As we draw ever nearer to the 2021 exploration season, I'd like to draw a few comparisons and hopefully make you go hmm!
1. We've seen a large correction in gold since the July 2021 high. Signs of hyperinflation are rearing its head (Lumber, Copper, Oil, Corn, Soy - and more). We should be in a nice rebound this year (and the next several years).
2. Golden Triangle companies almost always go down during the winter months (December->April) when there is little news. May, and at the very latest early June is the time to be loading up on these juniors. The largest price appreciations come very quick when the drills start turning and speculation ramps up.
3. Look back to May of 2017, Eskay Mining, Skeena Resources and GT Gold were all ~$30m valuations. Fast forward 4 years, and all have enjoyed a significant re-rate in terms of both share price and market cap valuation.
GT Gold - Recently bought out by Newmont, so there is no upside left, rising a cool 900% since May 2017.
Skeena Resources - Continues to move the original Eskay Creek deposit forward, on it's way to production. I think this will be worth $1B+ in the year.
Eskay Mining - Significant re-rating occurred once all of it's 2020 holes were released. 30,000m+ drill program starting soon. An Eskay Creek - like discovery would propel the valuation to $1B+ (or several multiples of $B)
4. Now, this is where the exciting part comes - GT Gold/Skeena/Eskay Mining are all worth multiple hundred's of millions of dollars at this point, all for very good reasons.
The Golden Triangle is known for elephant-sized deposits of all kinds - and there are several companies out there who have market caps under $100m.
All of them would require multiple 100's of percentage gains to reach a $100M+ market cap. With the potential scale of the targets some of these companies have, I believe they can all get there - with success with the drills this year.
Enduro Metals - Funded to explore four district-scale potential targets, drilling likely to begin in June. Some 2020 results pending. Currently valued at ~$50m.
Metallis Resources - Funded with a recent $3.5m PP to go after a multi-km gold-copper porphyry system, drilling likely to begin in June/July. Currently valued at ~$20m. Metallis' claims are immediately south of Garibaldi Resources and immediately west of Eskay Mining.
Etruscus Resources - Currently raising funds to advance and drill multiple high priority multi-element targets, drilling likely to begin sometime in the summer. Currently valued at $7m. Etruscus' claims are immediately west of Enduro Metals.
Evergold Corp - Funded to explore two flagship properties in the GT - Kevin is the former CEO of GT Gold, drilling likely to begin in June. Currently valued at $23m.
5. Mother nature knows no boundaries - it never created arbitrary boundaries / borders on the map. Humans made them.
The Golden Triangle has been endowed with an enormous wealth of resources - much of it untouched and underexplored in the past decades. Recent infrastructure upgrades have helped speed things up dramatically. There have been several recent discoveries worth $100's of millions of $.
Watch out for the next $100m+ market cap company maker discovery & the next $1b+ market cap market mover in the area.
One month until summer exploration speculation.
Disclaimer: The author is not a registered advisory service and does not give investment advice. The author currently has a long position in: Enduro Metals, Metallis Resources, Etruscus Resources, Evergold Corp, Eskay Mining and may buy more or sell its position at a later date. Mango Research and Management Inc., an affiliate to Enduro Metals, is a sponsor to this blog. Our commentary is an expression of personal opinion and should not be construed in any manner whatsoever as recommendations to buy or sell a stock at any time.