Gold Digger: Investors — stick to safe harbours and beware the ‘sucker hole’

Pic: Tyler Stableford / Stone via Getty Images

On Monday, the ASX recorded one of its best days ever. The local bourse rallied hard in its final minutes on the government’s monstrous $130bn ‘JobKeeper’ subsidy, designed to keep the economy ticking over during the worst of the COVID-19 pandemic.

Gold stocks benefited from this broad-based uplift. Prior to that announcement we had 72 weekly winners on our list of 143 ASX gold stocks; a few minutes later that had jumped to 92.

The outlook remains good for gold – which loves drama – and bad for the wider market, despite countries promising to pump trillions into their economies to cushion the blow.

“If you’ve spent any time ocean fishing, you’re probably aware of the term ‘sucker hole’,” AxiCorp’s chief market strategist Stephen Innes said.

“[It is] a colloquial term referring to a short spate of good weather that ‘suckers’ sailors into leaving port just in time for a storm to resume at full force.”

This graph shows the relationship between the $US gold price (red) and the $AU gold price (orange).

Winners & Losers

Here’s how ASX gold stocks performed for the period March 23 — March 30 [intraday]:

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:

CODE	NAME	PRICE [intraday Friday]	1 YEAR RETURN %	1 WEEK RETURN %	MARKET CAP
A1G	AFRICAN GOLD	0.088	-58	110	$ 5,461,400.00
AAJ	ARUMA RESOURCES	0.0025	-58	25	$ 1,418,827.75
AAR	ANGLO AUSTRALIAN RESOURCES	0.14	61	22	$ 62,678,632.00
ADN	ANDROMEDA METALS	0.035	450	3	$ 48,572,852.00
AGS	ALLIANCE RESOURCES	0.09	-1	-14	$ 13,863,450.00
ALK	ALKANE RESOURCES	0.87	271	14	$ 516,229,632.00
ALY	ALCHEMY RESOURCES	0.011	-18	0	$ 6,055,768.00
AME	ALTO METALS	0.06	55	3	$ 17,895,800.00
AMG	AUSMEX MINING GROUP	0.044	-65	2	$ 23,476,344.00
ANL	AMANI GOLD	0.002	0	33	$ 12,270,899.00
AOP	APOLLO CONSOLIDATED	0.23	-4	16	$ 57,855,552.00
AQI	ALICANTO MINERALS	0.06	62	46	$ 13,681,144.00
ARL	ARDEA RESOURCES	0.28	-28	-8	$ 32,257,620.00
ARM	AURORA MINERALS	0.015	69	167	$ 3,045,465.50
ARS	ALT RESOURCES	0.021	-23	0	$ 12,148,383.00
ARV	ARTEMIS RESOURCES	0.024	-59	5	$ 24,715,668.00
AUC	AUSGOLD	0.014	-26	17	$ 15,486,794.00
AVW	AVIRA RESOURCES	0.001	-67	0	$ 2,250,000.00
AWV	ANOVA METALS	0.008	-30	-9	$ 6,891,323.00
AYR	ALLOY RESOURCES	0.015	-50	50	$ 3,883,016.00
BAR	BARRA RESOURCES	0.014	-53	-13	$ 8,351,220.50
BBX	BBX MINERALS	0.12	-64	14	$ 45,473,088.00
BC8	BLACK CAT SYNDICATE	0.385	120	1	$ 33,671,848.00
BCN	BEACON MINERALS	0.035	88	13	$ 100,052,144.00
BDC	BARDOC GOLD	0.065	44	7	$ 92,117,192.00
BGL	BELLEVUE GOLD	0.52	-4	4	$ 378,538,720.00
BLK	BLACKHAM RESOURCES	0.011	-8	10	$ 109,245,096.00
BNR	BULLETIN RESOURCES	0.037	106	16	$ 6,633,843.50
