Junior Exploration Companies Poised to Profit from Historic Gold Bull Market

by | Oct 28, 2020

Excitement Builds as Gold Heads to $3,000 Per Ounce!

A junior resource company appears to have discovered a 3-mile-long gold deposit on its Rocky Lake Property in the famous FlinFlon and Snow Lake regions of Manitoba. With gold heading towards $3,000 an ounce, the company could be one of the precious metals plays investors dream about.

And with analysts at Bank of America predicting $3,000 gold within the next 18 months, junior mining companies seem to be soaring as well. Over the past year, investors have seen enormous gains on such small resource players as Harmony Gold (up 88.2%) B2Gold (up 93%), Eldorado Gold (up 120.7%), and Novagold (up 133%)6.

One junior resource company getting a lot of attention at the moment is QMC Quantum Minerals Corp.(TSX-V:QMC; OTC:QMCQF; FSE:3LQ), known for its lithium exploration and for taking over a Manitoba property from giant Hudson Bay Mining & Smelting (HBM&S). The company appears to have discovered a massive gold deposit the big conglomerate was searching for but may have narrowly missed. The company is one of the largest landholders in all of Manitoba with two projects in the renowned FlinFlon district.

QMC Quantum Minerals Poised to Profit from Historic Gold Bull Market

QMC Quantum Minerals Corp (TSX-V:QMC; OTC:QMCQF; FSE:3LQ)Manitoba mining giant Hudson Bay Minerals tried 10 times to find a massive gold deposit below its Rocky Lake Property. They did not find it and gave up.

But Hudbay just missed the discovery it was seeking – and QMC found it!

Gold has surged from $275 an ounce in 2000 to $1,100 in 2015 to $2,000 today. Now analysts are predicting gold could hit $3,000 an ounce in the next 18 months, boosting the share prices of junior mining stocks.

Thanks to the Covid-19 pandemic, global monetary policy, and government emergency spending in the trillions have created the perfect conditions for a massive gold bull market. Although there have been ups and downs in gold prices, analysts insist the overall trend remains very bullish. Bank of America recently raised its price target to $3,000 per ounce over the next 18 months7.

The yellow metal has already closed above $2,000 an ounce for the first time ever, a 72 percent increase since the most recent rally began in the fall of 2018 — and a 35 percent gain so far in 2020.

There are many reasons why gold is soaring. First, gold remains a strong safe haven in uncertain times. Despite a historic bull market in stocks, gold has actually outperformed the S&P 500 by 4 to 1 since the turn of the millennium, rising from $275 an ounce back then to over $2,000 today – a gain of 627% over 20 years compared to only 140% for the index11.

Second, gold demand remains high while supply continues to fall. Central banks have been buying gold in significant quantities, with net purchases of 145 tons in the first quarter of 2020. At the same time, the coronavirus pandemic has hit mining operations hard, resulting in mine production falling to a five-year low of only 795.8 tons13.

For this reason, precious metals investors are eager to identify low-priced, undiscovered junior mining stocks that could benefit from a historic gold bull market. And QMC Quantum Minerals may be just the sort of small-cap stock they are looking for!

Manitoba Could Be Canada’s Next Big Gold Rush Destination

For this reason, precious metals investors are eager to identify low-priced, undiscovered junior mining stocks that could benefit from a historic gold bull market. And QMC Quantum Minerals may be just the sort of small-cap stock they are looking for!

Until recently, Canada’s most famous gold mines were located in the provinces of Ontario (the Dome, Campbell, Hemlo, and Musselwhite mines) and Quebec (the Troilus and Bousquet mines).

But in recent years, Manitoba, sandwiched between Ontario to the east and Saskatchewan to the west, has emerged as one of Canada’s most productive mining regions. The province is home to eleven operating mines located in the prolific Thompson, Lynn Lake, Leaf Rapids, Snow Lake, and FlinFlon areas. These mines have helped make Canada one of the world’s largest producers of metals, including gold, copper, zinc, nickel, lithium, and lead.

The mineral wealth is due to the province’s location on the southern flank of the great Canadian Shield, a massive area (3 million square miles) of exposed high-grade metamorphic and with an abundance of Volcanogenic Massive Sulphide (VMS) deposits. The VMS deposits are ore bursting with minerals, including copper, zinc, nickel – and gold!

Until recently, the cost of extracting gold from the VMS deposits made gold mining in Manitoba less attractive. However, as gold has topped $2,000 an ounce, everyone with a mining property in the province is rushing to complete drill tests to find gold-rich ore.

The largest mining company in the province, Hudson Bay Minerals, in the past actively drilled around the Rocky Lake region (10 holes at 2,292 meters) but finally gave up the claim.

Geologists believed that significant resources in high-grade gold ore were present at the site. But instead of mining it, Hudbay owners walked away.

