After a lot of more DD in the last few weeks an updated version list of the stocks I like is due. The list is composed of four main sections:
- Victoria Gold
- Silver Bear Resources (new)
2.) Development post PEA stage
- Silver Bull Resources
- Chesapeake Gold (new)
- Rockhaven Resources (new)
- Filo Mining (new)
3.) Exploration development
- Southern Silver Resources
- Silver One Resources
- Silver Dollar Resources (new)
- Silver Range Resources
- Strategic Metals
To get on the producer list there must be organic growth potential, Victoria Gold & Silver Bear Resources fits this criteria perfectly. Victoria Gold begins deep drilling below Eagle reserve pit this month, back in 2017 they drilled these:
- Victoria Gold: Mineralization Extended 390m Below the Eagle Reserve Pit; Including 104.6m @ 1.20 g/t Au from 539m to 644m, Dublin Gulch, Yukon
- Victoria Gold Drills 624.1m @ 0.50 g/t Au from Surface, Dublin Gulch, Yukon
- Victoria Gold Drills 607.8m @ 0.56 g/t Au including 40.2m @ 1.33 g/t Au at the Eagle Gold Project, Yukon
This deposit alone will imo be a 10 moz deposit. Victoria Gold also has the district scale potential with multiple deposits discovered that probably will be stand alone mines in the region. It is the ultimate growth stock in the gold sector.
Silver Bears growth potential is more specilative but management hinted at JORC estimates indicating 1 billion oz in expansion potential back in 2009. The top performing large cap gold- & silver stocks recent years have their operations in Russia (As Silver Bear does), I don’t think political risk is a good enough reason to not own this stock. Imo Russia may be one of the best regions going forward.
The development post PEA stage companies above are on the list because they have the most attractive NPV to Market cap ratios in the sector with Silver Bull Resources coming in at number 1 with a 100:1 ratio, Chesapeake at number 2 with 20:1, Rockhaven at number 3 with 15:1 and Filo Mining at number four with 10:1. A company that was on the favorite list two years ago (Discovery Metals) currently trades at a 1:1 ratio. All of these also have great leverage to gold & silver and big expansion potential.
To get on the exploration development list a company must have a promising deposit that may have potential to produce a positive PEA report. The mineralization should be non scattered and be near surface or have mineralization fit for underground mining, I believe Southern Silver, Silver One & Silver Dollar are the best ways to play this section based on size of resources, expansion potential and market caps.
On the pure exploration list I have Silver Range Resources and its parrent company Strategic Metals, these two are safe ways to play the exploration game since they manage risk with the prospects generator model. Silver Range has projects in exploration development stage but most of its portfolio is in pure exploration stage and therefore it’s in the exploration section of the list.