Gold & precious metals Snapshot: Eight companies to watch

Gold and other precious metals play a critical role in modern society — both as a store of value and for achieving a low-carbon future. More mining companies are responding to the demand for these resources. Here’s a glimpse of eight companies exploring for gold and precious metals.

Collective Mining

Collective Mining (TSXV: CNL; US-OTC: CNLMF), a Toronto-based explorer, is focused on extending the main breccia discovery at its Apollo target, part of the company’s flagship Guayabales project located in the department of Caldas, Colombia.

In late February, Collective Mining released assay results from its second phase of drilling consisting of six holes drilled in 2023. To date it has drilled a total of 32 holes for 15,400 metres at the project. Highlights include hole APC-31, which cut 384.7 metres grading 2.46 grams gold equivalent per tonne (1.17 grams gold, 43 grams silver and 0.37% copper), including 109.8 metres at 4.14 grams gold equivalent from surface.

Commenting on the results, Collective CEO Ari Sussman said the year was off to an “excellent start.”

“Not only did drill hole APC-31 confirm for the first time that the high-grade copper-silver-gold mineralization in the Apollo porphyry system comes right to surface, but also that there is a significant zone of high-grade oxide mineralization,” he said.

Previous results include hole APC-29, which returned 32 metres of 9.23 grams gold, 60 grams silver, 0.44% copper, and 0.003% molybdenum starting from 111.3 metres.

The main breccia, which is a high-grade, bulk-tonnage copper-silver-gold porphyry-related system, now has a width of 395 metres and a vertical depth of 915 metres. It remains open for expansion in all directions.  

The second phase program at Apollo includes three diamond drill rigs.

The company also plans to drill this year at its Olympus and Donut targets, as well as at its San Antonio project, located 4 km east of Guayabales.

“[Our] fully-funded drill program will seek to continue to expand these discoveries while also testing new targets,” Sussman said. The company expects to release assay results regularly throughout the year.

Collective Mining has a market capitalization of $209.1 million.

G2 Goldfields

Toronto-based G2 Goldfields (TSXV: GTWO; US-OTC: GUYGF) is focused on advancing its Oko gold project in Guyana. The 77.7-sq.-km property is located about 120 km west-southwest of the capital Georgetown, and directly north of Reunion Gold’s (TSXV: RGD; US-OTC: RGDFF) Oko West project.

G2 shared the latest drill results from the Oko Main zone in February. Highlights include hole OKD-132, which cut 3.7 metres grading 45.4 grams gold per tonne; and hole OKD-145, which returned 16.3 metres of 6.8 grams gold starting from 67.7 metres.

Drilling at Oko Main has been focused on expanding the zone along strike and downplunge to grow the initial resource estimate released in April 2022. The resource pegged indicated resources at Oko Main at 793,000 tonnes grading 8.63 grams gold per tonne, and inferred resources at 3.2 million tonnes grading 9.25 grams gold.

 Since then, the company has drilled 36 additional holes totalling 13,279 metres.

With a prospective 17-km strike length, other targets at Oko include Oko North West, Tracy, Aremu, and the newly discovered Ghanie zone for which assay results from 15 diamond drill holes were also recently announced.

Highlights from Ghanie include hole GDD-10, which cut 26.6 metres grading 5.1 grams gold starting from 90 metres, including 7.6 metres of 15.5 grams gold.

These results “have confirmed a significant new discovery… south of [the Oko Main] deposit,” said Boaz Wade, vice-president exploration, in a release.

G2 also controls the historic Peters and Jubilee mines located 4 km away from each other about southwest of the Oku-Aremu project within the Puruni district. Both saw a six-hole drill program last year.

Late last year, the company filed a shelf prospectus that will allow it to raise up to $50 million by issuing any combination of common shares, warrants, subscription receipts, units and debt securities. The prospectus expires in January 2025.

G2 plans to continue drilling at Ghanie while advancing its other regional targets.

G2 Goldfields has a market capitalization of $131.7 million.

GoGold Resources 

GoGold Resources (TSX: GGD; US-OTC: GLGDF), a Halifax-based gold and silver producer, is working to advance its Los Ricos project in Jalisco, Mexico.

