Recently, when I was at the New Orleans Investment Conference, I had a chance to sit down with miners, developers and explorers and hear their stories.
I’ve already told you about two great gold explorers in the Golden Triangle, and a pair of uranium developers who could ride the next rally. Today, we’ll look at more intriguing gold explorers/developers you can buy for dirt-cheap.
Amarillo Gold
I talked to Mike Mutchler, CEO of Amarillo Gold (TSX-V: AGC; OTCQB: AGCBF).
This company is exploring for gold in Brazil — and finding plenty of it. At nice grades, too. It has 1.1 million ounces of gold reserves at an average grade of 1.42 grams of gold per metric ton. I’ll let Mike give you the scoop himself:
Direct link to video: https://youtu.be/xFVIEo3SlXs
Amarillo Gold is debt-free. It’s also advancing the Mara Rosa project, working on a feasibility study, and the company believes it will start full commercial production in 2022. The after-tax internal rate of return on the project is 51%.
The fact that Royal Gold took a piece of the production (through a royalty) speaks to the soundness of the project. Caveats are that Amarillo will have to raise more cash. And it still has to fund the mine construction.
Integra Resources
Do you remember a company called Integra Gold? They sold their project in Quebec for $600 million. Well, that same management team didn’t want to sit back and put their feet up. So, they formed Integra Resources (TSX-V: ITR; OTCQX: IRRZF). And that company has moved on to what they believe is the next big thing.
They acquired the past-producing DeLamar Deposit in Idaho. They’ve already released two resource estimates, and they’re drilling like a bunch of maniac dentists.
Josh Serfass of Integra Resources gives you the scoop right here.
Direct link to video: https://youtu.be/xfXrgiEx7WQ
The DeLamar and Florida Mountain Project was previously operated by Kinross Gold Corporation and produced gold and silver until 1998. That’s when low metal prices led Kinross to throw in the towel. The price of gold was around $288 in 1998. Now, gold is over $1,200.
That’s not the only game-changer the company has. It’s having tremendous success with the drill bit and more.
Integra Resources should have an updated resource estimate in the first quarter of 2019, followed by a preliminary economic assessment in the first half of 2019.
Yeah, this is definitely a company I’m going to keep my eye on.
We are seeing a fire sale in gold explorers and miners right now. It’s been going on for far too long, and these companies have been beaten down into the dirt. The next bottom is out there, and the right stocks will ride the rally to potentially enormous gains.
If you’re doing this on your own, do your own due diligence. But don’t let low prices stop you from buying something that could be much higher down the road.
All the best,
Sean
