A New Gold Rush Has Investors Flocking To Australia
FN Media Group Presents GlobalInvestmentDaily.com Market Commentary
Oct 26, 2020, 09:00 ET
LONDON, Oct. 26, 2020 /PRNewswire/ -- Australia's first New South Wales Gold Rush took place over 120 years ago. Back then, prospectors wielded nothing more than pickaxes. Now, a second Gold Rush is on, with a mad rush to this territory with gold explorers wielding the latest technology. Mentioned in today's commentary includes: IAMGOLD Corporation (NYSE:IAG), Newmont Corporation (NYSE:NEM), Yamana Gold Inc. (NYSE:AUY), Pan American Silver Corp. (NASDAQ:PAAS), Kinross Gold Corporation (NYSE:KGC).
Huge mining names have now gathered. And a sea of junior explorers is attempting to storm the venue. But one stands out: Sentinel Resources Corp. (SNL; SNLRF). It has 8 massive gold projects covering nearly 95,000 hectares which contains nearly 200 historic, high-grade Gold-Rush-era mines and showings.
Sentinel Resources Corp. is already up over 3X (and rising) likely because it's sitting on an incredibly massive gold land package in one of the most untapped gold rush venues in the world.
For Every 1% Gold Goes Up, Gold Explorers Can Rise As Much As 10% Or More
The world's central banks are on an unprecedented money-printing binge. By Q2 2020 alone, in a frantic attempt to save the economy squashed by a pandemic, the Feds have printed some $3.5 trillion in new money, out of thin air.
The biggest banks in the world are eyeing gold prices of around $3,000 in just over a year. Former Citigroup billionaire Thomas Kaplan predicts $5,000 gold. And the smartest investors are doing the deep research to uncover small-cap gold explorers sitting on billions in potential gold. And Sentinel Resources is an approximately $15M market cap gold explorer that's staked massive claims right in the beating heart of a historic gold rush play.
$126 Billion Underground With Gold Concentrations Up To 184 Grams Per Ton
Again, Sentinel (SNL; SNLRF) has 8 huge gold projects in NSW. Some of them could have gold concentrations that would have the world's top miners flocking to the area. And that's in a territory that's already produced over 40 million ounces of gold … and still has an estimated 68 million+ ounces in the ground.
Some 60 of the 198 historic gold mines and major gold showings Sentinel has acquired in NSW are previous high-grade mines with potential to be developed into world-class gold mines. And 17 of those 60 have shown some intersections with gold concentrations of up to 184 grams per ton (g/t) Au.
As we speak, Sentinel is running a high-tech evaluation of all 198 historic mines and gold showings across its 8 gold projects. They'll pick the top 50% for Phase 2 exploration--the second de-risking. The remaining 50% will be considered for joint venture.
Sentinel's already got a massive historic database of over 3,000 data points on these NSW gold plays. That could be worth over $30 million in free exploration juice. Honing in on just one target area paints a picture of the sheer breadth of this gold potential:
The Peel-Manning Fault System, for starters, is a structuree between two continental blocks--and it's a colossal structure that's already shed half a million ounces of minerals (that's $862 million in today's dollars). Sentinel is eyeing the possibility here that in 2 areas of the system alone, they could get more than a million ounces of gold, making it arguably one of the top junior gold plays in the entire world.
Stanleys: Bonanza Grade. 2,720 Ounce Historic Nugget
Because of the unique geology of the area, gold was formed in high densities. A historic gold nugget worth $17.3 million was found at Sentinel's Stanleys project--120 years ago. It made front-page news then. It would make a digital explosion today. But Sentinel (SNL; SNLRF) isn't going for a single gold nugget--no matter how big it is. It's going for … gold … in 8 massive projects littered with almost 200 historic, high-grade mines and gold showings of Gold Rush fame. And they have one of the biggest names in gold exploration behind them.
Dr. Chris Wilson, professional geologist and speacialist mine finder. Dr. Wilson has been direcvtly involved in the development of some of the most explosive juniors in recent months, particularly in Australia!
