Newfoundland Juniors
Every year and every season some junior mining company hits it big. Whether it be a super high grade drill core or a new discovery there is always some company that makes the news in the junior sector. While in the past it seemed a lot of the action was in around the BC Golden Triangle area with companies like Skeena Resources or Benchmark Metals getting investor attention, this year it's Newfoundland that is getting not only invetor attention but that area is also getting the investors dollars.
Most of this area got noticed once Newfound Gold TSX-V:NFG went public last year and has since embarked on a massive 200,000 meter drill program. This all started after the initial discovery hole of 41.2 g/t Au over 4.75m and 25.4 g/t Au over 5.15m, follow up drilling is indicating continuity to depth with recent deeper results including 225g/t Au over 2.5m. Since that time the company just keeps pouring out the news and the grades just keep getting higher it seems. In the last news release May 21, 2021 they reported 146.2 g/t Au over 25.6 meters in a 65 meters step-out. It's these kind of results that makes stock prices go crazy. This stock has already become a 10 bagger in less than a year.
As usual once a discovery happens it doesn't take long for all the ground around that area to get staked up for bought or optioned by other companies that want in on the action. Of course there are other companies who have been working in these same areas close by but just don't get the same attention until something like Newfound Golds discovery is made public. Then once a big discovery is made and gets known, the surrounding companies start to get noticed as investors are all wanting a bit of the action.
Labarador Gold TSX-V:LAB is now seeing it's stock price rally being next door. The company is drilling and in fact is adding a drill and increasing it's overall drill program due to interested and extra money coming in. LAB just closed a 15 million PP this month.
Exploits Discovery TSX-V:NFLD is another junior that is getting attention in the same area. The junior just closed an 8 million PP and has received its drill permitts for the season. The permitts are for 12 holes totalling about 3,000 metres in an area where surface sampling returning outcrop grab samples of up to 28.0 grams per tonne Au and channel sampling values of 0.44 g/t Au over five metres.
Another player in the area is Sokoman Minerals TSX-V:SIC. Sokoman has been in Newfoundland for quite some time. Infact back in 2018 this company drilled a discovery hole of high grade gold with 11.90 meters of 44.96 g/t Au and saw it's stock run from 5 cents to 60 cents almost overnight. Shortly after that news Eric Sprott bought into a PP with the company. Just last week the company announced a joint venture program with Benton Resources TSX-V:BEX to aquire additional Newfoundland properties.
Other juniors in the area include C2C Gold TSX-V:CTOC and Skygold TSX-V:SKYG. C2C just did a 2.6 million financing and also just received exploration permits for the summer.
Marathon Gold TSX-V:MOZ is another larger player in Newfoundland. This company hopes to drill about 120,000 meters by next year and just arranged a 50 million dollar PP. The company's main project is called the Valentine property. This property is actually going forward to becoming a mine. A March 2021 Feasibility Study outlined an open pit mining and conventional milling operation over a thirteen-year mine life with a 31.5% after-tax rate of return and an average gold production profile of 173,000 ounces of gold per year for the first 9 years.
I hope to be looking into each of these companies more over the next few months as drilling progresses. It's is looking like an exciting summer though for those who are buying stock in these plays. Additionally one of the tings that is quite interesting to keep in mind is that Eric Sprott or one of his companies has bought into the private placements in pretty near all these plays.
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