I thought gold — and miners — had bottomed. While they have been bumping along in the same area, we haven’t seen them head higher … yet. They will. In the meantime, we can make our shopping lists.
I’ve been interviewing miners, developers and explorers. A lot of them. Not all are good investments, but many are very interesting.
Today, I’m going to share two that I find very interesting. You might even want to consider them for when the next rally starts.
Maple Gold Mines
Let’s start with Maple Gold Mines Ltd. (TSX-V: MGM) (OTCQX: MGMLF). I previously talked about this company on Nov. 20, and my Gold and Silver Trader subscribers had the opportunity to make some nice money on it.
Maple Gold Mines has a rich gold exploration project in Quebec’s Abitibi greenstone belt called the Douay Gold Project. I am a shareholder, and I follow their progress.
In February, the folks at Maple Gold Mines formed a joint venture with mining heavyweight Agnico Eagle Mines Ltd. (NYSE: AEM), which contributed to the neighboring Joutel Project AND $14.33 million a year for four years in funding for exploration expenditures at the Douay and Joutel properties.
Since then, Maple Gold Mines has discovered a new sulfide system (hosting gold and silver) at Douay, and it has a lot more going on, including an ambitious drilling program.
But you can watch my interview with the company’s president and CEO, Matthew Horner, to get the scoop …
Maple Gold Mines remains one to watch. It’s in the Abitibi greenstone belt, which has some of the most prospective rock in North America. It already has a great deposit. It’s formed a joint venture with a big miner, and the other company is paying for exploration AND they keep finding more gold.
SilverCrest Metals Inc. (NYSE: SILV) is in the Gold and Silver Trader portfolio. I talked to these guys last month, and they have been busy.
Early last month, SilverCrest issued a feasibility study on their Las Chispas silver project in Mexico. Here’s what it had to say:
• The project has an after-tax net present value of $486 million.
• Las Chispas has an internal rate of return (IRR) of 52%.
• Mine production will be 50% silver and 50% gold. Las Chispas should produce 10.044 million ounces of silver equivalent per year.
• Building the mine will take $138 million. The project would pay back the cost of building the mine in just 12 months.
• The all-in sustaining cost (AISC) of production at Las Chispas is projected to be just $7.52 per ounce.
If this isn’t enough, I’d like to add in the fact that they keep finding more and more silver. They already have 96 million ounces of silver equivalent in reserves. They are stockpiling ore on the ground, waiting for the mill to be finished. When it’s ready to start processing, they’ll have eight months’ worth of ore ready to go.
Other recent news for SilverCrest is a $138 million bought deal financing for a new mine, meaning they’re cashed up. On the most recent earnings call, SilverCrest president Chris Ritchie said that “Eric (Fier, the CEO) and Pierre (the COO) have full board approval to go build a mine.”
He expects construction of the mine to be finished by the second half of 2022 and production to start ramping up at that time. And he said there would be another resource update before the mine goes into production and that the mine plan will likely be optimized with new ounces added.
Here’s a slide from SilverCrest’s recent presentation:
As you can see, the company has a path to production. Sure, things can go wrong. But I believe SilverCrest is in the sweet spot, and we’ll start to see Wall Street FINALLY take notice.
The company has modeled $30 million in revenue for 2022 and expects full-scale production in 2023.
Mr. Ritchie added that the company is “ready to build, ready to grow.”
Let’s see if the market can wake up to this company’s bright future.
These are two great picks that investors should strongly consider. But, as always, do your own due diligence before you buy anything; you’re in charge of your own investment destiny and shopping list.
All the best,