"Gold Rush" Comeback This Summer

All the makings of a major gold rush are rapidly emerging in the Canadian province of Nova Scotia. And investors who learn about this opportunity could soon be rewarded.

Few investors know it, but Canada’s weaker currency, plus new gold extraction technology, have reawakened a major brownfield gold resource that’s long been forgotten about… until now.

In fact, over $1.2 billion in gold has been taken... but there is much more gold yet to be produced.

Right now is the opportunity to get in at the ground level. One company has just moved into the neighbourhood, with the expertise and track record to successfully follow up with a new mine.

That newcomer is Osprey Gold (TSX-V: OS; OTC: OSSPF), a small company moving into Nova Scotia’s largest historic gold production area. Osprey has quietly amassed significant claims in under-explored target areas that are ripe for expansion drilling.

While everyone was moving out West to San Francisco in the late 1800s and early 1900s for arguably the world’s most famous “gold rush”, a second gold rush to the East was quietly minting millionaires until the 1940s. Legendary for its gold, Nova Scotia’s most prolific gold producing region was aptly named, “Goldenville.”

The largest gold production site in Nova Scotia’s history, Goldenville produced 212,300 ounces of gold prior to 1942. That’s worth $263 million in today’s dollars.

But the commencement of the Second World War diverted resources, labour, and attention away from the site and the region for many decades.

Osprey Gold saw this area as an opportunity too good to pass up. They acquired an option to earn a 100 percent interest in four parcels within striking distance of Atlantic’s MRC site.

One of Osprey’s parcels already had a historic resource of less than 200,000 ounces. However, that was calculated under the presumption that gold would be produced with an underground mine.

By rethinking the deposit as eligible for open-pit mining and building in other data, Osprey’s team upped the capped resource to 288,000 ounces Inferred (a 60 percent increase) and to 447,000 ounces of gold Inferred, uncapped (a 72 percent increase).

In short, Osprey, a company with a market cap less than $10 million, is sitting on at least $560 million in gold. But even that could be a conservative estimate.

Bloomberg Pro Terminal

Trader Velizar Mitov

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