The Motley Fool

3 Miners Finding Gold Close to Home

Michael Ugulini | June 17, 2014| More on:

North, Central, and South America are fertile ground for gold companies. Consider what these three companies are doing on this side of the world, and how each may fit into your portfolio.

1. North America

Seabridge Gold (TSX: SEA)(NYSE: SA) holds a 100% interest in a number of North American gold resource projects, and its principal projects are in Canada. Its Kerr-Sulphurets-Mitchell Project in northwest British Columbia is one of the largest undeveloped gold projects worldwide. In Q1 2014, $3.8 million of expenditures were incurred on the KSM project. In 2013, at KSM, the initial drill program at Deep Kerr added 5.9 million ounces of gold and 6.1 billion pounds of copper to inferred resources.

The company also has its Courageous Lake project. In 2013, at Courageous Lake, the drill program at Walsh Lake yielded an initial inferred resource of 482,000 ounces of gold. Courageous Lake is an advanced gold exploration project situated in the Northwest Territories. Limited work has taken place on Courageous Lake in Q1 2014 as Seabridge is concentrating on the environmental assessment and drilling programs at the KSM project.

2. Central America

Goldcorp’s (TSX: G)(NYSE: GG) current sources of operating cash flow are mainly from the sale of gold, silver, copper, lead, and zinc. The company has its Marlin gold and silver mine in Guatemala. This mine has been in production since 2005. The Marlin mine produced its one millionth ounce of gold in 2010. It continues to generate major cash flow for Goldcorp.  As Goldcorp stated, “Successful exploration activities in the area indicate the potential for extending the life of this highly productive mine.”

A bonanza-grade vein called the Delmy vein has been discovered near the Marlin deposit and within the existing mining zone. The company believes this will contribute considerably to the Marlin mine’s future production. Marlin is one of Goldcorp’s principal producing mining properties. Goldcorp has three major projects in its development pipeline coming online this year.

3. South America

Yamana Gold (TSX: YRI)(NYSE: AUY) has a number of producing mines in South America. These include Chapada, Fazenda Brasileiro, and Jacobina in Brazil; El Pemon and Minera Florida in Chile; and Gualcamayo and Alumbrera in Argentina. For Q1 2014, the company’s Chapada copper production was 27.6 million pounds. In Q1, Yamana’s gold production from Gualcamayo was higher than budgeted and 28% higher than Q1 2013.

Moreover, Yamana has developing and advanced exploration projects in South America. Commissioning at C1 Santa Luz and Pilar in Brazil is on target for completion in the third quarter of 2014.

This week, Yamana Gold and Agnico Eagle Mines (TSX: AEM)(NYSE: AEM) announced the completion of the court-approved plan of arrangement whereby they have jointly acquired 100% of the issued and outstanding common shares of Osisko Mining (TSX: OSK).

This half of the world has ample gold projects that can provide investor returns.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Michael Ugulini has no positions in any of the companies mentioned in this article.

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