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BonTerra Resources stock is up just over 70% in March and 146% in 2016. In March, BonTerra acquired nearly 1 Moz of gold at the Larder project and released great drill results on the Gladiator project, and there is more to come. Caesar's Report's Thibaut Lepouttre discusses the merits and effects of such a busy month.
BonTerra Resources Three-Month Chart
It's remarkable to see how larger companies are falling back to safer regions to explore for and to mine gold. Kinross, for instance, spent billions and billions of dollars on gold projects in second-tier countries, and the acquisition of Aurelian Resources and Red Back Mining aren't really successes. Keeping that in mind, the company's most recent $610 million ($610M) acquisition was the Bald Mountain and 50% of the Round Mountain mine in Nevada. This shows how even the companies that weren't afraid to take some geopolitical risks are now trying to do business in first-tier mining countries again.
The new ultra-high-grade intervals might boost the average grade of the resource toward the 10 g/t mark or even higher.
But, of course, the acquisition targets will have to come from somewhere, and senior producers are still pretty much depending on exploration-focused companies to discover new gold deposits in those safe regions. One of those companies that definitely deserves to be highlighted is BonTerra Resources Inc. (BTR:TSX.V, BONXF:OTCMKTS, 9BR1:FSE) with ounces in the ground in both Québec and Ontario, Canada. Today, BonTerra no longer is the BonTerra it used to be, as not only is it continuously enjoying exploration successes at Gladiator, it also acquired almost 1 million ounces in the ground for a total consideration of less than CA$5M. This resulted in renewed investor interest and the average daily trading volume have been edging up in the past few trading days and weeks.
One-third of the fully funded 25,000-meter drill program has now been completed
BonTerra has owned the Gladiator gold project for quite a while now, and back in 2012 it became clear the company was sitting on a high-grade gold project. Unfortunately, BonTerra was also hit by the turmoil on the gold market, and the company switched into ‘hibernation' mode from 2013 until late 2014.
