SmallCapPower | March 28, 2017: Resource Opportunities Editor James Kwantes, in a speech at the newsletter writers’ presentations at the PDAC 2017 convention, talked about some resource juniors that speculators might want to keep an eye on. Here’s a summary of what he discussed that day, including some PDAC 2017 stock picks.
Yukon gold juniors were prominent in his talk. One of the first he mentioned was Independence Gold Corp. (TSXV: IGO). Independence has three gold properties in the Yukon, including the Boulevard Project, which is located next to Goldcorp’s Coffee Gold Deposit in the White Gold District. Independence Gold also owns the 3Ts Project in British Columbia. The Company has about $0.10 per share in cash, as of December 31, 2016, which represents nearly half of its current market cap. Goldcorp also owns about 20% of Independence Gold as a result of a June 2016, private placement financing at $0.18 per share.
Sticking with the Yukon gold theme, Mr. Kwantes also said he liked Arcus Development Group Inc. (TSXV: ADG), which owns the Dan Man property (578 mineral claims) located immediately north of, and adjacent to, Goldcorp’s Coffee property. Goldcorp also owns about 20% of Arcus Development Group as a result of an October 2016, private placement financing. Mr. Kwantes believes Arcus will eventually be acquired by Goldcorp.
Another Yukon gold junior he mentioned was Klondike Gold Corp. (TSXV: KG), which owns the Lone Star, Dominion, and Gold Run exploration targets. Frank Giustra and his affiliated companies own about 22% of Klondike Gold. Mr. Kwantes noted that Goldcorp’s proposed haul road from its Coffee property to Dawson City would run through Klondike Gold Corp.’s property.
Other junior resource stocks James Kwantes said he liked included:
White Gold Corp. (TSXV: WGO) – White Gold Corp. owns a portfolio of 14,648 quartz claims representing approximately 30% of the Yukon’s White Gold District. Legendary Yukon prospector Shawn Ryan is part of its executive management team and Agnico Eagle Mines Limited owns approximately 20% of the Company.
Strategic Metals Ltd. (TSXV: SMD) – Mr. Kwantes likes the fact that this project generator is planning to spin out about 90% of its Trifecta Gold subsidiary to its shareholders. Trifecta owns four projects in the Yukon: Eureka, Triple Crown, Treble and Trident.
Erdene Resource Development Corp. (TSX: ERD) – Erdene is currently exploring Mongolia, and its projects include two new gold discoveries (Bayan Khundii and Altan Nar), a molybdenum-copper porphyry resource, and an alliance with Teck Resources to fund and explore the Tian Shan Metal Belt in southwest Mongolia for copper-gold opportunities.