The Canadian government is continuing to support its mining industry with millions of dollars in new investments.
Last month Canada’s Minister of Innovation, Science, and Industry announced a CAD$40 million investment in the Centre for Excellence in Mining Innovation Inc. (CEMI).
The money will be used to create a national initiative to “modernize mining and improve its productivity and environmental performance, strengthen the Canadian mineral supply chain, and increase the domestic and export sales of Canadian innovators.”
The CEMI itself is a CAD$112 million project generally designed to help mining companies implement new innovations into projects to stimulate commercialization.
Through its “Investing in Canada” plan, the Canadian government is investing even more that will help the nation’s mining industry.
Launched in 2016, the Investing in Canada plan committed over CAD$180 billion in public infrastructure spending over 12 years. To date, the Canadian government has invested over CAD$96 billion in +73,000 projects through the Investing in Canada plan.
These projects range in everything from road, rail, and airport construction and maintenance to new and upgraded energy and water systems to trading ports and broadband networks… they’re, you know, public infrastructure projects, which are extremely important for the mining industry (any industry really). You’re not mining anything without driving on a road to it first… Nor are you doing it without power or water.
As part of the Investing in Canada plan, the nation’s Minister of Natural Resources recently announced CAD$50 million in joint funding to improve infrastructure for the provinces of Labrador and Newfoundland, where a major gold rush is currently taking place.
If you ask any active gold stock investor today about Newfoundland, they’ll most likely already be very familiar with the 2021 Newfoundland gold rush.
But if you haven’t heard the story yet, the short of it is this…
Back in October 2020, a small unknown gold explorer named New Found Gold (TSX-V: NFG) began to report super high-grade gold drill results from their Queensway project in Central Newfoundland. After several more high-grade gold drill results were reported over the next several weeks, more and more investors started paying attention.
By about February 2021, the culmination of the drill results were so impressive from the Queensway project, everyone and their brother in the gold exploration world went looking for a piece of Central Newfoundland. And from there, a full-blown gold rush was underway that continues today.
Hundreds of millions in VC have poured into Newfoundland since then.
Visible gold found at New Found Gold’s Queensway project
The region has already attracted famous gold billionaire investors like Eric Sprott, who has put more than $50 million into several different Newfoundland gold exploration projects.
Other notable figures from the gold mining world like Pierre Lassonde have also put their own money in Newfoundland. Lassonde co-founded Franco-Nevada (NYSE: FNV), which at the time was the world’s first public gold royalty company, and was Chairman of the World Gold Council from 2005 to 2009. He recently participated in a $50 million private placement in Newfoundland gold miner Marathon Gold (TSX: MOZ).
That’s $100 million in investments between those two. And that just begins to scratch the surface.
If you’re wondering why folks are willing to risk so much in an area where a discovery has already been made, you wouldn’t be alone. But the fact is there’s a very good reason everyone wants a piece of Newfoundland right now…
There’s an old gold prospector’s proverb that goes something like this: The best place to find gold is where someone else has already found it.
And they don’t mean in a jewelry store or bank vault.
They say this because the geologic forces that bring gold close enough to the earth’s surface to mine tend to result in several deposits being formed along a single geologic structure. When gold deposits occur along a single geologic structure like this, they have been described as “pearls on a string.”
So everyone is looking for the next pearl on the string.
And that’s exactly why so many smaller companies have been snatching up properties surrounding New Found Gold’s Queensway Project with millions in new investments.
Of course, land space is limited. So there are only about two dozen companies with significantly sized projects surrounding Queensway. And all will not succeed. Some projects have a really good chance of developing into something big. Others are pie in the sky.
Over the past several weeks I’ve slogged through every single one of the Newfoundland gold explorers to cherry-pick five companies that I think are best positioned for repeated success.
I’ve put my findings in a new report I published just a few days ago. For more details on how to access this report for free, which gives the names and stock symbols of these five gold explorers, simply click here.
