The junior resource stocks we’ve dug up have exhibited strong 30-day returns following an investment from Eric Sprott
SmallCapPower | August 7, 2019: Eric Sprott, the Canadian billionaire resource sector investor, invested more than $139M in 17 gold, silver and nickel companies between May and July 2019. All of the financing came from Eric Sprott personally, 2176423 Ontario Ltd., or Sprott Mining. Today we have identified four junior resource stocks out of the 17 in which Mr. Sprott invested recently that have some of the best 30-day returns. For reference, the 17 resource juniors have had an average 30-day return of 48%.
*Share prices as at close August 2, 2019, data obtained from S&P Capital IQ
Ely Gold Royalties Inc. (TSXV: ELY) – $0.40
Metals and Mining
Ely Gold Royalties is a Vancouver-based royalty company that has projects in Nevada and Quebec. Currently, the Company’s portfolio consists of 33 deeded royalties and 20 properties optioned to third parties. Its portfolio is made up of producing royalties, fully-permitted mines and development projects that are located at, or near, producing mines. All of the Company’s portfolio properties are sold or optioned on a 100% basis, while Ely Gold retains royalty interests. On July 2, 2019, the Company announced that it had closed its previously-announced royalty sale and private placement with a company controlled by Eric Sprott. Sprott gained 100% of all rights and interests in a 1% net smelter returns royalty on the Fenelon Mine Property, operated by the Wallbridge Mining Company Limited. In compliance with the terms of the Agreement, Sprott paid Ely Gold ~$1.6M in cash for the Fenelon property. On July 24, 2019, the Company announced that through its wholly-owned subsidiary, DHI Minerals, it has signed a purchase option agreement with Contact Gold Corp. and its U.S. operating entity, Clover Nevada II LLC, to gain an undivided 100% interest in the past-producing Green Springs gold project that is based in White Pine County, Nevada. The property consists of 218 unpatented mining claims that are owned by Ely Gold and two leased unpatented mining claims. The Purchase Option includes the assignment of the leased claims.
- Market Cap: $39.5 Million
- 30 Day Return: 126%
- YTD Return: 203%
- 30 Day Average Daily Volume (1,000): 146
Silver One Resources Inc. (TSXV: SVE) – $0.30
Metals and Mining
Silver One Resources is engaged in the exploration and development of silver mining projects. The Company has the option to acquire a 100%-interest in its flagship project, the Candelaria Mine. The past-producing mine is located in Nevada. The Company is currently performing metallurgical tests to determine the best methods for potential recoveries of silver from the historic leach pads. As well, the Company staked 636 lode claims and entered into a Lease/Purchase Agreement to obtain five patented claims on its Cherokee project that is based in Lincoln County, Nevada, which is host to multiple silver-copper-gold vein systems that have been traced to date for over 11km along-strike. Additionally, the Company has a 100% interest in three silver assets that are based in Mexico: 1) Peñasco Quemado, Sonora; 2) La Frazada, Nayarit; and 3) Pluton, Durango, which were acquired from First Mining Gold.
- Market Cap: $44.3 Million
- 30 Day Return: 116%
- YTD Return: 103%
- 30 Day Average Daily Volume (1,000): 285
Chesapeake Gold Corp. (TSXV: CKG) – $2.83
Metals and Mining
Chesapeake Gold is a development-stage company that specializes in the discovery, acquisition and development of major gold-silver deposits in North and Central America. The Company’s main asset is the Metates project located in Durango State, Mexico. According to the Company, the property has one of the biggest undeveloped gold-silver-zinc deposits in the Americas. Additionally, the Company has a portfolio of exploration properties located in Mexico that make up 119,000 hectares in the states of Durango, Sinaloa, Oaxaca and Veracruz. As well, the Company owns 74% of Gunpoint Exploration Ltd., which owns the Talapoosa gold project that is located in Nevada, and two Mexican properties: La Gitana and La Cecilia.
- Market Cap: $126.1 Million
- 30 Day Return: 71%
- YTD Return: 59.9%
- 30 Day Average Daily Volume (1,000): 35
Discovery Metals Corp. (TSXV: DSV) – $0.38
Metals and Mining
Discovery Metals focuses on discovering and advancing high-grade polymetallic deposits in a land package of about 150,000 hectares in the historic mining district in Coahuila State, Mexico. The Company’s portfolio consists of three large-scale, drill-ready projects and several earlier-stage prospects. All possess shallow, high-grade Ag-Zn-PB mineralization and are based at the carbonate replacement deposit belt that run along southeast Arizona to central Mexico. Currently, the land holdings contain numerous historical direct-ship ore workings with several kilometers of underground development, however, no modern exploration or drill testing on the prosperities has occurred before the work of Discovery Metals. As well, Discovery is currently exploring one the world’s largest silver resources at its 100% owned 37,000-hectare Cordero Project in Chihuahua State, Mexico. The property covers an entire porphyry district that hosts the announced resource and numerous exploration targets for bulk tonnage diatreme-hosted, porphyry-style, and carbonate replacement deposits. On August 2, 2019, the Company announced the successful completion of its acquisition of Levon Resources Ltd. The acquisition positions Discovery to operate in several district-scale projects in Mexico. In accordance with the transaction, Discovery will acquire, through a wholly-owned subsidiary, all the issued and outstanding common share of Levon by way of a statutory plan of arrangement. Under terms of the agreement, shareholders of Levon will be given 0.55 of a common share of Discovery for each Levon share held, based on the closing price of $0.23 per Discovery Share.
- Market Cap: $63.2 Million
- 30 Day Return: 66%
- YTD Return: 105%
- 30 Day Average Daily Volume (1,000): 232
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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