Gold Explorer is a Diamond in the Rough

I was in Vancouver recently, talking to a bunch of explorers, developers and miners at the Metals Investor Forum.

It’s a small, exclusive gathering of mining CEOs, analysts and interested investors. And man, did I see some great companies there.

I recently wrote about a zinc explorer I met in Vancouver. Now, I want to tell you about a gold explorer. It’s a gold explorer I’ve been following for a while, but I got an update on my most recent trip. 

That company is TerraX Minerals (TSX-V: TXR) (OTC Pink: TRXXF)

TerraX is hard at work exploring a gold project in the Northwest Territories. Now, you might be thinking:

“Northwest Territories? The nearest neighbor must be Santa!”


In fact, here’s the fascinating thing about TerraX: Its project is less than 10 kilometers from the city of Yellowknife, the provincial capital. They have a district-sized land package in a historically gold-rich area.

Talk about advantages! Being so close to Yellowknife means they can operate year-round, which many Canadian explorers cannot do. But more than that, the Yellowknife location gives TerraX local housing for workers, infrastructure and more. They even have daily flights coming in.

I’ve been to Yellowknife a couple of times. I wouldn’t call it a vacation spot. But it’s a great mining town. In fact, two of Canada’s highest-grade, past-producing gold mines — the Con Mine and the Giant Mine — were also right outside Yellowknife.

On my most recent trip, I got the scoop from company president Stuart Rogers.

Direct link to video:

As Mr. Rogers explains, TerraX has been drilling for five years. They have 90,000 meters of drill core. That will all be worked into a resource estimate later this year.

TerraX has a great management team with previous success. CEO Joe Campbell — who started the company with Mr. Rogers — discovered the Meliadine gold project in Nunavut. That project was acquired by Agnico Eagle Mines (NYSE: AEM) for $558 million in cash and shares.

Could they do it again? I think their odds are better than average …

  • They’ve had bonanza-grade drill holes, including 8 meters grading 16 grams of gold per metric ton of rock.
  • They have big-pocketed friends.
  • They are looking for gold in the right part of Canada.
  • And they have all the advantages of being near Yellowknife.

I’ve been following this company for a while, and telling my subscribers about it. This year could be the blast-off for TerraX. We’ll see what the next round of drilling brings.

The trading volume for TerraX on the OTC Pink Sheets is low by my standards. But it has plenty of volume on the Venture exchange in Canada. So, let’s look at a weekly chart of TerraX on the TSX-V.

You can see the stock was under pressure throughout 2017. That’s not unusual. Gold explorers as a group were crushed last year. But things are looking up.

The stock gapped higher (that yellow circle) at the end of last year. Now, it is trading above that bearish downtrend. I expect this stock to go much higher.

So, do your own due diligence, and consider adding TerraX to your watchlist.

There are so many good companies like this in Canada now. They’ve been crushed so hard they’re diamonds in the rough. Smart investors, with an appetite for risk, will pocket them at pennies on the dollar.

All the best,
Sean Brodrick

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