At the time, gold was selling for significantly less. It just didn’t make economic sense to continue developing the property.

Today’s gold prices change everything. QMC Quantum Minerals took over the property and, after extensive testing and drilling, found the massive deposit the big conglomerate was searching for but narrowly missed: a deep-seated conductor with massive sulfide mineralization and visible chalcopyrite. QMC’s geologists believe that Hudbay narrowly missed discovering the conductor.

The discovery in Drill hole RL 11-2is huge for QMC Quantum Mineralsas it confirms management’s belief that they are sitting on a massive deposit, what executives call “Lalor Lake style potential.”The Lalor Project, owned by Hudbay, is a gold mine located in the same FlinFlonregion of Manitoba as Rocky Lake with probable gold reserves estimated to be 1.49 million tons (Mt) graded at 5.26g/t Au.14

In addition to the Rocky Lake Property, QMC also owns a strong assortment of other properties in the FlinFlon/Snow Lake areas, which are home to more than two dozen significant VMS deposits. On another one of its major properties at Namew Lake, QMC Quantum Minerals has identified 41 other sites with potential – what QMC management calls “41 lottery tickets.” A significant find in any one of these target sites could boost QMC’s share price significantly.

To stay on top of this, visit the company’s website and sign on for their email news announcements at www.qmcminerals.com

All of this QMC Quantum Minerals shareholders may be quite literally sitting on an undeveloped but potentially massive gold mine. Looking at recent exploration as well as at historical records, evidence now suggestions that suggest tons of high-grade, gold-rich ore may be waiting for QMC Quantum Minerals to evaluate and exploit.

The mines now owned by QMC Quantum Minerals shareholders could potentially be worth millions of dollars — which could send shares shooting upwards at an eye-popping rate.

QMC Quantum Minerals’ Vast Properties Hold Dozens of Targets

Rocky Lake Property: The 100% owned Rocky Lake property consists of 3,446 hectares in the affluent VMS region of FlinFlon and Snow Lake, Manitoba, and hosts the Rocky Lake VMS deposit. It was previously drilled by Hudbay (10 holes at 2,292 metres) and possesses what QMC Quantum Minerals refers to as “Lalor Lake style potential,” which includes good infrastructure. Drilling revealed massive sulfide mineralization with visible chalcopyrite confirmed on the main target.

Detailed re-interpretation of electromagnetic (VTEM) survey data by Maxwell Modelling on the main Rocky Lake massive sulfide target showed the presence of a deep-seated conductor. This conductor appears to be at least 1,000 metres long and seated at a depth of minimum 200 metres. The top of the conductor was confirmed by drill holes RL11-2 and RL12-5. Massive sulfide mineralization was intersected at the bottom of RL11-2 at a vertical depth of 193 metres. Mineralization consists of semi-massive sulfides, mostly pyrrhotite and pyrite with visible chalcopyrite, and is hosted near the contact of the hanging wall felsic rocks with the footwall mafic rocks.

Visible Chalcopyrite found in QMC’s Rocky Lake property

Namew Lake Property: The 100% owned Namew Lake project is located in the Flin-Flon Greenstone belt and is adjacent to the Rocky Lake Property. The property, which adjoins the Rocky Lake property, covers over 19,000 hectares and contains41 possible targets (“lottery tickets”) confirmed by VTEM survey. Three of these have been drilled and all confirmed massive sulfides with copper mineralization between 100-500ppm and iron sulfides up to 30%.

Irgon Lithium Mine Project: Finally, in addition to its gold properties QMC Quantum Minerals also holds an undivided 100% right, title, and interest on 22 mineral claims covering 11,325 acres comprising the Irgon Lithium Project which hosts several rare-element granitic pegmatite occurrences, one of which hosts and is locally known as the former Irgon Mine. Located just 20km (12.5 miles) from the most productive lithium mine in North America to date, the property is accessed by Provincial Highway 314 in southeast Manitoba which transects the claims, approximately 150km northeast of Winnipeg.

What to expect in the coming months…

QMC Quantum Minerals is not your typical junior resource company – although its low share price may give that impression. Instead, it’s an established company sitting on 105square miles of some of the richest ore in Manitoba, right when the prices of key metals (lithium and now gold) are surging.

In other words: This is precisely the kind of junior gold play many investors dream about.

Right now, QMC Quantum Minerals is flying below Wall Street’s proverbial radar. But all that could change, and change quickly. As the price of gold continues to rise, any discovery on Quantum Minerals’ 105square miles of property could trigger a surge in its share price.

Nevertheless, you should still consider QMC Quantum Minerals to be a high-risk investment. Mining is particularly sensitive to short-term price fluctuations, and unpredictable global events can have an enormous impact on a company’s fortunes. While the company could be right for your growth portfolio, that means you should limit your commitment to what you are willing to lose.

