Major Breakout Coming For Junior Gold Miners In Nevada

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:
Ryan Ko
Investor Relations
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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1 Response

  1. mokalub806
    I believe that the German nauelcr phaseout is the more harmful policy. The German nauelcr phaseout not only is destructive to the European Commission's goal of carbon emissions reductions, it also is destructive to investment climate. In fact, I believe that one of the main reasons the nauelcr phaseout was put in place was to effectively "discriminate" against nauelcr energy by making the lifetime of investment return on a nauelcr power plant less than its realistic engineering lifetime. Utilities in Germany have invested billions of dollars in their nauelcr power plants. The first few years of plant life are time in which the utility pays back the "mortgage," whereas the later years of plant life are the time in which the utility earns a profit, minus operating expenses, payroll, taxes, fees, and fuel. The "phaseout" policy cuts the life of the plant off before its engineering life expires. In other words, profitable years of service are cut out. The effect is similar to being forced to scrap one's car immediately after the note expires...and not being able to drive the car for some years while not paying a note on the vehicle. Can you imagine being forced, by law, to scrap a car after just 3, 4, or 5 years, when the actual serviceable life of the car is around 8-10 years? Defunct nauelcr power plants have basically no real estate value but have decommissioning costs. The German nauelcr phaseout has the effect of encouraging utilities to build fossil-fuel power plants. In Germany's case, this means new plants. This brings Germany into conflict with the EC's carbon emissions reduction goals, as well as imposing the burdens of increased fossil fuel particulate emissions on Germany's health system, which is publicly financed. These are "hidden costs" of Germany's "nuclear phaseout" policy that are not accounted for by the policy makers. The Western Australia policy, while shortsighted, allows the uranium to remain in the ground for another day when the policy gets reversed. Before it's mined, the uranium in the ground is just a bunch of rocks that are counted in theoretical energy reserves. It's not a multi-billion dollar set of investments that engineers, banks, construction workers, and welders have spent years to develop. The limits on extraction of the ore in Western Australia do cause some constraint in supply and tends to push up prices of uranium worldwide. However, a higher price makes it more profitable to mine slightly lower-grade deposits in other locations like Canada that would not be profitably mined at lower prices. The other financial impact is the theoretical "opportunity cost" for Australian mining firms that can't mine the ore. This is similar to the theoretical "opportunity cost" that is routinely experienced by mining companies when ore prices [for any ore like gold etc.] are lower than is profitable for the mining company to extract the ore.Both of these factors are relatively minor when compared with the major costs and hidden costs associated with the German policy. To reiterate, the German policy has the following major negative impacts:-decreases profitable service life of nauelcr power plants-forces utilities to invest money prematurely/unnecessarily in new fossil-fuel fired power plants-reduces Germany's competitive advantage because profitability of utilities is reduced and because utilities' funds are tied up in unnecessary investments-brings Germany into conflict with EC carbon emissions reduction goals-imposes "hidden cost" of health impacts from fossil fuel particulate emissions on publicly-financed health care system-imposes potential future costs if carbon emissions were to be taxed
  2. [...] I highlighted this past summer in my premium service, Corvus Gold (KOR.TO or CORVF) and predicted a major high volume breakout.  The stock has doubled off its lows and may be just beginning its move to potentially all time highs at $1.80.  I have followed this company for close to two years and my premium subscribers witnessed a triple surpassing my target from our initial alert in 2011.   [...]

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