Hawkmoon Resources Corp (CSE:HM, OTCQB:HWKRF) told investors it is looking forward to commencing drilling on its key Wilson gold project near Val-d’Or, Quebec, in July.
However, until then, the Vancouver-based resource company cautioned that its market performance could see pressure due to a lack of news and activity.
In a corporate update on the one-year anniversary of Hawkmoon becoming a public company, CEO and founder Branden Haynes said: “What is important to remember, is understanding how junior mining stocks function. Investments related to juniors are high risk as they are new in the market and don't yet have a proven asset base."
READ: Hawkmoon Resources lays out plans and budget for 5,000-metre drill and surface exploration campaign at Wilson gold project
Haynes said juniors in the exploration phase might not find any resources at all. On the other hand, the potential is there for great reward and huge excitement if the exploration and development is successful.
“One rule of thumb is that you have to look at 1,000 anomalies to find one prospect,” Haynes continued. “And fewer than one prospect in a thousand turns into a mine. In other words, finding a mine is a million-to-one shot.”
With risk assessment in mind, Haynes added that it is also important to look at the positives related to Hawkmoon.
- The company's projects are located in Quebec, which is a stable political region and mining-friendly jurisdiction.
- The Wilson Gold Project is in an area with geology that is similar to that of nearby producing mines and deposits such as Osisko Mining (TSX:OR.WT)'s "Windfall" deposit that features a 9.472 million tonnes (mt) at 10.5 grams per tonne (g/t) gold (measured and indicated) mineral resource estimate and a 13.035 mt at 8.6 g/t gold (inferred) mineral resource estimate.
- The company has a strong balance sheet and no debt.
- Strong partnership with Wilson's property vendor, Cartier Resources Inc.
“When investing in a junior exploration company such as Hawkmoon, please keep in mind that you need to arm yourself with patience and be willing to allow a given investment months and even years to play itself out,” Haynes concluded. “Good management needs time to execute and resource exploration is a tough business.”
Hawkmoon is focused entirely on its two Quebec gold projects. The Wilson gold project is located in one of the world's largest gold endowed areas, the Abitibi Greenstone Belt. The Wilson is accessed by government-maintained roads and is near the east of the town of Lebel-sur-Quevillon. The second project is situated in the Belleterre Gold Camp southwest of Val-d'Or.
Contact the author at stephen.gunnion@proactiveinvestors.com