Mining for Mining Juniors!
Brad Zigler had an interesting article with a provocative title “A Declining Gold Indicator” here. The gist of the article was that the ratio of the Market Vectors Gold Miners ETF, otherwise known in investors circles as the “GDX” versus the newly minted Market Vectors Junior Gold Miners ETF, the “GDXJ” or GDX Junior, was declining. In other words, the junior Gold miners were advancing more than their larger sized cousins. The market’s risk appetite was growing for the junior and therefore riskier mining companies.
As you may be aware, the Gold and Silver commodity prices are on the verge of breakout and the interest in seeking further information about junior miners is growing. The breakout is coming soon, and it will be spectacular as fellow Seeking Alpha contributor “Hardrock” predicts in his posting “Silver Price Forecast with a Huge Tail”.
To supply further information for Seeking Alpha readers that may be interested in learning more about junior mining investment opportunities, how about readers help out with entering information. So readers, how about entering some teaser information about your favorite small miner in the comments section of this article. This is at least a start to obtain and share information about the small miners.
Let us set up a few ground rules:
1. For your comment, one should supply information answering where the company operates in and how to invest in this mining junior.
For example: “ Entrée Gold is a Canadian listed miner with gold and copper projects in Mongolia, China, the United States and Canada. The symbol is ETG on the TSX.”
2. You should include your one compelling reason as to WHY one should look at this stock.
For example: “Entrée Gold has the backing of Rio Tinto (RTP) and Ivanhoe Mines (IVN).”
3. Supply a link for further information.
For example: Link to Entrée Gold company presentation is here: http://www.entreegold.com/_resources/10-06-21-Entree-unanimated.pdf
I will start the information sharing and dissemination with this information about my favorite Gold mining junior, Great Basin Gold (NYSEMKT:GBG). GBG trades on the Amex and Toronto TSX. GBG has a high bonanza grade (over 1 ounce gold/ton) test mine in Hollister, their underground mine in Nevada. Also, their nameplate mine Burnstone in South Africa is poised to do their first Gold pour this month. Burnstone is capable of 200+ gold ounces per year.
The one compelling reason for looking at GBG is that they will be turning the corner from a mine developer to an actual miner with profits within the next six months!
Here is a link to my previous articles about Gold mining junior – Great Basin Gold (GBG) .
For other mining juniors see my previous article about mining Juniors being in the sweet spot here.
I hope that you the reader may be able to obtain some new, actionable and profitable information by this small effort. Good luck in your junior mining investments.
Disclosure: The author is long in GBG, and other junior mining equities.
Disclosure: Long GBG and small mining equities
Disclosure: Long GBG