Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Majors Need To Find Partners To Develop New Gold Reserves - Mining Executive

Majors Need To Find Partners To Develop New Gold Reserves - Mining Executive

During the five-year bear market, majors slashed their exploration budgets, which has now created a great environment for junior exploration companies with defined projects, according to one mining executive.

In a recent interview with Kitco News, Rich Munson, CEO of Sandspring Resources (TSX.V: SSP), said that his company is currently looking for a strategic partner to help develop its Toroparu gold project in Guyana and expects now is the good time for companies to go shopping.

“The reality is that there are no major projects in the pipeline and the mining sector is looking for replacement ounces. Now is a good opportunity to find a strategic partner,” he said. “I think there is a solid base in gold and that makes projects like ours attractive.”

While the gold market is expected to remain volatile this year, Munson said that he sees long-term potential in the yellow metal as there remains a lot of uncertainty surrounding the Trump Presidency. He explained that he sees the potential for higher inflation pressures as well growing debt problems.

“I don’t see how you can have massive tax cuts and major infrastructure spending and expect everything will run smoothly,” he said. “I think gold will do well in this uncertain environment. We are already seeing the market stabilize.”

Click here to continue reading...