The Gold Rush Is Just Getting Started
Sentinel is expecting final exploration drilling approval in less than four weeks. It's already got exploration data to work with, and it's already identifying targets. Within three months, this story could be out of the bag, and with more exposure this NSW gold rush will be hard to contain. And this is a true gold rush. Everyone's congregating here--with big results.
They're sitting on some of the most highly prospective ground in the world with an unbelievable land package in Gold Rush territory that's been forgotten for over a century. In terms of geological addresses, it doesn't get any better than this. And with some of the biggest names in gold exploration behind the wheel, the de-risking looks delightful.
Smart investors are getting in ahead of the next big NSW announcement, Sentinel Resources exploration results, or another historic multi-million-dollar nugget shared on Twitter and Facebook worldwide. If that happens, Sentinel Resources Corp. (SNL; SNLRF) could become one of the biggest gold explorer stories of 2020. But they're not alone…
Gold majors across the board have had an incredible year, but the rally may just be getting started. From IAMGOLD to giants like Newmont and Yamana, there's still room to run, and gold prices could send these companies into the stratosphere.
IAMGOLD (IAG) is an ambitious Canadian miner with a global footprint. Though its footprint is not quite as large as it once was, the company still maintains a strong presence across three continents. Currently, its four mines produce as much as 800,000 attributable ounces of gold each year. And its robust exploration profile suggests that production isn't going to be slowing anytime soon.
This year, IAMGOLD has made the most of higher gold prices, opting to significantly reduce its debt, as has been a running theme for the gold giant since 2013. And it's paid off, as well. Investors see the company's improving financials as a positive sign, and it's share price has reflected it.
The headlines we abuzz last year when Newmont (NEM) acquired Goldcorp, making it the world's largest gold company. Though it was controversial at the time, the $10 billion acquisition has paid off in a big way. As gold climbed to record highs thanks to investors piling into gold due to the COVID pandemic, Newmont has seen a boom in its share price. This year, gold has soared from $1282 to over $2000 at one point, and Newmont's stock rose with it, earning investors as much as 90% returns on their original purchase.
Newmont may be the biggest gold mining company on the planet, but that doesn't mean that it doesn't still have significant upside potential.
Recently, Yamana Gold (AUY) signed an agreement with Glencore and Newmont Goldcorp to develop and operate another Argentinian project, the Agua Rica. Initial analysis suggests the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes (520 million pounds) of copper-equivalent metal, including the contributions of gold, molybdenum, and silver, for the first 10 years of operation. The agreement is a major step forward for the Agua Rica region, and all of the miners working on it.
Yamana been on a tear this year. Since March, the miner has seen its share price climb by as much as 145%, and it could be heading even higher. That's great news for investors looking to jump on board the gold rally. Though it weighs in with a modest $5.4 billion market cap, Yamana's $5.78 per share price is accessible for all types of investors.
In addition to gold, silver has also had a great year. And Pan American Silver Corp. (PAAS) has reaped the benefits. Though some of its production was taken offline due to the pandemic, Pan American has recently begun resuming operations in some of its most lucrative mines, including its Huaron and Morochoca mines in Peru. Pan American had suspended normal operations at its mines in Mexico, Peru, Argentina and Bolivia in March 2020 to follow through with quarantine measures imposed to slow the spread of the COVID-19 virus, but with Huaron and Morochoca now back online, the company is once again firing on all cylinders.
Kinross Gold Corporation (KGC) may not have the history of some of its century-old peers, but it is leapfrogging ahead in the industry, quickly becoming one of the world's most exciting miners. With operations across the globe, it's big picture approach is paying off. The $11 billion gold gaint has mines in Brazil, Ghana, Mauritania, Russia and the United States, and it's looking to expand even further.
Since 2015, Kinross has seen its share price rise by as much as 400%. In fact, this year alone, it's already up by as much as 88%. And Kinross is showing no signs of slowing.
By. Paul Harton
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