I'm just putting this post out there that I think this recent mini correction in gold is close to being finished and the time to buy many of these stocks is now for at least a 2 month party. If we enter into a severe sell-off this fall that party may end briefly but will only be another opportune time to buy for what is going to be one of the greatest levered investments.
So far there is still a cautious sentiment towards the gold trade which is great in my opinion because that means that this beast of a bull rally has much further to travel. I certainly think gold has another double from here where I think 'Gold Fever' will start to kick in a some of the smartest looking trades will be buying these gold stocks early. When gold mania hits, the best of the best will go to the moon while even modest exploration companies will be in high demand. Somewhat like what happened to the Uranium market but extended over a longer time period and not as parabolic.
I think gold has hit a bottom at $1180 coming close to my first target of $1170, the way it is trading it is creeping out to another breakout which will happen sometime in August when the fury is started in the fire again. There are some premium exploration companies and junior's developing premium deposits that I believe are at bargain prices and most are oversold.
SAS.TO at $1.20 is a great entry price in a company that clearly has demonstrating that is producing along schedule and has some of the best exploration targets in all of Canada in the premiere mining district of Timmins. This is a new addition to the portfolio as SAS.TO has demonstrated that it can maintain a $1. One of my tests for a quality penny is if it can hold $1 from a run from micro cap status. If no one wants it at a buck... The story is ultimately dead. SAS.TO looks very strong and will become a player in the junior gold producer market with a goal of over 110k ounces of production per year over the short term of 3 years.
I have been a fan of Sangold Resources for a long time now and continue to like SGR.V to become a premiere producer one day. Many people want to liken Rice Lake to Red Lake and though not identical certainly have many of the same characteristics. San Gold has been apart of the portfolio since under $1 so we have seen almost a 500% gain out of this one but this one has legs is very strong and believe slow and steady wins the race. I maintain that SGR.V will be well over $10 stock in a few more years no matter where POG is.
These are 2 prime up and coming juniors. Some other plays that look great, VEN.TO... its experienced quite a bit of selling and some may think they have reached the limits of the deposit, but I think this stock is oversold a $7 and should be bought up. It may not see $13 this summer but $10 is a very reasonable target. Been writing about Ventanna since $5.
EAS.V is working on a monster deposit, so far indications is that they have close to 12MM oz's but with strong gold indication in all areas that this could be just the beginning it has a low float and just keeps getting better by the day. I love the results as the continue to impress. Have been a apart of the portfolio since $2 so $8 high was a great trade. I think it proves some great value as long as they continue to expand the deposit towards a N43-101 report and feasibility. If they continue to expand this deposit then in all effect a bidding war will break out on EAS and I would be surprised to see this well over $20.
CSI.TO is another monster deposit in Brazil. Probably the least beta of this group as it is more of a development and production story and not so much a case of adding value in the ground which limits its growth potential when compared to the previous.
There are so many other plays out there that I believe will pay off as great traders, possibly more if the goods are found. These are the ones that are far from sure bets, so definitely early in the story and may or may not play out according to plan.
FAU.V tops that list, they are in the right spot in the Tintina Gold belt in Alaska and with a name like Fort Nixon, how close can you get to Fort Knox? LOL. Sometimes superstition pays off!!! Anyway they have released some great result to the public from a previous operator that were never released and in my opinion are pretty great. Some of the values are up there and this high grade deposit could easily end up being a 4-5 M oz discovery. The PP was oversubscribed and the had to double the size to close to $6 million from $3 and they will be using the funds to aggressively drill the project this summer. There is a lot of anticipation with FAU.V and this one could be well north of $1 by September.
Other great names that I have my eye on are DEC.V, CXT.V... CXT.V seems to be making a nice rebound after being oversold on IPO from .70 so I would buy this one under .50 as a flyer. They are starting a heavy promo on this company and the follow through volume today was very good at over 2.5M shares.
I am a little less happy with DEC because they are not drilling the zone I want to see defined and can only have access from current trails so they are limited with wha they can do with the high grade discovery from last year but they do impress with the other lower grade zone that they are drilling. LOL. Who says the BC government is mining friendly? It's a freaking dirt road. Hello... I am sure even the animals will vote yay for a new trail to walk on.
Happy Trading, and in Gold's case... INVESTING! :)
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