Alacer Gold Corp – CDI (ASX: AQG) first drew my attention last year when it proposed payment of a massive special dividend to shareholders.
Unfortunately I was too late to take advantage of the payment, but the company has remained on my radar since thanks to its geographic diversification, quality assets and low mine cost.
Alacer caught my eye again back in January when it provided 2014 costs guidance of $730-780 an ounce, well below the sale price of gold at the moment.
Another announcement, released this morning, indicates three significant drilling results at the company's Dursunbey and Cöpler prospects.
A majority of holes recorded results of 1-2 grams per tonne of gold, and the Dursunbey results recording significant mineralisation of between 37-179g/t of silver as well.
1 gram per tonne is a good measuring stick to use when determining whether a company's gold resources are viable, and given Alacer's low costs and location in Turkey the company may in fact be able to economically mine veins below this benchmark.
While further drilling must be conducted to firm up the extent of the results, the newly discovered holes bode well for the company's future.
Indeed more exploration success in gold-rich Turkey could see Alacer vying for a place in the The Motley Fool's '3 best speculative resource companies' list. While demand for the company's product also looks quite secure thanks to ultra-loose global monetary policy.
If the idea of foreign currency risk doesn't appeal to you however – we all know which direction the Aussie dollar is headed in – then why not check out some other stock ideas?
There are a bunch of local miners with low costs and secure production to choose from, free from the stresses of overseas tenements.
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