The following companies are the Top Ten Canadian-headquartered precious metal juniors that are developing projects, ranked according to market capitalization as of June 1 and compiled by Mining Intelligence. Royalty and streaming companies are not included in this list.
1 NovaGold Resources
Market Cap: $2.3 billion
NovaGold Resources (TSX: NG; NYSE-AM: NG) continues to advance its Donlin gold project, which it owns 50-50 with Barrick Gold (TSX: ABX; NYSE: GOLD). Donlin is located 16 km north of Crooked Creek village in Alaska.
The Vancouver-based company began its 2023 field program earlier this year with the goal of completing the requisite field work and geotechnical drilling for the Alaska Dam Safety certificates applications. Certificates are expected to be issued in 2026 and will allow NovaGold to begin construction. All federal permitting requirements have been met.
Barrick Gold CEO Mark Bristow, left, with NovaGold Resources CEO Greg Lang. Credit: NovaGold Resources
The open pit project is forecast to operate for 27 years with production in the early years of between 1.4 million and 1.6 million ounces. Initial capital costs are pegged at US$7.4 billion followed by sustaining costs of US$1.7 billion. More than 30 million oz. gold is forecast to be recovered. The project’s after-tax net present value (at a 5% discount) is estimated at US$3 billion and its internal rate of return (IRR) at 9.2%.
NovaGold has a strong treasury of $116 million as of February 2023 and is anticipating another $25 million in July from Newmont (TSX: NGT, NYSE: NEM) per their 2018 share purchase agreement.
2 Seabridge Gold
Market Cap: $1.4 billion
Seabridge Gold (TSX: SEA; NYSE: SA) is advancing multiple projects in Canada, including its KSM gold-copper project in northern B.C.
Seabridge received US$150 million from Sprott Resource Streaming and Royalty in exchange for a 1.2% net smelter royalty on KSM in June. This funding will be used to help bring the project to a “substantially started” status by July 2026, without which its environmental assessment certificate will expire.
A preliminary economic assessment (PEA) prepared last year outlined a 39-year mostly block cave underground operation, compared with a previous prefeasibility study on an open pit mine. The PEA pegged preproduction capital at US$1.5 billion. The 170,000-tonne-per-day operation could produce 368,000 oz. of gold, 366 million lb. of copper, and 1.8 million oz. of silver annually.
In May, Seabridge announced the start of its 2023 drill program at its Iskut property in B.C.’s Golden Triangle. Starting at the Snip North target, the company plans to drill more than 12,000 metres across 12 to 15 holes. Work will also focus on the Bronson Slope target where Seabridge discovered copper and gold concentrations within a quartz-magnetite breccia pipe last year.
In Yukon, Seabridge is preparing to resume drilling at its 3 Aces project, located about 225 km south of Watson Lake, with 7,500 metres of drilling planned. After a delay in obtaining a Class 4 Quartz exploration permit last year, the company’s 2022 drill program was halted. Assay results from the four holes that were drilled include 3.53 grams gold per tonne over 22.5 metres, including 11.97 grams gold over 5.2 metres in hole 3A22-355.
3 Osisko Mining
Market Cap: $1.1 billion
Osisko Mining (TSX: OSK) announced in May that it has entered into a 50-50 joint venture with Gold Fields (NYSE: GFI; JSE: GFI) for its high-grade Windfall gold project in James Bay, Que.
Details of the transaction include: $300 million in cash paid to Osisko upon signing; an additional $300 million after obtaining construction, operation, and mining permits; and two additional payments of $17 million each, which are scheduled for July and December 2023, to reimburse Osisko for preconstruction costs.
Gold Fields will also pay up to $75 million for regional exploration, after which funding will be divided proportionally between the two companies. The estimated $250 million in preconstruction costs and $789 million in construction costs will be divided between Osisko and Gold Fields.
A November 2022 feasibility study for Windfall outlined a 3,400 tonne-per-day milling operation that would produce an average of 306,000 oz. gold annually. Each year of production would have an average after-tax free cash flow of $257 million.
The operation is expected to generate $6.2 billion in gross revenue. The project hosts probable reserves of 3.1 million oz. in 12.2 million tonnes grading 8.08 grams gold per tonne.
A production decision will be made in early 2024.
