Category Archives: Top News

Gold-Silver Producer In Nevada Outperforming Peers

For many months, I highlighted the rising demand for precious metals from investors looking to diversify away from declining fiat currencies most notably out of Chinese and Indian investors. The new Fed Chair Yellen may be sparking off an inflationary rally as gold and silver appear to breaking above key technical levels. At the end of 2013, mostly no one wanted to own gold and silver bullion and definitely didn’t want the junior gold and silver miners as the price of gold declined from $1900 to below $1200 and silver declined from $50 to below $19. I called it a historic holiday discount buying season. Many who believed prices would continue lower and shorted may now be covering as gold and silver breakout and regain the 200 day moving averages and hit new four month highs.
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Junior Rare Earth Miner Soars On State of Alaska Support

No other rare earth company I know of has been given the local support like this one has received from the State of Alaska. Shareholders and management are very thankful to the state as the value of this asset should continue to soar on this historic and unprecedented local geopolitical support. This is the first time that I have seen a state actually propose financial support to a rare earth mine. A heavy rare earth project like this could be bring huge economic opportunities and jobs to Southeast Alaska and restore U.S. independence. This may signify that this rare earth miner has regained itself as the U.S. leader in the heavy rare earth race. Look for a bullish golden crossover after this historic and high volume technical breakout.
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Resource Sector Should Heat Up with M&A in 2014

The resource sector is heating up with merger and acquisition activity as I predicted only a few weeks ago in this recent article. When the herd was ignoring our sector I positioned my readers ahead of the curve and called it a rare holiday bargain sale. Now only a few weeks later the resource sector is leading the market as evidenced by the outperformance of the TSX Venture Index over the Dow Jones Industrial Average and rise above its 200 day moving average. A huge influx of money has been rotating from the overvalued blue chips, social media, bank and real estate sectors into the junior mining resource stocks. This chart below shows that the Venture Dow Ratio is breaking out above the 200 day for the first time in three years. Look for a bullish golden crossover of the 10 and 40 week moving average for a confirmation of the bottom. Goldcorp (GG) is launching a hostile takeover for Osisko Mining (OSK.TO) for $2.6 billion. Goldcorp is going after Malartic low grade-bulk tonnage Malartic Gold Mine. If Goldcorp is buying a low grade, high production asset then they probably think gold prices are headed significantly higher unlike the pundits on the TV.
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Corvus Gold (KOR.TO or CORVF) Makes New 52 Week High: Leading The Junior Gold Mining Sector

I wrote a few weeks ago, “Corvus may now bounce off its 50 day moving average at $1.15 and breakthrough resistance at $1.30. The next target would be all time highs at $1.80.” I also sent out this chart several weeks ago.Corvus is now testing the major resistance of all time highs at $1.80. The next possible breakout is the 2012 high right here at $1.80. If Corvus breaks through that high, then it would be my subscribers second time since 2011 of making a double on this top notch junior gold miner.
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TSX Venture Moves Above 200 Day Moving Average For First Time In Three Years

The TSX Venture is making a bullish move above the 200 day moving average. This is the first weekly move above this key technical level in more than three years. This may signal that the vicious downtrend in the resource sector may be ending.Watch uranium as a bellwether for the revival of the sector. The Fukushima Disaster really was the major event to cause panic at the top in 2011. A bullish golden crossover of the 50 and 200 day moving average in the uranium price may be signaling a bullish turnaround in the entire commodity complex. This is the uranium prices third attempt at a breakout. The third time is usually a charm in the financial markets. Look for a breakout on Uranium Participation Corp at $5.77.
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This $1 Stock On The NYSE-MKT Gives You Graphite, Tungsten and Rare Earth Exposure

The world is carefully monitoring the ties between Japan and China as tensions have created conflict in the Asian Region. The issue is over islands in the South-East China Sea where China is in dispute with many nations. Japan is seeking the assistance from the U.S. and other Asian nations to help with a situation which could spiral out of control. The Chinese have a new political leadership which may be demonstrating a more nationalistic approach. The U.S. plays a critical role as they may be concerned about China’s growing power in the region. Japan is the world’s third largest economy and Abe’s government is investing billions into automakers, infrastructure and high tech. This will require increased amounts of the critical rare earths that are in complete control of the Chinese. China, who supplies 99% of the heavy rare earths, just announced that they will cut export quotas again. These metals are critical for our most advanced military equipment such as cruise missiles, stealth aviation and helicopter blades. It is also critical for high efficiency lighting, green energy, wind turbines and hybrid cars. This junior will be the only miner on NYSE-MKT with exposure to critical rare earths and graphite.
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Are the Uranium, Graphite and Rare Earth Miners Ready To Breakout?

I have been carefully scouring the resource markets for exceptional opportunities over the past few months and indicated numerous times about the potential rebound and breakout in uranium, graphite, PGM's and rare earth mining stocks. At the end of October, I said to watch for a rebound in uranium as major volume accumulated shares of Uranium Participation Corp which has now just broken out into new nine month highs and made a bullish golden crossover of the 50 and 200 day moving average. In addition, I highlighted a few months ago to buy NYSE graphite bellwether Graftech and some of the high quality graphite miners. All these graphite stocks mentioned above have been breaking out on major volume this week as predicted. I also told you about increased M&A in the rare earths and graphite sector. Now Molycorp has just broken out on huge volume as even this giant could be a takeout target of Molymet as it trades below book value.
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Look For Leverage To Rising Gold Prices With No Expiration

The long term trend in gold remains higher and this correction may provide opportunities for precious metals investors to gain exposure to highly leveraged vehicles to the gold price. This stock is like an option on the gold price with no decaying time value or expiration. This asset is one of the largest undeveloped deposits in the world still 100% controlled by a junior. Hundreds of millions of dollars have been spent on this asset with 792 drill holes yet investors can purchase the company for around a $40 million market cap way below its book value.
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Uranium Bellwethers Outperforming S&P500 By Wide Margin in 2013 (CCJ, ARVCF, RIO)

The recent low price in uranium which hit 8 year lows in 2013 may actually be the catalyst to look for higher grade and more economic uranium deposits in the Athabasca Basin in mining friendly Saskatchewan. Higher cost mines are being shut down or delayed, however new uranium discoveries are receiving a lot of attention especially in the Athabasca Basin which is the highest grade uranium mining district in the world. This low price in uranium is why Cameco, Rio Tinto and Denison have been buying junior uranium explorers in the Athabasca Basin trading at bargains. These assets are high grade meaning potentially lower production costs in a stable jurisdiction. Smart money knows nuclear power is here to stay as there are more reactors operating and under construction now post-Fukushima than from before the once in a millennium natural disaster.
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