BTR: BonTerra Resources Glitters More Than Gold Itself

BTR: BonTerra Resources Glitters More Than Gold Itself

The old saying goes “All that glitters isn’t gold” and while that it is certainly true, that adage is also very applicable in the world of investing. Gold has certainly been a shiny investment recently, fueled by investor demand for a safe-haven and a plunging U.S. dollar, gold has been running to all-time highs on an almost daily basis. This bull run has opened the door for plenty of derivative plays on gold to outperform as well.

Case and point: Canada-based BonTerra Resources (TSX.V: BTR), a junior miner with a senior presence in one of the most gold-laden regions of the world. The Company recently announced that it has commenced drilling at the Urban-Barry Township property in Quebec. The project is within the vicinity of other successful gold mining initiatives and BTR leadership is excited about Urban-Barry’s outlook.

When that news crossed the wires a few weeks ago, traders bid BonTerra’s shares up to a new 52-week high and those on the sidelines probably thought they missed the move. That was not the case as BTR moved to yet another new 52-week on Tuesday of this week highlighting the fact that this stock has plenty of room to grow while delivering noteworthy gains to investors.

At this point, it has become clear that gold miners in the small cap space like BTR benefit in a big way when gold bulls are in charge, which they are. Yet, some investors may be pensive about owning a name like BonTerra when there are more widely known options in the gold world. The case for investing in junior miners like BonTerra is pretty clear to most small cap investors. First of all, there is less possible downside price movement due to the nature of small caps being low priced. Second, the stock is up 35% in the past month while the SPDR Gold Shares ETF (NYSE: GLD) is up just 5% over the same time frame.  Why commit well over $100 per share to GLD to get 5% when an investor needs far less per share to get 35% out of BTR?

For additional information on BonTerra Resources Inc. (TSX.V: BTR) visit http://www.stockorange.com/client-profiles/btr

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