(Originally Published and sent to Premium Subscribers (6-2-16) I added some pictures and made a few edits as well.)
It appears the Junior Gold Miners are giving the investment community a
secondary buy point on the now ascending long term moving averages as they
bounce off and find support at these critical technical levels at the 50
and 200 Day Moving Averages. I thought we could still be a few weeks away
from a bullish reversal but it appears some of our featured sponsors and
shareholding are breaking out.
Focus on advanced stage companies which are working towards a Bankable
Feasibility Study. Learn from the recent takeover of Kaminak (KAM.V) by
Goldcorp as they acquired the company after the release of a Feasibility
Study earlier this year for a huge premium. The recent improvement of gold
prices has turned the heads of the majors who may have increasing cash
reserves and may begin turning a profit.
The industry needs to replace depleting reserves as we move towards a gold
production shortfall over the next 18-36 months. Companies with the
ability to raise capital and that are currently advancing towards a
Bankable Feasibility such as Sandspring (SSP.V or SSPXF) and Treasury
Metals (TML.TO) should be on your radar.
Treasury Metals (TML.TO) just raised $4 million CAD to advance their 100%
owned Goliath Gold Deposit to Bankable Feasibility which I participated in.
Its located in NW Ontario which has seen a major uptick in M&A activity
since the Goldcorp (GG) takeover of Probe. There are very few high grade,
advanced and 100% owned gold assets left in Ontario. Treasury has started
the permitting process of an open pit gold mine which could process 2500
tons of ore per day. I am sure many astute investors are excited to see
the Feasibility Study which could show a low capex and exciting economics.
The Chairman of Treasury is Marc Henderson who is an experienced hand at
negotiating takeouts. He sold his Aquiline Resources to Pan American
Silver in 2009 for over $600 million USD. Treasury appears to be basing
along the 200 Day Moving Average and should see a bullish reversal.
Take a look at this video on Treasury entitled "Canada's Next Gold Mine" by
clicking on the following link:
Sandspring Resources (SSP.V or SSPXF) also has recently raised $6.5 million
CAD this past month which I participated in. Similar to Treasury they are
advancing towards a Feasibility Study on it Toroparu Gold Project in
Guyana. It is one of the world's largest undeveloped gold assets 100%
owned by a junior. The company has a pre-feasibility study which shows
that the project could produce over 200k ounces annually with economics
that shows possibly great leverage to a rising gold price as this project
may have district scale potential.
Some may be concerned about Guyana versus where they traditionally invest
in Nevada or Canada. Most people are unaware that Guyana is the only
English speaking country in South America with a stable democracy, high
literacy rate and a long history of mining. Two new major gold projects
have advanced to production in the past year as mining is vital aspect of
the economy. Sandspring's management has more than 16 years of experience
working with the Guyanese Government.
Sandspring could bounce off the 50 Day Moving Average which could be a
Take a look at their corporate presentation by clicking on the following
Watch the recent presentation given by the CEO in Vancouver where he discusses
the recent investment into the company by their large shareholder and director
the famous Frank Giustra. Back in 2007, Frank sold his company to Uranium One
for over $7 a share that was trading for just pennies two years earlier creating
a lot of wealth for his shareholders. Maybe Sandspring could be next?
Disclosure: I own Treasury and Sandspring securities and participated in both of their recent Private Placements. This means I could benefit from an increase in price and volume. They are also advertising sponsors on my website which should be considered paid compensation. This means I have a conflict of interest and you must do your own due diligence. I am not a
financial advisor and this is not financial advice.
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