The Gold Report: Do you see gold trading range-bound through the remainder of this year?
Paul Renken: Unfortunately, yes. We recently had to downgrade our outlook both on gold and silver for the year. We’re looking at an average price of $1,225 per ounce ($1,225/oz) gold in 2015. We were always convinced that gold wasn’t going to test below $1,100/oz and we’re still convinced. By the same token, we’re not seeing the overall macroeconomic growth rates that would cause more risk-averse interest in precious metals.
TGR: What are some small, lesser-known gold companies that you’re following?
PR: We’ve been following Eagle Hill Exploration Corp. (EAG:TSX.V) for quite some time. It’s a stock that Dundee Capital Markets President and CEO Ned Goodman had taken a significant position in a couple of years ago. I always liked the geology of the Windfall Lake deposit. I could essentially see that the grade was going to be there and that the feature containing the gold mineralization had not been sufficiently drilled. Further drilling now indicates that Windfall has significant size at significant grade.
“Commerce Resource Corp. is developing the Ashram REE deposit in far northern Québec.“
The share price, however, was eroding, much to the detriment of shareholders who believed in the story, but now it’s involved in the roll-up of several different companies that Goodman has significant positions in. The marketplace for Toronto Stock Exchange junior gold stocks is such that consolidation is essentially an imperative for a number of companies in order to get development capital.
TGR: Any others in the micro-cap space?
PR: I like Serabi Gold Plc (SBI:TSX; SRB:AIM). The company’s primary interest is the Palito gold mine in the Tapajos region of northern Brazil. I like that stock because it is expanding its …read more