F E B R U A R Y / M A R C H 2 0 2 0
www.resourceworld.com 27
ing complex in northwest Ontario for CAD
$553 million. Kirkland Lake Gold Ltd.
[KL-TSX, NYSE; KLA-ASX] announced it
would be acquiring Detour Gold for $4.9
billion. Then about a week later, Chinese
Gold producer, Zijin Mining announced it
would be acquiring Continental Gold for
C $1.4 billion, and Equinox Gold Corp.
[EQX-TSX, NYSE American] and Leagold
Mining Corp. [LMC-TSX; LMCNF-
OTCQX] announced a merger worth about
US $584 million. Finally, to close out
the year, on December 10, Barrick Gold
announced the sale of 90% of its stake in
the Massawa Project in Senegal to Teranga
Gold Corp. [TGZ-TSX; TGCDF-OTCQX] for
US $430 million.
Another side of these developments
is mining companies investing in but not
acquiring other mining companies, such
as Alamos Gold Inc. [AGI-TSX, NYSE]
investing in Manitou Gold Inc. [MTU-
TSXV; MNTUF-OTC] and Eldorado Gold
Corp. [ELD-TSX; EGO-NYSE] investing in
QMX Gold Corp. [QMX-TSXV].
In what must be some kind of min-
ing investment record, wealthy financier
Eric Sprott has invested in a couple dozen
mining companies too numerous to list
but including Ely Gold Royalties Inc.
[ELY-TSXV; ELYGF-OTCQB], Golden
Predator Mining Corp. [GPY-TSXV;
NTGSF-OTCQX] and Pure Gold Mining
Inc. [PGM-TSXV; LRTNF-OTCQB: LRTNF;
PUR-LSE].
This merger, acquisition and invest-
ment mania is being driven by a number
of factors, including the need for compa-
nies to replace reserves, cut costs, increase
production and attract more interest from
institutional investors.
An explanation also emerges by looking
at recent market developments in the gold
mining sector.
During the last strong bull market, from
2002 when gold prices were US $250/oz
until 2011 when gold spiked to US $1,926/
oz most companies focused on building
reserves through exploration. Investors
saw growth in reserves as the key deter-
minate of value, disregarding near-term
www.endurancegold.com
info@endurancegold.com
Orogenic Gold
Prior Drilling
13.3 gpt Gold over 4.20 m
7.05 gpt Gold over 5.06 m
5.70 gpt Gold over 12.05 m
2.16 gpt Gold over 12.13 m
2019 Surface Sampling
10 gpt Gold over 5 m
2020 Drilling Planned
Gold Bridge, B.C.
RELIANCE
PROJECT
North American Focused Project Generator
TSX.V: EDG
@EnduranceGold
