It appears to be that some strategic investors waited for the jobs report before making some important buys. I am witnessing several high volume moves on featured GST companies which I own and are current or past sponsors. It is important to follow the volume in the junior mining sector as that could signal a potential trend change or breakout. Three stocks with assets in Nevada are breaking out of consolidations on excellent accumulation.
1) One of our long term favorite gold miners from Nevada may be finally turning the corner after a nasty selloff quite possibly from an investor looking to exit the gold space. However, that selling may be in the rear view mirror as Corvus broke above the 50 DMA and its 6 month downtrend resistance line a few days ago. Investors may be excited about the drilling be initiated on North Bullfrog for 2015. Corvus has selected 10 targets with the best chance to host a high grade vein system similar to other deposits on the property. If another vein system is discovered, short sighted sellers will be upset they unloaded their positions for a highly discounted price. See the recent update on their drilling with some important maps… Major buying volume came into the stock today, which may signify that a strategic investor sees a potential turnaround as well.
2) Nulegacy Gold Corporation (TO:NUG) announced assay results which materially expands the high grade gold mineralization.A major breakout may be just beginning. They hit over 25 grams of gold per tonne over 4.6 meters in their North Zone.
Remember this property is partnered with the largest gold miner Barrick Gold Corporation (NYSE:ABX) adjacent to their 15.5 million ounce Goldrush deposit.
This may be Nulegacy’s best drilling result to date and should be followed with step out holes in June.Alex Davidson, NuLegacy director and former head of global exploration for Barrick Gold Corporation stated in the release, “This result indicates the Iceberg gold deposit is a very robust Carlin-type gold system and significantly expands its exploration potential.” These drill results may begin to show the investment community that Nulegacy’s experienced geological team is onto something that could be big, near surface and high grade in elephant country in the heart of the Cortez Trend. The next set of six holes are expected in early June.
3) Western Lithium Usa (OTC:WLCDF) is seeing a high volume breakout as interest returns to Tesla Motors Inc (NASDAQ:TSLA) and electric vehicles. Western Lithium owns one of the lowest cost, most advanced and highest quality lithium asset quite possibly in the world and definitely in Nevada.
Investors may be speculating that a major car manufacturer or battery company could partner with this company to bring the Kings Valley Lithium Deposit into production.
Disclosure: I own all these stocks. Corvus is a current website sponsor, Western Lithium and Nulegacy are prior sponsors. Please do your own due diligence as there may be a conflict of interest as I would benefit if the share price goes up.