As the rally in gold stocks percolates downwards into smaller and smaller companies, analysts such as Tracy Hurley of Wolverton Securities are examining microcap gold stocks and recommending those that seem worthy of attention.
In a recent Stockhound Report, Hurley notes that “our biggest problem was keeping companies on the list, as we saw some of our favourites quickly exceed limits we had set on market cap and price gains since last December.”
She recommends seven companies, all of which share the same attributes: strong technical management; good projects with active or upcoming work programs; sufficient working capital; and a market cap below $15 million.
She adds that the group has experienced less price appreciation than their peers in recent times, owing to lower profiles and less investor awareness.
Wolverton considers the assembled group, listed in alphabetical order, to be “speculative buys for agressive investors only.”
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Eastmain and equal-partner
– Hurley approves of
In the Dr, Energold and subsidiary, impact minerals, have claims close to
Hurley comments that “with only a $3.3-million market capitaliztion (including $1.2 million in working capital), and ownership in a profitable drilling company, Energold continues to be one of the most undervalued exploration companies we follow.”
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The junior will also soon be mounting a minimum $250,000 exploration program at the Casummit Lake gold property in the Birch-Uchi greenstone belt in northwestern Ontario, next to the prolific Red Lake greenstone belt. First Au has an option to acquire a 51% interest in Casummit from
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Formerly a real-estate company, Fronteer is now considered by Hurley to be a “serious junior explorer with excellent technical expertise and a promising project area.”
– Wolverton continues to like
Hurley heartily approves of the addition of former
She concludes that the company is “well-positioned to gain from further appreciation in the price of gold and much more so should current drill programs meet with success.”
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South African giant
– Also on the list is
Rimfire recently acquired the Adam porphyry copper-moly-gold property in British Columbia, some 25 km southwest of the Eskay Creek mine. The junior is now seeking funds to begin reconnaissance work.
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