Gold prices are expected to continue their rally amid a global weakened economy, and there are many potential gold penny stocks to buy that are ready to capitalize on the growing excitement surrounding the yellow metal.
Although gold lost some ground Thursday after new data eased inflation pressure, experts expect it to continue on an upward trajectory.
US Global Investors CEO Frank Holmes sees gold easily reaching $2,700, while the Bank of America is betting on the gold price hitting $3,000 in the next 18 months.
Investors who want to get in on the gold rally have endless options, whether it’s through directly investing in gold penny stocks or opting for a gold exchange-traded fund (ETF).
Here are four hot gold penny stocks that were in the green on Thursday, some of which could be a perfect pickup for your portfolio in May.
Hot Gold Penny Stocks to Buy in May: Monarch Gold Corp. (TSX:MQR) (OTCPK:MRQRF)
Monarch Gold Corp. had a particularly exciting day in the markets Thursday after reporting high-grade gold intercepts at its Fayolle gold project in Quebec.
According to Monarch Gold CEO Jean-Marc Lacoste, the first diamond drill hole has confirmed the block model and wireframe output and surpassed the company’s expectations in terms of gold grade and continuity of the mineralization.
“Hitting significant economic gold values below the planned constrained pit will likely add to the tonnage and ounces of the Fayolle deposit,” he added.
Monarch is focused on producing 100,000 to 200,000 ounces of gold per year through its large portfolio of projects in the prolific Abitibi mining district. The company currently owns over 370 square kilometers of gold properties, including the Wasamac deposit, which has a measured and indicated resource of 2.6 million ounces of gold, the Beaufor, Croinor Gold, Fayolle, McKenzie Break, and Swanson projects.
On Thursday, MQR stock increased by 13.64% to C$0.25 on the TSX and was up 18% to $0.18 on the OTC. The company’s share price has been on an upward trajectory for the last couple weeks after hitting a 52-week low of C$0.11 in March.
The company has been busy making new discoveries, selling off certain assets, raising funds, and working to restart mining operations that are on care and maintenance.
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If Monarch Gold manages to restart operations at its Beaufor underground gold mine in the next 18 months, as well as expand the mine’s resource, it might not remain a gold penny stock for long.
Monarch Gold has a market cap of C$59.3 million, with 269,621,119 shares issued. It is currently selling for C$0.25 on the TSX and for $0.17 on the OTC.
Hot Gold Penny Stocks to Buy in May: 1911 Gold Corporation (TSXV:AUMB) (OTC:HAVXF)
Another one of the hot gold penny stocks to consider buying in May is 1911 Gold Corp., a junior gold producer and explorer with properties in Canada.
The company’s share price was up 14.28% to C$0.48 on Thursday after releasing new results from the Phase 1 exploration drilling program at its 100%-owned Rice Lake gold properties.
1911 Gold announced that it has intersected high-grade gold in first-pass drilling of three targets on its Rice Lake properties. The company also announced the initiation of its 2020 field exploration program.
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“We continue to be strongly encouraged by results from the Phase 1 exploration drilling program, given that every drill hole completed to date on our previously-untested targets has produced gold intercepts, many including high-grade gold,” said 1911 Gold President and CEO Ron Clayton. “These results provide considerable scope for follow-up during the 2020 field season and Phase II drilling, presently in planning for 2020-2021.”
The news resulted in a trading volume of over one million shares on Thursday, an all-time high for the company, which could be a signal of good things to come if gold prices continue to rise.
1911 Gold owns the True North mine and mill complex, as well as approximately 54,000 hectares of highly prospective land within and adjacent to the Rice Lake greenstone belt. The company has a market cap of C$15.75 million, with 37,519,064 shares issued. Currently, AUMB is selling for C$0.45, while HAVXF is selling for $0.32.
Hot Gold Penny Stocks to Buy in May: Moneta Porcupine Mines Inc. (TSX:ME) (OTCPK:MPUCF)
Third on the list of hot gold penny stocks to consider buying in May is Moneta Porcupine Mines Inc., a gold exploration company with 100% interest in six core gold projects in Canada, as well as a 50% JV with Kirkland Lake. (TSX:KL) (NYSE:KL).
Since the beginning of the year, Moneta Porcupine has continued to turn out encouraging results and expand the resource at its Golden Highway project in Timmins.
The updated resource estimate for the property revealed a 58% increase in the indicated resource to 472,000 ounces and a 40% increase in the indicated resource to 1,056,500 ounces of gold.
On April 8, Moneta Porcupine announced that it has commenced a preliminary economic assessment (PEA) on the South West deposit at the project, which is expected later this year.
The company also announced the completion of its 2019/2020 winter drill program, which included a total of 36 holes. The program was successful in testing the resource extensions of the Windjammer South, West Block, and 55 deposits, along with intersecting new mineralization at the Westaway and Halfway targets.
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Moneta Porcupine’s share price has been on the uptick ever since, increasing from C$0.07 on April 7 up C$0.11 on April 30., marking a 57% increase in less than a month.
Moneta has a market cap of C$32.7 million, with 311,535,482 shares issued. Currently, ME is trading for C$0.115, while MPUCF is trading for $0.08.
Hot Gold Penny Stocks to Buy in May: Quebec Precious Metals Corp. (TSXV:CJC) (OTCQB:CJCFF)
Quebec Precious Metals Corp is another one of the Canadian gold penny stocks that was in the green on Thursday following the release of its updated corporate presentation.
CJC increased by 8.16% to C$0.26 on the TSXV with a modest trading volume of 231,159 shares, while its OTC-listed stock went up 5.37% to $0.17 on Thursday.
The updated presentation includes the company’s recent drill results from the La Pointe Extension discovery and La Pointe deposit at its Sakami project, as well as at its Elmer East project in Quebec’s Eeyou Istchee James Bay territory.
On April 21, QPM announced that recent drilling at Sakami revealed a new mineralized zone, the La Pointe Extension area, which has been traced over approximately 900 meters of strike, to a depth of 215 meters, with widths ranging from 10 meters to 80 meters.
“The discovery of the La Pointe Extension is the most significant development on the project since the creation of the company,” said the company’s CEO Normand Champigny. “We look forward to drilling again and demonstrating the very significant exploration potential of the project.”
The company has also been making headway at its Elmer East project, which was acquired in January 2020. The project, which has strong gold potential totaling 368 claims, is located along trend from the recent Patwon prospect gold discovery made by Azimut Exploration Inc. (TSXV:AZM) (OTC:AZMTF).
Azimut announced numerous significant gold-bearing drill intercepts at its Patwon prospect in January, specifically 3.15 g/t Au over 102.0 meters, including 10.1 g/t Au over 20.5 meters.
Quebec Precious Metals Corp. is fully-funded for its 2020 drilling program and its exploration activities, and currently has C$5 million in cash and no debt.
In the last 52 weeks, CJC stock has hit a low of C$0.14 and a high of C$0.40. Currently, CJC is trading for C$0.26, while CJCFF is trading for $0.19.
Takeaway
Gold is once again in the spotlight during times of economic uncertainty and could climb to all-time new highs if countrywide lockdowns remain in place for much longer.
Unprecedented monetary stimuli from the European Central Bank and the US Federal Reserve’s decision to keep interest rates near zero will likely help boost the demand for gold.
One way to get in on the action is by investing in promising gold penny stocks like the ones mentioned.
Are there any gold penny stocks on your radar? Let us know in the comments!
Featured Image: DepositPhotos © chepko