At the same time, one of the attractions of QMC Quantum Minerals is that you can enjoy a significant share position for a very modest investment. As of this writing, one thousand shares can be bought for less than $200. At that price, it doesn’t take a very big move in the price of gold to see an immediate potential return.

Next steps for you to take…

Given how quickly the price of gold is rising, it may be worth your while to begin your research and due diligence right away. Below are a number of links to websites that provide more detail. Most important (and useful) will be to go straight to the QMC Quantum Minerals corporate website. This is an excellent site loaded with information about the company, mining in Manitoba generally, and progress on gold mining specifically.

While there, be sure to register your name and email address with the company! All future announcements and progress reports issued through the company’s email database can then be delivered immediately to your inbox. That should keep you ahead of the crowds and in a position to move quickly on the opportunity. In the meantime, here are some points to consider:

Seven Crucial Reasons to Consider QMC Quantum Minerals for Your Growth Portfolio:

  1. It’s located in one of the most prolific mining regions in the world, home to 11 operating mines and 31mineral deposits, including gold.
  2. QMC Quantum Minerals is one of the largest landowners in Manitoba with properties covering 27,000 hectares (67,000 acres) or 105square miles.
  3. The drilling and other testing have already been completed on QMC properties with the discovery of one EM conductor 5 kilometers long, a potentially massive deposit.
  4. In addition to the discovery at the Rocky Lake Property, a recent electromagnetic (VTEM) survey identified 41 additional targets at Namew Lake.
  5. Three of these targets were tested; all three confirmed massive sulfides (copper-gold-zinc-iron). Drill hole RL 11-2 intersected the very top of a significant zone of massive sulphides. Results returned 1.58 ppb gold, 2,594 ppm copper, and 300 ppm zinc.
  6. All QMC Quantum Minerals’ properties benefit from Manitoba’s advanced mining infrastructure (highways, rail, power) already in place and political and economic stability.
  7. Gold may be heading to $3,000 an ounce as the global economic shutdown continues and governments worldwide post trillion-dollar deficits.

Useful Links for further research…

For all official company information, current news, and to register your email address, go to the company website: www.qmcminerals.com

For an excellent, in-depth report on the reasons why gold could well hit $3,000 per ounce in the coming months, go to: https://www.washingtonpost.com/business/2020/08/05/5-reasons-why-gold-prices-are-soaring/

To confirm that Manitoba is becoming one of Canada’s premier gold mining regions, go to: https://www.manitoba.ca/iem/info/libmin/gold_in_manitoba.pdf

For more information on the gold content of volcanogenic massive sulfide (VMS) deposits like those found in QMC Quantum Minerals properties, go to: https://link.springer.com/article/10.1007/s00126-010-0300-0

For more information about the discovery of gold in Manitoba’s FlinFlon region near the Rocky Lake and Namew Lake Properties, go to: https://www.gov.mb.ca/iem/min-ed/mbhistory/timeline.html

For information on how Hudbay Minerals (TSX:NYSE) announced the discovery of a new high-grade zinc and gold deposit near QMC Quantum Minerals’ properties, go to: https://www.mining-journal.com/gold-and-silver-news/news/1357451/hudbay-makes-new-discovery-in-flin-flon-manitoba

1 https://finance.yahoo.com/news/gold-rally-may-just-begun-104910916.html

2 5-km = 3 miles
3 From $275 to $2,000 per ounce is a 627% increase
4 S&P 500 SPDR (SPY) rose from $140 per share in 2000 to $334 per share in August 2020, an increase of 138.5%
5 https://finance.yahoo.com/news/gold-rally-may-just-begun-104910916.html
6 https://seekingalpha.com/article/4355774-junior-gold-miners-and-historical-performance-2020-edition
7 https://finance.yahoo.com/news/gold-rally-may-just-begun-104910916.html
8 627 divided by 138.5% = 4.5 times
9 From $275 to $2,000 per ounce is a 627% increase
10 S&P 500 SPDR rose from $140 per share in 2000 to $334 per share in August 2020, an increase of 138.5%
11 https://www.investopedia.com/ask/answers/020915/has-gold-been-good-investment-over-long-term.asp
12 https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2020
13 https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2020
14 https://www.mining-technology.com/projects/lalor-gold-zinc-project-manitoba-canada/
15 See PDF, “First the Jets, Now Mining Manitoba on the Rebound.” “The Rocky Lake property, which consists of 3,446hectares, was previously drilled by Hudbay (10 holes at 2,292 metres). The project possesses what QMC refers to as “Lalor Lake style potential,” includes good infrastructure.. The Rocky-Namew and Namew Lake Properties contain multiple anomalies next to Namew Lake Mine in a proven VMS district. Located in the Flin-Flon Greenbelt, the 22,542 hectare property hosts several VMS targets, which management is currently preparing s for diamond drilling.

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