5 Best Mining Penny Stocks to Buy Now

3. Gatos Silver, Inc. (NYSE:GATO)

Number of Hedge Fund Holders: 11

Gatos Silver, Inc. (NYSE:GATO) is one of the best mining penny stocks to buy according to hedge funds. A total of 11 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in Gatos Silver, Inc. (NYSE:GATO). The biggest stakeholder of Gatos Silver, Inc. (NYSE:GATO) was Eric Sprott’s Sprott Asset Management which owns an $11.8 million stake in the company.

Gatos Silver, Inc. (NYSE:GATO)’s management talked about its future plans in a latest earnings call and said:

“We currently have five surface drill rigs and three underground rigs actively drilling at the mine, and that’s targeting up — to add up to six years of the mine life by mid-2024. Our first stage of this life extension is a new life of mine and reserve incorporating recent resource conversion drilling and we’re on track to complete before the end of this current quarter in Q3. We also plan to report an initial resource for the South-East Deeps area as part of this update. The five surface rigs that we have on the South-East Deeps are infilling to about 50-meter spacing with the objective of converting this to the reserve — to a reserve status for our 2024 mine plan update.

Our plan is to have the drilling finished by the first quarter of next year, and that subsequent update out in the second half of next year, targeting the third quarter again. Well, we are really pleased with the progress in and around the Cerro Los Gatos mine, the biggest potential upside is our district. The joint venture holds a concession package that is roughly 50 kilometers by 40 kilometers and extend. We currently have more than 50 individual prospects identified with one drill active at the current time on the near mine Santa Ana target. And as I said previously, we plan to mobilize the seventh surface drill rig next year, and we’re continuing our detailed mapping of the district, which will help to generate further targets as we progress.”