BRB	BREAKER RESOURCES	0.195	-51	8	$ 46,264,016.00
BRV	BIG RIVER GOLD	0.027	35	35	$ 34,267,128.00
BSR	BASSARI RESOURCES	0.013	-24	0	$ 31,040,814.00
BYH	BRYAH RESOURCES	0.026	-60	0	$ 2,622,719.75
CAI	CALIDUS RESOURCES	0.29	16	12	$ 64,943,440.00
CDT	CASTLE MINERALS	0.006	-14	50	$ 1,423,387.63
CDV	CARDINAL RESOURCES	0.36	-14	-5	$ 190,009,312.00
CGN	CRATER GOLD MINING	0.011	-21	0	$ 13,502,455.00
CHN	CHALICE GOLD MINES	1.005	673	78	$ 283,660,512.00
CMM	CAPRICORN METALS	1.155	178	6	$ 396,934,176.00
CTO	CITIGOLD CORP	0.004	-20	33	$ 9,684,693.00
CWX	CARAWINE RESOURCES	0.19	32	9	$ 14,681,085.00
CXU	CAULDRON ENERGY	0.02	0	5	$ 7,149,507.00
CY5	CYGNUS GOLD	0.035	-17	-15	$ 2,798,294.25
CYL	CATALYST METALS	2.1	2	-5	$ 182,103,216.00
DAU	DAMPIER GOLD	0.022	-4	0	$ 5,235,692.00
DCN	DACIAN GOLD	0.365	-73	-57	$ 114,213,640.00
DEG	DE GREY MINING	0.37	291	30	$ 327,314,368.00
DGO	DGO GOLD	2.3	186	10	$ 80,018,672.00
DGR	DGR GLOBAL	0.07	-54	0	$ 38,017,276.00
DHR	DARK HORSE RESOURCES	0.003	-57	50	$ 7,393,189.00
DTM	DART MINING	0.05	-58	39	$ 3,157,955.25
DTR	DATELINE RESOURCES	0.002	-20	0	$ 16,420,156.00
E2M	E2 METALS	0.064	-68	5	$ 5,879,666.50
EMR	EMERALD RESOURCES	0.42	6	13	$ 197,012,832.00
ERM	EMMERSON RESOURCES	0.07	-13	-13	$ 29,739,772.00
EVN	EVOLUTION MINING	4.84	46	7	$ 8,419,758,080.00
FML	FOCUS MINERALS	0.25	-6	17	$ 44,773,400.00
GBR	GREAT BOULDER RESOURCES	0.028	-69	0	$ 3,736,711.75
GBZ	GBM RESOURCES	0.068	13	8	$ 15,577,670.00
GED	GOLDEN DEEPS	0.007	-80	-13	$ 1,964,259.88
GML	GATEWAY MINING	0.013	-7	30	$ 17,415,008.00
GMN	GOLD MOUNTAIN	0.06	-11	9	$ 32,525,314.00
GMR	GOLDEN RIM RESOURCES	0.006	-54	0	$ 7,352,446.00
GNM	GREAT NORTHERN MINERALS	0.006	-76	0	$ 2,168,349.00
GOR	GOLD ROAD RESOURCES	1.74	95	20	$ 1,535,100,416.00
GSM	GOLDEN STATE MINING	0.1	2	1	$ 3,259,731.75
GSN	GREAT SOUTHERN MINING	0.051	34	9	$ 14,360,385.00
GUL	GULLEWA	0.045	50	13	$ 6,980,539.50
GWR	GWR GROUP	0.07	-26	8	$ 17,828,736.00
HAW	HAWTHORN RESOURCES	0.14	112	17	$ 44,093,108.00
HMX	HAMMER METALS	0.02	-38	13	$ 11,176,616.00
HRN	HORIZON GOLD	0.19	23	-5	$ 15,306,123.00
HRZ	HORIZON MINERALS	0.07	-42	22	$ 29,443,388.00
KCN	KINGSGATE CONSOLIDATED	0.44	69	5	$ 104,063,936.00
KGM	KALNORTH GOLD MINES	0.003	-25	0	$ 2,682,720.25
KRM	KINGSROSE MINING	0.029	-36	0	$ 21,170,214.00
KTA	KRAKATOA RESOURCES	0.036	44	-23	$ 8,750,000.00
KWR	KINGWEST RESOURCES	0.15	-6	15	$ 18,895,334.00
LEX	LEFROY EXPLORATION	0.15	-21	-12	$ 16,077,879.00
LNY	LANEWAY RESOURCES	0.004	-69	0	$ 16,740,297.00
MAT	MATSA RESOURCES	0.11	-21	21	$ 24,960,910.00
MAU	MAGNETIC RESOURCES	0.7	133	8	$ 145,173,728.00
MDI	MIDDLE ISLAND RESOURCES	0.009	0	13	$ 17,652,782.00
MEU	MARMOTA	0.037	131	3	$ 31,279,510.00
MKG	MAKO GOLD	0.044	-59	16	$ 4,474,023.50
MLL	MALI LITHIUM	0.043	-72	-2	$ 14,280,665.00
MLS	METALS AUSTRALIA	0.001	-50	0	$ 3,207,352.75
