Step aside Newmont Goldcorp: Why gold investors are going crazy for this Canadian mining company
Worldwide lockdowns, seething international tensions, and plunging oil prices have cast a long shadow over 2020. Investors are rightly looking for safe harbors through which to weather the storm. Mining companies, particularly gold mining companies like Rockridge Resources (TSX.V: ROCK), offer a way for investors to not just survive, but thrive, in difficult times.
These are not normal times. With over 23 million jobless claims in the U.S. alone, we are facing an unprecedented crisis. While many of us worry about how we’ll make our next paycheck, investors are forced to consider how best to protect their funds. Many are turning to mining companies like Newmont Goldcorp (NYSE: NEM) (TSX: NGT), GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF), and Rockridge Resources, Ltd. (TSX.V: ROCK) as a safe haven in difficult times.
Mining companies offer a safe harbor through the economic storm
As the crisis deepens, traditionally safe investments may come under threat. As many as one in five small businesses could fail due to social distancing measures, and the already beleaguered high street is under threat. Given this situation, many investors are quite rightly returning their attention to mining and precious metal companies.
Gold, in particular, is set to skyrocket up to $3,000, even if it won’t be a smooth path to get there, and this is going to give mining companies a big boost. This is especially with oil prices continuing to be increasingly volatile and nudging back into negative territory. This trend towards precious metals is a big opportunity for mining companies and investors alike.
Turning crisis into opportunity
Why are minerals such as gold and copper so valuable to investors during times of crisis? The key is that gold tends to hold its value, or even increase in value, during turmoil. Metals like copper can be stored indefinitely until the right moment to sell. Investing in mining companies amplifies this effect as you not only get to take advantage of stable price levels but also the added bonus of owning stakes and land, via the mining company.
A number of big players have been expanding rapidly over the last year. Newmont Gold Corp has kicked off production with a unique all-electric gold mine. This approach is expected to eliminate around 5,000 tonnes of CO2 per year from Newmont’s operations. Another interesting example is GFG Resources, who have arranged to work with Alamos Gold as a strategic investor to the tune of $5.0 million. This is just the tip of the iceberg.
Why Rockridge should be on every gold investor’s radar
Rockridge Resources, Ltd. (TSX.V: ROCK) is a resource exploration company that focuses upon the acquisition, exploration, and development of copper and gold properties in Canada. The company is exploring a wide range of opportunities but currently operates two core projects:
- The Knife Lake Project: located in the world’s third top mining jurisdiction, Saskatchewan. The project centers on the Knife Lake Deposit, which is a near-surface Cu-Co-Au-Ag-Zn deposit. The project has strong discovery potential, and Rockridge is already planning to leverage modern exploration techniques and methods to make new discoveries.
- The Raney Project: Is the company’s core gold project. The high-grade gold exploration project is located in the same greenstone belt as the world-class Timmins and Kirkland deposits. This project is the one that will catch the eye of most gold investors, and for good reason, given the company’s recent announcement.
On Wednesday, the company announced that it had successfully completed nine diamond drill holes in a 2,070-meter diamond drilling program at its Raney Gold Project. The initial results are promising, with gold intercepts of 28.0 g/t gold over 6.0 meters. The program tested the mineralized gold system along a strike extent of 225 meters, with holes going as deep as 260 meters.
The excavation was highly cost-effective, and the new deposit is just 75 meters west of a historical drilling site that returned 6.5 g/t gold over 8.0 meters. Even better, the company collected new data approximately 2 km west of the current drilling site that could reveal a new seam and provide a tempting target for future exploration. The existing site is in a well-connected area and should be ripe for exploitation.
A unique opportunity for gold investors
In these troubled times, investors need to not only protect their assets but ensure growth. Investing directly in gold is one way to do that, but investing in the right mining company gives you access to a far larger opportunity.
Companies like Rockridge Resources, Ltd. (TSX.V: ROCK), with its low-cost exploration efforts and high potential sites, represent a potential safe harbor in troubled waters and deserves a place in any gold investors’ portfolio.
Five reasons Rockridge Resources deserves a place in your portfolio
- You have access to high potential copper and gold sites, providing a diverse minerals portfolio with one investment
- The company is still a bargain with low share prices compared to its potential over the coming years
- Minerals, particularly gold, provide a safe harbor during periods of economic turmoil
- The company is led by a team with decades of experience
- The latest discoveries at the Raney project demonstrate the huge opportunity on offer
(Featured image by Michael Steinberg from Pexels)
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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