Warwick Grigor, Executive Chairman of Aguia Resources (ASX:AGR) and veteran mining analyst, draws striking parallels between today’s gold market and the bull market of the 1980s. Having started investing in gold during the late 1970s and witnessed the price peak at around US$800 an ounce in the 1980s, Grigor is optimistic about the metal’s future.
Grigor told Mining.com.au that the gold price is likely to continue rising, even forecasting it could reach US$5,000 an ounce within the next year or two.
He emphasizes gold’s suitability for junior mining companies because they can quickly convert gold production into cash without needing long-term contracts. “Every gold project is different… there’s always opportunity,” he said.
Rather than focusing solely on gold production, Grigor looks for companies with expanding production and exploration potential—growth stocks within the gold sector.
Aguia’s Santa Barbara Project Progress
Aguia Resources recently sold $193,000 worth of gold from its Santa Barbara Project in Colombia, after completing a rigorous government certification process. This certification will simplify future sales, enabling continuous transactions. The company is also in advanced talks with multiple refineries, both domestic and international, and is applying for an export license as an alternative to domestic sales.
Grigor highlights the project’s high-grade deposit as a key attraction. An April geological assessment estimated an exploration target of 2-4 million tonnes at 20-30 grams per tonne. Confirming mineralization continuity and releasing a maiden JORC resource could be transformative.
According to Grigor, the project is entering a phase of potential maximum share price appreciation, based on the Lassonde Curve concept, which tracks the lifecycle of mining companies.
Proven Economic Viability
What sets the Santa Barbara Project apart is its practical trial mining and processing experience. The project treated 500 tonnes during a trial phase, recovering 20 grams per tonne — real-world data confirming its economic potential.
Since December 2024, the project has been undergoing recommissioning, including development of underground workings and mining mineralized veins. The 30 tonnes-per-day processing plant is being upgraded with four additional agitation tanks to reach a rated capacity of 50 tonnes per day.