Gold’s Next Big Region Is Old Favorite


Matt Badiali

Over the previous decade, Purple Lake, Ontario didn’t get the popularity it deserves for its gold manufacturing and exploration. That’s altering due to a number of new discoveries and a high-profile acquisition.

There’s one thing massive occurring in Northern Ontario. And in case you are a gold investor, that you must learn about it.

Over the previous decade, Purple Lake, Ontario didn’t get the popularity it deserves for its gold manufacturing and exploration. That’s altering due to a number of new discoveries and a high-profile acquisition.

Purple Lake has over a century of mining historical past. In keeping with the mining information website, the area produced 29.5 million ounces of gold, 5 million ounces of silver, 59 million kilos of copper, and 362 billion kilos of zinc.

Nevertheless, few gold buyers would title it of their prime 5 favourite gold producing areas. However that’s altering.

At present, the Purple Lake district has loads to supply buyers eager about gold mining. Main mining corporations are working there. Mid-tiers are exploring and creating new gold mines. And two tiny juniors have winter drill applications that would flip up the following massive discovery.

That’s not so farfetched, contemplating Nice Bear’s Dixie discovery is barely a few years outdated.

A Massive Discovery Led to a Massive Acquisition Value


Kinross Gold Corp.’s (Ok:TSX; KGC:NYSE) acquisition of Nice Bear Assets Ltd. (GBR:TSX.V; GTBDF:OTCQX) for $1.4 billion put a high-powered highlight on this enticing gold province in Northern Ontario.

This chart ought to make each junior gold investor sit up and take discover.

Nice Bear drilled gap after gap of excellent to nice gold grades in 2017 and 2018. Nevertheless, the market didn’t care … till its Aug. 22, 2018, press launch.

In that press launch, the corporate introduced the outcomes of drill holes DHZ-003 (which hit 16.35 meters of 26.91 g/t gold) and drill gap DHZ-004 (which hit 7.0 meters of 44.47 g/t gold). The inventory ripped larger on the information, as you’ll be able to see within the chart beneath.

Nice Bear’s Dixie Mission doesn’t also have a useful resource calculation but. However the potential is there. It holds broad intersections of robust gold grades. And it continues to develop.

These outcomes validated the standard of the Dixie discovery. After that, Nice Bear turned the corporate to observe. But it surely’s removed from the one firm doing nice issues in Purple Lake.

What’s Purple Scorching in Purple Lake


Purple Lake is among the premier gold producing areas on the earth. Over 30% of Canada’s gold manufacturing comes from this a part of Northern Ontario. The historic Purple Lake Mine produced greater than 25 million ounces of gold from rocks that ran 20+ grams per ton gold.

At present, CA$5.5 billion market cap Australian gold miner Evolution Mining Ltd. (EVN:ASX) operates the mines at Purple Lake. The corporate acquired Purple Lake in 2019 for simply $375 million.

The brand new gold main spent the final couple of years re-engineering the reserves throughout the various deposits. Purple Lake reserves now sit at 2.9 million ounces of gold. Evolution’s three-year plan for Purple Lake is to supply 200,000 ounces of gold per yr at a price of lower than $1,000 per ounce.

Evolution’s administration clearly favored what they noticed at Purple Lake, as a result of they acquired Battle North Gold for its Bateman Gold mission in March 2021 for C$343 million. The Bateman mission sits simply northeast of the Purple Lake camp, 10 km from Evolution’s Cochenour Mine.

Bateman (previously Phoenix Gold), is an underground gold growth mission. It incorporates the high-grade F2 deposit. There’s a small 3.56 million metric ton gold reserve of 635,000 ounces with a grade of 5.54 g/t.

Extra Alternatives For Traders


Evolution isn’t the one massive producer with its sights on Northern Ontario. Main gold miner AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) simply introduced that it might improve its stake in CA$250 million market cap junior Pure Gold Mining Inc. (PGM:TSX.V; PUR:LSE) to 19.9%.

AngloGold has its eye on the PureGold deposit, which boasts an indicated useful resource of virtually 2.1 million ounces of gold with a grade of 8.9 g/t gold.

To not be omitted, large miner Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) simply partnered with micro-cap Kenorland Minerals Ltd. (KLD:TSX.V; 3WQO:FSE) on its South Uchi mission. Barrick agreed to spend $6 million on exploration over six years to earn 70% of the mission.

South Uchi sits inside the Birch Uchi greenstone belt within the Purple Lake mining district. The place the opposite majors went for established deposits, Barrick likes the exploration possibility. As we noticed with Dixie, Bateman, and PureGold, these large greenstone belts round Purple Lake nonetheless maintain undiscovered gold deposits.

And there may be nice information for speculators who love exploration tales. As a result of two tiny corporations are drilling gold initiatives within the area at present, proper smack in the course of all these deposits.

Australian micro-cap explorer Ardiden Ltd. (ADV:ASX) owns the Pickle Lake gold mission. The corporate is presently drilling the Esker Gold prospect on the property. That’s one in all 22 gold targets on the huge Pickle Lake land holding. Like Nice Bear’s Dixie mission, Pickle Lake has many historic gold occurrences.

There’s additionally a pure-play Canadian junior drilling within the area.

Cross River Ventures Corp. (CRVC:CSE; CSRVF:OTC; C6R:FWB) kicks off its personal 5,000 meter drill program on its McVicar Gold Mission in February 2022. The winter drill program follows up a profitable summer time exploration program that recognized the brand new Bear Head Zone, together with a 19.5 g/t gold seize pattern.

Cross River’s McVicar Gold Mission ties up the vital elements of the Lang Lake greenstone belt, roughly 150 km east of Purple Lake.

As you’ll be able to see, Purple Lake holds many alternatives for gold buyers. It’s a gold-rich area with big alternatives, as we noticed with Nice Bear. That firm was a 50-cent inventory ($29 million market cap) in June 2018. At present it’s $28.40 per share. That’s a 5,580% achieve in about three and a half years.

Ardiden is a AU$32.5 million firm at present. Cross River Ventures is a CA$6.2 million firm. Each have potential land packages and ongoing drill applications.

All eyes shall be on these two tiny corporations as we watch for information this winter.

Matt Badiali is a geologist and unbiased monetary analyst. He spent 15 years researching and writing about nice investments contained in the pure sources sectors. He may be reached at www.mattbadiali.web.

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