(Originally published as a Premium Report from July 24, 2015)
This bear market has taken a toll on many of us who are long term believers in commodities and the junior mining sector. There is extreme negativity and capitulation as prices reach historic lows.
Do not be misdirected and sell at the bottom irrationally. This is not the time to walk away, panic and run for the hills thinking the world is ending. The world continues to demand basic necessities such as shelter, bridges, tunnels and pipelines.
I remember when I started in this sector in the late 90’s tech stocks were worth hundreds of dollars a share and no one would touch gold and oil. It is like that today as investors bid up tech stocks with no revenues to nosebleed levels, while the largest gold producers continue to nosedive.
The worse things were the better they will get. This market has led to most companies going inactive. This will dry up potential supply of metals planting the seeds of the next boom. Silence and inactivity is death in the junior sector. Continue to look for companies raising capital and beginning to drill. A new discovery like the famous Voisey's Bay discovery could transform our beaten down sector.
One story which could be exciting is Equitas Resources (EQT.V) who just raised over $500,000 to drill the Garland Property near Voisey’s Bay, one of the largest and highest grade nickel deposits in the world. Nickel is ready to move higher as supply is limited coming from risky jurisdictions such as Indonesia, Russia and the Philippines.
The potential projects that can come online are very small. Equitas believes they have identified nine nickel copper sulphide anomalies from a completed VTEM survey and could be ready to drill the property in the near term. The property is located in the Voisey's Bay area which is famous for the huge discovery made by Diamondfields back in the 90's. Because of the volatile resource markets much of that area has not been explored using modern methods.
The Equitas exploration team is led by Everatt Makela who has over 3 decades of exploration experience. He came out of retirement after working with Inco and Vale because he is excited about the potential of the Voisey's Bay area and the Garland property.
China’s state owned Zijin Mining is a shareholder and is represented on the board along with the new addition of Salman Partners Senior Mining Analyst Ray Goldie. Zijin is the leading gold producer and second largest copper producer in China.
Insiders control over 50% of the stock and the float is still relatively small under 60 million shares. Look for a break of the recent four month downtrend at $.09.
The company should begin drilling soon which could cause some upward momentum. Look for a bullish MACD crossover as their has been some nice accumulation over the past four months during a weak market. Notice the strong support at 200 day moving average.
For more questions on Equitas (EQT.V) visit the website at http://www.equitasresources.com or contact:
President and Director
Sean A. Kingsley
Manager, Corporate Communications firstname.lastname@example.org o. 1.604.681.1568
Disclosure: I have a conflict of interest. I own shares and warrants as I recently participated in the latest PP. Equitas is a website sponsor. I would benefit if the stock price rises. Please do your own due diligence as this is an early stage exploration stock which means there are many risks. Please read about those risks in the company filings on Sedar.com.
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For informational purposes only. This is not investment advice. May contain forward looking statements.