COVID-19 has had a significant impact on industries around the world, with the mining sector as one of the hardest hit. Mining accounts for 5% of Canada’s GDP, while domestic exports make up 19%, hence the industry is currently feeling the strain of closures. But for companies like Newmont Goldcorp (NYSE: NEM) (TSX: NGT), GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF), and Rockridge Resources, Ltd. (TSX.V: ROCK), it is a different story. Ontario has designated mining as an essential service, and the company has since announced it has doubled the size of its Raney Gold Project. If you’re an investor, now is the time to pay attention.
A lot of mining firms have suspended their explorations in Canada, and different provinces have their regulations when it comes to the coronavirus. Quebec, for example, first declared mining as non-essential before eventually changing its mind. Says Jeff Swinoga, the co-leader for national mining and metals for EY Canada, “In general, the main impacts or significant disruptions have been on the supply chain, workforce continuity, reduced or complete shutdown of mine sites (and) companies’ liquidity, as well as their suppliers.” Nevertheless, Swinoga believes that of the 1,200 public mining companies, those whose expertise lies with gold are bound to have a more positive experience.
Rockridge’s recently completed drilling program via its Raney Gold Project couldn’t have come at a more opportune time. A large prospective gold property, it covers about 28 square kilometers and is located approximately 110 kilometers southwest of Timmins, a well-known gold district in Ontario. The program showed a highlight intercept of 28.0 g/t gold over 6.0 meters (uncut) at a shallow vertical level of 95 meters. At 75 meters west of a historical drill hole that returned 6.5 g/t gold over 8.0 meters, this is a newly discovered high-grade zone.
Precious metal game changer
According to the World Gold Council, Canada ranks fifth amongst major gold-producing countries. Per the U.S. Global Investors, in the last decade, the country’s production has steadily been increasing, with an 88% increase from 2009 to 2018, at 183 tonnes.
Ontario and Quebec are responsible for more than 75% of the nation’s gold. Considered to be Canada’s highest-valued commodity, gold’s production value in 2018 alone was at $9.6 billion, with exports at $17.3 billion.
It is no wonder that a company like Rockridge Resources is poised to make its mark. With its Raney Gold Project, the focus is now on gold mineralization, which is associated with broad intervals of higher concentrations of narrow quartz veins.
This might be what the precious metals market need at the moment. Says Grant Ewing, Rockridge’s CEO: “The results of the recent Raney drilling program led to a better understanding of the nature of the gold mineralization at the project. The additional ground has been staked at the western end of the broad alteration corridor that hosts the mineralization, and to the north, effectively doubling the size of this prospective gold property.”
Indeed, the land has excellent access and infrastructure. It is also accessible by paved and forestry roads. The broad alteration zone that hosts the mineralization is reported to be up to 125 meters wide and extends well beyond the area tested by drilling. Furthermore, the historic mapping and surface sampling data show that the alteration zone may extend over several hundred meters. What this means is that the projected structural corridor provides a compelling target area for future exploration.
Currently, Rockridge Resources has a market cap of 4.756 million.
In his book, The Laws of Wealth, New York Times bestselling author Dr. Daniel Crosby, says this about market uncertainty: “If you can view corrections as natural at worst and opportunities at best, you will be positioned to profit from others’ panic.” While everybody else is still scrambling to make sense of the destruction that COVID-19 has left in its wake, Rockridge Resources is quietly and steadily making its presence known so it can be a viable addition to your portfolio.
If you’re an investor looking for growth during these uncertain times, direct your sights to this Canadian gold mining company. With current low share prices intertwined with a bright future in the gold market, it will provide a safe haven for the coming years while the global economy continues to grapple with the aftermath of the pandemic that has ravaged the world.
Gold will continue to be viable as long as there are economic instability and weakness in currencies. By all means, Canada still has to contend with a lot of issues on the horizon such as COVID-19, but it hasn’t stopped mining companies like Rockridge Resources from being productive. The key is sustaining this momentum.
Further reports confirm that Canada will honor the importance of the mining industry because of its role in the country’s supply chain of round-the-clock assembly of goods and services to its citizens. It is with this hope that miners big and small can find a way to be profitable amidst a time of a pandemic, and that the metals and mining sector will persist in revitalizing the economy.
It is for this reason that investors looking to make financial gains should start paying more attention to gold. A considerable part of the economic growth of nations now hinges on this precious metal. Financial experts still agree that gold will remain bullish and that investors must seize this window of opportunity to put their confidence in a mining company such as Rockridge Resources.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
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