Earlier this week Toronto-based junior miner Royal Nickel Corp. (TSX: RNX) discovered a "mother lode" of gold in Australia, totaling about 9,250 ounces.
While some experts and geologists remain skeptical that the story is legitimate, Dave Forest, geologist and editor at Casey Research, said that it is entirely possible.
"It seems that the gold is certainly there," Forest told Kitco News. "It took everybody by surprise, even management, it seems like. It highlights that gold deposits are very difficult to ascertain."
On the gold mining sector, Forest noted that although the general investment sentiment is low, there have been a rising number of private deals taking place.
"Insiders are investing in and buying gold projects, at the same time as the wider investing public is giving up on the sector, so to me, that's a very interesting disconnect," he said.