4 New Found Gold
Market Cap: $1 billion
A 500,000-metre drill program is underway at New Found Gold’s (TSXV: NFG; NYSE-A: NFGC) Queensway project, located 15 km west of Gander, N.L.
New Found filed a technical report in February outlining the diamond drilling, rock and soil sampling and trenching completed at the high-grade gold project. However, it has not yet released an initial resource.
Recent drill highlights include hole NFGC023-1292 at the new Jackpot zone, 2.5 km north of its Keats zone – the first discovery at the district-scale project. New Found reported in late June that the hole cut 3.3 metres grading 95.71 grams gold per tonne from 27.4 metres.
And at the Iceberg zone, 330 metres northeast of Keats Main, hole NFGC-23-1286 cut 8.7 metres grading 40.55 grams gold starting from 77.6 metres; and hole NFGC-23-1264 cut 6.7 metres at 33.28 grams gold from 20 metres.
With 12 to 14 drill rigs on site, New Found will complete 181,000 metres this year.
5 Artemis Gold
Market Cap: $871.3 million
Artemis Gold (TSXV: ARTG) continues to develop its Blackwater project located 446 km northeast of Vancouver. Construction began in March after the company received its B.C. Mines Act permit. The first gold pour is expected in the second half of 2024.
Work completed to date includes logging and clearing 2.8 sq. km; upgrading existing roads to accommodate heavy construction equipment; building the construction camp; and delivering key equipment, such as excavators and compactors to the site.
In June, Artemis announced that Wheaton Precious Metals (TSX: WPM; NYSE: WPM) will provide an additional US$40 million in funding to support enhancements to Blackwater’s phase 1 development. Upgrading electrical components and strengthening crushing circuits will help Artemis optimize throughput and accelerate the phase 2 expansion.
As of May 31, construction at Blackwater was 20% complete.
6 Rupert Resources
Market Cap: $698.4 million
In May, Rupert Resources (TSX: RUP) shared results from its 52,000 metre drilling program conducted in 2022-2023 at the Ikkari deposit, part of its Rupert Lapland project in northern Finland.
Highlights include hole 123019, which returned 3.1 grams gold per tonne over 145.7 metres starting from 36 metres, including 6.7 grams gold over 15 metres from 53 metres.
Surveying at Rupert Resources’ Rupert Lapland project in Finland. Credit: Rupert Resources
The Toronto-based company, which graduated to the TSX last December from the TSX Venture Exchange, released a PEA in November 2022. Rupert Lapland, which also hosts the Pahtavaara gold mine, is expected to produce 4.2 million oz. of recovered gold over its 22-year life.
The PEA outlines an initial capex of US$405 million. The after-tax net present value (NPV), at a 5% discount was pegged at US$1.6 billion and the IRR at 46%, with a 2-year payback period.
An updated resource is expected in the fourth quarter.
7 Skeena Resources
Market Cap: $562.2 million
Vancouver-based Skeena Resources (TSX: SKE; US-OTC: SKREF) recently increased the resource at its Eskay Creek gold-silver project, in northwestern B.C.’s Golden Triangle.
The updated resource, which was announced in a June 20 news release, was based on 278 additional drill holes totalling 67,885 metres.
Eskay Creek now holds 50.1 million tonnes of pit-constrained measured and indicated resources grading 2.57 grams gold per tonne and 63.63 grams silver, an 8% increase from the previous estimate. Inferred resources add 643,000 tonnes grading 1.46 grams gold and 32.33 grams silver.
Underground measured and indicated resources total 1.8 million tonnes grading 4.66 grams gold and 95.54 grams silver. Inferred resources add 272,000 tonnes grading 4.21 grams gold and 25.37 grams silver.
In September 2022, the company released a feasibility study, which outlines a nine-year mine life producing an average of 352,000 gold-equivalent oz. per year. Eskay Creek would have an after-tax NPV (5% discount) of $1.4 billion, an IRR of 50%, and a payback period of one year.
Skeena also closed a $73.5 million financing in May. The funds will be used to “complete key development milestones at the Eskay Creek project including an on-site assay lab, earthworks and detailed engineering,” said president and CEO Randy Reichert.
The company expects to release an updated feasibility study before the end of the year, and hopes to begin production at Eskay Creek in early 2026.
