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Massive scale "Drill/ exploration plays" - Some look cheap now

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Massive scale "Drill/ exploration plays" - Some look cheap now

 

Tax-related selling is driving mining and exploration stocks lower.

There now seem to be many bargains in the market now

 

Here's GDX - the etf for Gold Miners

GDX : ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $21.69 /52wk range: $18.58 to 25.71 /

GDXJ : .. All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $30.43 /52wk range: $27.37 to 43.01 /
DNJTj56.gif

 

GDX could be On or Near key support - just under $21.50 watch that 610d MA (a fibonacci number that often "works")

Seasonally speaking. We have seen important lows in December the last two years

Exploration stocks are cheap too - they tend to trade with a strong correlation to Gold mining stocks - unless they are rising fast on

good drill results, or are sliding because they need to raise money when demand for their shares is weak.

Global X Gold Explorers ETF : "Relatively cheap" now maybe?
Ratio: GOES -to.GDX
9WMuY1P.png
GOEX -vs.GDX ... update: GOEX: $20.59 vs.18.23-30.23 / GDX: $21.69 vs.$18.58 to 25.71 / R-94.9
CGXGb5o.gif

 

Some Exploration companies hold massive amounts of exploration ground, and have very promising targets.

If they implement a drilling program, and get good results, the deposit can grow and grow as positive drill results come in.

 

Here's a Copper exploration company which made a huge return as it made a series of positive drill results

 

SOLG.L / SolGold (ex.Solomon Gold) .... : 2-yrs : 12-mos: // 12 mos Range 21.19 to 46.81 /

ky3Q6f0.gif

 

Low-Jun.2016: GBP 2.88 / High: GBP 46.81 -- Low to High was 16.2 Times ! in just 11 months.

 

During the same timeframe, GDX went from $25.96 to $22.94, that's a slide of -11.6%.

 

Date----- : F/X : SOLG : xUSD : usdS : Solg/G : GOEX : -GDX : G/GDX
06/10/16 : GBP 02.88 : $1.426 : $4.11 : R0.11 : $36.63 : $25.96 : R1.41
05/26/17 : GBP 46.50 : $1.280 : 59.52 : R2.73 : $21.83 : $22.94 : R.952
Change- : R : x16.15 :-10.24%: x14.5 : x24.82 : -40.4%: -11.6% : -32.5%

========

 

GOEX Component stocks

Top 10 Holdings: As of 12/6/17

Pct Name------- Market Price ($) Shares: MktVal($): Sym: shsOS : MktCap :
7.56 KIRKLAND LAKE GOLD 13.70 239,438 3,280,409 : KL- : 207.6 : $2,844 M :
5.48 ALAMOS GOLD INC 6.13 387,645 2,374,576 : AGI. : 389.1 : $2,385 M :
4.49 B2GOLD CORP 2.63 739,764 1,947,052 : BTG : 979.3 : $2,575 M :
4.47 PRETIUM RESOURCES 10.39 186,526 1,937,439 : PVG : 182.0 : $1,891 M :
4.32 CENTAMIN PLC 1.79 1,047,548 1,871,798 : celtf : 1.15B : $2,069 M :
4.22 INDEPENDENCE GROUP 3.08 595,300 1,830,693 : iiddy : 293.4 : $0,904 M :
4.14 REGIS RESOURCES LTD 2.98 603,539 1,796,601 : rgrnf: 504.0 : $1,502 M :
4.03 TAHOE RESOURCES INC 4.38 398,864 1,746,553 : Taho: 312.8 : $1,370 M :
3.82 ST BARBARA LTD 2.49 664,285 1,655,404 : stbmf: 515.4 : $1,283 M :
3.77 NEW GOLD INC 3.07 532,737 1,635,852 : NGD : 578.0 : $1,774 M :
====

 

Note that nearly all of the Top 10 Components have MarketCaps of $1-3 BILLION!

Companies that big will not be easy to push higher.

If you want to make 5-bagger, or 10-bagger or greater returns, you should be looking for promising

companies with a Market Cap of $25 Million or less

 

===

LINKS

Link to here: https://tinyurl.com/Redstar-RGC

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Redstar / RGC.v controls big ground, which contains 3-4 large deposits with good grades.

One of them was in production from 1876-1922, and still has gold underground.

(They may add up to 1 million ounces, but the drill results are dated, and so cannot be reported)

 

Sym. : Company-------- : C$Price /-CAD = -US$- : shsOS : Mkt.Cap
RGC.v: Redstar Gold : $0.085 /$1.283: $0.066 : 298.6 : $19.78 M

Some deposits of their deposits are about 10g/t average - and there is real potential for growing the size of them.

One of the very best targets, XX, has not yet been tested except by a single drillhole (by prior management), which was not ideally sited.

They will be seeking more geological information before drilling this exciting target.

 

Redstar Gold / RGC.v ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $0.085 /52wk range: 0.065 to 0.16 /

t04BxaQ.gif

 

What confirms Redstar's potential?

The first big clues is the bluechip shareholder base:

  • ~60% controlled by the some of the top gold funds and investors in the world including:
    • Mount Everest Finance (LONDON),
    • Eric Sprott (CANADA),
    • US Global (USA),
    • Gold2000 (SWITZERLAND),
    • Geologic Resource Partners (USA),
    • Odey Asset Mgmt (LONDON),
    • Gabelli Gold (USA).

==

> Quick Facts: https://redstargold.com/investors/quick-facts/

 

Redstar Gold Corp. (TSXV: RGC) (OTCQB: RGCTF) is well-financed junior exploration company, with a very strong institutional shareholder base (~60%), no debt, and is focused on advancing its high-grade Unga Gold Project in Alaska. The 100% controlled Unga Gold Project is known as an intermediate sulfidation epithermal high grade gold project on a district scale, with the property encompassing approximately 240 km2 and containing multiple high grade gold zones drilled or identified at surface. The Unga Project also hosts Alaska’s first underground producing gold mine, has extensive infrastructure with daily flights from Anchorage and a deep-water port on neighbouring Popof Island, and a moderate climate noting it resides at the 55th degree latitude and next to the ocean.

In addition, Redstar owns approximately 18% of NV Gold Corp. (TSXV: NVX). Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada

 

> Presentation : https://redstargold.com/site/assets/files/2951/final_rgc_corporate_presentation_november_2017_final_co.pdf

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Another one I like which looks "cheap" now:

BAY.v / Aston Bay : Cu, Zinc, Can. : $ 9M : C$0.11

 

Sym. : Company-------- : C$Price /-CAD = -US$- : shsOS : Mkt.Cap

BAY.v Aston Bay------ : $0.130 /$1.283: $0.101 : 75.32 : $ 7.63 M

 

Aston Bay - / BAY.v ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $0.130 /52wk range: 0.100 to 0.29 /

VlUt7HP.gif

 

Redstar Gold / RGC.v ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $0.085 /52wk range: 0.065 to 0.16 /

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A technical Analysis Review of : Novo, Bonterra and Redstar and GDXJ.

 

A very powerful "Inverse Head and Shoulders" (may be forming on GDXJ) - That's Bullish

 

VIDEO:

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