The junior gold miners are about to make a major breakout. Investors should only focus on the highest quality junior gold miners with proven management teams, in stable jurisdictions like Nevada, that have low cost production scenarios and are well capitalized.
Recently, I highlighted to my premium subscribers one of my favorite recommendations Corvus Gold and to look out for a major breakout through $.85. It seems like the breakout is imminent. In late 2011, I highlighted Corvus Gold (KOR.TO or CORVF) as one of my favorite picks.
Little did I know how tough the overall mining market would be over the next two years. However, our late 2011 buy signal on Corvus Gold proved to be quite profitable to subscribers as close to a triple was made since our initial buy alert in November of 2011. This is quite rare to have a winner during a bear market and goes against all odds.
I went on a hold in late 2012 past $1.20 which was our original target. I was concerned Corvus could be taken down with the sector as the bear market continued much longer than I expected and Corvus already made a considerable run. I always remind my readers to take partial profits of as much as 50% when making a double.
Corvus was trading as high as $1.80 in 2012, triple our original buypoint. It can now be bought once again on a 50% discount sale from all time highs.
I think Corvus can lead the pack once the sector begins to turn around and could surpass those 2012 highs in a better junior mining market. I’ve been to the property twice and have gotten to know the management team very well.
Jeff Pontius, Russell Myers and Carl Brechtel are guys that can get a mine into production and are the perfect mix of exploration geologists and mine engineering. The junior gold and silver miners are beginning to outperform the bullion and have broken above the 50 day moving averages. This makes me more comfortable to change my cautious stance especially if we see a breakout above $.85 on good volume for Corvus.
I believe Corvus will be a leader as it was in 2012 as they continue to make high grade discoveries at its North Bullfrog Mine about a 90 minute drive from the Las Vegas Strip. This junior mining meltdown is giving astute investors to come on board a really high quality situation that is rare to find in the junior mining market.
Corvus shares are in strong hands with management owning about 10%. The four top shareholders which includes the prestigious Toqueville Fund and the mining giant Anglogold Ashanti control around 50%. There are only about 13 million shares in float out of a relatively small 69 million shares outstanding with no warrants. With a strong cash position of around $10 million (April 30,2013), strong shareholder support and an attractive share structure, Corvus is a high quality situation which could significantly build value for shareholders as they advance North Bullfrog into development.
Corvus is continuing to explore aggressively the high grade vein system at Yellow Jacket. Recently, they just announced early results from their 2013 program which is quite exciting as there could be similarities between Corvus’s North Bullfrog Project with Barrick’s Bullfrog Mine 8 km to the south which produced 2.6 million ounces. These high grade results show the potential of this mining district. It is important when making a development decision to build a mine to know that there is room to grow. Corvus appears to be proving there is a lot of upside potential at North Bullfrog with this Yellow Jacket discovery.
Corvus also recently released more drill results from the North Sierra Starter Pit that demonstrated higher grade areas. It appears management believes they are getting into the center of system with the potential of much higher grades. Remember these are early results and I expect a very busy summer and fall for this high quality junior miner on sale for more than 50% off. Next time you go to Las Vegas you may want to tour the mine site instead of playing Blackjack. I think the odds are a lot better.
Listen to a recent interview with Corvus CEO Jeff Pontius by clicking here. We discuss the recent high grade results and why Corvus chose North Bullfrog out of all the properties in Nevada to advance. It is an excellent interview with an individual who was the the North American Exploration Manager for Anglogold Ashanti and has made five major precious metal discoveries of over 1 million ounces of gold.
Contact Information for Corvus Gold:
Phone: 1-888-770-7488 (toll free) or (604) 638-3246 / Fax: (604) 408-7499
Disclosure: Author/Interviewer is long Corvus and the company is a sponsor on my website.
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