Next Investors logo grey

And the gold winners are...


Published 09-SEP-2019 11:10 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

There’s no question that gold is hot right now. The precious metal is priced at above US$1,500/oz — a more than 6-year high — and when priced in Aussie dollars it’s at its highest level ever. The excitement around the metal has spurred some gold analysts to make big calls this week— some even argue that gold is headed towards $10,000/oz.

But if big returns are what you’re after, dare I say gold — as a commodity — is not where they will be found.

Even hotter than gold has been a handful of ASX-listed gold juniors — in particular those with projects in Western Australia’s Murchison mining district, which is shaping up to be a bit of a winner for junior explorers.

Spectrum Metals (ASX:SPX) has been the standout in the region this year, its share price gaining more than 2500% since February.

Exploration at the company’s Penny West Gold Project in the region’s Youanmi gold province has delivered a series of results detailing high-grade gold mineralisation. Having acquired the project in just December last year, Spectrum has wasted no time in converting the project’s potential to shareholder gains with the company’s market capitalisation rising from $5 million to $150 million in a matter of months.

Right next door to Spectrum’s Penny West Gold Project, is the Penny South Gold Project, which as announced yesterday is being acquired by Aldoro Resources (ASX:ARN) as part of the company’s acquisition of Altilium Metals.

While Penny South is the crown jewel, the deal will see Aldoro add to its portfolio multiple advanced gold, nickel and copper mineralisation exploration projects around the Younami gold mining district and the Windimurra-Narndee Igneous Complex.

The announcement saw Aldoro’s share price open 75% higher after its trading halt was lifted and could very well signal the start of a long-term bull run by the junior explorer.

Also kicking goals in the Youanmi district is Venus Metals (ASX:VMC) along with its JV partner Rox Resources (ASX:RXL).

The JV had a solid week reporting bonanza-grade gold intersections from stage 3 RC drilling at the Currans Find North Prospect at its Younami Gold Project.

Gold mineralisation at Currans Find, often of very high grade, is hosted in multiple east north-east trending quartz veins within mafic, ultramafic and intermediate rocks. It’s not surprising that these rock types are also host to the Penny West and Columbia–Magenta deposits south of Currans Find.

Another Western Australian gold junior announcing a set of strong exploration results this week was Classic Minerals (ASX:CLZ). Classic reported drilling results from its Kat Gap Project, which is part of its Forrestania Project and adjoins the Forrestania Nickel Project currently operated by Western Areas (ASX:WSA). These results included 9 metres at 21 g/t gold from 123 metres, including one metre grading 125 g/t gold.

As Finfeed mentioned when CLZ made its most recent Kat Gap announcement, “the continued strong results highlighted today suggest that Classic could be one of the best emerging sub-$10 million market cap plays based on the value of its assets, management’s astute exploration strategy and the quality of the ore in ground that has already been established.’’

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.