“A perfect storm for gold” is what many analysts and savvy sector investors are calling it.
Gold prices have been climbing higher this year and could return to above $2,000 (USD) soon. At the rate the commodity’s value is moving, fueled by inflation, fears of recession, the potential for escalating conflict and generally global uncertainty – before long, gold could move $2,500 (USD).
Improving sector sentiment could be positive for companies, such as explorer Solstice Gold Corp. (TSX-V: SGC, Forum). Its key property is the Red Lake Extension (RLX) project, located in the northern extension of the Red Lake Gold Camp in Ontario. This company also provides exposure to new discoveries in Ontario through other projects, the Atikokan Gold project (see news release Dec. 16, 2021) and New Frontier (see news release Apr. 26, 2022).
About RLX:
Solstice Gold controls a 180 km2 land position located on the northwestern extensions of the Red Lake Gold Camp in Ontario.
The Red Lake Extension Project is approximately 45 km from the Red Lake Mine Complex owned by Evolution Mining. The company is funded for its first phase of drilling at RLX.
Red Lake is a mining camp where there has been mineral development and gold production since the late 1930’s. The traditional core mining trend has led to solid returns for many, but what has happened over the past three years is a push to move outside of the core camp to try to find another major large-scale, high-grade gold deposit, one where a company could be sitting on top of, like Solstice Gold.
The company has staked and controls the entire Northwest corner of the Red Lake Camp and given the prolific nature of gold in the region, anywhere you strike, there’s a good possibility you’ll hit gold.
In an interview with Stockhouse Editorial, Solstice CEO Mike Timmins explained that given how many economic deposits there are and the number of projects in the Camp where gold drill holes exist that people haven’t followed upon, it is just a matter of getting the land position, assembling a project team, executing systematic technical work and building something special.
“… and with drilling a few weeks away, are at step one of doing that.”
An added bonus for Red Lake is that it seems to garner a higher ultimate valuation for exploration companies as well, a bit of a “market premium” as CEO Timmins called it.
In the news:
In April 2022, Solstice Gold Corp. provided an update on exploration plans for its New Frontier project.
The gold exploration company said both data sets from New Frontier are in association with a major shear zone that suggests high potential for future gold discoveries.
CEO Timmins stated that as the company makes final preparations to support this upcoming drill campaign, the leadership team was out to provide further detail on the various target areas beyond the Red Lake Extension project.
“New Frontier, while earlier stage than our drill targets to the south, is a compelling regional target at the confluence of crustal-scale structures and elevated geochemistry. Our goal is to bring New Frontier to the drill stage by the end of 2023 to add even more potential to our Red Lake project. The team is very excited to be able to drill test RLX, a prospective yet underexplored area of the Camp, systematically for the first time.”
Solstice’s Chairman David Adamson emphasized that the Red Lake Gold District is one of the most prolific gold districts in the world.
“We now control 75 km of the northwestern extension of the Camp through a combination of staking and third-party acquisitions. Despite their documented location within the area and their likely association with major crustal faults, both RLX and New Frontier are unexplored. Recent discoveries like Dixie, which is also associated with a deep-tapping seismic structure and lies outside the traditional core mining area, highlight the potential for new discoveries by the application of new exploration thinking and modern techniques in hitherto overlooked Camp extensions. Our goal is to demonstrate this potential at RLX through our upcoming Phase 1 drill program due to start in early June.”
New Frontier is approximately 20 km northwest of the Red Lake Extension project, which is permitted and funded for 5,000 metres of Phase 1 drilling, beginning in early June 2022. The project covers approximately 11km strike length of Red Lake geology immediately adjacent to the interpreted E2 seismic structure with good road access from Red Lake.
The New Frontier project area was part of a regional till survey carried out by Agnico Eagle Mines Limited. (TSX: AEM) in 2009 and hosts many of the 90th percentile gold values which where never followed up.
The company plans to carry out mapping and prospecting on the ground in the summer of 2022. The objective of the program will be to find gold in basement rock and/or areas of elevated soils to support the development of drill targets.
Meet the team:
Investment summary:
It has been a choppy ride for resource investors trading in the Canadian stock market this year, all because of the uncertainty mounting around the globe. This has put gold back in the limelight as a reliable safe haven. For those hunting for a cushion against volatility, or even a potential crash of the market, gold stocks offer some peace of mind.
In the past three months alone, the materials sector (which includes gold stocks) has risen almost 20% and is outperforming the broader market year to date.
Given how its team is advancing this key asset, Solstice Gold Corp. offers a smart safe-haven investment today and a suite of premium exploration opportunities and the company aims for market-beating returns. Already funded for the first round of drilling to commence next month, Solstice is a gold-focused exploration company with quality, district-scale projects in established mining regions of Canada.
This early-stage RLX asset is situated in an area that has seen a pickup in activity this year already, making it a hot gold area and an “entry level” opportunity for investors.
For more on this company, visit solsticegold.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.
