Despite the recent market volatility, junior mining stocks continue raising capital and working to make the next discovery.
While investors have become less optimistic about the tech sector, mining remains one of the few areas where investors continue looking for opportunities.
The CEO of the Toronto Stock Exchange said earlier this year that mining companies have been leading capital raisings in Canada. In the first half of 2022, they raised over $3.1 billion. More importantly, they were responsible for 25% of all capital raised, compared to 18% in the same period of 2021.
And some of them delivered value-adding exploration results.
Below, we discuss three companies that have managed to navigate the challenging market environment and create value for their shareholders.
Without further ado, let’s dig in.
Tudor Gold Corp. (TSXV:TUD)
Tudor is a Vancouver-based gold exploration company focused on its Treaty Creek project in British Columbia.
It has become one of the most prominent junior gold stocks because of its exploration success.
Treaty Creek is located in Northwestern British Columbia’s “golden triangle,” a well-known mining district in Western Canada where multiple junior gold miners are active.
The company’s project borders the KSM property operated by Seabridge Gold and Newcrest’s Brucejack project.
The drilling hole that put Tudor on the map for us was significant for the company. GS-21-113-W2 was originally drilled in 2021 at the Goldstorm deposit, which is a part of the Treaty Creek project.
When the company examined the results, it noticed that the hole ended in rich mineralization. In fact, the strongest gold mineralization occurred at the bottom of the hole.
So, the company decided to leave the casing and HQ rods and try to extend the mineralization later.
The company’s geologists were right. When the final composite result from that hole included almost 1.5 kilometers of gold mineralization.
To be precise, 1,497.5 meters of 1.12 grams per tonne (g/t) of gold equivalent. (It also included silver and copper grades.)
The high-grade bottom segment delivered 168 meters of 2.48 g/t gold equivalent.
In September, the company reported more high-grade results from the project. It aims at expanding the project’s resource, which is already quite significant, at 19.4 million ounces of 0.74 g/t gold equivalent in the Measured and Indicated categories, as well as 7.9 million ounces in the Inferred category.
Following up on its exploration successes, Tudor closed a $7.75-million private placement in late September. Eric Sprott, the Canadian billionaire, subscribed for $2 million in the offering himself.
He has made his fortune in the Canadian mining sector, including Canadian junior gold mining companies.
Frontier Lithium Inc. (TSXV:FL)
Investors continue watching companies exploring for lithium and other “battery” minerals.
The electric vehicle boom continues, which provides support for the companies working in the areas related to battery production, electrification, decarbonization, and other “green” industries.
Lithium is at the heart of this trend. It’s been one of the most resilient commodities this year. The price of United States lithium carbonate is up over 170% over the past 12 months.
Investors notice when a mining company focused on lithium delivers positive results.
That was what Frontier Lithium did. The results it recently announced made it to the top of the best drill results released by a Canadian mining company.
Back in August, Frontier announced that its drill hole PL-060-22 delivered 357.5 meters of 1.63% Li2O and remained open.
The company’s Pakeagama Lake (or PAK) project is located in Ontario, Canada.
Back in 2019, the Spark deposit, which is part of the PAK project, won Frontier the “Discovery of the Year” award.
Spark hosts a mineral resource of 14.4 million tonnes averaging 1.4% Li2O in the Indicated category and 18.1 million tonnes averaging 1.37% Li2O in the Inferred category.
Following the August press release, the company also announced in early October that it had intercepted 326.6 meters of 1.92% Li2O, including 50 meters of 2.98% Li2O. This grade is twice as high as the resource average.
As we said, exploration successes get noticed.
In October, Frontier announced a $20-million private placement co-led by RBC Capital Markets and Goldman Sachs.
Junior Canadian mining companies continue delivering value-adding results even despite the general market turbulence.
The ones exploring for gold and other monetary metals enjoy a boost from the investors focused on gold as the ultimate “safe haven.” Canadian gold mining stocks tend to provide leverage to the price of gold, potentially delivering higher upside potential than the metal itself.
Others are looking for “critical minerals” that are a part of some of the biggest technological trends.
Regardless of what your particular outlook on the economy or technology is, the Canadian mining sector remains the “Silicon Valley for commodities.” And it continues to be a sector worth following.