News Flash, Feb. 10: White Gold Corp. announced Thursday that it has intersected 6.94 g/t gold over 19.50 meters and 1.36 g/t gold over 18.50 meters on its Ulli’s Ridge target in the Yukon.
Seven holes were part of the maiden diamond drilling program in 2021. They tested a 550-meter strike length, encountering 4.67 g/t gold over 6.10 meters and 1.35 g/t gold over 21.33 meters. All holes intersected gold mineralization with significant results, the company said.
“Our 2021 program was very successful in identifying and expanding new areas of gold mineralization with the potential to increase White Gold’s significant resource base,” White Gold Chief Executive Officer David D’Onofrio said. “I congratulate our team on making another new discovery in this prolific and underexplored district and look forward to following up on these exciting results.”
Click here for more information.
White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) has continued to consolidate for rather longer than we expected when we last looked at it in a Market Notebook update posted on Dec. 12, but no real harm has been done as it is only a shade below where we bought it again then. We are still well up on our earlier purchase just before its big breakout move early in November, as we can see on its latest six-month chart shown below.
What has happened since we last looked at it is that it has continued to consolidate within what now looks like a classic bull pennant, which has allowed its earlier overbought condition to fully unwind and its moving averages to swing into better alignment. With the converging boundaries of the pennant now starting to close up and volume continuing to dwindle to a now low level, everything is in place for renewed advance. The relatively buoyant on-balance volume line and the proximity of quite strong support make it unlikely that it will break lower from here.
The seven-year chart shows us the big picture. After a tremendous run up during the second half of 2016 and the first half of 2017, which resulted in massive gains for anyone fortunate enough to buy during the preceding pan base, White Gold has basically been reacting back within a gigantic triangular pattern with the support level shown coming into play repeatedly to bring a halt to the downtrends with the last of these downtrends ending in October. With the upper boundary of the pattern, the red trend line, now dropping towards meeting this support, we are going to see resolution of this pattern either with a break to still lower levels. This is hardly likely, given that it can’t drop much further as it would become worthless and given that the company has come out with a string of positive drilling results and gained the confidence of Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), or with a breakout above this trend line which is likely to trigger a dynamic growth phase which the positive fundamentals just mentioned make much more likely. With regard to the last news announcement, it is tempting to think that Agnico-Eagle is foolish to pay way above the market price for the private placement stock, until you factor in the tax write-offs resulting from the transaction.
The conclusion is that the outlook for White Gold remains very positive and after the dip of recent weeks best seen on the six-month chart above, we are at another favorable buy spot, so new purchases or additions to positions are in order here. Part of the reason for this dip may be the market getting bored with waiting for more results from the earlier drilling, but it is suspected that more drilling results are likely to be forthcoming shortly. White Gold trades in reasonable volumes on the US OTC market.
White Gold's website.
White Gold Corp, WGO.V, WHGOF on OTC, closed at CA$0.67, $0.53 on Feb. 4.
Posted on CliveMaund.com at 5:40 pm EST on Feb. 5.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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