The Small Cap Gold Market Is Breaking Out Aggressively - Here's What To Do

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The TSX Venture Composite Index (TSXV) has staged a significant technical breakout, rising above its long-term resistance level at 645, a price ceiling that had constrained upside momentum since mid-2022. A classic bullish reversal formation can be observed, with the index forming an inverse head and shoulders spanning 2022 to 2025. This suggests the potential for a trend reversal, renewed bullish momentum, along with a renewed risk appetite in Canada's junior equity market, which has long been hampered by tightening liquidity, weak commodity cycles, and broader macro uncertainty.

TSX Venture Composite Index (TSXV) five-year chart. (Source: TradingView)

When we take a look at the VanEck Gold Miners ETF (NYSE Arca: GDX), it confirms that the ETF has finally pushed past its post-COVID stimulus-era highs, commonly referred to as“helicopter highs” due to the massive monetary injections in 2020. This suggests growing investor confidence in the gold mining sector amid rising geopolitical risk and renewed interest in precious metals.

VanEck Gold Miners ETF (NYSE Arca: GDX) five-year chart. (Source: TradingView)

The breakout is accompanied by a notable spike in trading volume, signaling institutional participation and broad market interest. 

This breakout coincides with strong bullish momentum across the precious metals complex, as gold prices hover near all-time highs and central banks continue to accumulate reserves.

Gold (US$/OZ) five-year chart. (Source: TradingView)

This move may serve as a leading indicator for speculative capital rotation into high-beta gold stocks, particularly in junior gold miners as they remain undervalued and offer greater upside leverage to rising bullion prices. 

These companies often offer superior leverage to rising gold prices, as their valuations are more sensitive to changes in bullion due to smaller production bases, higher beta, and outsized reserve optionality. Yet many still trade at depressed levels from when gold was under $2,000. This disconnect creates a compelling opportunity for investors seeking high-beta exposure to the gold trade, especially as capital begins rotating into resource equities.

Capitalizing on the Sector's Untapped Potential: 6 Gold Mining Stocks to Watch

1. Lake Victoria Gold (LVG)

Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) is a fully permitted, construction-stage gold company based in Tanzania, with a flagship project that is on the cusp of delivering its first gold pour. 

PARTNERSHIP WITH BARRICK GOLD: Lake Victoria Gold (LVG) has a strategic partnership with Barrick Gold, a $32 billion mining behemoth, specifically through their discovery-based contingent payments (up to USD $45M) from Bulyanhulu Gold Mine Limited (Buly). Barrick's involvement provides credibility and financial support as well as reduces operational and financial risks.

STRATEGIC LOCATION: LVG's Tembo project borders Barrick's 13.5 million ounce (Moz) Bulyanhulu gold mine*, which positions LVG for potential synergies and cost reductions.

HIGH-GRADE: The project boasts 50,000 meters of drilling with significant high-grade intercepts, including bonanza-grade intercepts up to 70 g/t. 

STRONG STRATEGIC BACKERS: The project is also financed by Tanzania's richest mining magnate, who has a track record of successful mining operations in the region.

PERMITTED FOOTPRINT AND NEAR-TERM STRATEGY: The Tembo Project is covered by four Mining Licenses, providing a permitted foundation for development. The Company is evaluating a potential development partnership with a third-party processor, leveraging existing infrastructure to initiate low-capex, early-stage production while advancing broader district-scale exploration.

DISTRICT-SCALE VISION: While the near-term development opportunity offers a potential pathway to near-term cash flow, the longer-term strategy is centered on unlocking a major gold discovery at Tembo. The scale, grade, and structural setting of the project make it one of the most compelling exploration plays in the Lake Victoria Goldfields.

MASSIVE UPSIDE POTENTIAL: Lake Victoria Gold's shares are trading below the price at which Barrick Gold acquired its equity position, currently under $0.20. This presents a compelling opportunity for investors seeking exposure to a high-grade exploration project with near-term development potential and significant discovery upside.

2. Skeena Resources (SKE)

Skeena Resources (TSX: SKE) (NYSE: SKE) is a leading precious metals developer focused on advancing the Eskay Creek Gold-Silver Project, located in the renowned Golden Triangle of British Columbia, Canada. 

