Here Is How To Survive A 'Flat Gold Market' - Corvus CEO
(Kitco News) - Even though the anticipated gold rally is not here yet, the junior miners can survive by adding "wealth to the market," said CEO of Corvus Gold Jeff Pontius.
"The gold sector is still under-appreciated right now and the junior sector suffers from that," Pontius told Kitco News on the sidelines of the Silver & Gold Summit.
But, if a junior miner has a "good story that is delivering some impressive results," the market will give you "plenty of attention," the CEO added.
Pontius highlighted that fundamentals for gold are "very strong going forward."
But in the meantime, his main advice to other junior mining companies is to focus on bringing "new wealth to the market."
"That means more discoveries, more ounces, more tonnes. And those kind of discoveries will take care of themselves even in a flat gold market," he said. "That is one thing that is under our control and we’ll see how gold does in the future."
Mining investors are very smart and know exactly what they are looking for when choosing which project to fund, according to Pontius.
The investor today is a strategist, who looks for assets to fund and drive them forward. "Investors are much more careful about what they buy these days. Ten years ago they were buying everything and now they are being a lot more selected about jurisdiction, style of mineralization, how the gold will be produced and who will fund the project going forward," Pontius pointed out.
This investment strategy is key nowadays, especially since major gold discoveries are becoming rare, he added.
"In Nevada we haven’t had a lot of discoveries lately and a new sediment-hosted deposit is quite rare. Certainly, these things are something that majors are paying attention to."
What’s New For Corvus Gold
During the first half of 2018, Corvus Gold will be focusing on its brand new sediment-hosted deposit known as Mother Lode Project, which is located 150 km northwest of Las Vegas, Nevada.
"It is about 90 meters thick. Inside the shell, it looks like it will average two grams a tonne and it will be open pit," Pontius said.
"It will be our focus for the first part of 2018. We have a big drilling program going on right now, which will carry forward into the early part of 2018. The target that we are drilling after is a bit north of a million ounces," he added.