The little-known Canadian junior gold stocks on our list have seen an average return of 35% over the past month
SmallCapPower | October 16, 2019: Recently, the gold price hit a multi-year high of ~US$1,550/oz. The increase in price is due mainly to uncertainty over protests in Hong Kong, the U.S.-Chinese trade war, flattening of the yield curve, and geopolitical turmoil, such as the Saudi Aramco oil attacks and the Iranian oil vessel attack. Global uncertainty and geopolitical risks have been driving investors into defensive assets. As such, investors are buying gold, which is viewed as a AAA zero-coupon bond and is a safe haven in times of political and economic ambiguity. Gold companies have been prospering from increased gold prices, with larger players receiving most of the attention. Today we have discovered four little-known Canadian junior gold stocks that have experienced increased price and volume momentum. Price and volume momentum are a good indicator of bullishness, as increased share prices on larger volumes show heightened investor interest in a stock.
*Share price data as at October 11, 2019, data obtained from S&P Capital IQ
Core Gold Inc. (TSXV:CGLD) – $0.265
Core Gold is a Canada-based gold mining company involved in the mining, exploration and development of mineral properties in Ecuador. The Company’s main assets include: the Dynasty Goldfield Project, the Zaruma Gold Mine, and the Jerusalem Gold Project. The Dynasty District is a prolific Peruvian copper gold trend that includes more than four known production and exploration targets, with gold-copper porphyry and epithermal vein potential. On October 1, 2019, Titan Metals (ASX:TTM) launched a formal hostile takeover bid for Core Gold. Titan is offering 2.5 Titan shares for each Core Gold share, or ~C$0.422 per Core Gold share. This represents a premium of 164% over the closing price of CGLD on September 13, 2019, the day prior to the public disclosure of Titan’s intention to pursue the takeover. This announcement follows an earlier proposed merger between Core Gold and Titan, which was mutually terminated on July 19, 2019. Core Gold’s management is recommending shareholders take no action, as the Titan offer will remain open until January 20, 2020.
- Market Cap: $44.2M
- 30-Day Return: +59.4%
- YTD-Return: +6.3%
- 30-Day Average Trading Volume: 330,640
- 90-Day Average Trading Volume: 237,340
Maple Gold Mines Ltd. (TSXV:MGM) – $0.105
Maple Gold is a gold exploration company focused on exploring the Casa Berardi Deformation Zone within the prolific Abitibi Greenstone Belt in northern Quebec. The project has an established gold resource that remains open in multiple directions, with excellent infrastructure and several large-scale operating mines within this prolific mining district. Maple Gold’s Douay Gold Project is located within this region. On May 22, 2019, MGM announced the completion of its 2018 drill program. Of note, results were highlighted by hole DO-18-218, which returned 50m grading 1.77 g/t Au. On May 28, 2019, Maple Gold announced that it had received $2.5M in flow-through financing for its 2019 drilling program.
- Market Cap: $23.9M
- 30-Day Return: +29.4%
- YTD-Return: +10.0%
- 30-Day Average Trading Volume: 487,630
- 90-Day Average Trading Volume: 337,010
Liberty Gold Corp. (TSX:LGD) – $0.88
Liberty Gold is a Canada-based gold company focused on exploring the Great Basin of the United States, historically home to large-scale gold projects that are ideal for open-pit mining. The region is well known as one of the most prolific gold-producing regions in the world. The Company’s projects include: Goldstrike, Black Pine, and Kinsley Mountain, all of which are past producing open-pit mines, which were all previously operating in the 1990s. On October 15, 2019, Liberty Gold announced drill results at its Black Pine Project, which returned 3.14 g/t Au over 44.2m and 4.56 g/t Au over 9.1m.
- Market Cap: $208.2M
- 30-Day Return: +31.3%
- YTD-Return: +175.4%
- 30-Day Average Trading Volume: 349,220
- 90-Day Average Trading Volume: 242,520
Marathon Gold Corporation (TSX:MOZ) – $1.59
Marathon is focused on the advancement of its 100%-owned Valentine Gold Project located in central Newfoundland. The Valentine Gold Project comprises a series of mineralised deposits along a 20-kilometer system of gold bearing Quartz-Tourmaline-Pyrite veins. The project is accessible by year-round road and is in close proximity to the provincial electrical grid. To date, four gold deposits at Valentine have been delineated, including the large Leprechaun and Marathon deposits. A resource study done in October 2018, showed the project to be amenable to open-pit mining and conventional milling over a 12-year mine life, with a Measured resource of 16.6M tonnes at a grade of 2.18 g/t containing ~1.2M oz/Au, as well as an Indicated resource of 28.5M tonnes at a grade of 1.66 g/t containing ~1.5M oz/Au. On September 30, 2019, Marathon announced the closing of a $25.3M bought-deal financing. Proceeds are expected to be used for the build-out and continued exploration of the Valentine Gold Project.
- Market Cap: $284.4M
- 30-Day Return: +18.9%
- YTD-Return: +96.1%
- 30-Day Average Trading Volume: 272,290
- 90-Day Average Trading Volume: 309,670
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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