Top 5 Gold Juniors of 2011
posted on
Apr 25, 2011 11:45AM
So far in 2015, three trenches have been completed in the area covering the smallest proposed pit located furthest west with channel sampling from the middle trench, TR15-11, returning 6.05 g/t Au over 8 m including 14.98 g/t Au over 3 m.
Top 5 Gold Juniors of 2011
1. Gold Bullion Development - V.GBB - Emerging gold junior on the Cadillac Trend in Quebec which is comparable to the recently acquired Brett Resources by Osisko Mining for their 7.0 Million oz Hammond Reef Project. In the past year GBB has gone from a 71 hectare land package to over 11,600 hectares and they initially produced an estimate of a potential for 2.5 million ounces of gold based on their Phase 1 drill program and based on a structure of 700 metre strike length, 500 metre width and 70 metre thickness. In recent interviews the CEO has stated that the thickness has doubled and the depth has also doubled conservatively and meanwhile step out drilling have confirmed mineralization to 300 metre depths outside of the original 2.5 Million ounce estimate called the Preliminary Block Model. The step-out drilling to the east has defined a structure close to the same size as the Preliminary Block Model itself so it's not hard to see the massive potential this company has with the deposit still open in all directions. Brett Resources was bought out for $385 million dollars with 7 million ounces of gold at 0.8 g/t au and GBB has the potential for 4.5 million ounces right now and is currently being valued at $73 million. With GBB scheduled to release an initial 43-101 this summer we won't be seeing under a $1 share price any longer and I can't see any downside here from an entry at 0.44 cents or less. $20 per ounce of gold is far too cheap when the industry average is $60-80 per inferred ounce and AM gold is getting more value than us with a - 1 Moz resource in the Yukon. GBB also provides exposure to silver as it's drilling its Castle Silver Mine in Ontario currently - channel samples with combined weight of 100 kg showed assays of 8.5 and 245 oz/t silver. With silver at record prices the silver mine could easily take over share of the market cap while we await drill results from Granada.
2. Newstrike Capital - V.NES - Newstrike had recent drill results that somehow went unnoticed but the company has great potential at its Ana Paula project next to Goldcorp and has an aggressive drill program planned this year. The recent drill result showed 52.6 metres of 6.9 g/t au and 8 g/t ag for a au equivalent of about 7.5 grams per tonne over 52 metres. I believe the market somehow masked this result and it's only a matter of time before NES becomes noticed especially with its 90,000 hectares next to Goldcorp and Torex Gold - with market caps of $20 + billion and $800 million Newstrike only has room for upside at just over a $100 million dollar market cap. Anything under $1.30 is a steal and I believe resistance at $1.50 should be taken out soon. Other select results include 95 metres of 5.8 g/t au and 13 metres of 12.3 g/t au. The only companies I have seen with drill results like these consistently over those large of intervals are Canaco Resources and Atac Resources - each with over $600 million dollar market caps.
3. Gold Canyon Resources - GCU - While the stock price has already gone up several fold already this year the results continue to confirm a massive deposit is in the making and anything in Red Lake under a $250 million dollar market cap is extremely attractive with gold hovering close to $1500/oz and cash costs in Red Lake running $400 an oz at most for most projects. I think they easily have 4.5 Moz of gold currently with drill results and their fair market value is closer to $4.00 currently with results like 350 metres at 1.4 g/t au and 100 metres at 7.23 g/t au.
4. Lago Dourado Minerals - LDM - Absolutely massive land package in Brazil - over 45,000 hectares with another 25,000 in joint-ventures. Only $60 million shares outstanding or a market cap under $50 million currently. I believe anything under $1.00 is a goo entry point with very little downside but the current share price of 0.85 cents is extremely attractive. Channel samples and drill results indicate there's much more potential here than what's been explored to date and with results like 10.5 m @ 15 g/t au, and 5.8 m @ 58 g/t au aren't seen often and with results due anytime now in April I while there is some downside if the hits miss, this could easily go up multiple times if there's some nice hits.
Below are photos from their project which is less than 0.2 % drill tested currently.
http://www.lagodourado.ca/pdfs/juruena_photos.pdf
5. Kaminak Gold - V.KAM - Promising gold junior with massive land package in the Yukon and over 6 targets to be drilled tested this year. 40,000 metre drill program begins in April and will very likely expand the current resources. KAM has over 150,000 acres and is one of the largest holders in the Yukon next to ATC and Kinross. I believe this will be the next ATC Resources. KAM is tightly held with only 67 M shares outstanding and a $3.5 share price it's only being valued at $235 million dollars. Anything under $3.25 is an absolute steal and patient shareholders will be rewarded. The drills are showing good intervals with medium grades and some shorter interval with high grade hits such as 17.1 g/t au over 15 metres, and 6.3 g/t au over 35 metres.