AFRICANEWSWIRE.NET (July, 25 2012) In a recent Penny Stock Detectives eliminary-gold-drill-results-build-momentum-for-junior-miner">article, editor Sasha Cekerevac asserts that with the price of gold bullion stabilizing after the recent pullback, many investors are starting to look at gold junior mining companies as investments. Cekerevac notes that the development of a property is extremely crucial to gold junior mining companies, claiming one with incredible potential is Primero Mining Corp. “Exploration work and the complete analysis of what potential gold reserves are held in a property are huge components in the determination of the value for gold junior mining companies,” comments Cekerevac
Primero Mining is based in Canada with gold production facilities in Mexico, explains Cekerevac. With a producing property and another property that the firm is exploring, he believes the stock has potential for appreciation if significant gold bullion reserves are found. The cash from the existing gold bullion production can help finance its exploration and development work, he notes.
Cekerevac says an important date to keep note of is August 2, 2012, as Primero is set to announce its second-quarter results. On June 25, 2012, the company did announce a discovery of a high-grade gold and silver vein, he reports. The company will compile full results and release them in the third quarter. The CEO did state that he was pleased with the exploration work as the program has yielded excellent results, says the Penny Stock Detectives editor, who says that to make this conclusion, full results need to be seen.
The firm, like many gold junior mining companies, is looking to expand its exploration work, notes Cekerevac: “The company still has an extensive area that it believes has the potential to yield gold bullion, but much more work is needed before the hard facts are known. As with other junior mining companies, this type of work can lead to much volatility in the stock, depending on what the findings end up being. The company is planning to spend $12.0 million during 2012 on exploration work.”
Many junior mining companies have pulled back over the past year; Primero being no exception, concedes Cekerevac. But with the recent price of gold bullion beginning to stabilize, interest in junior mining companies like Primero appears to be gaining momentum, he observes. Of course, if the drill results don’t meet or exceed the market’s expectations, the stock could sell off and re-test the lows of the year, concludes Cekerevac.
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