Note the action on American Eagle Gold Corp. (AE:TSXV) with a print just a penny below the all-time high at CA$0.50 on 618,176 shares volume on a day when everything was in the red. I continue to pound the table on this issue as the NAK discovery is real and big. I was hoping for a return to the low-$0.30's to add to holdings, but I suspect we are about to see new highs probably by tomorrow.
If you like copper and you like gold, this is a micro-cap version of the Freeport trade. Owning a new discovery and a big one that contains the classic copper-gold porphyry signature in a part of Canada famous for world-class porphyry discoveries gives you exposure to the only two metals that have yet to have a speculative spike. The set-up for this trade is nothing short of superb.
Drilling starts again in May, and I think that if we get a surge in copper prices north of US$4.15/lb. in February-March, the drumroll you will hear into drilling season for AE:TSXV will be deafening.
Looking back to the original placement we did last January, I traded the stock like a blind chihuahua, exiting my position at a loss; we exited the hold period.
However, it took me no time at all after the early January release of drill hole NAK23-17 to put it back on the Buy list at CA$0.35 on the afternoon of the release. We got filled a few days later when it actually closed at CA$0.33 and are now in a 50% position (300,000 shares), looking to add another 300,000 shares into any weakness that shows up in February.
New instructions for this trade:
- Buy an additional 50% AE:TSXV at CA$0.40
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Eagle Gold Corp.
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Michael Ballanger Disclosures
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.
