With Covid restrictions lifting slowly, mining companies are ramping up their exploration efforts but the effects of the virus on a global scale are still being felt and fueling the rising price of gold. The result is that majors are flush with cash and looking to expand operations as most are projecting gold to go much higher. Mid tiers are making a lot more money and Juniors will see the benefits of higher gold prices as the mid tier miners and majors look to acquire new projects.
With drills turning its easy to lose track of where each company is at in terms of releasing results, so we thought we would give you a quick update. These are some of our favorites that we feel you need to keep an eye on given the track record of success on their current projects. The junior mining sector is in the spotlight and now is the time to take advantage of it and in saying that, these 5 companies should be at or near the top of your watchlist.
RJK Explorations is a Canadian based diamond exploration company focused on finding the source of the 800 carat Yellow Nipissing Diamond found near Cobalt, Ontario around the early 1900’s. Learn more about the Nipissing diamond in this short video.
RJK made some noise in the diamond sector earlier this year when suspected kimberlite samples were sent to Charles Fipke’s lab, CF Mineral research. Despite being told by two labs that the samples were not Kimberlite in 2019, the striking visual similarities to the Kon claim kimberlites led RJK’s team to re asses the hits from the Paradis pond area. Interestingly the small 50 lbs sample came back with impressive results of 18 micro diamonds varying in color. Many more fragments were identified as well but could not be confirmed as natural diamonds due to their size. (See News Release [here])
Exploration on the Paradis Pond kimberlite pipe has now recommenced and the company is far more prepared with geophysical data, till samples and extensive research to ensure the success of this year’s exploration campaign. The target area will be focused around Paradis pond while they wait for the results of the KON claim kimberlite. (See News Release [Here])
Learn more about the exploration efforts of prospector Tony Bishop that led to this discovery in the video below.
In January RJK Explorations drilled into a newly identified Kimberlite pipe on the Kon Claim close to the Hound chutes damn on the Montreal River. The claim is host to an exposed kimberlite dyke, uncovered by prospector Al Kon a number of years ago. He had been approached several times over the years and all but rejected the offers presented to him until he cut a deal with RJK to explore the rest of his claims. After drilling the exposed dyke, the company shifted their focus to a low mag signature 300 meters away which ultimately led to a new kimberlite discovery. Learn more about the Kon claim discovery in the video below.
Samples from the KON claim were sent to CF Mineral Research in the spring and the results are expected to be in any day now as the company reported results would be in by the end of the month.
Will RJK make history and breed new life into the Cobalt Mining Camp? Will the KON claim be the icing on the cake so to speak considering they have already found diamonds in the area of Paradis pond? Stay tuned because this could be one of the biggest stories of the year.
Newrange Gold Corp (TSX.V:NRG)
Newrange Gold is currently exploring the Pamlico Ridge property just outside of Hawthorne, Nevada in a district that reportedly produced on average of 2 ounces per ton Au. The artisanal mine workings on the pamlico ridge property are a telling factor of what once was a very profitable mining operation. The old timers chased high grade gold veins in their pursuit of riches but due to the limited technology, they were often restricted to finding veins visually. Unfortunately, the town that supported the local mining operation burned to the ground in the early 1900’s and the land has gone relatively unexplored until now. Learn more about the Pamlico Ridge mining operation and 20 stamp mill in the video featuring Robert Carrington.
In 2017/18 Newrange started drilling the property with great success, their share price climbed into the .70 cent range only to come back down as the company opted to map the old mine workings as to avoid drilling into them. During this process of doing lidar in the old workings, they also opted to run a sampling program as it was essentially free data. While the process to do this work is not a fast one, the data collected will guide their efforts far more efficiently. You can learn more about the sampling process in this video taken at the Good Hope Mine.
The mapping is complete now, the sampling has returned with some impressive grades and the company is in a great cash position to drill the property extensively! Armed with IP surveys and some very detailed data, the company is now advancing their exploration efforts using both RC drilling and Diamond drilling which should extend throughout the remainder of the year.
What I haven’t mentioned is that there is a running thesis that this property may very well sit on the edge of an ancient Caldera and could have many similarities to the very well known deposit of Round Mountain. If this is indeed the case, Pamlico could be a beast of a deposit! If you would like to know more about this thesis, please check out our geological report [Pamlico Ridge & The Geological Forces Driving Nevada’s Mining Industry].
Finally, While the company is currently drilling the property, they have also started working with a new lab in Sparks Nevada, who is claiming to be able to output results very quickly. This bodes well for Newrange as they expect to be able to analyze data as the drills continue turning and will not be subject to the standard 4-6 week wait on results. Having said that, the company expects its first round of results very soon!
All indications are that Newrange will have continued success in drilling in this year’s exploration campaign. With results expected to be coming in soon, the market has already started reacting, pushing the share price up over 200 times its low of March 2020. We expect a steady flow of drilling and associated news flow to extend well into the remainder of the year.
MacDonald Mines is currently exploring the SPJ Project just outside of Sudbury, Ontario. The property covers a vast area, encompassing or in close proximity to 3 past producing mines. The company’s main focus at this time is on the past producing Scadding mine where they have drilled a total of 46 holes to date and have on of the top 3 drilling intercepts of 2020.
Throughout the program, there have been multiple cores reported to have VG and the grades have been very encouraging. The company’s understanding of the controls on the property has come a long way since last year and with new geophysics in hand and better understanding of the geology for the drilling last year, the company is now focusing in on what they believe will become a major discovery.
