Earlier this month, expert Bob Moriarty wrote that we were nearing a "new tradable low" for resource stocks. And it looks like this week, we have seen his predictions come true. He noted in today's publication that "in the last few days resource stocks have started to show signs of life when companies reported good results."
To showcase this, he first reviews Snowline Gold Corp. (SGD:CSE; SNWGF:OTCQB), a discovery company, whose stock rose from $0.84 to $1.86 in around a month. Next, he mentions Western Alaska Minerals (WAMFF:OTCMKTS)'s jump from $1.70 to $4.45, which happened in a little under a week. Then NuLegacy Gold Corporation (NUG:TSX.V; NULGF:OTCQB)'s stock that went up by almost 40% in a day.
Moriarty then moves on to diving deeper into some of his favorite resource stocks to watch. He notes Pacific Ridge Exploration Ltd. (PEX:TSX.V) has a plethora of promising projects on its plate, but none more than its Kliyul copper/gold project in B.C.
Moriarty details its announcement to begin a 6,000-meter drill program, a decision born from the results of last year, which included 316.7 meters of 0.75% of copper equivalent (CuEq) or 1.17 grams per tonne gold equivalent (g/t AuE).
He states that Pacific Ridge "has pretty much tracked the price of copper with a price of $0.51 in February dropping to below $0.30 in the last month." Moriarty believes this is a good sign, especially considering the immense need for copper in the production of electric vehicles.
GFG Resources Inc. (GFG: TSX.V; GFGSF:OTCQB) also made waves, as it usually does in Moriarty's updates. He noted that last week GFG reported its most lucrative hole yet. This produced 1.60 g/t Au over 70.4 meters near surface. GFG also entered into a deal with Group 11 Technology. Group 11 can now gain up to 70% interest at GFG's Rattlesnake project.
Moriarty states GFG's stock "appears pretty cheap to me and there will be more news out shortly. You will make the most percentage return by buying stocks under $0.15 since they tend to move the most."
Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS) was spoken about highly in the letter. Its Cuiú Cuiú gold project produced over 30 million ounces of gold, and Cabral states that it is just shy of 1 million ounces at the cutoff. Moriarty seems to have a lot of faith in this company and even went as far as to say that "if you could learn how to fall off a bike you could probably make money in this stock."
Moriarty also touched on G Mining Ventures (GMIN:TSX.V)'s project which is near Cabral's. The company expects to start production in the end half of 2024. He states, "If G Mining is worth $145 an ounce of gold, then logically a company right next door with an economic quantity of gold is worth more than $40 an ounce."
Lastly, he touched on Tocvan Ventures Corp. (TCVNF.OTC)'s Phase 3 drill program at its Pilar project. The best hole so far was 116.9 meters of 1.2 g/t Au and 108.9 meters at 0.8 g/t Au. Tocvan's El Picacho project is planning to start drilling in Q2 of 2022. So far, their chip samples have shown 7.2 g/t Au with 35 g/t Ag, 4.5 g/t Au with 197 g/t Ag, and 3.3 g/t Au and 67 g/t Ag.
Moriarty notes that "they have produced an excellent presentation which all potential investors should view."
All in all, it seems from these numbers that all signs point to yes when it comes to junior stocks. Moriarty says, "Across the board, you could throw money at junior stocks and make a lot of bullseyes."
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