By: Dylan Sikes - AllPennyStocks.com News

Tuesday, June 17, 2014

Developmental miners have been, for the most part, struggling since the market collapse in 2008. A clear portrait of this is painted by the TSX Venture exchange, which simply has not enjoyed the robust rebound of the U.S. markets or even its bigger cousin in Canada, the TSX exchange. Similarly, U.S.-listed developmental miners have limped their way through the economic recovery. Houston, Texas-based Golden Global Corp. (Pink Sheets:GLDG), a fully reporting pink sheet company, is trying to make its move to a higher valuation by transitioning from a purely exploration stage company into a gold and silver producer, which should garner some attention of the investment community. The company’s flagship property is the McDame property in north central British Columbia, Canada, covering about 183 hectares. Golden Global also has optioned a copper mining lease in the Democratic Republic of Congo.

Eight kilometers southwest of the McDame property, the Erickson mine produced an average of 14.7 grams per tonne of gold and 0.39 and 13.4 grams per tonne silver for a total of 149,082 ounces of gold and 119,429 ounces of silver across seven years of production through 1985.

According to a NI 43-101 report, placer gold was first found in McDame Creek in 1874, with nearly 89,000 ounces of gold removed from the gravels through 1895. Intermittent placer mining operations have continued throughout the past 12 decades in the area. Sampling on the McDame property was conducted in 2009 and 2010, with the earlier test showing 14.5 ounces of gold being recovered from a 1,755 cubic yard sample and then later showing an average of 0.20 grams per cubic yard of material.

After conducting some exploration in 2010, which showed a range of gold per cubic yard from 0.1 grams to 0.5 grams, Golden Global cleared part of the property and moved a wash plant on site for additional sampling in 2011. In short, the company has spent the last four years conducting limited exploration, trying to raise capital, entering the public domain and making preparations to commence production at the McDame property and that day seems to finally be drawing near.

Now, as with any start-up miner, there are plenty of caveats involved with Golden Global; i.e. no cash to speak, steady net losses and no revenue generation to date. Drilling on the property has been non-existent to prove reserves. To the side of optimism for Golden Global, placer gold has been successfully mined for centuries throughout the world by small-scale miners due to low mining costs and relative ease of extraction. This seems plausible at the McDame property based upon historic mining in the area and relatively shallow depths of finding gold in the limited sampling that has been conducted at the project.

Two months ago to the day, Golden Global announced that it was making the final preparations to commence production at McDame, with the final phase of purchasing heavy machinery and utility vehicles being set in motion. On Tuesday, the company again reiterated its intention to start mining the property “very soon.” A new road has been constructed to the property and ancillary vehicles and buildings are now in place. Pictures of a John Deere excavator, process machinery, Komatsu front loader, gold nuggets and more from the property are now posted on the Golden Global website.

The company says that it intends to sell gold and silver produced on the property to Technic Inc., a major Canadian and US buyer that has an Agent in Whitehorse, Yukon.

There is always a high degree of risk in the mining space, but with a market cap of under $200,000, the story of Golden Global could be ready to turn the corner if they can hustle and start pulling precious metals from the ground during the short five-month mining season that the Yukon allows each year. Proper due diligence is, as always, encouraged.

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