Rocks And Stocks News On Stocks That Are Poised To Have Power Charts
In this report I discussed two companies that are cheap and have the kind of projects to drive their charts into power chart status.
In the past few written reports I discussed a group of companies that have been significantly bucking the trend in the junior mining stocks. Today, I will present stocks that are heading toward power chart status. Later today, I will be recording my tax loss selling season picks show on video.
The companies below haven’t reached the power chart status yet, but I can see that happening in the near term. They also haven’t been suffering from the tax less selling season as much as those picks. They are in the middle of the tax loss selling picks and the power chart stocks.
Sokoman Minerals (SIC.V) key project is the Moosehead project in Newfoundland, Canada, that is at an exciting juncture for the exploration of an orogenic gold system. I’m big fan of these kinds of projects because as seen at the Fosterville Mine in Australia, when the Swan Zone was mined it was a company maker for an already big company in Kirkland Lake Gold.
The success at mining the Swan Zone, made Kirkland Lake Gold a top low-cost gold miner, their stock was a breakout success that outperformed most of its peers and led to them being bought out. These orogenic gold deposits are cash machines and company makers. I think Sokoman Minerals is on to one.
They had been drilling at Moosehead for a few years, with near surface holes and hit widespread high-grade gold mineralization. Then on September 6, 2022 they announced a spectacular hole; 39 metres of 12.50 g/t gold, including 10.25 metres of 41.97 g/t gold, including 3 metres of 102.25 g/t gold. A real jaw-dropper of a hit.
As you can see in the stock chart, when they announced that remarkable drill hole the stock moved from well under its 50 day moving average (50 DMA) and traded up to its 200 day moving average (200 DMA). While doing some important geological analysis, to get ready for follow up drilling, the stock softened. It made a series of higher lows and now the 50 DMA and 200 DMA are tight and poised to make a Golden Cross in January, 2023.
One of the key things they did was send a camera down the drill hole, which gives them a chance to see what the rocks looks like in the hole. They have a very talented structural geologist that assessed those images and came up with an important geological model.
The red zone is their Eastern Trend, and the magenta zone is their new 463 Zone which hit the bonanza grades of gold. This model is very important because it is a lookalike to the Swan Zone at the Fosterville mine. I point out that you can see they are coming up from different directions, this is exactly what the Swan Zone looks like.
After developing this model, they drilled another hole to test this model and confirmed it makes sense when they announced they hit that 463 Zone with hole 505. Now they are gearing up for another hole to test it in January as they await assay results from hole 505.
This 463 Zone is a major breakthrough for the Moosehead orogenic gold system. When a company tags a bonanza grade hit like they did it is called a jewellery box. They have extremely high in situ gold values and can have very low costs of production making for remarkably high margins to mine.
Catalysts include; a stronger market for gold and gold stocks developing, assay results from hole 505, and drilling in January to further test the jewellery box at the 463 Zone. The Swan Zone at Fosterville was a company maker that led Kirkland Lake Gold to impressive success. Sokoman Minerals has a tiny valuation, but are onto something very special. This offers investors a swing for the fences opportunity with a cheap entry point.
Galantas Gold (GAL.V) is also exploring an orogenic gold system, at their project in Northern Ireland. Their drilling at the Joshua and Kearney veins has hit a lot of high-grade gold over significant intersections in near surface drilling.
Orogenic gold systems are associated with deep crustal faults that go down for several thousands of metres. These cracks in the earth are paths of least resistance for the gold bearing fluids from deeper to make their way close to surface.
There are some important things to point out in the image above. The Kearney and Joshua veins are where they have done their drilling and hit lots of high-grade gold. They have also hit a network of dilation zones, these are important geological processes where the rock opens up and allows the gold bearing fluids to pool up.
Another important factor is that these series of veins are in a tight area in close proximity to a key geological structure to their immediate south. My speculation is that as they drill deeper, there is potential that they all come together. This is a complex gold system, which is exactly what you want in an orogenic gold system and is precisely how to explain the Swan Zone at the Fosterville mine.
Since July, the 50 DMA and 200 DMA have been trending slightly upward and in early December the 50 DMA moving average had a Golden Cross over the 200 DMA. The trends in the 50 DMA and 200 DMA are at an inflection point.
Catalysts that can move the stock higher include; a stronger market for gold and gold stocks that is developing and most importanly more drilling. I’m a big fan of orogenic gold systems, Galantas Gold has an important one. They have a tiny valuation relative to what they have found and does not accuretly reflect the potential for how impressive it can become as they keep following the gold zones deeper.
In Closing
Both of these companies are sponsors of my reports, I have done interviews with their executives on my Youtube Channel.
As always my reports are for research only, before making any investment decisions you should speak with your financial advisors and do your homework. A good place to start your homework on the companies I follow is on my Youtube Channel. Then check out the websites of the companies I report on where you should look at their news releases and corporate presentations.
I hope you are enjoying the holidays and I would also like to wish you a prosperous 2023.
All the best,
Allan Barry Laboucan
Founder
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