MML	MEDUSA MINING	0.52	35	14	$ 113,247,896.00
MOH	MOHO RESOURCES	0.083	-17	4	$ 3,925,249.00
MSR	MANAS RESOUCES	0.002	-50	0	$ 5,286,325.00
MTH	MITHRIL RESOURCES	0.005	-17	0	$ 3,432,724.50
NAG	NAGAMBIE RESOURCES	0.04	-33	-7	$ 21,497,090.00
NCM	NEWCREST MINING	29.34	17	14	$ 22,545,160,192.00
NES	NELSON RESOURCES	0.035	-59	-8	$ 1,954,405.25
NST	NORTHERN STAR RESOURCES	13.05	46	12	$ 9,635,435,520.00
NUS	NUSANTARA RESOURCES	0.235	27	-6	$ 43,205,828.00
NVA	NOVA MINERALS	0.048	213	57	$ 41,014,600.00
NWM	NORWEST MINERALS	0.165	21	-3	$ 13,833,630.00
NXM	NEXUS MINERALS	0.04	-32	0	$ 4,729,622.50
OAU	ORA GOLD	0.013	63	0	$ 8,399,702.00
OKR	OKAPI RESOURCES	0.055	-68	17	$ 1,982,357.63
OKU	OKLO RESOURCES	0.29	53	10	$ 118,078,288.00
ONX	ORMINEX	0.045	-73	25	$ 19,407,678.00
PDI	PREDICTIVE DISCOVERY	0.068	611	1180	$ 30,370,854.00
PGI	PANTERRA GOLD	0.022	16	0	$ 4,293,116.50
PRU	PERSEUS MINING	1	127	3	$ 1,214,777,728.00
PRX	PRODIGY GOLD NL	0.033	-62	-6	$ 20,902,594.00
PUA	PURE ALUMINA	0.014	-59	56	$ 3,104,651.50
RED	RED 5	0.235	76	0	$ 328,469,376.00
RGL	RIVERSGOLD	0.008	-67	0	$ 1,978,029.75
RML	RESOLUTION MINERALS	0.13	107	60	$ 20,278,536.00
RMS	RAMELIUS RESOURCES	1.11	44	4	$ 870,001,600.00
RND	RAND MINING	1.715	-23	-3	$ 103,154,632.00
RRL	REGIS RESOURCES	4.04	-17	2	$ 2,083,539,840.00
RSG	RESOLUTE MINING	0.9525	-20	11	$ 1,034,560,256.00
RXL	ROX RESOURCES	0.024	118	20	$ 36,448,680.00
SAR	SARACEN MINERAL HOLDINGS	4.22	67	6	$ 4,797,575,680.00
SAU	SOUTHERN GOLD	0.135	-6	23	$ 14,851,182.00
SBM	ST BARBARA	2.49	-17	11	$ 1,771,798,400.00
SFM	SANTA FE MINERALS	0.05	-39	0	$ 3,640,939.50
SIH	SIHAYO GOLD	0.013	-7	0	$ 27,271,010.00
SLR	SILVER LAKE RESOURCES	1.8	139	17	$ 1,566,122,496.00
SLZ	SULTAN RESOURCES	0.07	18	-13	$ 3,095,644.50
SMI	SANTANA MINERALS	0.003	-25	0	$ 8,051,836.50
SPX	SPECTRUM METALS	0.13	420	8	$ 187,266,976.00
STN	SATURN METALS	0.345	77	5	$ 29,458,688.00
SVL	SILVER MINES	0.088	125	5	$ 79,157,984.00
TAM	TANAMI GOLD	0.042	2	8	$ 49,354,076.00
TAR	TARUGA MINERALS	0.009	-75	0	$ 2,920,813.50
TBR	TRIBUNE RESOURCES	5.85	42	1	$ 314,702,144.00
TIE	TIETTO MINERALS	0.26	41	16	$ 96,772,696.00
TLM	TALISMAN MINING	0.074	-14	6	$ 13,810,500.00
TMX	TERRAIN MINERALS	0.005	67	25	$ 2,892,644.00
TNR	TORIAN RESOURCES	0.013	-7	63	$ 4,435,836.00
TRY	TROY RESOURCES	0.082	-4	17	$ 52,461,292.00
TSC	TWENTY SEVEN CO	0.007	75	40	$ 8,917,925.00
TSO	TESORO RESOURCES	0.059	110	28	$21,400,000.00
TTM	TITAN MINERALS	0.067	-71	0	$ 51,087,356.00
VAN	VANGO MINING	0.14	-18	17	$ 104,578,808.00
VKA	VIKING MINES	0.005	-44	0	$ 1,568,589.25
VMC	VENUS METALS CORP	0.19	17	6	$ 27,949,556.00
WAF	WEST AFRICAN RESOURCES	0.51	57	11	$ 457,080,160.00
WGX	WESTGOLD RESOURCES	2.08	43	13	$ 835,790,912.00
WWI	WEST WITS MINING	0.01	11	0	$ 10,312,841.00