The company also holds the Parral tailings site in Chihuahua, where it reported production of 441,217 silver-equivalent oz., (159,838 oz. silver, 2,399 oz. gold, and 222 tonnes of copper) in the final quarter of 2022.

Located 100 km northwest of the city of Guadalajara, GoGold’s Los Ricos project is split into two: Los Ricos North and Los Ricos South. The company acquired the 220-sq.-km property in 2019.

In 2022, GoGold launched a 100,000-metre drilling program at the North property.

In a Jan. 18 news release, GoGold announced results from eight drill holes from the El Favor East deposit at Los Ricos North. Hole LRGF-22-147 returned 19.9 metres of 0.59 gram gold per tonne and 392 grams silver starting from 126.7 metres, including 1.2 metres grading 6.48 grams gold and 3,722.2 grams silver. The company plans to complete an initial preliminary economic assessment (PEA) for Los Ricos North this year. A late 2021 estimate pegged indicated resources at 87.8 million silver-equivalent oz. in 22.3 million tonnes grading 122 grams silver equivalent per tonne, and inferred resources at 73.2 million oz. silver equivalent in 20.5 million tonnes grading 111 grams silver-equivalent per tonne.

At Los Ricos South, results from the recently acquired Eagle concession included hole LRGAG-22-118, which cut 55 metres grading 7.8 grams gold and 2,152.7 grams silver starting from 95.6 metres, including 25 metres of 16.07 grams gold and 4,664.2 grams silver. This is the highest-grade hole drilled to date at Los Ricos. The 11.1-sq.-km Eagle concession, acquired last October, covers the northern strike extension of the Main deposit at Los Ricos South.

This year, the company plans to continue drilling at Los Ricos South in order to update a January 2021 PEA, and complete a prefeasibility study. The studies will incorporate the Eagle concession. The 2021 PEA forecast initial capital costs for Los Ricos South at $125 million for an 11-year operation that would produce 42.9 million oz. silver, 352,000 oz. gold, and 4.5 million lbs. copper over its mine life.

GoGold recently closed a $65-million bought deal offering, which will be used to advance its projects. The company issued 28.9 million common shares at a price of $2.25 each.

GoGold has a market capitalization of $660.3 million.

Lavras Gold

Lavras Gold (TSXV: LGC; US-OTC: LGCFF), a Toronto-based exploration company,

recently confirmed high-grade gold, silver, and copper at its Lavras do Sul (LDS) project in Rio Grande do Sul State, Brazil.

Lavras drilled 3,123 metres across seven holes at the project’s Matilde Extension, all of which encountered mineralization.

Highlights shared in a Jan. 25 news release include hole 21MT020, which intersected 10 metres grading 13.21 grams gold per tonne, 22.94 grams silver, and 0.22% copper starting from 345 metres, including 5 metres grading 23.15 grams gold, 42.75 grams silver, and 0.41% copper from 347 metres.

Two other holes returned high copper grades. Hole 22MT030 yielded 0.29% copper over 0.87 metres starting from 179 metres and hole 22MT038 returned 0.57% copper over 1.33 metres within 6 metres at 0.14% copper.

Matilde Extension is located 675 metres northeast of the Matilde discovery that was made in 2022, and remains open along strike and at depth.

In total, LDS has 23 known gold occurrences and six priority drilling targets, which also include Caneleira, Vila Merieta, Mato Feio, and Zeca Souza.

Lavras Gold will be continuing with its 16,000-metre drill program, of which 6,000 metres have already been completed. Drilling will test targets at Matilde Extension and Zeca Souza, where high-grade gold mineralization has also been confirmed.

In addition, the company is carrying out an ongoing soil survey program at its Caneleira gold discovery, located 1 km southeast of Zeca Souza.

Lavras Gold has a market capitalization of $18.9 million.

Silver Mountain Resources

Toronto-based Silver Mountain Resources (TSXV: AGMR; US-OTC: AGMRF) is focused on advancing its flagship Castrovirreyna project in Huancavelica, Peru.

The company announced on Feb. 23 the discovery of a porphyry copper target at the Yahuarcocha and Guanajato zones, within its Reliquias property. 

