How Wall Street Buys Gold at a Discount - Seite 2

He's hoping to do it again with African Gold Group.

Here are 5 reasons to keep a close eye on African Gold Group (AGG.V; AGGFF) over the coming weeks:

#1 For the Biggest Discounts, Go To Africa

The big miners aren't done exploring. They're waiting for the juniors to do all the heavy lifting so they can scoop them up and start producing. From the major miner perspective, we've already hit peak gold.

Goldcorp Inc. Chairman Ian Tefler called peak gold already last year, saying production had finally peaked after four decades of uninterrupted growth. Going forward, it's an extended decline for the big miners.

And African Gold Group (AGG.V; AGGFF) Mali project offers one of the biggest discounts around.

Mali is the third-largest producer of gold in all of Africa, and the Birimian Greenstone Belt—the home of Africa Gold Group's Kobada Project—is the motherlode of African gold with a long history of mining that dates back to the 19^th Century. 

The brilliant part here is that the mine holds an estimated total resource already of a whopping 2.2 million ounces and they haven't even scratched the surface.

#2 The Drilling Frenzy

African Gold Group (AGG.V; AGGFF) is already on hole No. 10, and it's got 3 drills turning and another just arrived on the scene this week. The real kicker: They're actually ahead of schedule, which is largely unheard of for a junior. They were supposed to complete drilling in January, and have now moved it up a month.  

Right now, they're drilling 1 hole every three days, at about $70,000 per hole. It's so fast that it'll wrap up a month early, on December 12^th. But between now and April 2020, there will be much more than drilling completion pushing this fast and furious news flow. In a week, AGG expects to have new geoinformation coming out.

Then, by Thanksgiving, they expect to have results from key metallurgical tests worked out, crucial for developing the optimized process plant methodology. By the end of December, they should have detailed information about operating costs, and be defining the process and getting CAPEX numbers together to a high level of accuracy.

#3 Low-Cost Production, World-Class Venue

A 2016 feasibility study demonstrated that Kobada is simple to mine on a technical level, and that's music to investor's ears.

This is an open pit operation with gravity separation and leach. That means it will be a low-cost, scalable, free dig. These aren't challenging processing operations, so there's very little sustaining cost to keep it running.