Billion Dollar Gold Belt Found in Southern Mali
LONDON, Aug. 23, 2019 /PRNewswire/ -- What's it like to strike it rich? It's probably like finding gold in the middle of nowhere. Well, that's exactly what happened in a corner of a West African country, where miners uncovered a nugget weighing 1 kilogram worth $45,400. Mentioned in today's commentary includes Eldorado Gold Corporation (NYSE:EGO), Yamana Gold Inc. (NYSE:AUY), Agnico Eagle Mines Limited (NYSE:AEM), Kinross Gold Corporation (NYSE:KGC).
Then, it happened again: a second nugget, weighing 2.7 kilograms, worth $122,500...And what's still underground could change everything we know about the gold market.
It's all happened at the Kobada mine in southern Mali, owned and operated by African Gold Group Inc. (AGG.V, AGGFF). It's a project that sits amidst one of the biggest mineral belts on earth, in a part of West Africa that has just become the capital of the global gold industry.
It's a place where mining firms are spending hundreds of millions on new acquisitions. And AGG hopes to use Kobada to strike it rich in the next big gold boom.
The company has everything going for it:
A project that is planned to come on-line soon, with a total resource base of 2.2 million ounces of gold worth billions of dollars. A management team of dedicated professionals led by a titan of the mining world who has turned tiny firms into multi-hundred million dollar powerhouses. All this, at a time when gold prices look sure to hold steady, and maybe even increase. So there's every reason to bet that this tiny $12 million firm could realize a huge valuation or even potentially get gobbled up delivering a massive upside to investors who get in on the ground floor.
It's all happening for AGG (AGG.V, AGGFF). Here are five reasons to get excited:
#1 The Kobada Find a $140 Million per Year Gold Mine in West Africa
The Kobada Gold Project is in southern Mali—which is important to note. While Northern Mali has had some trouble, southern Mali is stable, safe, and extremely favorable to extractive operations.
The belt stretches over 4 km within a larger 12 km strike length and is entirely owned by AGG. Studies have suggested a total resource base of 2.2 million ounces. The company believes it can hit 50,000 ounces a year and build upwards to 100,000 ounces a year in a short time frame, judging by initial technical and economic studies.
|Diskussion: Kinross Gold (KGC)|