Inside the Reliquias claim block, Silver Mountain has identified an extensive alteration zone of 7 km by 3 km with structurally-controlled silica ledges. Below that lithocap, several hydrothermal breccia pipes were identified in the Yahuarcocha and Guanajato areas.

Earlier in February, drilling results confirmed high-grade silver-polymetallic intercepts at the Reliquias underground mine.

Highlights include hole SMR-060-22-PER, which tested the Perseguida vein. It cut 1.34 grams gold per tonne, 331.67 grams silver, 0.31% copper, 1.74% lead, and 3.16% zinc over 1.2 metres starting from 318.9 metres.

The company also shared its latest channel sampling results from the Meteysaca vein in a Feb. 14 news release. Samples from zones 2 to 6 returned gold grades that ranged on average between 0.38 grams and 0.98 grams.

Reliquias has potential mineral resources distributed over 10 veins with a combined strike length of 8 km.

Located about 240 km southeast of Lima, the underexplored Castrovirreyna, comprises both the Dorita and Reliquias properties. The project hosts measured resources of 337,000 tonnes grading 264 grams silver per tonne, 3.6% zinc, 2.7% lead, and 0.6% copper for a contained resource of 2.9 million oz. silver, 26.4 million lb. zinc, 19.8 million lb. lead, and 4.2 million lb. copper. Indicated resources add 401,000 tonnes grading 301.4 grams silver, 3.4% zinc, 2.2% lead, and 0.5% copper.

Silver Mountain announced in February that it had raised $8.1 million in aggregate gross proceeds, which will be used in part to fund upcoming exploration activities at Castrovirreyna. Under an agreement with a group of underwriters led by Sprott Capital Partners, the company issued 27 million units (each one consisting of one common share and half of a common share purchase warrant) at a price of 30¢ each. Purchase warrants can be exercised at a price of 45¢ for a period of 36 months.

The company plans to complete a resource update and PEA this year.

Furthermore, with a 2,000 tonne-per-day processing plant and a two-year operating tailings dam, production at Reliquias is scheduled to begin in the first half of 2024.

Silver Mountain Resources has a market capitalization of $52.1 million.

Silver Tiger Metals

Silver Tiger Metals (TSXV: SLVR; US-OTC: SLVTF) is looking to revive the historic El Tigre mine, a 284.2-sq.-km project located at the northern end of the Sierra Madre silver and gold belt in Sonora, northwestern Mexico.

The Halifax-based company released the latest drill results in a Jan. 25 news release. In the Sulphide zone, hole ET-22-433 intersected 44.4 metres grading 0.16 gram gold per tonne, 508.2 grams silver, 0.55% copper, 1.76% lead, and 3.17% zinc starting from 330.5 metres, including a 6-metre sub-interval starting from 364.5 metres grading 0.2 grams gold per tonne, 1,354.4 grams silver, 1.57% copper, 6.1% lead, and 10.86% zinc.

Another hole, ET-22-434, intersected 19.9 metres grading 0.22 gram gold, 605.6 grams silver, 1.13% copper, 4.04% lead, and 7.43% zinc starting from 361.7 metres, including 10.5 metres grading 0.2 gram gold, 914 grams silver, 1.68% copper, 5.92% lead, and 12.42% zinc from 370.1 metres.

The first gold discovery on the property was made in 1896 by American prospector, James Taylor. From 1903 to 1938, the mine produced 353,000 oz. gold and 67.4 million oz. of silver with average grades of 7.54 grams gold and 1,308 grams silver, but closed due to the collapse in silver prices during the Great Depression.

Since acquiring the mine in 2015, the company has identified four types of mineralization (epithermal veins, stockwork zone, black shale zone, and sulphide zone).

El Tigre hosts indicated resources of 26.8 million tonnes grading 21 grams silver and 0.51 gram gold for 18 million oz. of silver and 444,000 oz. of gold. Inferred resources add 6.6 million tonnes grading 88 grams silver and 0.52 gram gold for 18.9 million oz. of silver and 112,000 oz. of gold.    

Silver Tiger hasengaged Cominvi, an underground mining and construction company, to rehabilitate the mine. The Mexican contractor has completed over 450 metres of restoration in Level 7, the main portal to the mine. This will allow the company to start drilling from underground stations.

