Spencer noted the surge in exploration for critical minerals, including lithium and exploration, over the past five years.“That’s tracked risk capital away from the gold sector, and typically you see a lag in exploration spend and commodity prices. So now we’ve had two years of rising gold prices, we’ve had falling lithium prices, falling rare earth prices, and we see risk capital returning to the early stage exploration sector,” he said.“That increasing exploration activity is going to lead to new discoveries, and there’s nothing that gets the market excited like a brand new gold discovery.”
Last week, Canaccord released the second annual version of its Emerging Precious Metals Book, which highlighted 26 gold stocks not yet under its formal coverage.
The report included eight grassroots, pre-resource explorers, which Spencer said should be included in a gold investment portfolio.“If you have a look at the Lassonde curve or where value is created with mining projects and mining companies, the biggest value creator is discovery, so a smart portfolio would include everything from a Northern Star or a Newmont Corporation (ASX:NEM) all the way down to explorers in Western Australia, South America, West Africa and places like that,” he said.One of the pre-resource explorers to get a mention is Koonenberry Gold (ASX:KNB) , up nearly 200% following an emerging discovery at its Enmore gold project in New South Wales.
Fellow NSW explorer Waratah Minerals (ASX:WTM), which has nearly doubled, made the cut due to exploration success at its Spur gold-copper project.
WTM Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
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