Junior-Gold Confidence Crisis

Posted by Scott Wright - Zeal Intelligence

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Gold’s miserable 2013 has been devastating for gold stocks.  This sector, arguably the best performing over the 2000s, has quickly become the pariah of the markets.  And no group of gold stocks has seen more carnage than the junior explorers.

Descriptive of their name, junior gold explorers are small mining companies that explore for gold.  And within this sub-sector is a wide spectrum of exploration stages, from early-stage to advanced-stage.

Early-stagers are either in the process of looking for a gold deposit, or are in the beginning stages of delineating one.  In some cases they’ve moved to resource definition, but any inventory estimates are still rough due to their deposits not yet seeing enough drill holes.  Resources would be categorized as “in-house” or “inferred” (as measured by NI 43-101 standards), and they’re nowhere near reliable enough to build an operating and/or economic model.

Advanced-stage junior gold explorers already have gold deposits.  And these deposits have seen enough drill holes to give a greater confidence in their depth/breadth and resource estimates.  In this stage resources are categorized as measured and/or indicated, and in some cases proven and/or probable reserves.

….read much more HERE