Here’s a quick review of some of the names on the Highballer shortlist making news and-or generating significant share price trajectory.
Gold is currently pushing $1,790 overseas as I type. A breakout above $1,800 appears inevitable, but don’t rule out further consolidation or weakness before it launches higher.
Coral Gold (CLH.V)…
Coral doesn’t generate much in the way of newsflow, but I shortlisted the company as I feel it represents one of the better risk/reward royalty plays in the junior arena.
Featured at $0.44 back in January of this year, the company’s shares are in breakout mode, trading at 9-year highs.
Note the multi-year base beginning in mid-2016 and the breakout from said base. There’s an old trading adage, ‘the longer the base, the higher is space‘ that comes to mind.
Coral holds an uncapped sliding scale (1% to 2.25%) NSR on over 2.7 million ounces at the Robertson Property located along the prolific Cortez Gold Trend of northern Nevada.
Robertson is a joint venture between Barrick Gold (61.5%) and Newmont-Goldcorp (38.5%). This JV among mining behemoths is called Nevada Gold Mines, NGM for short.
Examine the above map (note the scale) and know that Pipeline, Cortez Hills, and Goldrush—all on-trend and in close proximity to Robertson—represent three of the largest Carlin-type gold deposits on the planet. These deposits, collectively known as the Cortes Mine Complex, make up NGM’s lowest-cost assets with over 50 million ounces of gold reserves & resources.
Robertson’s 2.7 million ounces are now considered part of the mineral resource base at the Cortes Mine Complex.
It’s important to note that finding a deep, ‘feeder’ type deposit is a high-priority for NGM. Such a discovery could blow the doors off Coral Gold.
It seems every time I check the cap structure, Coral’s outstanding shares shrink. This is the result of a normal-course issuer bid the company deploys each summer.
It’s hard to know how this one will play out in the medium to long term, but I don’t see much downside risk here. Don’t take my word for it—conduct your own due diligence.
Coral Gold Corporate Presentation
HighGold Mining (HIGH.V)…
To recap, the company’s 8,475 hectare Johnson Tract (JT) Project in Southcentral Alaska bears flagship status.
This is one of the more compelling exploration/development plays I’ve come across in recent years.
JT has Tier-1 potential (a deposit with a mine life in excess of 10 years and at least 500k ounces of annual production).
The company is planning an aggressive drilling campaign this field season to expand on its maiden JT resource estimate delivered two months back.
In an effort to increase liquidity in the stock, on June 22 the company announced the commencement of trading on the OTCQX® south of the border.
HighGold’s shares have been trading for only nine months, but are currently testing the upper level of their range.
As noted above, the company will be drilling JT aggressively, looking to expand the current resource as well as test additional high-priority targets (the Northeast Offset target, for example) along their 12-kilometer-plus strike length.
Keep an eye on this one.
Pure Gold (PGM.V)…
PGM has also been pushing higher in recent weeks. It’s currently trading at multi-year highs. Note the 4-year base the stock has broken out from (chart below).
If the old maxim ‘the longer the base, the higher in space‘ plays out, this one could evolve into one of the better stories of this current bull cycle.
We picked up coverage on this stock less than 3-months back when it was trading at $0.64. Investors who seized on those lowly levels have a 200% gain in their crosshairs (not quite there yet, but close).
The company is firing on all cylinders, making progress on multiple fronts.
On June 24, the company dropped the following headline:
PureGold Red Lake Mine Construction Ramping Up – on Track for Q4 Production
Project highlights as at June 21, 2020:
- Procurement of major equipment is now 94% complete;
- Total of 1,285 metres of underground mine development completed. Advance rate 60% better than mine plan (editors note: wow);
- Initial access development to longhole stopes commenced;
- Installed alimak in existing shaft to support dewatering and shaft rehabilitation;
- Process plant prepared for installation of new equipment, with removal of legacy piping, pumps, motors, ball mill, gold room and pre-leach thickener;
- Steel and concrete work modifications inside process plant for new ball mill, gravity circuit and construction of hydraulic backfill plant commenced;
- Installed and occupied new buildings including administration, warehouse, and mine dry;
- Recruited key operational team members including safety, mining, milling, and technical services, with bulk of operational management team now in place;
- More than 145,000 hours without a lost time incident.
