Gold Mining (NYSE American: GLDG) is a gold-focused royalty company offering creative financial solutions to the metals and mining industry. Its mission is to acquire royalties, streams, and similar interests at varying stages of the mine life cycle to build a balanced portfolio offering near-, medium — , and long-term attractive returns for its investors. The chart below shows that investors are accepting of GLDG’s unique approach to profiting from gold through royalties for financing.
Royalty assets include properties in Alaska, La Mina Columbia, Tapajos Region Brazil, São Jorge, Brazil, Nutmeg Mountain (USA), and REA Uranium, Canada.
GLDG is also exploring gold assets. The Company announced an impressive drilling program at its 100%- owned São Jorge Project (“São Jorge” or the “Project”) in the Tapajós Gold district, Pará State, Brazil.
163 m at 1.02 grams per tonne (g/t) gold (Au) from 44 m downhole depth, including higher-grade intersections:
· 20 m at 1.37 g/t Au from 44 m depth;
· 37 m at 2.26 g/t Au from 95 m depth;
· 11 m at 1.00 g/t Au from 148 m depth;
· 13 m at 1.35 g/t Au from 166 m depth; and
· 12 m at 1.15 g/t Au from 195 m depth.
(More assays in the June 18th PR.)
Tim Smith, V. P. Exploration, commented: “ The results from our first drilling at São Jorge in more than a decade are strong and we believe help demonstrate an extensive corridor of mineralization consisting of multiple intercepts. We expect that the improved geological model based on these intercepts will provide greater confidence in future mineral resource estimation. Additionally, we have commenced the auger drilling component of the program and forward to providing additional updates.”
Here is a detailed research report on GLDG and the Corporate deck for a deep dive into the Company.
GLDG provides financing for exploration and production and gets a royalty on each ounce produced or the weight unit for which the target commodity is measured. GLDG keeps working with the company to ensure growth for itself and its holdings. So far, so good. As I have said about others, GLDG is not just in the gold business; it is in a myriad of gold companies.
From a risk perspective — spoiler alert, there’s always a risk — but GLDG can, instead of deciding the project worthiness, that work is already done for their review. That represents two levels of scrutiny. To highlight the quality of the holdings, investors need to look no further than the 15% of Gold Royalty Corp (Groy), a significant gold royalty company in its own right. As GROY looks to add more producing royalties or some of its advanced-stage existing royalties ramp up towards production, its value proposition improves. That’s not a guarantee; it’s just common sense.
That means, very simply, that GLDG buys up mining projects when gold markets are relatively low, holds onto them until the right moment… and buys them when no one else wants them.
The bottom line is that GLDG provides investors with many advantages.
1. Proxy for the gold market
2. Relatively lower risk
3. Exposure to more prominent and higher-quality gold companies
4. Uranium is an example of GLDG moving ahead of the herd.
5. A great example of a long-term hold.
6. Cool Logo.
Oh, and the Company is also delving into the Uranium market. GLDG’s commodity exposure is 81% Gold or equivalents, 18% Silver, and 1% Copper. Wait for Uranium to join the mix.
One strategy would be to use GLDG as a long-term gold-holding proxy and trade the volatile juniors around it. Makes trading fun, and I’ll bet you make some cash.
