I did a good piece on GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) back in April, and anyone interested in the company should go back and read it. It doesn't make a lot of sense for me to cover the same stuff again and again.
Watching the share price this year has been every bit as exciting as watching paint dry. It was $0.23 when I talked about it and dribbled down into tax-loss silly season (TLSS) last month where it hit a yearly low of $0.16. Some astute investors understood how silly TLSS was and have run the price of shares up by 50% in less than a month to $0.24.
GFG's partner in the Rattlesnake project, Newcrest Mining Ltd. (NCM:ASX), had planned on spending somewhere between $3–3.5 million in exploration at the property for 2019 to do six to eight holes for 5,000 to 6,000 meters. They ended up doing 3,900 meters in three holes, including one 1,809 meter monster hole that was extended by an additional 300 meters because Newcrest liked the core.
GFG was talking about having the results out in December but I sorta doubt it's going to happen. The junior resource market goes into hibernation about the 20th of December and nothing will attract the attention of investors until they sober up in January.
Newcrest is easily one of the best mining companies in the world. They do things right. Their deal with GFG values 75% of Rattlesnake at about $100 million. That infers a valuation of about $33 million just for Rattlesnake for GFG.
But GFG is not a one-trick pony. Understanding that nothing is going to happen in Wyoming during the winter months, they set up a Plan B in Ontario. Indeed, while the market eagerly awaits the drill results from Rattlesnake, GFG has announced the start of a 6,500-meter drill program at their Pen property. They believe they can have 2,500 meters done by the new year and an additional 4,000 meters in Q1/2020.
Pen is interesting. GFG has already reported results as high as 33.77 g/t Au over 1.1 meters and 12.1 g/t Au over 0.9 meters.
I just did an interview with Jay Taylor. He wanted my two best picks for 2020. GFG was one. I give Newcrest a 50-50 chance of catching the brass ring with their just completed drill program at Rattlesnake, with expected results in the next two weeks. If they hit big, GFG will run. If they don't hit big, there are a lot more rocks at Rattlesnake that they can poke holes in. And Plan B is a solid plan in Ontario. There will be a constant flow of news for the next three to six months. Some might even be good.
I have participated in private placements in GFG in the past and also bought shares in the open market. GFG is an advertiser and as such I have to be biased. They do a good job of communicating, so go over their website. Do your own due diligence.
GFG Resources: $0.24 (Dec. 20, 2019)
92.8 million shares
GFG Resources website
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.[NLINSERT]
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: GFG Resources. GFG Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of GFG Resources, a company mentioned in this article.