Rocks And Stocks News Special Report On Power Charts Of Junior Miners

In this report I wrote about four juniors with power charts.

I’ve really been getting in the groove lately about writing reports on gold, metals, and mining stocks.

On Christmas day I wrote about some changes I’m going through at Rocks And Stocks News since I recently started using Substack. In that report I also talked about trends I’m seeing taking shape for gold and gold stocks, as well as one of my favourite gold stock picks. You can find it here.

Then yesterday, I wrote about 3 companies with power charts and one that looks headed toward a power chart. These are all companies that are picks that I have discussed in past interviews with their management and in my market reports. You can find it here.

Today, I have another group of companies with power charts to discuss. I also have some special reports coming out this week to notify you about.

As I sat down to write this report gold is up nicely, around 1.9% while the company I wrote about on Christmas day is up nearly 10%. Gold has been getting stronger of late as the US dollar has been getting weaker. I firmly believe those trends will continue.

What had the USD in a bullish trend for most of 2022 was the relentless interest rate hikes by the Federal Reserve. Then in November, the currency traders started to get worried as it started to become apparent the Federal Reserve was ending its campaign of raising interest rate so aggresively.

There are several signals that the Federal Reserve is at the end of its rate hikes. One of those was a speech Chairman Powell gave when he mentioned they are concerned about overtightening in their efforts to fight inflation.

In their December meeting press conference he mentioned that their estimates are their peak rates will be around 5% to 5.50% so they only have a few more 1/4 point moves left to go. Housing sales are dropping at an unprecedented pace. The yield curves are inverted and they are a remarkably accurate indicators of recessions.

The signals are loud and clear, the currency traders are hearing them and the USD is under pressure. At the same time, gold priced in USD is performing very well.

A key trend I watch this time of year is for Santa Claus rallies. They are an excellent predictor of a stong January Effect, which is a good indicator of how the year ahead will go for certain assets.

Gold has ended 2022 on a strong trend and in the first day of trading after Christmas is having a nice start to a Santa Claus rally. This is an important trend as is the January Effect as it is a sign that big institutions are positioning for what they see coming in the year ahead.

All systems are go for gold to have a strong year in 2023.

I follow gold so closely as it is a sentiment driver for other metals and for the stocks in companies focused on precious and base metals. In the past couple reports, I wrote about companies that are outperforming their peers and I have more for today.

Nine Mile Metals (NINE.CSE) has been performing very well since this time last year when it went through a Golden Cross. Since then, throughout the entire year, the 50 day moving average (50 DMA) has stayed above the 200 day moving average (200 DMA).

In late May, the stock blasted off due to a high-grade VMS lens they hit drilling in the Bathhurst Mining Camp, New Brunswick, Canada. This camp is one of the top 3 VMS mining camps in the world, it truly is elephant country.

After hitting the VMS lens, they followed that up with drilling 20km away and hit massive sulphides in a series of holes drilled at their California Lake target. Drilling into massive sulphides with excellent grades is something that will catch the attention of savvy investors as it has.

Currently, they are drilling for the source of the VMS lens. It was found starting at surface, it is a thick lens and high-grade. Volcanogenic massive sulphides are caused by volcanic events that bring massive sulphides from deep in the earth’s crust close to surface. To find a thick lens of high-grade speaks volumes about the potential for a big deposit of high-grade and they are drilling for that source now.

They also have lab results to come from their California Lake massive sulphide hits and then will be making plans to follow up those excellent hits with drilling to find the source of the near surface hits.

One of the biggest success stories in Canadian mining history was the Voisey’s Bay VMS discovery by Diamond Fields Resources. It ultimately got bought out for around $4 billion.

I bring this up only as an example of how lucrative these kind of discoveries can be for investors. It is not to say I think Nine Mile Metals is the next Diamond Fields, it is to say that with a sub $20 million valuation they are very cheap considering what they have found in such an important VMS mining camp.

It is still very early days for them in the Bathurst Mining Camp, at their current valuation, considering what they have hit so far, they offer investors a swing for the fences opportunity that they can buy into at a very cheap valuation.

Walker River Resources (WRR.V) has significantly broken out in December to now be trading well above its 50 DMA and 200 DMA, and it is heading toward a Golden Cross. I would estimate that it will go through a Golden Cross in early January.

What has caused the optomism is they completed drilling at their Pikes Peak Target and at their Lapon Canyon target in Nevada. Pikes Peak is a porphyry target in close proximity to the Lapon Canyon project that could be the heat engine that drove the widespread high-grade gold into the Lapon Canyon project. Gold makes its way to near surface due to metals bearing fluids and needs a heat engine to drive it, Pikes Peak is a likely candidate.

