More consolidation expected as Atlantic Canada’s gold rush gathers steam

Atlantic Canada-focused gold juniors are driving an exploration boom in provinces not previously noted for their gold production. The increasing sentiment has one analyst calling for caution as the market froths up.

"Beware the arm wavers as momentum sweeps the provinces," Joe Mazumdar, editor and analyst at Exploration Insights, says in an interview. "Many of the juniors that had made discoveries recently are trading at very high market caps while they still have no resource statements underpinning anything. That's where we're at right now. Newfoundland landholders are suddenly getting a premium for just having ground near prospective areas. Anyone who has got ground has the ability to raise capital due to their location and, in addition, Eric Sprott and the retail market are very keen on the area.”

Continue reading at The Northern Miner