Gold's 'marginal project' problem
The gold sector suffers from a lack of quality projects, said Banyan Gold's CEO Tara Christie.
On Friday Christie recorded Kitco Roundtable with Mining Audiences Manager Michael McCrae, Kitco correspondent Paul Harris and editor Neils Christensen.
Year-to-date the VanEck Junior Gold Miners ETF is off 30% to $17.57. Harris said too many gold companies make the sector harder for investors to navigate. Barrick Gold CEO Mark Bristow wants to see more sector consolidation, according to Reuters. Still, gold prices have been good, and producers are cashed up for acquisitions.
"I think the bigger problem is lack of quality projects. We need new projects, not just regurgitating old projects," said Christie. "The ones that have marginal projects--why would majors want to buy them if the price of gold goes down?"
Banyan Gold is a junior focused on the Yukon. Its 9,230 ha Aurex-McQuesten Property lies in close proximity to both Victoria Gold's Eagle Project and Alexco Resource's Keno Hill Silver District.