With gold hitting near record prices a regional mining analyst suggests it can only be good for northwestern Ontario.
Currently gold is selling in the range of $1,800 an ounce.
John Mason indicates during a recession gold does well, and there is a lot of potential for the mineral in the northwest leaving junior mining companies the ability to raise money for exploration.
“We’re blessed with gold as a strong theme going forward in the northwest for the next few years that’s really going to help our employment and supply and service businesses,” says Mason.
However, Mason believes it will still take several years for some projects to become actual mines like the recently purchased Pickle Lake property by the Australian firm Auteco Minerals.
Mason point out, “Right now it’s an advanced exploration project so they’re several years away from a production decision at this particular point.”
He does think it makes sense for First Mining Gold of Vancouver to have sold the Pickle Crow Gold Project to Auteco.
Mason explains even though the area shows lots of promise the junior exploration company is busy enough with its flagship project northeast of Red Lake called Springpole Lake.
