Always A Good Time For Discovery

Even in the depths of bear markets, a new gold discovery can deliver big gains for early investors.

In the current bull market, unearthing a gold deposit on one (or both) of its two prospective gold projects could send Makara Mining’s (MAKA.CN; MAKAF.OTC) share price due north.

Dear Fellow Investor,

In junior mining exploration, nothing pays like discovery.

It stands to reason. All of a sudden, a series of impressive drill hole results converts a “might-be” piece of moose pasture into a richly valuable metals deposit.

The news of discovery draws in hordes of investors and speculators who failed to position themselves beforehand, causing a spike in the company’s share price.

The graph below nicely illustrates the importance of getting in early to these stories.

Simply put, the steepest gains accrue to those with the foresight (and good fortune) to place successful bets on these discoveries before the drills start turning.

Discoveries don’t happen every day, of course, so the key is to include at least a few well-positioned, early-stage exploration stories in your portfolio to maximize your chances of success.

And with not one, but two, high-potential gold projects in hot gold districts, Makara Mining (MAKA.CN; MAKAF.OTC) is a compelling discovery-stage play, particularly as we enter the next phase of this bull market for the yellow metal.

The Second Yukon Gold Rush Continues

The White Gold district in the Yukon that plays host to Makara’s Rude Creek project provides a couple of excellent examples of the power of discovery.

First up, was Golden Saddle, a near-surface gold deposit in the district discovered by tiny Underworld Resources.

First outlined in the late 2000s, Underworld would eventually outline almost 1.5 million ounces of gold at Golden Saddle, put the White Gold area on the map as a gold district, and set a second gold rush in motion by other explorers in the area.

Kinross eventually bought Underworld in 2010 for about C$140 million, with the big gains from that sale going to those who got in early on the company.

The Coffee project, the second major discovery in the White Gold area, proved even more lucrative.

Attracted to the area by Underworld’s success at Golden Saddle, Kaminak Gold acquired Coffee in 2009.

By 2012, Kaminak had outlined 3.2 million ounces of gold at Coffee. By 2016, it had produced a feasibility study on the project that assumed annual production of 184,000 ounces at all-in sustaining costs of just $550/ounce.

The numbers from that study convinced Goldcorp to buy the company and the project for C$520 million.

Here’s where Makara’s Rude Creek project comes in, positioned where the White Gold district meets the Dawson Ridge district, just 45 kilometers from Coffee and 72 kilometers from Golden Saddle.

Rude Creek shares strong geologic similarities to Coffee and has yielded significant initial assays on its Trombley zone.

In short, the project has the potential to host this section of the Yukon’s next major gold discovery.

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Kenora: A Target-Rich Environment

Providing a strong backstop to Rude Creek is Makara’s Kenora gold project in northwest Ontario.

Both the TransCanada Highway and the Canadian Pacific Railway transect the project, as do natural gas and hydro transmission lines, meaning should Makara make a discovery here, infrastructure is more than sufficient to support building a mine.

With a history of gold mineralization that goes back to 1894, more recent owners of Kenora have focused on surface work.

Trenching on the project has uncovered a target-rich environment, with highlights from recent sampling that includes:

• 18.0 meters of 2.0 g/t gold, including 5.0 meters of 6.8 g/t gold in the Aviator trend

• 2.7 meters of 5.0 g/t gold on the Hilly Lake trend

• 1.4 meters of 1.8 g/t gold on the Black Sturgeon trend

• 0.7 meters of 1.7 g/t gold on the Avro East target that runs parallel to Aviator

Follow-on sampling extended the Aviator trend (since dubbed the Ace Showing) and added other high-grade targets as well.

Given the excellent surrounding infrastructure at Kenora and the current bull market for gold, a discovery via drilling on this project could turbo-charge Makara’s share price.

Cashed Up To Make Market-Moving News

In a sign of the potential the smart money sees in Rude Creek and Kenora, Makara recently closed on an over-subscribed private placement that raised C$1.7 million.

That’s more than enough money to take exploration on its two core projects to the next level…and potentially generate the type of news that could make a big splash in the current market.

Remember that exploration chart: In good gold markets and bad, the big money gets made when the drills make a major discovery.

Of course, discoveries aren’t guaranteed, but especially in the current environment, even a strong whiff of one at Rude Creek or Kenora could propel Makara Mining (MAKA.CN; MAKAF.OTC) upward.

For those who want to speculate on that possibility, the market is providing you with a tailor-made opportunity to do so.

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