive complexes that occur along the eastern side of the Rocky Mountains from Montana to New Mexico, several of which are associated with multiple gold deposits. On December 9, GFG announced drill results, which identified an intercept with 7 g/t gold at the Pen Gold Project west of Timmins.
- Market Cap: $40.6M
- 7-Day Return: +36.2%
- 30-Day Return: +102.6%
- 90-Day Return: +126.5%
- 90-Day Average Trading Volume: 134,270
Ceylon Graphite Corp. (TSXV:CYL) – $0.145
Graphite
Ceylon Graphite is focused on the exploration and development of graphite mines in Sri Lanka. The Company was given an Industrial Mining License for its K1 Project at Karasnagla, Sri Lanka. An Industrial Mining License is the highest category license in Sri Lanka and grants exclusive rights to mine, process and trade in graphite mined within the area specified in the license. Graphite mined in Sri Lanka is known to be some of the purest in the world, and currently accounts for less than 1% of the world graphite production. On December 13, 2019, the Company announced that it had begun commercial production at the K1 Graphite Mining Project in Karasnagla, Sri Lanka.
- Market Cap: $9.8M
- 7-Day Return: +40.9%
- 30-Day Return: +93.8%
- 90-Day Return: +72.2%
- 90-Day Average Trading Volume: 34,910
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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