Gold Found Here
Most junior mining companies in the world are located in Canada. In fact some of the largest miners are Canadian companies. Companies like Barrick Gold, Teck, Eldorado, which are known the world over got started right here in Canada. One of the reasons is because Canada itself is the largest country in the world by land mass and is stuffed full of resources. From coast to coast you will find resources play a big roll in the country. Whether it be mining and minerals, oil and gas, pulp and timber, Canada has it all.
So it should come as no surprise that even though we find a lot of these small companies scattered around the world looking for the next big deposit, that some of these companies have decided to stay right here in Canada and explore and develope. A lot of these companies however have become forgotten over the past few years as the price of gold, silver and other metals have gone down. Lack of funding equals less exploration which in turn equals less interest.
However since the start of the year there seems to be a renewed interest in the metals and that includes a lot of the juniors mining stocks. While the DJIA has lost about 6% and most other stock exchanges are the same, gold is up over 7% YTD and we are just through the first month of the year. Looking at these figures we see a definate trend of new money going into junior mining stocks. There are lot of these companies that are trading for 1 and 2 cents but have values double, triple or even quadruple that just in cash values alone. Soem of these stocks have been totally inactive for months if not years are starting to get active. Trading volumes are increasing and trading volumes are responding to news whereas a year or so ago even the best of news would only bring a yawn.
An example would be the news that came out yesterday for New Carolin Gold Corp. LAD where the comany is having their terms for a 100% ownership of the Ladner Gold project ammended. This may not seem like big news on the surface but read between the lines and you will see that the company will own 100% of the rights to 144 sq km of prime gold property just outside of Vancouver BC. That news sent the stock almost back to it's 52 week high with close to 6 million shares trading hands.
Then today more news came out stating: Further to the press release on the morning of Feb. 3, 2016, New Carolin Gold Corp. will increase its financing as follows: The company will cap this financing with the issuance of up to 26.25 million units in its capital stock for gross proceeds and consideration of up to $1,312,500 in a combination of flow-through units and non-flow-through units, a drilling services contract, and a settlement of $225,000 related to an unpaid drill program carried out in 2012.
No news that I can find but for some reason Decade Resources DEC was very active today also. Stock price up a full cent to 2.5 cents. Decade has a work program going on in the Stewart Bc area. There are rumors of good assays and news but we shall see how thing unfold with this small Canadian player.
For those of us who like to trade out these penny mining stocks, who knows, maybe it's starting to be happy day are here again.
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