8 New Pacific Metals
Market Cap: $505.7 million
Moving up from No. 9 to No. 8 this year, Vancouver-based New Pacific Metals (TSX: NUAG; NYSE: NEWP) is advancing its flagship Silver Sand project in Potosi Department, Bolivia. The company says the project has the potential to be one of the world’s largest silver mines.
A PEA released in January outlined a $327-million, open-pit mine that would produce an average of 12 million oz. of silver annually over a 14-year life. The operation would produce roughly 171 million oz. of total payable silver at all-in sustaining costs of US$10.42 per ounce.
Silver Sand would have an after-tax NPV of $726 million at a 5% discount rate, and an IRR of 39%.
The PEA is based on a November 2022 resource estimate, which pegged measured and indicated resources at 54.3 million tonnes grading 116 grams silver per tonne for 201.8 million ounces.
New Pacific is also working towards completing a prefeasibility study and Environmental Impact Statement, an environmental licence issued by the Ministry of Environment and Water of Bolivia.
New Pacific has two other precious metals projects in the South American country: Carangas, located 180 km west of the city of Oruro, and Silverstrike, which sits 140 km southwest of La Paz.
Drill highlights shared in May from Carangas include hole DCAr0171, which cut 205.6 metres grading 123 grams silver from 76.8 metres. An initial resource estimate for this project is expected in the third quarter.
9 Osisko Development
Market Cap: $468.9 million
Entering the top 10 for the first time, Montreal-headquartered Osisko Development (TSXV: ODV; NYSE: ODV) is focused on its 100%-owned Cariboo gold project in central B.C.
According to a 2023 feasibility study, the underground operation is expected to produce around 1.9 million oz. of gold over 12 years. The study outlines an after-tax NPV (5% discount) of $502 million and an IRR of 20.7%.
Osisko is on track to complete the provincial environmental assessment process in the third quarter and expects to receive its permits in early 2024.
The gold developer also owns the Tintic project located 95 km south of Salt Lake City, Utah.
In May, Osisko released the latest results from its 2023 diamond drilling program at the project’s Trixie test mine. Highlights include hole TRXU-DD-23-003, which cut 6.8 metres grading 62.82 grams gold per tonne and 231.46 grams silver from 38.2 metres.
A resource estimate for Trixie released in January pegs measured and indicated resources at 236,000 tonnes grading 28.08 grams gold. Inferred resources add 385,000 tonnes grading 19.64 grams gold. The company plans to drill about 5,000 metres this year to further define this resource.
10 Snowline Gold
Market Cap: $376.6 million
Also in the top 10 for the first time is Vancouver-headquartered Snowline Gold (TSXV: SGD; US-OTC: SNWGF). The Yukon-focused explorer expanded its flagship Rogue project by about 80% after staking 400 sq. km over the Rogue Plutonic Complex, the geological feature that hosts the project’s main Valley discovery, the company announced in June 9. The project now covers 944 sq. km in the underexplored Selwyn Basin, in eastern Yukon.
Snowline is carrying out an 18,000-metre drill campaign, 15,000 of which will be completed at Rogue. Recent metallurgical testing on 10 composite drill core samples from the project’s Valley target returned gold recoveries ranging from 81% to 99%.
Highlights from the 2022 program at Valley include hole V-22-029, which returned 1.26 grams gold per tonne over 558.7 metres starting from 4.4 metres, including 2.04 grams gold over 202 metres from 90 metres.
In June, the company announced its acquisition of 92 mineral claims, which include the Reid target located 8 km east of Valley. Snowline plans to explore Reid as part of its 2023 drilling campaign.
In addition, drilling will take place at Tosh, Cliff, Rainbow, and Olympus beginning in July.
Snowline’s 3,300-sq.-km land package comprises eight projects, which also include Einarson, Cynthia, and Ursa, within the prolific Tintina gold province.
In No. 9, the Osisko Development section, you state the Trixie resource estimate at 236 Million tons grading 26 g/t. This cannot be correct. I suspect it is 236 Thousand tons . Please confirm.
The figure has been corrected. Thanks for pointing that out!
The New Pacific project that is not already factored in to the valuation is Carangas. Some analysts (PI Financial and BMO) believe the early results could match Silver Sand.