4 Junior Gold Stocks with Undervalued Resources

The Canadian junior gold stocks on our list trade at significantly low EV/Resource ounces

SmallCapPower | February 21, 2018: Today we have identified four Canadian junior gold stocks that have an average of $6 in EV/resource oz, much lower than the peer average of $52. These companies have also averaged a YTD return of 28%, outperforming the S&P/TSX Gold index, which returned -7%. Of note, all the stocks on our list have projects based in Canada, which limits geopolitical risk.

Satori Resources Inc. (TSXV:BUD) – $0.11
Gold

Satori is advancing its 100%-owned Tartan Lake property located in Flin Flon, Manitoba. The property includes a decline providing access to developed mining blocks within the Main and South Zones to a vertical depth of approximately 320 meters.

  • Market Cap: $3.6 Million
  • Enterprise Value: $2.3 Million
  • EV/Total oz.: US$7
  • YTD Total Return: 16.7%

Granada Gold Mine Inc. (TSXV:GGM) (OTCPK:GBBFF) – $0.40
Gold

Granada Gold Mine, is a development-stage company based in Quebec, Canada. The Granada Gold Property is situated in the Abitibi Greenstone Belt and along the prolific Cadillac Trend, which features various gold deposits. The Company has a pre-feasibility study on the property, which included reserves of 21.6Mt grading 1.3 g/t Au, for a total of 808,000 oz.

  • Market Cap: $14.6 Million
  • Enterprise Value: $20.3 Million
  • EV/Total oz.: US$5
  • YTD Total Return: 71.7%

Maritime Resources Corp. (TSXV:MAE) – $0.10
Gold

Maritime Resources is a PFS-stage developer advancing its 12,775 Ha Green Bay property located in Newfoundland. The Company’s primary goal is the restart of production at its Hammerdown gold mine. The site hosts reserves of 1.8Mt grading 7.3 g/t Au. The Company expects to re-open the mine within two years.

  • Market Cap: $7.0 Million
  • Enterprise Value: $7.3 Million
  • EV/Total oz.: US$8
  • YTD Total Return: -5.0%

Triumph Gold Corp. (TSXV:TIG) – $0.36
Diversified Mining

Triumph Gold is a Canada-based gold company operating in the Yukon. The Company’s Freegold Mountain project is a 200 sq. km property north of Yellowknife. The site hosts reserves of 75Mt grading 0.5g/t oz Au, 0.9g/t Ag and 0.06% Cu. In January, Triumph reported the results of its drilling campaign, including one hole assaying 18.5 g/t Au over 1.5m.

  • Market Cap: $19.6 Million
  • Enterprise Value: $ 19.0 Million
  • EV/Total oz.: US$5
  • YTD Total Return: 26.8%

Ubika Research/SmallCapPower has received compensation from Granada Gold Mine Inc. to provide analyst research coverage. For full disclosure please visit here >>

Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.

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