Silver Tiger Metals has a market capitalization of $91.9 million.

Stillwater Critical Minerals

Stillwater Critical Minerals (TSXV: PGE; US-OTC: PGEZF), a Vancouver-based explorer, has expanded its resource by 62% at its flagship Stillwater West PGE-nickel-copper-cobalt and gold project in Montana.

The updated mineral resource estimate, announced in a Jan. 25 news release, shows that Stillwater West now hosts 255 million tonnes of inferred resources grading 0.15 gram platinum per tonne, 0.25 gram palladium, 0.05 gram gold, 0.016 gram rhodium, 0.19% nickel, 0.09% copper, and 0.02% cobalt for contained resources of 3.8 million oz. of palladium, platinum, gold, and rhodium, and 1.6 billion lb. of nickel, copper, and cobalt. Figures are based on a 0.2% nickel-equivalent base cut-off grade.

Stillwater West remains open for expansion along strike and at depth.

The company’s portfolio also includes the Drayton-Black Lake gold project in the Abrams-Minnitaki Lake Archean greenstone belt in Ontario. The belt hosts 6.6 million oz. of gold across multiple other projects, including New Gold’s (TSX: NGD; NYSE-MKT: NGD) Rainy River mine.

Drayton-Black Lake is subject to an earn-in agreement where Heritage Mining (CSE: HML) can acquire up to 90% interest in the project.

In addition, Stillwater holds the Kluane PGE-nickel-copper project, which extends from British Columbia to Alaska; and Duke Island, a copper-nickel-PGE project located 80 km south of the city of Ketchikan in Alaska.

Stillwater is responding to the growing demand for critical minerals and hopes to become a primary source of low-carbon battery and precious metals in the U.S.

The company is planning its 2023 exploration programs, which are expected to include an extension of geophysical surveys and the completion of expansion drilling.

Stillwater Critical Minerals has a market capitalization of $40.8 million.

White Gold

Toronto-based explorer, White Gold (TSXV: WGO; US-OTC: WHGOF), is focused on its gold projects in Yukon’s prolific, yet underexplored, White Gold district located 95 km south of Dawson City.

The company has multiple properties in the early, discovery, and advanced stages, including its flagship Golden Saddle and Arc deposits, which host 15.5 million tonnes of indicated resources grading 2.28 grams gold per tonne and 9 million inferred tonnes grading 1.39 grams gold.

In late February, White Gold reported positive assay results from initial drilling in 2022 in the gap area between Ryan’s Surprise and Ulli’s Ridge targets, located 2 km west of the company’s flagship deposits. The 2022 program consisted of nine holes totalling 2,685 metres. The drilling cut several zones of gold mineralization consistent in tenor with zones at Ryan’s Surprise.  

Highlights include hole WHTRS22D027, which intersected 11.5 metres grading 1.43 grams gold per tonne starting from 145.5 metres depth. Another hole, WHTRS22D028, cut 2.35 metres grading 6.01 grams gold from 296.5 metres.

“We are very pleased to see the significant extension of mineralization at the Ryan’s Surprise almost doubling its strike length as well as the discovery of gold mineralization at multiple other targets in first ever drilling along this underexplored trend which has now encountered gold mineralization over a length of 5.5 km,” said CEO David D’Onofrio in a release.

The company’s 3,500-sq.-km land package also includes the VG deposit, located 11 km north of Golden Saddle and Arc; the Betty property, located 150 km south of Dawson City; and the road-accessible (from Dawson City) Vertigo target discovered in 2019.

According to its website, White Gold is “leading the modern Yukon gold rush.” The company’s Drones to Drills technique combines traditional exploration methods with modern technologies, such as drones and artificial intelligence, which has reduced exploration costs.

White Gold is financed for its 2023 exploration program after completing a non-brokered private placement in December that raised $4.4 million in aggregate gross proceeds. More than 1.8 million common shares were issued at a price of 38¢ per share and approximately 9 million flow-through shares were issued at 41¢ per share. Agnico Eagle Mines (TSX: AEM; NYSE: AEM) took part and maintains 19.8% ownership of White Gold. White Gold has a market capitalization of $52.9 million.