"The good old times in the junior exploration market..." Just 24 months ago the only one you need to raise zillions of dollars was to have Gold, Silver, Copper in your Company name. The perfect choice would have been Golden Silvercopper Inc. NI 43-101....Ahhhw no, we dont need it for investing. I have heard that the brother in law of the neighbor of the world famous geologist John Doe has seen an promising outcrop back in 1918 somewhere on the property. Private Placement for 5 Million bucks at 50 Cent - oversubscribed.
nowadays - former superstars like Rainy River (TSX: RR) trading at a fragment of their old highs. But why? 1 Million Oz in the ground remains 1 Million oz.
If we look at the gold price at the time RR (and many others) has its high in early 2011 it was around 1350/oz. Today around 1570/oz. The price of the materials should not be the reason (except nickel)
I ask myself why should Gold be wrong now when it was good in 2011? What is the reason that big acquisitions where good in 2011? Today, everybody can read a lot of the reasons what the gold majors did wrong but funnily nobody of the analysts saw this 24 months ago.
Do we see a bottom building now? Honestly, I was wrong 8 times in the recent months, so I am feared to make another wrong prediction, BUT what makes this situation different to the 2008 collapse is that the commodity prices remain relativly stable at a high level. My opinon is that we see (under consideration of the higher commodity prices) the lowest level in junior explorers since ever.
Pick a small producer, a senior explorer or a junior explorer now?
I think that a mix will make it. A few of my holdings
Gold - La Ronge Gold (TSX: LAR)
Silver - Vendome Resources (TSXV: VDR)
Copper - Oracle Mining (TSX: OMN)
Gold - Meadow Bay Gold (TSX: MAY)
Gold - TerraX Minerals (TSXV: TXR)
Gold - Astur Gold (TSXV: AST)
Coal: Prophecy Coal (TSX: PCY)
One of a few "canadian" explorers which can explore in winter too. Constant outstanding drilling results, new zones, ...
Very, very, very high grade silver samples up to 15,000g/t. curios on the drilling which should commence soon.
Near term producer with the lowest CAÜEX costs in the copper sector in northern America.
Unique gold/silver deposit in Nevada. Expandable +1 mil oz resource with good grades
New property with a new strategic investor.
They got all permits in Spain except one for the processing plant. The missing is considered for mid this year. They abdicate cyanidation - so it should be not problem.
Billions of tones of good quality thermal coal is now valued at zero. this should change dramatically if they get the missing contract with the Mongolian government. The Power purchase agreement for the planned coal power plant at their deposit.