PROJECT VIABILITY AND HIGH-GRADE POTENTIAL: The Eskay Creek Gold-Silver Project is set to be one of the highest-grade and lowest-cost open-pit precious metals mines in the world, with substantial silver by-product production.

STRATEGIC LOCATION: Located in the renowned Golden Triangle of British Columbia, the project benefits from a favorable mining jurisdiction and a rich mineral endowment.

STRATEGIC ENERGY AGREEMENT: Skeena has signed an interconnection agreement with Coast Mountain Hydro to secure access to clean, renewable power at competitive rates (approximately CAD $0.06/kWh), which eliminates the need for constructing a new transmission line and will result in significant capital cost savings and reduced operational expenses.

LEGAL AND REGULATORY MILESTONES: The Supreme Court of Canada recently dismissed applications for permission to appeal and affirmed Skeena's ownership of the Albino Lake Storage Facility and clearing the way for further legal and operational progress.

PERMITTING PROGRESS: Skeena has filed joint applications for the BC Mines Act and Environmental Management Act, with the Environmental Assessment Certificate anticipated in Q4 2025.

3. K2 Gold (KTO)

K2 Gold (TSXV: KTO) (OTCQB: KTGDF) is an exploration company focused on delivering significant new gold discoveries in North America, including the flagship Mojave Project in Inyo County, California. 

100% OWNERSHIP OF THE MOJAVE PROJECT: K2 has successfully secured 100% ownership of the 5,380-hectare Mojave Project, thereby eliminating joint venture complexities and enhancing flexibility and control over exploration and development activities.

HIGH-GRADE POTENTIAL: The project has demonstrated multiple high-grade gold targets, including drilling results of 86.9m at 4.0 g/t Au and rock grab samples up to 375 g/t Au, indicating significant exploration upside.

DRAFT ENVIRONMENTAL IMPACT STATEMENT (DEIS): The company has successfully obtained the DEIS for K2's Mojave Exploration Drilling Project from the United States Bureau of Land Management (BLM), which is a significant milestone in the permitting process.

SECRETARIAL ORDER 3418: The project aligns with the Department of the Interior's (DOI) Secretarial Order 3418, which encourages exploration and production on federal lands to meet the needs of American citizens.

DISTRICT-SCALE POTENTIAL: The Mojave Project is located in an underexplored and highly prospective region, with the potential to host large, high-grade oxide gold deposits and other base metal targets.

SYSTEMATIC EXPLORATION: K2 has completed geochemical and geophysical surveys, geologic mapping, LiDAR, a WorldView 3 alteration survey, and a 17-hole RC drill program focused on the Dragonfly and Newmont Zones.

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4. Barrick Gold (B)

Barrick Gold (NYSE: B) (TSX: ABX) is a leading global gold mining company that has been evolving into a diversified gold and copper producer. The company has a robust portfolio of assets across Latin America, Asia Pacific, Africa, and the Middle East. 

DIVERSIFICATION INTO COPPER: Barrick is transitioning into a gold and copper producer, with copper expected to drive most future growth. This diversification aims to reduce reliance on a single commodity and hedges against potential gold price volatility.

REKO DIQ PROJECT: The Reko Diq project in Pakistan is one of the most exciting upcoming copper mines, with a multi-decade reserve life and the potential to generate more than $1 billion in annual FCF.

AFRICA AND THE MIDDLE EAST: The company has secured permits for the Lumwana Super Pit Expansion, expected to add 240 ktpa in annual copper supply at $2.72/pound, well below current prices.

NEVADA PROJECTS: In Nevada, Barrick has increased the quality of ore processed while maintaining a strong recovery rate, producing more than 1.6 million ounces of gold and generating strong profits.

LATIN AMERICA AND ASIA PACIFIC: Barrick has continued to generate strong production in core markets like Veladero at the Chile-Argentina border to ensure reliable and consistent output.

COST MANAGEMENT: Barrick has managed to keep costs low in an inflationary environment, with All-in sustaining cost (AISC) declining in the most recent quarter. The company's ability to maintain low costs while increasing production is a positive indicator of operational efficiency.

