RUA GOLD just scored big in a high-grade goldfield

The acquisition quadruples RUA GOLD’s holdings in the Reefton Goldfield, taking its land position from 34,000 hectares to a whopping 120,000 hectares. The Reefton district in New Zealand is famous for its high-grade gold, with historic production totaling over two million ounces. The gold coming from these mines isn’t just any gold — we’re talking high-grade deposits, with some areas producing gold at an incredible 52.7 grams per tonne (g/t).

Why should this matter to you as an investor? It’s simple: High-grade gold means better profit margins. In a world where operational costs and economic uncertainty can squeeze profits, owning assets that are rich in quality allows mining companies to generate better returns. RUA GOLD now holds some of the most promising projects in the area, including the Capleston, Crushington and Alexander River mines, which have impressive production histories.

A better online investing experience

Easy to use and powerful, Qtrade's online trading platform puts you in full control with tools and resources that help you make well-informed decisions.

Invest Now

Gold remains a safe bet — especially high-grade gold

As a Canadian investor, you’re likely aware of gold’s reputation as a reliable safe-haven asset. With global markets facing ongoing volatility, adding gold to your portfolio is a solid strategy for managing risk. But not all gold projects are created equal. High-grade gold mines, like the ones RUA GOLD now controls, offer higher profitability per ounce, making them especially attractive in uncertain times.

RUA GOLD expects to produce 70,000 ounces of gold per year, with an all-in sustaining cost just above $1,000 per ounce. This cost efficiency is key for investors looking for companies that can maintain profitability even when market conditions fluctuate. Plus, with gold prices trending upward in response to inflation and demand from central banks, now is a great time to have a stake in a company that’s sitting on a treasure trove of high-grade assets.

The exploration potential is massive

One of the biggest reasons to get excited about this acquisition is the exploration upside. The Reefton Goldfield may be historic, but it’s far from fully tapped. RUA GOLD and Siren Gold Ltd. have already spent years collecting data and exploring the area, but the real opportunity lies in what’s still undiscovered. There’s huge potential for new finds in the district, which could mean more gold production down the line.

If you’re someone who likes to invest in early-stage exploration plays, this could be the perfect opportunity. The combination of new greenfield prospects and scalable historic mines makes this a long-term growth story. For investors looking to get in before the big discoveries are made, now might be the right time to pay attention.

Unexpected vet bills don’t have to break the bank

Life with pets is unpredictable, but there are ways to prepare for the unexpected.

Fetch Insurance offers coverage for treatment of accidents, illnesses, prescriptions drugs, emergency care and more.

Plus, their optional wellness plan covers things like routine vet trips, grooming and training costs, if you want to give your pet the all-star treatment while you protect your bank account.

Get A Quote

A stable environment for mining growth

Another reason this deal stands out is the mining-friendly environment in New Zealand. The government has been actively supporting the growth of its minerals sector, with plans to double the industry’s export value to $2 billion over the next decade. This kind of political stability and support is crucial for mining companies — for investors, it means reduced risk.

The fact that New Zealand is backing its mining sector gives companies like RUA GOLD the green light to expand operations without the usual regulatory headaches. In other words, your investment is less likely to face the disruptions seen in other parts of the world.

Diversify your portfolio with high-quality gold assets

Lastly, the reason Canadian investors should pay attention to RUA GOLD’s acquisition of Reefton Resource is simple: it’s a chance to diversify your portfolio with some of the highest-quality gold assets available. In a world where economic uncertainty is the new normal, owning gold is a smart move — and owning high-grade gold from a region like Reefton could make that move even smarter.

RUA GOLD is now positioned to become a major player in the gold space, with the potential for strong production, low costs and exciting exploration upside. For Canadian investors looking for a way to hedge against volatility and inflation, this is a golden opportunity that shouldn’t be ignored.

Bottom Line

RUA GOLD’s acquisition isn’t just a routine transaction — it’s a game-changer. For investors interested in gold and precious metals, this deal offers access to high-grade assets in one of the world’s most promising gold districts, all within a stable and supportive mining environment. Whether you’re looking for stability, growth, or a little bit of both, RUA GOLD could be the opportunity you’ve been waiting for.

Sponsored

Trade Smarter, Today

Build your own investment portfolio with the CIBC Investor's Edge online and mobile trading platform and enjoy low commissions. Get 100 free trades and $200 or more cash back until March 31, 2025.

Jack Lawson Freelance Writer

Jack has an undergraduate degree in journalism from Carleton University and a master's of Urban Planning from Toronto Metropolitan University. Over the years Jack has written for not-for-profits like World Vision and WE Charity, shot video content for accelerators like Techstars, and co-authored urban planning papers with organizations such as Parkdale's Neighbourhood Land Trust. Jack currently specializes in real estate and investing news.

Explore the latest articles

Warren Buffett is buying a Canadian P&C firm

Morningstar strategist Greggory Warren was right: The Canadian stock that Warren Buffett is purchasing is the P&C insurance firm Chubb

Romana King Senior Editor, Money.ca

Disclaimer

The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.