5 Hot Gold Penny Stocks That Are Soaring This Week

It’s no secret that gold is hot right now, and there plenty of hot gold penny stocks worth watching as the gold price continues to climb.

As crude oil prices continue to drop sharply, gold prices are seeing additional safe-haven buying interest.

June gold futures were up $4.50 an ounce at $1,740.00 on Monday, but according to Bank of America, gold prices could reach $3,000 this year.

Here are five hot gold penny stocks that saw sizeable increases on Monday that investors should watch.

5 Gold Penny Stocks to Watch: Guyana Goldfields Inc. (TSX:GUY) (OTCPK:GUYFF)

At the top of the list of hot gold penny stocks to watch today is Guyana Goldfields, a mid-tier gold producer that is focused on its Aurora gold mine in the South American country.

It isn’t surprising to see GUY stock up over 42% on Monday after Silvercorp Metals Inc (TSX:SVM) (NSYEAMERICAN:SVM) revealed that it is acquiring Guyana Goldfields for C$105 million.

The transaction will create a diversified precious metals producer that has two profitable underground silver mining operations in China, a gold mining operation in Guyana, and a strong balance sheet to fund growth opportunities.

Along with the acquisition agreement, Silvercorp has agreed to lend Guyana Goldfields up to $15 million for ongoing operations at the Aurora underground project, as well as working capital.

“This transaction provides our shareholders with an immediate and significant upfront premium and exposure to a geographically diverse mid-tier precious metal company,” said Guyana Goldfields President and CEO Alan Pangbourne. “With a strong operating history, solid balance sheet and significant underground experience, Silvercorp’s management team is well-positioned to fund and continue to advance the underground project at Aurora.”

For Guyana Goldfields investors, it offers exposure to an immediate premium, enhanced trading liquidity, reduced development risk, and eliminates funding risk.

In the last 52 weeks, GUY stock has seen a low of C$0.25 and a high of C$1.45. At end of day Monday, GUY stock was up 39.76% to C$0.58 and continued its upward trajectory Tuesday morning, increasing by another 2.59% before noon.

Guyana Goldfields has a market cap of C$101.2 million, with 174,564,184 shares issued.

5 Gold Penny Stocks to Watch: Precipitate Gold Corp. (TSXV:PRG) (OTC:PREIF)

Another one of the hot gold penny stocks that saw a significant boost in its share price on Monday is Precipitate Gold Corp. (PCG), a mineral exploration company focused on exploring and advancing the Pueblo Viejo Mining Camp and Tireo Gold Trend of the Dominican Republic.

On April 13, industry giant Barrick Gold Corp. (TSX:ABX) (NYSE:GOLD) and Precipitate Gold entered into an earn-in agreement that will grant Barrick the right to acquire a 70% interest in PCG’s Pueblo Grande project, which is located next to the Pueblo Viejo mine owned by Barrick and Newmont Corp. (TSX:NGT) (NYSE:NEM).

As per the agreement, Barrick also subscribed for C$1.398 million of Precipitate’s common shares at a price of C$0.11 per share in a private placement that closed on April 17.

“We are excited to close this important equity financing, as the proceeds provide the Company with a strong financial position to pursue its ongoing exploration efforts at multiple existing advanced-staged targets at the Company’s Juan de Herrera Project as well as emerging target areas within the Ponton Project located just 30km east of Barrick’s Pueblo Viejo Mine,” said Precipitate Gold President and CEO Jeffrey Wilson.

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“Furthermore, adding Barrick Gold Corporation to its shareholder registry offers Precipitate a significant new shareholder with global mining recognition and substantial in-country prominence and expertise.”

Since the announcements, Precipitate Gold stock has continued to gain value, increasing from C$0.11 on April 13 up to C$0.19 on April 27. The company’s stocked dropped 7.89% Tuesday morning but is still up for the month. PRG has a market cap of C$17.9 million, with 105,751,031 shares issued.

5 Gold Penny Stocks to Watch: GR Silver Mining Ltd. (TSXV:GRSL) (OTCQB:GRSLF)

GR Silver Mining is another one of the gold penny stocks that was in the green on Monday, increasing by 23.41% on the TSXV to C$0.34 and 23.68% on the OTC to $0.23.