Recently, Quentin Yarie gave insidexploration an exclusive in depth analysis of their recent IP survey in a 3D block model view. Quentin really brings light to this project by showing the viewer the chargeability, resistivity and a more project focused metals formula that takes the highest probabilities of gold and inputs it into the 3D block Model. More importantly, this video highlights the correlation of high grade gold with the anomalies being observed in the IP survey.
It would appear that there is a much larger deposit to the south of the Scadding mine which the company intends to follow up on with this year’s drilling campaign. They already have a team out in the field identifying outcrops that correlate with the IP and are already in the planning of the next phase of drilling.
They have 4 holes pending, one of which is targeting one of the anomalies identified to the south of the eastwest pit. Assay’s from hole 46 are expected to be released very soon along with the 3 other holes from the spring drilling campaign. While still early, the data supports the model and the new IP survey is extremely encouraging and BMK should be at or near the top of your watchlist.
Canada Nickel Company is currently exploring within the mining friendly jurisdiction of Timmins, Ontario. Earlier this year they listed on the TSX Venture exchange under CNC at a listing price of $.25 cents CAD and have already spiked to over $1.40. The Company’s current focus is the Crawford Nickel deposit which with only 20 percent of the structure drilled off, they are already boasting the 11th largest nickel sulphide deposit in the world. As if that wasn’t enough they have also identified a pretty nice PGM structure that runs in parallel to the nickel ore body.
Learn more about the Crawford geology and what they are seeing in the cores in the early phases of the project.
Recent infill drilling has identified an area of higher grade nickel that will ultimately be a huge benefit to this project as a source of cash flow in the early part of development (See News Release [Here]). As the company continues to drill at Crawford, the ore body continues to impress and looks more and more like a world class deposit.
Crawford is the flagship property of CNC, but it doesn’t stop there. Mark Selby has made quick work of locking up 5 additional areas that have potential to host similar type deposits within the project 81 area. Mark intends on doing some exploratory work on those targets later this year in hopes of building on the already impressive deposit in Crawford.
Learn more in our recent interview with Mark Selby, Chairman and CEO of the company.
As the world turns to green technology, Nickel will be in high demand. This EV revolution will fuel the demand for nickel and large scale projects like this one with be front and center. BHP has already acquired 2 of Australia’s largest Nickel sulphide deposits and with the scoping study being released on Crawford later this year, it’s safe to say the major players in the nickel space will be watching with interest.
Expect lots of assay results to continue to be released over the course as the company is all cashed up and continue to drill towards and updated resource and scoping study by years end.
Karora Resources Inc. Is an up and coming gold producer in the Western Australian Gold Fields. Formerly known as RNC Minerals, the company has rebranded itself to reflect the new focus on gold production. While they still own a stake of the Dumont Nickel sulphide deposit, it is not currently their main focus of operations.
Paul Huet, Chairman and CEO, was recently able to re negotiate a number of existing royalty agreements to substantially lower the impact of the royalties which all but hindered the projects for years. He has proven to have a keen business sense as he has done a spectacular job in unlocking the value of both Beta Hunt and the HGO land package. If you would like to know more about the royaltiy agreements follow the links below.
Furthermore, after re negotiating the BH hunt royalty from 7.5% down to 4.75% the company can now mine the highly prospective areas under the FDV discovery of 2018 and the high grade intercepts in the Western Flanks. They will also be ramping up exploration at Beta Hunt which offers potential to hit very high grade intercepts as they will be targeting the sedimentary layer where it intersects the shears which causes the gold to disseminate into high grade pockets.
With an exploration budget of over 10 million dollars and an abundance of highly prospective targets at both BH and HGO, KRR is set to do a lot of exploration. The company has already successfully put two open pits into production and working towards activating Mouse Hollow and Hidden secret as their next open pit project in the hopes that both pits will become one larger pit. They have also extended the life of both Baloo and Playfair through rc drilling, showing that there is potential for these pits to be extended well beyond the known deposits. To learn more about the HGO land package please review our very detailed Research Report on the Higginsville Mining Operation.
Karora Resources is on pace to produce 100,000 ounces this year and has a vast amount of targets to explore. Not to mention they are also doing dd on the Spargos Reward open pit and underground operation before they make the decision to buy the project. Spargos is well situated not far from BH and will add even more feed for the mill and a decision on that should be announced very soon. Learn more about Spargos [Here].
Will they repeat and hit another pocket like the FDV? We think so! Will they discover more open pit projects outside of the known targets? There is a high likelihood of this happening and that’s why KRR is one of our favorites this year. The excitement this company could generate is unlike anything else in the market so stay tuned as the news flow coming should create a bit of a stir.
While you wait to see what Beta Hunt has in store… Take a tour of the historic Beta Hunt Mine through the eyes of Insidexploration.
So while there are many exciting stories developing in the market right now, we believe that these projects stand a great chance to see substantial gains over the coming months. With all of them actively working their properties and results expected very soon, all 5 companies should enjoy some near term success.
More information can be found on the company websites which can be accessed by clicking on their banners above or visit the Insidexploration Company directory [Here].
The Author holds a position in all 5 companies and may buy or sell at any time without notice. All the aforementioned companies are also sponsors of insidexploration.
The work included in this article is based on current events, company news releases, historical documents and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this article are that of the author and do not necessarily reflect the views of the companies.
This article is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.