Companies in Canada’s Gold-Rich Abitibi Greenstone Belt Have Seen Shares Skyrocket By Up to 1,400%1 in the Past Year.
Investors considering the global Covid-related trillion-dollar deficits and the inevitability of rising global inflation are taking a second look at gold exploration stocks, such as Clarity Gold Corp (CSE: CLAR | OTC: CLGCFCSE: CLAR | OTC: CLGCF)
Formed in June 2020 with substantial early funding, Clarity Gold is currently exploring a 12,300-acre2 property smack dab in the middle of the gold-rich Abitibi greenstone belt on the Quebec-Ontario border.
The region gets its name from the largely green rocks that are veined with quartz and often gold.3 One of the richest mining areas in the world, the Abitibi region has produced up to 180 million ounces of gold dating back to the early 20th century.
New exploration knowledge and mining technologies now allow companies like Clarity Gold to uncover previously undetected gold resources lying fifteen meters below the surface.
Exploration Stocks Often Outperform Mining Stocks by a Significant Margin During Gold Rallies
Unlike mining stocks, exploration stocks are shares in companies that are actively exploring for gold but not currently mining.
Many investors like these stocks because of their potential for sudden, explosive profits when significant gold mineralization is identified. It’s not uncommon for gold exploration stocks to have a single drilling discovery drive the price of a stock from $1 to $5.8
For example, during the recent jump in gold prices, one Canadian gold exploration stock, New Gold, Inc., which explores and develops resources in the Rainy River gold-silver mine located in Ontario, jumped from just 50 cents9 a share in mid-March 2020 to $1.7710 today – a nice 254%11 gain in a year.
Imagine 760% to 1,400% in Just a Year
Rupert Resources Ltd., another tiny company engaged in the acquisition and exploration of mineral properties in Ontario and Finland,12 shot up from 65 cents a share in March 2020 to $5.60 by December. That’s a 761% return on your money.
Another gold exploration stock, Northern Superior Resources, a Canadian company with properties in Ontario and Quebec, went from just 10 cents a share in late 2019 to $1.5213 at the end of last year – a nice 1,400%14 again in just a year.
You could have made a $5,000 investment and, in about 12 months, potentially walked away with as much as $70,000.15
Very few investments offer you even the chance for profits like these – which is why investors get so excited when an opportunity like Clarity Gold Corp (CSE: CLAR | OTC: CLGCFCSE: CLAR | OTC: CLGCF) comes along.
Other Resource Stocks in Abitibi Going Gangbusters
Nearby Osisko Mining, also exploring in the gold-rich Abitibi greenstone belt, saw its shares nearly double in value16 in 2020 on the heels of positive drilling results at its Windfall gold project.17
Yet many investors are betting that Clarity Gold may have equal or even better potential. There are a number of reasons for this:
Reason #1: A New Company with an Outstanding Value Proposition
It has a market cap right now of around $20 million, yet its nearest neighbor, Amex Exploration (also an exploration company), now has a market cap ten times that.
This explains why so many investors are taking a close look at Clarity Gold before it announces any major drilling results.
Previous tests revealed gold mineralization occurring in high-grade quartz veins within shear zones starting at 15 meters below surface (drill results include 167 grams per tonne).
In other words: Clarity Gold could very well be sitting on a mineralized system larger than previously defined– and yet it’s selling for way below market value.
With only 25.7 million19 shares outstanding (31 million20 fully diluted) and management holding only 11%21 of issued stock, Clarity Gold Corp (CSE: CLAR | OTC: CLGCFCSE: CLAR | OTC: CLGCF) represents a sizable potential opportunity for gold investors willing to take a risk.
Reason #2: Investors Can Get In Before Drilling Discoveries Coming in the Next Few Months
One of the secrets to making eye-popping profits investing in junior gold stocks like Clarity Gold is to invest before major drilling tests are conducted.
That’s because you can often pick up shares at rock-bottom prices at this stage – and even minor discoveries can often drive stock prices higher.
Another one of Clarity Gold’s neighbors in the Abitibi greenstone belt, Amex Exploration, illustrates this.
From 10 Cents to $3 Per Share
When drilling tests two years ago confirmed Amex’s past analysis of the resource potential in its Perron property, the value of its shares skyrocketed. They shot up from 10 cents22 in November 2018 to more than a dollar23 just three months later – and then to $3 a share today.24
Early bird investors who got in before the company announced its discovery could have seen potential returns as high as 2,899%25 – enough to turn a $5,000 investment into $149,500.26
Open Strike Potential and Demonstrated Gold Mineralization Suggest More to Come
The first drill tests for Clarity are already beginning… but new core results won’t be had for some months.
The work previously conducted on the company’s Destiny property has culminated in an historic estimate comprised of 10.8 million tons at a grade of 1.05 grams per ton, containing 360,000 ounces27 indicated resource of gold, and 8.3 million tons at a grade of 0.92 grams per ton, which equates to 247,000 ounces of an inferred resource at a cutoff grade of 0.5 grams per tonne.
