Alamos/Aurico Billion Dollar Merger Shines Light On Canadian Small Cap Junior Gold Miner Breaking Out

For several months I have indicated to my readers not to abandon the junior gold mining sector and to actually observe the pickup in Mergers and Acquisition activity that the bear market bottom may be near. I’ve seen M&A turn around the sector before. It was in early 2009 when I found New (NGD)Gold for subscribers after it merged with Metallica and Western Goldfields around $2. The stock ran to $14 in 2011. See the chart back from 2009. Observe all of the M&A activity in recent months including Cayden, Soltoro, Probe, Paramount and now this week Aurico (AUQ) and Alamos (AGI) agree to a $1.5 billion merger. This could be sign of the bottom. Alamos has a lot of cash but little resource growth. I’ve talked about Aurico for months now and met with management at PDAC. Aurico has one of the best technical teams in the business with large scale production growth in Canada. Aurico has some great development properties in Canada including one of the largest, high grade and open pit gold development projects in Manitoba which they joint ventured in November 2014. The Lynn Lake Project is partnered with small cap junior gold miner.
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Great Gains To Be Made in the Lithium Ion Battery Sector Over Next 5 Years

It is unbelievable to see the growing demand for lithium ion batteries in our everyday lives. Just sit in a coffee shop or ride a bus and observe the users of portable computing devices. Its not just the average Joe using lithium ion batteries and plugging in, large utilities are looking to use these batteries to support the grid and renewable energy sources. A lot of money is going to be made in the nascent battery sector over the next five years especially right here in the United States. According to GTM Research, The US commercial battery storage market has been predicted to grow at a rate of 34% annually from 2014 – 2020.
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Junior Miner Receives First Mining Permit in Colombia Under New Legislation

This may be the worst time for the junior gold sector which is also the best time to buy the high quality junior miners which can outperform the (GDXJ) Junior Gold Mining ETF. Now at these bear market lows many of these assets are trading at ridiculously low valuations the opposite of where they were back in 2010 and 2011. This is the best time to find the ten-baggers at bear market lows.
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Junior Gold Miner In Nevada Breaks Above Downtrend After Recent Land Deal with Newmont

Precious metals and the junior miners are pulling back in US dollar terms after making a powerful run higher since November. Look for the 200 day moving average to provide support for gold at $1255. Last week, I highlighted a junior gold miner in Nevada and believed that a breakout would occur from the ten month downtrend. I believed that late 2014 presented an excellent opportunity near all time lows. Recently, the stock has broken out above the downtrend and 200 day moving average on a major deal with Newmont in which they acquired 1,600 acres of mining claims in mining friendly Nevada.
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Gold Makes Reverse H&S Breakout, Junior Gold Miners (GDXJ) Bouncing Off Support at 20 DMA

The Junior Gold Miners (GDXJ) ETF is bouncing off support at the 20 day moving average showing some bullish support and accumulation. Gold is holding the $1300 area showing a major January bounce which may forecast a powerful 2015. As the old saying on the market teaches, "As January goes, so goes the year." I highlighted an interesting cash flow opportunity in the junior mining sector with an interesting property and a mill in the heart of the Sierra Madre Gold/Silver Trend in Mexico. They just announced a 10k ton per day processing agreement.
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Junior Gold Miners Breaking Out into New 3 Month High

The junior gold miners appear to be bottoming and outperforming in January as I expected. Watch $29.50 to be cleared for a new three month high. This could end the lower high pattern or downtrend. Already for weeks I highlighted the positive momentum in the junior gold miners despite the new low in December. This divergence usually signals an interim bottom and turning point.
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Junior Miner Up 38% This Week on Record 2014 Volume

The Holiday Season is here and a volatile 2014 is coming to a close. Be prepared to pick up quality situations during tax loss selling season. Yesterday we heard the comments from Fed Chairwoman Yellen which appeared to be dovish. Declining commodities and a rising US dollar will put a halt to any interest rate increases. Equities are rallying and following tax loss selling season the TSX Venture which is hitting decade lows may experience a major bounce due to the January Effect. The January Effect often benefits small cap beaten down situations as large investors reposition for 2014. It was interesting to see the reaction after the Fed Meeting going into tax loss selling season. This down period in the resource sector in prior years was followed by a very powerful first quarter. Late December buying has provided some excellent buying opportunities in the resource sector in the past.
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Junior Miner Up Over 500% In Past Two Years Despite Venture Collapse

For years I have highlighted a strategic metal called niobium. Recently Iamgold sold Niobec, one of the largest niobium mines in North America for $500 million cash and an additional $30 million once it comes into production. This could be a huge boost for one of our long term featured companies up over 536% the past two years while the TSX Venture has lost close to half its value.
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