Management was targeting five meters of underground development per day—they’re doing eight.
“As at June 19th, a total of 1,285 metres of underground development has been achieved. Underground development to date is advancing at a rate of eight metres per day compared to a feasibility planned advance of five metres per day.”
Darin Labrenz, president and CEO:
“We are now only months away from first gold pour at our new PureGold Mine, and our first step to building a long-life growth company in the heart of Red Lake, one of the world’s most prolific gold-producing camps. Our opportunity for value creation is tremendous: we are delivering our mine into a rising gold market, with the potential to benefit from a period of margin expansion unlike any we have seen in years. But we see this as just the beginning of establishing ourselves as Red Lake’s next senior producer. On the cusp of production, we believe we have only scratched the surface and we are already working towards the next phase of our growth with the initiation of an aggressive 18-month exploration program. We look forward to becoming Canada’s next gold mine and delivering on the strong organic growth platform that underpins our PureGold Red Lake Mine.”
There was also a very informative webinar held on June 24 with Amvest Capital. Here’s the link (you may need to register, but it’s a simple process—one well worth your time):
During the webinar, we’re given a ‘big picture’ dynamic that is wonderfully articulated. It’s a scenario that could come into play, one that transcends the fundamentals captured in a robust (independent) feasibility study delivered back in February of 2019.
Strategic Metal (SMD.V)…
Last week we talked about recent private placements in the junior arena and how the high-quality offerings get filled fast and often get upsized due to demand.
Another indication that it’s game on in the junior arena: Nearly every private placement (PP) that crosses my screen goes into oversubscribed mode. Fast.
Those who understand the underlying dynamics—lean project pipelines, Peak Gold, Printing Presses Gone Wild—are piling into high-quality junior exploration companies in the expectation of a bull run of epic proportions.
We suggested that Strategic’s June 18 $4M PP would play out the same way. Less than a week after announcing the PP, the company dropped the following headline:
Strategic Metals Ltd. Announces Increase in Private Placement Offering
According to this press release, subject to regulatory acceptance, Strategic Metals…
“… will increase the size of the “flow-through unit” portion of the brokered private placement, to be co-led by Agentis Capital Markets Canada Limited Partnership and Haywood Securities Inc. and previously announced on June 18, 2020 (the “Offering”), to up to C$4,796,800. There will be no change in the amount to be raised pursuant to the “Unit” portion of the Offering.”
The company’s Mount Hinton project will see the lions share of these funds.
Forum Energy Metals (FMC.V)…
Before we close this one out, Rick Mazur of Forum Energy Metals sent me the following pics showing progress at the company’s flagship Janice Lake Sedimentary Copper Project where the Rio Tinto is earning an 80% interest in the project by spending $30M.
A multi-phase 20,000-meter drilling campaign is on deck.
For those of you thinking, “Rio is earning 80%! – that doesn’t leave Forum with much…” Well, Rio is a go-big fugget about it kind of mining giant. If they find the district-scale system they suspect is buried in Janice Lake’s subsurface layers, 20% will represent a massive mineral inventory Forum and its shareholders.
This is a heli-view of the 50-person camp currently under construction.
This next pic shows the road Rio is pushing into the project.
Camp construction crews are onsite and geological crews are out mapping and prospecting.
An expansive double-lane road leading in to the project, a 50-person camp—it looks like Rio is planning on staying a while.
END
—Greg Nolan
Full disclosure: Forum is a Highballer marketing client. The author currently owns shares in Strategic Metals and plans to initiate purchases in one or more of the above stocks in the coming days/weeks.
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