The New Gold Boom

Why the Yellow Metal Could Fly in 2021 - Seite 3

What originally brought AMEX to the Abitibi greenstone belt area of Quebec, Canada was that of a past-producing mine referred to as the 'Normetal Mine'. This past-producing mine is now 100% owned by Starr Peak. The mine in the spotlight is located just 8+ kilometers to the NW of the village of Normetal, and approximately 110 kilometers North of the town of Rouyn-Noranda. With the announcement that Starr Peak secured a diamond drill rig for its drilling program, Starr Peak identified that it is targeting drilling in the area of the Main Bloc which consists of the areas surrounding the Normetal Mine.

This is all happening in the beating heart of Quebec's gold country. Just as gold, in general, has moved from Wall Street to Main Street, Amex has followed suit--attracting institutional investors to keep it off the radar while it grew serious legs.

Starr Peak shares have been on a tear since they doubled down on Perron and kicked off actual drilling, surging more than 300% over the past 12 months.

Yet, at a market cap of just US$47 million, if Starr Peak makes a bona fide discovery, things could look a lot better. And Starr Peak presents a risk-reward profile that looks very attractive.

Junior Gold Mining Stocks Are Major Multipliers

Gold Mining Stocks offer the best risk/reward opportunity to possibly multiply your returns over the long run.That's the case because junior gold mining stocks react strongly to any gold discovery on their property, compared to major gold producers where a discovery might be small in comparison to the whole company.

When the first round of Amex investors earned over 1,000% returns, it was because the company had no exposure and did something the most major miners couldn't do: It found a huge gold deposit in the very place that the bigger drillers had failed. 

The biggest risk/reward ratio for investors in junior gold is when they jump in before a major discovery, and before a company has sufficient exposure. That's exactly what happened with Amex.

Now there's excitement and buzz turning to Starr Peak (STE; STRPF), as they are now in Phase 2.0 of the Quebec gold bonanza. And the timing is perfect: Gold hasn't seen this kind of setup in nearly eight decades.  And if that gold is still in the ground and about to be discovered--even better. That's the gold that can seriously multiply.