5. Agnico Eagle Mines (AEM)

Agnico Eagle Mines (NYSE: AEM) (TSX: AEM), founded 67 years ago, has evolved into one of the largest gold mining companies in the world, with a significant presence in Canada, Australia, Mexico, and Finland. 

COMPETITIVE ADVANTAGE: Agnico Eagle's strategy of regional consolidation has created a competitive advantage in key regions like Northern Ontario, Northern Quebec, and Nunavut. This focus has enabled the company to keep costs low and operate efficiently.

KEY PROJECTS: The company's Detour Lake and Canadian Malartic mines aim for over 2.8 million ounces of annual gold production, along with upcoming developments like Upper Beaver, Hope Bay, and San Nicolás targeting significant future output.

STABLE OPERATIONS: The company has maintained consistent production and cost performance, hitting quarterly targets and delivering strong financial results. In Q1 2025, Agnico Eagle produced 874,000 ounces of gold at all-in sustaining costs of $1,189 per ounce, below the low end of guidance.

REINVESTMENT IN THE BUSINESS: Agnico Eagle is reinvesting in exploration and capital projects, with a record exploration budget of $525 million and a record capital spend to advance key projects.

ATEX MINING: Agnico Eagle has taken a 13% interest in ATEX Mining, a copper development firm in Chile. The company has also increased its investment in Foran Mining from 9.9% to 13.5%. 

METAL AGNOSTICISM: Agnico Eagle is actively considering investments in other metals if they align with the company's competitive advantages and operational expertise. The San Nicolás project in Mexico is an example of this strategy.

6. Newmont Corporation (NEM)

Newmont Corporation (NYSE: NEM) (TSX: NGT) is the world's largest gold miner and a significant player in the copper market. The company's extensive portfolio includes high-quality assets across multiple continents, including North America, South America, Africa, and Australia. 

DIVERSIFICATION AND SCALE: The acquisition of Newcrest Mining for $17 billion has added significant scale and high-quality copper assets in stable jurisdictions. Exposure to both gold and copper also provides it with a balanced portfolio.

HIGH-QUALITY ASSET BASE: Ownership of Tier 1 mines with low operating costs, such as Cadia, Tanami, and Ahafo North. Projects like Wafi-Golpu and the Tanami Expansion 2 promise to maintain production with lower costs and environmental impact.

HIGH OPERATING MARGINS: The company's operating margins approached 50% in Q1 2025, and its EBITDA/revenue margin of 52% was among the highest in the global mining sector.

STRATEGIC ASSET SALES: NEM has recently completed asset sales worth up to $4.3 billion, including operations in Canada, Ghana, and the US, to streamline the portfolio and focus on high-quality assets. 

DEBT REDUCTION: The company is focused on selling non-strategic assets and reducing debt, with $1.4 billion in debt eliminated in one year.

SOLID DIVIDEND AND BUYBACK PROGRAM: Distributed $1 billion in buybacks and dividends, with a quarterly payout of $0.25 per share, supported by strong cash generation. Completed $755 million in buybacks, which represents $2 billion from an authorized $3 billion program.

Conclusion

Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) stands out as the premier investment opportunity in the gold mining sector, particularly in the current macroeconomic environment. A decade of underinvestment in mining has led to tight supply, which will benefit companies like LVG that are bringing new projects online. Despite its strategic location, high-grade resources, advanced stage and strategic backing, LVG is still trading under $0.20, which is significantly below its intrinsic value and offers a unique combination of high upside potential and low risk, making it the best stock to buy now before the market re-rates it and the window of opportunity closes.

*Resource Estimate for Barrick Gold Bulyanhulu Project

Proven reserves of 0.62 million tonnes grading 7.03g/t, representing 0.14 million ounces of gold and probable reserves of 16 million tonnes grading 6.96 g/t/, representing 3.6 million ounces of gold. Measured resources of 2.8 million tonnes grading 7.93g/t, representing 0.72 million ounces of gold and indicated resources of 28 million tonnes grading 7.16g/t, representing 6.5 million ounces of gold. Inferred resources of 11 million tonnes grading 7.2g/t, representing 2.5 million ounces of gold.

Also Read: Gold's Breaking Out to New Highs; Here's the 3 Best Stocks to Play It

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