Which TSXV-listed junior gold stocks have performed the best so far this year? Our list includes the five biggest gainers.
Click here to read the previous best junior gold stocks article.
Riding the momentum of 2020, the gold price displayed strength at the start of 2021, peaking at US$1,950 per ounce in January before downward pressure set in.
A recovering global economy mixed with high US 10 year treasury yields and a strengthening US dollar added headwinds for gold, peeling away at the safe haven asset's value in the first quarter.
In Q2, gold managed to rally from the US$1,730 level in April to a quarterly peak of US$1,908.20 on June 2. However, those same headwinds experienced in Q1 pushed prices down to a June close of just above US$1,760.
Heading into the final stretch of the year, the price of gold has struggled to stay above the US$1,800 level.
The muted tone displayed by gold has prompted some to buy the dip, as lower values make a better entry point. But while discounts may be enticing for investors, they are not for explorers and miners. The junior space prefers a higher gold price, which makes projects more economical and profitable.
That said, it's worth noting that gold is still holding at historically high levels, not far off 2020's all-time high.
Now that 2021 is coming to a close, the Investing News Network has rounded up the five best junior gold stocks on the TSXV with the biggest share price gains year-to-date.
The best junior gold stocks list below was generated on December 6, 2021, using TradingView’s stock screener, and all companies listed had market caps above C$10 million at that time.
1. Arizona Metals
Year-to-date gain: 409.8 percent; current share price: C$5.20
As its name suggests, exploration company Arizona Metals (TSXV:AMC) has 100 percent ownership of two key projects in the Grand Canyon state: the Kay mine project and the Sugarloaf Peak gold project.
In May, the company discovered a new gold-rich zone at Kay with open-ended mineralization. This area had previously been untested by historic drilling or exploration. Drilling at Kay also intersected massive sulfide mineralization in all seven holes completed.
Arizona Metals kicked off June with an announcement that metallurgical testing at its Sugarloaf Peak project saw gold recoveries averaging 76 percent from surface to approximately 111 meters. Oxidized zones tested even higher, reaching recoveries up to 95 percent.
Company shares rose from the C$1 level in January to peak at C$5.55 on June 23.
2. Cerrado Gold
Year-to-date gain: 285.08 percent; current share price: C$1.60
Cerrado Gold (TSXV:CERT) is not only a gold explorer, but also a gold producer. Its Minera Don Nicolas mine is located in Argentina's Santa Cruz province, and its exploration assets include the Monte do Carmo project in Brazil.
In August, Cerrado had plenty of positive news. At the start of the month, the company reported a new mineral resource for the Serra Alto deposit at Monte do Carmo. Later in the month, it announced an updated preliminary economic assessment (PEA) for Monte do Carmo. The PEA highlights an after-tax net present value of US$617 million at a 5 percent discount with an internal rate of return of 94.8 percent.
The company closed out the month by reporting significantly increased grades and throughput for Q2 production at Minera Don Nicolas, resulting in the highest gold production levels at the operation since its acquisition. Shares of Cerrado hit a high of C$1.78 on August 30.
3. Laurion Mineral Exploration
Year-to-date gain: 260 percent; current share price: C$0.72
Gold explorer and developer Laurion Mineral Exploration's (TSXV:LME) flagship asset is the brownfield Ishkoday gold-polymetallic project located in Ontario. It hosts the past-producing Sturgeon River and Brenbar mines.
Shares of the company hit a peak of C$0.75 on April 28. Laurion’s most recent work on the property has centered on the strike continuity between the A-Zone and McLeod mineralized areas. In September, the company shared highlighted assay results, including 0.71 grams per tonne gold, 13.29 grams per tonne silver, 0.17 percent copper and 2.22 percent zinc over 13.5 meters.
4. North Peak Resources
Year-to-date gain: 200 percent; current share price: C$1.65
North Peak Resources (TSXV:NPR) is focused on acquiring low-cost, long-life mining operations in politically safe jurisdictions. Formerly known as Interbit, the company changed its business focus in mid-2020.
North Peak’s share price reached a peak of C$1.65 on December 6, the day the company announced a binding definitive agreement for the option to acquire the 2,733 acre Black Horse gold-silver property located 50 miles east of Ely within the Black Horse mining district in White Pine County, Nevada.
5. Solstice Gold
Year-to-date gain: 135.71 percent; current share price: C$0.165
Gold-focused explorer Solstice Gold (TSXV:SGC) has a pipeline of projects in Ontario, Quebec and Nunavut.
The company’s Red Lake Extension, Taillon, Moreau, KGP and Berens projects are at the north end of Ontario’s prolific Red Lake gold district. Its district-scale Qaiqtuq project in Nunavut is located only 26 kilometers from Rankin Inlet and approximately 15 kilometers from Agnico Eagle Mines' (TSX:AEM,NYSE:AEM) Meliadine gold mine.
In mid-September, the company announced the acquisition of a portfolio of royalty and property interests in Ontario and Quebec from vendors including prospector Perry English.
Company shares reached a peak of C$0.18 on November 1.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Laurion Mineral Exploration is a client of the Investing News Network. This article is not paid-for content.
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