After one of the most exhausting and traumatic bear markets in junior mining history the 2016 rebound has been quick and powerful.
We are witnessing a massive uptrend that has rarely seen pullbacks. Its been very
hard for the investors who have been short precious metals or in cash to
acquire meaningful sized positions. Gold (NYSEARCA:GLD) and especially silver are
breaking out and look very powerful. Some of out top notch junior gold
miners are breaking out in addition the lithium sector may be just a few
weeks away from its next big up move after consolidating for about three
months. I expect more news coming out of Tesla’s Gigafactory to help
increase eyeballs on the sector. Big money is getting behind gold and
lithium in 2016 which I have been positioning for years.
Lets visit some of the recent junior gold (NYSEARCA:GDXJ)stories I have been highlighting
1)Treasury Metals (TML.TO) which was pretty much a low volume and
relatively unknown stock when I started highlighting it at the end of last
year on my website. Now the stock is breaking out into new 52 week highs
as it may begin to be recognized as one of the top near term high grade
gold producers in Ontario. Treasury has been able to raise money this year
and recently made a strategic gold acquisition in Ontario. Please note I
am a shareholder of Treasury Metals and they are a current website sponsor.
2)MX Gold (MXL.V or DTVMF) is a company which I have been highlighting for
a few months as a near term gold producer. The company was able to raise
$4 million CAD and recently appointed a former Goldcorp (GG) mine builder
as its new CEO. This is a huge vote of confidence in the ability of the
company to start gold production at its Willa Project. MXL recently broke
out on huge volume and then pulled back to the 50 Day Moving Average which
it has bounced off of on good volume. Look for a bullish MACD crossover.
Please note I am a shareholder of MX Gold and they are a current website
3)I just recorded an interview with Sandspring Resources (SSP.V or SSPXF)
CEO Rich Munson and discussed what makes their project so unique that it
can attract the large high quality silver royalty company Silver Wheaton
(SLW) to make a financial commitment. Sandspring was also able to raise a
significant amount of money this year which will allow them to do some
exploration drilling to hopefully look at starter areas which could improve
the economics on the Definitive Feasibility Study which Sandspring is
working toward. Having Silver Wheaton and Mining Financier Frank Giustra
backing the company is great sponsorship and I would not be surprised to
see Sandspring attract the attention of large majors who have seen the
recent success of Guyana Goldfields (GUY.TO) which is an $8 stock and the
possible undervaluation of Sandspring which is still under $1. Please note
I am a shareholder of Sandspring and they are a current website sponsor.