SMALL CAP MOVERS

Alaskan explorer Nova Minerals (ASX:NVA) sees something in minnow Torian Resources (ASX:TNR).

Nova has invested $413,000 in the Goldfields explorer, which jumped 100 per cent for the week.

“This strategic investment provides Nova with exposure to over 400sqkm tenement package in the prolific Kalgoorlie Leonora Greenstone Gold Belt regions in Western Australia,” Torian non-exec director Angus Middleton says.

“In turn Torian will greatly benefit from Nova’s technical team’s expertise in unlocking significant value economically.

“Testament to this is Nova’s flagship 2.5-million-ounce Estelle gold project in Alaska with discovery costs reported at under $1 per discovery ounce.”

West African explorer Tietto Minerals (ASX:TIE) has recovered some of its early 2020 losses, and is up 56 per cent on some very good drilling results.

Drilling underneath the 1.38-million-ounce AG deposit has intersected “multiple stacked lodes of high-grade gold mineralisation over good widths”.

“ZDD180 has reported multiple high-grade lodes; 10m at 12.09 grams per tonne (g/t) from 286m and 6m at 9.35g/t from 317m within this structure,” says managing director Dr Caigen Wang.

“In aggregate, these intervals report just under 200 gold gram metres.

“This is a high impact hole that will significantly add to the high-grade core of the AG resource.”

READ: Barry FitzGerald — Why Tietto could be in the sights of the growth-hungry gold producers

Of the majors, Africa-focused Resolute Mining (ASX:RSG) was the biggest mover, up 34 per cent over the week.

On Thursday, it announced that gold production had not been impacted by government-regulated COVID-19 restrictions so far.

Mining and processing operations are continuing as normal at the Syama mine in Mali and Mako mine in Senegal, “and the company has not amended current production or cost guidance in response to COVID-19”, it said.

READ: The African economic boom is coming, but the time for investment is right now