subject: Junior Mining Companies are a Faster Way to Gold Profits [print this page] Junior Mining Companies are a Faster Way to Gold Profits
Even if the volatility of the markets have made you bury your head in the sand, you'd at least be somewhat aware that precious metals, such as gold, silver, platinum and others, have soared in price over the past decade. Aside from investors turning to these commodities as recessionary or safeguard investments, the prices of these precious metals are on the rise, due to an increasingly high demand and limited supply. While many investors with deeper pockets turn to gold ETFs and mutual funds in an attempt to diversify their portfolios, other investors and traders turn to junior exploration and mining companies plentiful in the small cap markets.
Most people look to invest in junior exploration companies because they see the company's potential in becoming a major source of mine supply in the future, especially because most exploration companies are in search of various precious metals, instead of focusing their efforts on one commodity. This, of course, varies with the scope, location, business plan and staff associated with the particular junior mining company. Nevertheless, there's a certain level of excitement, and risk, that comes along with investing in a smaller company with significantly more upside potential.
Here are five popular small cap exploration companies:
Strategic Mining Corporation (PINK: SMNG) is engaged in the exploration and development of gold properties in Vietnam, the United States and on the African continent. Most recently, Strategic Mining announced the completion of a geological report on its East Canyon gold property located in Nevada and Utah.
Vista Gold Corp. (AMEX: VGZ) is involved in the evaluation, acquisition, exploration, and advancement of gold exploration and potential development projects. The Company has a number of properties, including the Paredones Amarillos and Guadalupe de los Reyes gold projects in Mexico, the Mt. Todd gold project in Australia, the Yellow Pine gold project in Idaho, the Long Valley gold project in California, the Awak Mas gold project in Indonesia; and claims in Utah. Vista Gold has recently gained some attention, after announcing an estimated two million ounces for the Batman deposit at the Company's Mt. Todd project.
Midway Gold Corporation (AMEX: MDW) engages in the acquisition, exploration and development of gold and silver mineral properties located in North America. The Company's current exploration projects include the Midway, Spring Valley, and Pan gold and silver mineral properties located in Nevada, and the Golden Eagle gold mineral property located in Washington.
Solitario Exploration & Royalty Corp. (AMEX: XPL) focuses on the exploration of precious metals and base metals in Brazil, Mexico, Peru, and Bolivia. With interests in 15 properties, and 2 royalty properties, the Company explores for gold, silver, platinum, palladium, copper, lead, and zinc metals.
Gold American Mining Corp. (OTC: SILA) explores for gold and silver deposits in its Keeno Strike project in Nevada, and its Guadalupe project located in Zacatecas, Mexico. The Company recently signed an option agreement to acquire a 100% interest in the high-grade silver-gold La Escondida Project located in Sonora State, Mexico.
Gryphon Gold Corporation (OTC: GYPH) is a development stage exploration company whose principal asset is the 27.5 square mile Borealis property located in the Walker Lane gold belt of Western Nevada. According to the Company's website, the one-square mile Central Borealis zone has been accredited with 1.4 million ounces of measured and indicated gold resources and 1.1 million ounces of inferred gold resources.
While plenty of analysts remain bullish on gold, many investors and traders will continue to turn to junior mining companies for their chance to cash in on the latest gold rush stock.