This historic estimate is taken from a report released March 1, 2011 by geologist Todd McCracken, entitled “NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property Quebec.” (The key assumptions of this historic estimate were a gold price of USD $973 per ounce, a conversion ratio of U.S. dollars to Canadian dollars of $1.02, 94% gold recovery, OpEx of $14.30 per tonne at 10,000 tpd and a 4:1 strip ratio.)
McCracken’s historic estimate is deemed relevant because it is the culmination of previous work conducted up until that point on the property.
In addition, it was prepared to the quality and rigor as defined by NI 43-101 standards (as defined in 2011) and at the time would have been considered to contain both inferred and indicated resources. However, a qualified person has not conducted sufficient work on the historic estimate required to categorize this resource to current CIM definitions of a resource (the additional work requirements are as of yet undefined). For this reason, Clarity Gold is not treating this historic estimate as current mineral resources and a qualified person has not reviewed the work to define the quality of the work associated with this historic estimate.
Of course, it goes without saying that when investors have found a promising resource stock it can be a good idea to jump in before test results come back that confirm previous testing results.
If tests confirm high-grade ore, then all bets are off: shares can sometimes double in value overnight… and then double again.
Reason #3: Clarity Gold is Backed by Experienced Professionals With the Resources to Get the Job Done
Another thing that many investors like about Clarity Gold Corp (CSE: CLAR | OTC: CLGCFCSE: CLAR | OTC: CLGCF) is that it’s managed by resource professionals who know the Abitibi greenstone belt and have raised considerable capital. Plus, having recently raised $4.5 million30 in additional funding, the company, unlike some of its competitors, has the financial resources for an ambitious drill program.
Clarity Gold is led by resource professional and entrepreneur James Rogers, who had been active in the mining sector for over 13 years and has developed projects in the Americas, Europe, and Africa.
Since 2017, Rogers and his teams have identified and sold more than 90 resource properties to public and private companies.
Geologists and Mining Engineers with Decades of Experience
Rogers is joined by mining experts and advisors with decades of experience in gold exploration and resource development.
Metallurgist and mining engineer Michel Robert has over 45 years of diverse technical experience in the mining industry, both identifying assets for acquisition and then putting those assets back into production.
What’s more, Robert, who is himself from Quebec, has focused in recent years on identifying and advancing earlier stage mineral properties for eventual sale to public and private companies, which makes him a perfect fit for what Clarity Gold Corp (CSE: CLAR | OTC: CLGCFCSE: CLAR | OTC: CLGCF) is doing in Abitibi greenstone belt.
Joining Robert is Rory Kutluoglu, a geologist with more than 15 years of experience with international mineral exploration and executive management roles with North American and European companies. Kutluoglu was the Exploration Manager for Kaminak Gold Corp. leading their team to deliver the maiden and updated resources on the Coffee Gold Project prior to Kaminak’s acquisition by Goldcorp. in 2016.
Experience Bringing Junior Resource Companies to Market
A key advisor to the company is Michael Williams, another mining industry veteran who has experience selling smaller resource companies to big conglomerates such as Kinross for more than $100 million. In addition to his work with Clarity Gold, Williams is also chairman of Aftermath Silver, a silver exploration company currently developing properties in Chile and Peru.
In addition to Williams, Clarity Gold also has access to the expertise of geologist Ian Graham, a mining executive with experience at such giants as Rio Tinto and Anglo American.
A Proven Gold-Rich Property That Now Can Be Developed with Modern Technology
Of course, junior mining stocks are by definition speculative investments, and past performance is no guarantee of future results. Yet as gold exploration stocks go, Clarity Gold Corp (CSE: CLAR, OTC: CLGCF) could be a winner.
Exploration of the company’s Destiny Project dates back to the 1930s, including 172 diamond drill holes of approximately 50,000 meters. More recent exploration includes 2,430 geochemical samples, 982 line kilometers of airborne surveys and 171 line kilometers of ground magnetics surveys.
All evidence suggests this could be a that can now be developed with modern mining technology that didn’t exist in past decades.
1 NOTE: Footnotes not for publication, only for compliance. Northern Superior Resources, a Canadian company with properties in Ontario and Quebec, went from just 10 cents a share in late 2019 to $1.52 at the end of last year – a nice 1,400% again in just a year.
2 Converted from 5,000 hectares with https://www.thecalculatorsite.com/conversions/area/hectares-to-acres.php
9 $5,000 x 14 = $70,000
10 From $1.94 per share in March 2020 to $4.26 in July 2020, cf. https://finance.yahoo.com/quote/OSK.TO/history?p=OSK.TO
17 According to Barchart.com, AMX.vn closed at $0.10 per share on November 26, 2018, and then rose to close at $1.30 per share on February 18, 2019. As of February 12, 2021, the shares are selling for $3.00. From $0.10 to $3.00 is a gain of 2,899% per https://percentagecalculator.net/
18 Percentage increase from $0.10 to $3.00 per https://percentagecalculator.net/
19 $5,000 x 28.9 = $144,500 plus $5,000 original investment = $149,500.
20 PDF, “ClarityGold-SlideDeck-01-12-2020-resized,pdf,” p.
21 Conference call. This number should be revised to whatever the recent funding is.
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