At Lapon Canyon there had been historical mining, and drilling that has shown widespread high-grade gold over an area of around 600 metres side to side on a mountain and from top to bottom around 800 metres. This is a very large gold system.

What has been challenging to prove that the high-grade gold has continuity because in the past they had to drill from the side of the mountain. Then they had a major breakthrough when drilling at the top of the mountain and hit what they call their Hotspot Zone.

Their recent drilling was from the top of the mountain where it flattens out and they could drill vertical holes into the Hotspot Zone. Ultimately, I believe, based on several geological indicators that the widespread high-grade gold has continuity. Drilling from the side of the mountain made it challenging to prove that and chase the system for contunuity.

Being able to drill vertical holes from the top of the mountain, will help them better understand the gold system and show the continuity. They are at an exciting juncture for their projects in Nevada.

I like their chances to deliver excellent results with their pending assays. The big homerun potential is proving that the high-grade gold is all part of one system with high-grade gold continuity. I think that is where they are heading and if they do that, the valuation will be several multiples of its current valuation.

Last year, I got very optomistic about Fireweed Metals (FWZ.V) when they hit excellent grades in massive sulphides. At that point they had drilled widespread high-grade zinc in horizons that you can think of like layers of a cake.

When they announced the massive sulphide hits last year, I immediately thought could this be a VMS that drove the high-grade zinc out into the layers of a cake. That was very exciting because if the layers of the cake are the extension and they are very big and high-grade, the source should also be big and high-grade.

The stock started to trend upward after they put out a news release about a hole they drilled. After that a breakout started that has driven them well above their 50 DMA and 200 DMA, and beyong a Golden Cross.

It really got into overdrive when they announced the assays results that reported the best hole they had ever drilled from the project. Equally as impressive is that it was massive sulphides near a key structure that could be the feeder for the entire mineralizing system.

This is a seminal moment, for a project that already looked like it would become a future mine, based on the high-grades in the layers of the cake. Now it looks like they have tagged into the feeder of what got that high-grade way out into the layers of the cake and the drill hole with the best results to date.

Shortly after announcing the excellent drilling results, they announced that the Lundin family was going to put several million dollars investment into the company. The Lundin family is a mining dynasty, they know what mines look like and how to build them as they have been doing it for decades.

This was a heck of an endorsement for the project. Before they came into the picture it looked like they had a future mine, the recent results have only added to that potential and now they have the endorsement from the Lundins.

They are cashed up to have a very busy 2023 with drilling, they will have plenty of catalysts to drive the valuation much higher. They currently have a modest valuation when considering that they likely have a high-grade mine of the future on their hands.

To date, I haven’t had the pleasure to interview an executive at Prismo Metals (PRIZ.V), but I hope to in the near future.

They came to my attention because I had heard an interview by Peter Megaw, an advisor to the company, he vended into the company an excellent orogenic gold target project. Peter Megaw is a very talented geologist who was responsible for the massive success at MAG Silver that found and has now brought into production a money making machine of a silver mine in Mexico.

As I looked further into the company I learned that their President and CEO Craig Gibson, another talented geologist, had vended into the company a strategically located project surrounded by Vizsla Silver. I first reported on Vizsla Silver when they were much cheaper than their current valuation because they hit extremely high-grade silver in Mexico.

The area where Vizsla Silver and Prismo Metals are located is very impressive for the high-grade silver they have both drilled into. I started covering Prismo Metals in a couple reports because of the talent of their team and that they had descriptions of their drilling that sounded like they had good drilling results to come.

They did just that and it has got them plenty of investor attention. As you can see in the stock chart, they had an impressive move since bottoming in the summer. In early October, the stock blasted off and went through a Golden Cross.

Catalysts going forward will include more drilling at their vein system beside Vizsla Silver and at their orogenic gold target.

In Closing

Both Nine Mile Metals and Walker River Resources are sponsors of my reports which affords me the opportunities to do several interviews with their executives and report on them extensively in my special reports. You can find past interviews with executives of both on my YouTube Channel.

I have invited Fireweed Metals and Prismo Metals to become members of my sponsorship program. I can see exciting developments ahead for both and would like to interview them regularly when news comes out and report on them extensively in my special reports. I have interviewed Brandon Macdonald, CEO of Fireweed Metals, you can find them on my Youtube Channel linked above.

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

Rocks And Stocks News