Gold companies of late have rebounded like seldom before, making that sector very lucrative. But one Vegas-based miner has the added advantage of diversification.
That’s why it’s significant that on Tuesday, Bonanza Goldfields Corp. (OTC:BONZ) acquired the Fountain Head Mine, a property rich in gold, silver and base metals.
Fountain Head is located in Stockton Hill, 15 miles (25 kilometres) north of Kingman, Arizona, downhill from BONZ’s Summit Mine. Tuesday’s news release says that’s important because, in the past, ore from both the Summit and Fountain Head was trucked to Bonanza’s Golden Gem Millsite for treatment.
If Bonanza Goldfields decides to rebuild the Golden Gem, it will be necessary to develop an adequate tonnage of mineralized rock to fill up the mill so it can operate at a profit.
Bonanza noted with some excitement that the price of gold is up 15% since present management was named in February 2017. A higher gold price makes the economics more attractive for rebuilding Golden Gem.
Shares hiked in price to 12-100ths of a cent, up 20% from Monday’s close, on volume of 15.6 million.