Gold has been a store of value and relative safe haven for thousands of years. Gold and silver markets have been strong lately and actions being taken by world governments to stimulate the economy during the COVID-19 crisis could strengthen gold further. The reason is simple. Governments and central banks around the world continue to print money at an alarming rate to create stimulus for the economy so people have enough money to survive during the crisis. The problem with this is that by doing so, these fiat currencies are being diluted and people are losing purchasing power. Even after the COVID-19 crisis abates, the deficits created during the crisis will lead to further dilution of fiat currency values. Positioning into an interest in gold could be a good investment strategy today, but it is a daunting task to decide how to invest in gold. Investing in certain gold companies can be much more rewarding than buying physical gold because some gold companies could rise more strongly in this economy than the percentage increase in the value of physical gold itself. Choosing the right company can be challenging because so many gold companies exist in the marketplace today. We can choose from billion-dollar production companies, smaller producers, near term producers, royalty and streaming gold companies, and junior explorers. The list is long in the current gold market; however, we believe the highest potential returns could lie in the small cap explorers. Why do we say this? Gold majors are currently benefiting from major cash flows because of the elevated gold prices and increased production, but they have a serious problem. Their reserves are dwindling. We anticipate over the next few years this problem will result in a flurry of merger and acquisition activity in the gold market, causing valuations in the small cap sector to rise. Therefore we believe Provenance Gold Corp. (CSE: PAU) could be worth taking a look at today. What is so special about Provenance Gold Corp? Provenance is focused on the acquisition and advancement of Nevada gold and silver properties, particularly shallow gold and silver systems that can be quickly evaluated and developed. The company is focussed within a top tier mining jurisdiction, along with having experienced management with great knowledge of Nevada’s mineral systems. They have used this knowledge to acquire two exceptional properties both with extensive surface ore-grade mineralization with supporting historical drill hole confirmation of the potential mineral systems. The company believes both properties could contain large mineral resources that should start to be confirmed with initial drill programs. Furthermore, both properties are drill ready. Provenance has a lot to offer with their two very interesting properties. Both their Silver Bow Gold - Silver Project and White Rock Gold Project in Nevada have much to get investors excited about. As we know, Nevada is a historically rich mining jurisdiction. It is also a safe jurisdiction with local government and community support, unlike many areas in which other juniors are exploring. The properties also would not require the enormous infrastructure or access logistics that so many properties in other areas or parts of the world require when developing, planning or evaluating an economical deposit.
Let us start with their White Rock Gold Project located in Elko County, Nevada. This property looks to host a potential gold system that is approximately 2 miles (3.2 km) long and 1 mile wide (1.6 km), with the possibility to grow even larger. It includes 258 claims covering 5,160 acres with certain historic drill results showing 39m at 0.48 g/t gold, 19m at 1 g/t gold and 3m at 5.7 g/t gold (starting at 42m within hole WR-3). In addition to hole RR-41 that ran 73m at 0.55 g/t gold starting at surface. Let us also discuss the Silver Bow Gold - Silver Project. This property has shown strong initial sampling results with multiple surface grab assays running as high as 293 g/t gold. More importantly, the company’s new understanding of the mineral system shows the potential for large size. While high-grade gold and silver samples are scattered across the property, what is most promising is the continuity of potentially open-pit grade mineralization across extensive areas of the property. You can visit their website for more details on both their properties (link below).
So why choose Provenance Gold? First, both properties are currently drill ready, with initial drilling on the Silver Bow property scheduled for some time in February. At such a small market cap, drill results could propel the Company to decent multiples of where it currently stands today. With the current geological understanding of their gold systems along with existing data, both properties are believed to hold the possibility for extensive shallow gold and silver mineralization. Additionally, Nevada is a friendly, stable mining jurisdiction. This gives Provenance the ability to potentially fast track an open pit resource and the ability to explore virtually year-round. Lastly, Provenance Gold’s aggressive and knowledgeable management, with an extensive support network, are important to unlocking maximum shareholder value. With their tight share structure, seasoned and knowledgeable geologists, intriguing properties and relatively tiny market cap Provenance Gold Corp. could be a big winner in your portfolio for 2021 and beyond!