What happens when the world’s biggest miners run out of gold?
We already know.
We’ve already hit peak gold, and the only companies sitting on promising new reserves are the junior miners.
The big miners are scrambling for more gold, and merger mania has taken hold.
Large-cap miners are doing three things at record pace:
– They’re merging with other major miners (think Newmont/Goldcorp and Barrick/Randgold)
– They’re scooping up juniors sitting on the best patches of gold.
– They’re conducting a series of micro deals to gradually insert themselves in the junior-mining patch.
We know those juniors who have already been targeted for acquisition and micro deals, so we’re looking for the next prospective beneficiary.
Based on a series of recent events that includes the announcement of a formidable new CEO and a near-term production target of 50,000+ ounces of gold per year in one of the world’s hottest precious metal venues, African Gold Group (TSX.V: AGG; OTC:AGGFF) could be on a few radars. And that’s just the starting point: the company is evaluating the potential for an increase in estimated annual production to 100,000 ounces per year.
Not only is AGG sitting on a potential 2.2-million-ounce mineral resource at its Kobada Gold Project in Mali’s prolific gold-producing Birimian Greenstone Belt … but it’s also just appointed a new CEO that will turn investor heads: Legendary mining financier Stan Bharti.
Bharti has been in Mali for over a decade already. He’s proved he can turn a company around for a 20X profit.