We had singled out Dryden Gold Corp. (DRY:TSXV; DRYGF:OTCQB) as an outstanding gold exploration company last year with a couple of articles being written on it and its stock has taken off strongly higher last month and this month as it draws close to making a clear breakout from a large 16-month base pattern.
Even though it has yet to break out from this base, the stock is well up from when we looked at it, with the price and especially the volume pattern indicating that it is still in the earliest stages of a major bull market. The company is rapidly developing a gold-rich, extensive district-scale project in Ontario, Canada, and it has already made significant discoveries. The reasons that the company's stock is taking off higher are a combination of the progress that it has made on its District-scale property, which includes the recent discovery of very high gold grades, with the ongoing powerful bull market in gold which is increasingly drawing attention to companies like Dryden, and we add to this that the company MUST for these reasons be looking increasingly attractive to larger companies wanting to increase their gold assets.
Before reviewing the latest stock charts, we will look at the fundamentals of the company using pages from its new investor deck.
The first page of the Deck gives a quick overview of the company. Among the many important points presented on this page, a key one to note is that, while the number of shares in issue might be considered on the high side at 160.3 million, only 35% of these are in the public float due to appreciable percentages being owned by Management & Insiders, Funds and Institutions and it is also of note that legendary PM sector investors Eric Sprott and Rob McEwen have sizable stakes.
The next page shows where the Dryden Gold property is in Ontario and its proximity to other large projects in the area owned by big mining companies which definitely augurs well for further significant discoveries on the company's extensive property.
Dryden's land package is really big, and the fact that it is in the midst of other large properties being developed by other major mining companies with Dynasty Gold Corporation (DYG:TSX.V), Kenorland Minerals Ltd. (KLD:TSX.V; KLDCF:OTCMKTS; 3WQO:FSE), Kinross Gold Corp. (K:TSX; KGC:NYSE), and NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) in the neighborhood is certainly auspicious.
High-grade gold has already been found near the surface across the property, which means that there is tremendous discovery upside — district scale, in fact.
The Gold Rock Camp's geology is similar to that of Red Lake.
This image below shows the progress of exploration and indicates that several big targets are now drill ready:
The following image shows the 2025 outlook with a Spring drill campaign well underway and a Fall drill campaign to follow.
This next image shows the exploration objectives at the Gold Rock Camp, last year's and this year's.
Lastly, this image shows how the exploration budget will be deployed:
We had been accumulating (buying) Dryden Gold last year and into this year in the belief that it was building up to breaking out of its large base pattern.
It is now doing as we can see on its 17-month chart below, with the strong gains of recent weeks bringing it up to our first target at the resistance at the uppermost boundary of the base. This advance has been on strong upside volume that has driven both of its volume indicators significantly higher, which is clearly bullish and this strong uptrend was presaged by the big volume buildup from early February, as we observed at the time, so there was plenty of advance warning that a new bull market was incubating.
Having arrived at its first target at the resistance marking the extreme upper boundary of the base pattern, the stock is entitled to take a rest here before making further gains, although the marked volume dieback suggests that it could instead break out to new highs soon.
We can see the uptrend in much more detail on a 3-month chart. The uptrend kicked off with a gap move higher on big volume on April 8, which was a sign that it "meant business" and was heading much higher. We picked up on this at the time, which is why another update was posted pointing out that it looked ready to break out upside from the tiny bull Flag that followed the gap move higher.
That it did, and it has continued higher with another larger Flag on declining volume during the balance of April, leading to another upleg early this month. This upleg took it to the resistance at the upper boundary of the base pattern, where it got whacked back by technical selling with a "bearish engulfing pattern" appearing that called for a cooling off period, which we have since seen.
While the volume dieback of recent days does suggest that it will soon break higher, that earlier reversal candle does indicate some risk that it could breach the uptrend and dip back towards or to the support shown before resuming the upward path. This would not be bearish as the current uptrend is steep.
Otherwise it's "all systems go" with Dryden on course to break out of the base pattern shown on the 17-month chart that will be expected to lead to a possibly dramatic acceleration of its advance — and why not given that Dryden Gold must look irresistibly attractive to larger companies looking to increase their gold resources?
We therefore stay long, and Dryden Gold is rated an Immediate Strong Buy, especially on any minor short-term dips, which may not occur. The first target once the resistance at CA$0.22 – CA$0.24 is cleared is CA$0.40, and much higher targets are possible.
Dryden Gold Corp.'s website.
Dryden Gold Corp. (DRY:TSXV; DRYGF:OTCQB) closed for trading at CA$0.235, US$0.16525 on May 20, 2025.
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Important Disclosures:
- Dryden Gold Corp. and NexGold Mining are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dryden Gold Corp. and NexGold Mining.
- Clive Maund: I, or members of my immediate household or family, own securities of: None. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.
