Avanti Gold

AGC is fully funded for its two-phase, 42,000-metre, drill program this year. AGC is still relatively unknown and could represent a highly profitable project at good scale in just about any gold tape. I own some and will see how this year goes with the drill bit as the company seeks to definite 5+ million ounces of potential.

This is a name that I bought, sold, and then bought back more stock than I owned in the first place. This is more than 3 million ounces of high grade (>2 g/t) open-pit gold in the DRC with a view that it grows to 5 or even 10 million ounces with additional drilling. The negative is that it's in the DRC, known for its security risks. The positive is that it is already large and high-grade and has significant resource growth potential. The company has good relationships with the communities in which it operates and management has significant in-country experience, both of which mitigate the "DRC risk" somewhat. This story reminds me of a company called Banro from the last big gold cycle. Banro went from zero to hero during the last gold run and as long as I remember to sell at the top, I think I'll be in good shape here. AGC has some old core that it is assaying right now and will be drilling aggressively with new drills soon. Expect updated resources and preliminary economics on this one over the next 12 months or so. This has had a big move over the last 6 months, but this is one of those assets that could really capture market attention because of its potential scale and grade. The company is well financed and has good management for operating in the DRC and it's still off the radar of most players in the sector, which is just how I like it.