On Friday, the company announced more high-grade drill results at its Plomosas Silver Project in Mexico, including an intersection of 1.7 meters at 26.9 grams per ton (g/t) gold, 44 g/t silver, and 3 meters at 11.9 g/t gold and 22 g/t silver.

“The results not only confirm the continuity of the polymetallic wide breccia system down-dip from the historical underground mine, but also present discoveries of parallel Au-Ag mineralized veins and breccias,” said GR Silver Mining President and CEO Marcio Fonseca. “The results indicate potential for bulk tonnage polymetallic mineralization (Zn-Pb with attractive Ag-Au grades) in un-mined zones near existing underground development, as well as new opportunities for future expansion.”

The results come less than a month after GR Silver acquired the past-producing Plomosas project from First Majestic Silver Corp (TSX:FR) (NYSE:AG).

During Plomosas’ 14 years of operation, zinc and lead concentrates were the main products being mined, with reported high-grade silver and gold credits. Historical reports from the property indicate annual grades for each commodity ranging from 1.74g/t to 0.76 g/t gold and 338 g/t to 79 g/t of silver.

On Tuesday morning, GR Silver stock was down 1.47% to C$0.33 but is still up 41.6% so far this year.

5 Gold Penny Stocks to Watch: Allegiant Gold Ltd. (TSXV:AUAU) (OTCQX:AUXXF)

US-based gold miner Allegiant Gold is another one of the hot gold penny stocks that saw an impressive increase on Monday, although it’s unclear what caused the spike.

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The company’s share price was up 28.21% to C$0.25 by end of day Monday with a higher-than-usual trading volume of 274,223 shares. AUAU stock experienced a drop in mid-March, which sent its stock to a low of C$0.09 on March 20.

Since then, the stock has fully recovered its previous losses and could go higher still if trading activity continues in this manner.

At the end of January, Allegiant Gold announced a significant 52% increase in inferred resources at its flagship Eastside project in Nevada.

The updated Eastside Inferred Mineral Resource estimate includes 1,094,000 gold-equivalent ounces at 0.60 g/t, an increase of 373,000 gold-equivalent ounces from the previous resource report.

“We are very pleased with the continued results at Eastside,” said Allegiant Gold President and CEO Peter Gianulis. “We have merely scratched the surface at Eastside, having only explored less than 5% of the property and believe that Eastside will deliver significantly more upside in the coming years. We will be focusing most of our exploration efforts primarily on the areas near the original discovery zone and resource area as the deposit continues to be open to the south, north, west and at-depth.”

On Tuesday morning, Allegiant Gold’s stock retreated by 10% to C$0.22 but is still up over 15% since the start of 2020.

Again, it’s unclear what caused the uptick in Allegiant Gold’s share price on April 27, but it’s definitely one of the gold penny stocks worth watching.

5 Gold Penny Stocks to Watch: Newrange Gold Corp (TSXV:NRG) (OTCQB:NRGOF)

Last but not least on the list of gold penny stocks that was up on April 27 is Newrange Gold Corp, a gold miner with projects in Nevada and Ontario.

In recent months, the company has completed a Polarization and Resistivity (IP) survey at its Pamlico gold project and enlarged its property holdings in the prolific Red Lake mining division.

Most recently in February, Newrange announced that it acquired 105 additional claims by staking, contiguous with the eastern and northern property boundaries. The additional claims added 878 hectares to the property, which represents a 50% increase in property size.

One potential reason for Newrange’s share price increase could be recent insider trading of the stock. According to Simply Wall St, over the last quarter, insiders have shelled out C$70,000 for shares of the company.

At end of day Monday, Newrange Gold stock was up 8% on the TSXV to C$0.13 and up 17.76% to $0.09 on the OTC. On Tuesday morning, NRG dropped by 7.41% to C$0.12, while NRGOF went up another 2.25% to US$0.10.

Takeaway

If you are interested in gold penny stocks, now could be the perfect time to get in before the market really heats up.

Whether or not gold will reach $3,000 like BOA analysts predict, the current gold prices offer gold penny stocks a unique opportunity to gain capital and bring their projects to production.