Gold Stocks Are Dirt Cheap Considering The Value Of Gold In The Ground

Companies featured in this report are Goliath Resources, Borealis Mining, McEwen Mining, Vizsla Silver, Kootenay Silver, Blackrock Silver, Golden Cariboo and Golden Rapture.

There is a very impressive bull market developing for the gold stocks. So far, only the big gold miners have joined the gold bull market, the gold mine developers and gold explorers have yet to join the gold bull market.

I love the exploration side of the business for a couple key reasons. One is that the gold miners are crucially in need of new mines to replace the old mines. Secondly, it is treasure hunting to find buried treasures that when successful can be exceptional wealth creating opportunities.

As regular readers know, I am extremely bullish on gold as I argue we will see $20k gold within 10 years. Demand for physical gold is powerful while the supply chain is very weak. 

Physical gold production is at the peak and heading toward long-term decline. Head grades at mines are at low levels, and the gold miners are struggling to increase production.

Projects held by gold mine developers are not nearly enough to replace what the gold miners are mining from at their old mines. This will cause long-term challenges to the physical gold supply.

Adding to the long-term challenges are that there are not a lot of great gold discoveries that can advance to the development stages. As the world moves back toward the Gold Standard, the supply chain is weak and will stay that way for the next couple decades at a minimum.

Even though gold explorers are very maligned, the gold miners have never needed success in exploration like it does now. This is why I see that larger gold miners need to make strategic investments in gold explorers with a strategy to become the partner of choice for explorers.

Mergers and acquisition activity is picking up in the gold mining space because at this moment gold in the ground is very cheap. It is less costly for the bigger gold miners to buy gold in the ground than it is for them to drill to find new gold mines.

There is a huge chasm between how badly exploration success is needed and the current valuations. As the price of gold goes higher, and generalist investors make their way into gold stocks, they will find a small menu of developers and explorers with high-quality projects.

Valuations for gold mine developers and gold explorers have very small share structures compared to what they usually put their money into. This is a great setup for explosive moves to the upside. Making the investment proposition exceptional is that the value of gold in the ground is trading at historically low levels. 

Saying the gold mine developers and gold explorers with high-quality projects are coiled springs is an understatement. The last time I saw this was the early days of the 2001 to 2011 gold bull market. We are seeing a perfect storm in the gold stocks, from the top gold miners all the way down to the explorers with important discoveries.

Colorado is the epicenter of the mining sector over the next week due to two big mining conferences. The Beaver Creek conference started today and on Sunday, the Gold Forum Americas conference gets underway. The great thing about these conferences is they both have live webcasts and also record the individual companies’ presentations. 

I’ve been watching presentations today and have some notes for companies that I follow attending the Beaver Creek conference.

Mining Stocks Telling Their Stories In Colorado

Goliath Resources

This is my highest conviction gold discovery pick. They are in the midst of a 36k metre drilling program at their targets in the Golden Triangle of British Columbia. The drilling will generate assay results for several months. So far, the company is making exciting progress as they have announced that 66% of their drill holes have hit visible gold. Stay tuned for drilling updates and assay results.

Borealis Mining (sponsor, see disclosure below)

They have only been publicly traded for less than a month and are hitting the ground running. Their first news release as a public company is that they poured gold at the Borealis Mine. These days it is hard for juniors to raise money, Borealis Mining recently produced gold from residual leaching that will return as much money as several juniors have raised in private placements. They have a who’s who of incredibly successful mining company executives on their board. Plus, a strong operations team that cut their teeth in exploration, mine development and mine operation at exceptional mines. Prior to going public they got investments from two legendary mining investors. Eric Sprott is one of them and Rob McEwen is the largest shareholder in the company owning approximately 17% of the shares.

McEwen Mining

They are presenting this afternoon at the Beaver Creek project. This weekend I published a report on McEwen Mining, explaining why they are my highest conviction copper development company with a gold mining kicker. The title of the report is Milei Magic Is Very Bullish For Copper Mining In Argentina, you can find it here. I would also like to invite you to view the McEwen Mining presentation at the Beaver Creek conference here: https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2024/09/10/mcewen-mining-copper/play/stream/38826

Vizsla Silver

It isn’t very often that you can find a junior with a project that has a long mine life, with an incredible 86% IRR and a payback of the capital costs to build their silver mine in less than one year of production. Their CEO, Michael Konnert, did his presentation at the Beaver Creek conference that you can find here: https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2024/09/10/vizsla-silver-corp/play/stream/38939

Kootenay Silver

I’m a big fan of their high-grade silver discovery at their Columba project in Mexico. They are currently drilling and have plenty of assay results pending. Their CEO, Jim McDonald, did a presentation at the Beaver Creek conference, you find it here: https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2024/09/10/kootenay-silver-inc/play/stream/38937

Blackrock Silver

They are focused on Nevada for silver and gold exploration and development. Their project near the town of Tonopah has a promising size, grade and IRR. They are currently drilling and have assays pending from their ongoing drilling program. Their CEO, Andrew Pollard, did a presentation at the Beaver Creek conference that you can find here: https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2024/09/10/blackrock-silver-corp/play/stream/38936

Explorers On The Radar Screen

Golden Cariboo

Earlier today, they announced the first drill hole from their new discovery near the town of Hixon, British Columbia. The headline hole returned: 136.51m of 1.46 g/t gold starting pretty much at the surface. I have reached out to the company for an interview to introduce the company to viewers of my reports.

Golden Rapture

They started trading back in March, 2024 and recently had excellent drilling results from their project in the Rainy River district of Ontario. The highlights included 114.96 g/t gold over 2.55 metres and 111.16 g/t gold over 1.50 metres. I have reached out to the company for an interview to introduce the company to viewers of my reports.

All the best,

Allan Barry Laboucan

Disclosure

Borealis Mining is a sponsor of Rocks And Stocks News, content creation about them is for the benefit of the company. Sponsors also benefit readers of the reports as it makes content creation possible for no charge to readers. Allan Barry Laboucan is a shareholder of Borealis Mining and is a consultant to the company.

Rocks And Stocks News does not make buying or selling recommendations. The reports are for information purposes only. Sponsors pay a fee to Rocks And Stocks News for content creation. The business model of Rocks And Stocks News is to fund research and reporting on the sector, picks and sponsors through corporate sponsorship. We are thankful to sponsors for enabling commentary free of charge to readers and viewers of the reports. When reporting on sponsors it is on behalf of the sponsors discussed in the portion of the report mentioning the sponsor. Before making any investment decision it is important for you to speak with your financial advisors to consider your risk profile. It is also important to do your homework. To help in that process, Rocks And Stocks News means to be a gateway by doing reports and interviews of management of sponsors and picks. The reports and interviews should not be considered investment advice. Allan Barry Laboucan is the founder and owner of Rocks And Stocks News, he has worked in the mining sector since 1993 and has been reporting on the sector since 2005. He has worked with and been mentored by very talented geoscientists in geology, geochemistry and geophysics. He uses the skills he has picked up during his career to assess sponsors and picks in the reports. Whether a company is a pick or a sponsor they go through the same filter and are reported on when important news is made that Allan Barry Laboucan wants to discuss on the Rocks And Stocks News platform. He may own shares in sponsors and picks for investment purposes which he discloses when discussing them in the reports.