Good Things Come in Small-Cap Gold Stocks

Gold has been stuck in a rather tight trading range over the past several weeks, but the latest rash of lousy economic reports are the kind that drive up the price of gold.

First, retail sales dropped for the eight time in the past 10 months. Sales were 9.4% lower than in April 2008, down 10% compared with the same period a year ago.

Then, the U.S. trade gap increased in March for the first time in eight months as exports declined faster than imports. The trade deficit - the difference between exports and imports - increased by 5.5% to $27.6 billion in March from $26.1 billion in February. 

Plus, that four-letter word the government hates to talk about, D-E-B-T has been rearing its ugly head in the media lately. Government public debt totals $11 trillion and counting (there's actually A National Debt Clock in Manhattan that keeps a running tab). Debt climbs at a rate of almost $4 billion per day.

If you consider the government's future obligations such as social security, health care and other contractual items, the total skyrockets to $71 trillion.

To pay back this debt at $1,000,000 per day would take 191,780 years! The government just prints more money, making dollars worth less and less.

That's when gold becomes alluring, valuable and very popular. While worries continue to mount about the economy, here's what gold is up to:

The price rose $2 to $925.90 an ounce on Wednesday while the S&P 500 fell over 2%. In fact, it even gained in the face of the dollar's rise. Here are a few small-cap mining stocks sure to move higher along with gold.

Richmont Mines (AMEX: RIC) is a gold exploration, development and mining company. Since starting production in 1991, it has garnered approximately 1 million ounces of gold from its holdings in Quebec, Ontario and Newfoundland. Richmont Mines' strategy is to cost effectively develop its mining assets, exploit mineralized reserves on properties owned and acquired, or develop partnerships to expand its reserve base.

Revenue for the first quarter of 2009 was $19.9 million, a 33% increase compared with $15.0 million in the first quarter of 2008. In the 2009 quarter, 16,614 ounces of gold were sold at an average price of US$908 per ounce, compared with 14,995 ounces of gold sold in the same period the prior year at an average price of US$888.

Aurizon Mines Ltd. (NYSE: AZK) is an emerging gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world's most prolific gold and base metal regions, and by increasing its asset base through accretive transactions. It is estimated that the Company's 100% owned Casa Berardi Mine will produce in excess of 1,000,000 ounces of gold over its initial six year mine life.

Based upon first-quarter results and the 2009 mine plan, the company said its Casa Berardi remains on target to produce between 150,000 to 155,000 ounces of gold at a total cash cost of about US$390 per ounce.

Other highlights include:

Cash flow from operating activities increased 27% to $19.7 million compared to same quarter of 2008.

Earnings of $5.0 million and adjusted earnings of $7.1 million.

Gold production of 38,966 ounces is in line with the company's plan.

Total cash costs of US$379 per ounce, 10% lower than same quarter of 2008.debt reduced by $8.2 million.

NovaGold Resources (AMEX: NG)  has one of the largest reserve/resource bases in the world relative to its peers, located entirely in North America. Over the course of 10 years NovaGold has acquired and systematically advanced a portfolio of projects to create shareholder value. NovaGold's resource base has grown from 500,000 ounces of gold in 1998 to 24 million ounces of P&P and M&I and more than 5 million ounces of Inferred resource.

NovaGold has weathered the market challenges and is well-positioned to take advantage of the rising gold market and new opportunities. Indeed, NovaGold's share price has outperformed the gold sector in 2009.

The Donlin Creek project is expected to have a throughput design of approximately 50,000 tonnes per day using onsite diesel and wind cogeneration for power. Using this design, Donlin Creek would operate for more than 20 years and potentially produce 1 to 1.5 million ounces of gold annually. Permitting is expected to start in 2009 with a construction decision targeted for 2012.

Donlin Creek is located in southwestern Alaska and is one of the world's largest undeveloped gold deposits.

Since 2001, Vista Gold Corp (AMEX: VGZ) has acquired a number of proven gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices.

Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies.

Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.