A New Gold Rush Is Just Getting Started In Canada

 FN Media Group Presents Oilprice.com Market Commentary

LONDON, June 24, 2021 /PRNewswire/ -- If you're wondering where in the world you can find an unimaginably vast territory rich not only in gold but in all the metals deemed strategic for the 21st-century economy, yet still largely untapped … we think you don't have to look far. Mentioned in today's commentary includes: AngloGold Ashanti (NYSE:AU), Kinross Gold Corp. (NYSE:KGC), Newmont (NYSE:NEM), Yamana Gold (NYSE:AUY), Franco-Nevada (NYSE:FNV).

Canada's Quebec province, a massive 1.7 million km², contains one of the most diverse collections of metals in the world. Only 1% of it is being mined. And only 5% is covered by mining rights. It's a mecca of gold, silver, iron, nickel, titanium, niobium, copper, and zinc.

But most recently, thanks to junior explorer the gold rush is on again.

Starr Peak Mining Ltd. (STE.V; STRPF)

Only this time, it's not just gold. It's the holy grail of mining that has eluded the major players for a century: A VMS (Volcanogenic Massive Sulphide) deposit with rock containing multiple base metals, including zinc, copper, silver, and gold. Starr Peak was after gold, but what it encountered on its first drill hole was much more.

In this same location last year, Amex Exploration made a high-grade gold discovery right next to the past-producing Normetal Mine, which has historically produced ~10.1 million tonnes of 2.15% copper, 5.12% zinc, 0.549g/t of gold and 45.25 g/t of silver.

What held it was this: Right before that discovery, Starr Peak moved to acquire a huge position adjacent to Amex, and then it bought the Normetal Mine itself. Amex ended up with a huge discovery on its Perron Property, right next to Normetal. That find netted investors up to 7,000% returns. And while investors were quietly accepting their gains, the behind-the-scenes action with Starr Peak was building exciting momentum.

In February, Starr Peak started its fully funded 20,000-meter drill campaign. By the first week of May, Starr Peak released its first drill results that went beyond our expectations.

What Starr Peak found was better than gold

Volcanogenic massive sulfides have been around as long as the earth itself. But VMS discoveries have been few and far between.

VMS deposits were formed on the ocean floor during ancient underwater volcanic activity and then ended up on land that was once underwater due to tectonic plate movements. 

One of the rare VMS discoveries is the Kidd Mine in Ontario, Canada, in production since 1966, and owned and operated by Glencore Plc.