I'm hoping most of you have enjoyed and profited from the resurgence in the Junior Mining and Exploration sector.  I've been investing in this sector for over 25 years, and have seen only a handful of bull moves like the one we witnessed from May 2016 to present.

When the TSX Venture Exchange dipped below 500 (yes, Five Hundred) earlier this year I was banging both fists on the table screaming "TIME TO BUY EVERYTHING".  It wasn't even a capitulation, as is normally the case before the market turns around... it was simply a case of "IT SIMPLY CANNOT GET ANY WORSE.".

Here we are, several months later, and the majority of my holdings and 200+ company watchlist have rocketed on average of 300%.  Some less, at 100%ish and a few close to 1000% in gains. 

So what I am now focused on is finding the companies which have not yet made the huge move upwards.  We've taken profit on most of our picks, and have started redeploying in high quality assets, advanced projects and companies with strong insider ownership.

CMC Metals (CMB:TSX Venture Exchange) has managed to move to the centre of our radar - for reasons you are about to read about.  CMC is an emerging Canadian junior mining company, which we believe is on the verge of a major upward move in the short term.

CMC’s strategy is to acquire and develop past producing mines, rehabilitate and put them back into  production, thus generating dilution-free cash flow for shareholders.

The company currently has two advanced, near term cash flow, projects in it’s portfolio – The Radcliff mine in Southeastern California, and the Silver Hart mine in the Yukon, near B.C.’s border.  Both mines come with similar fundamentals, in that they were both highly profitable during the time they were active.  The mines were shut down decades ago due to extremely low gold and silver prices, and have since been abandoned.  With the glut of advanced exploration properties that have come onto the market due to the prolonged resource sector slump, it's easy to see how projects like these have been overlooked.

With the recent major resurgence in precious metals prices, Radcliff and Silver Hart are once again looking like attractive opportunities for a savvy management team to develop and exploit.

We are very interested in CMC Metals as it has been largely overlooked by the investment community, and major upside still remains.

Early this year the company started a restructuring process, positioning itself for success.  It rolled its shares back 7 for 1 in February, then completed a $1,550,000 private placement at 0.10/share in June.  30% of the financing was subscribed for by insiders, thus revealing their confidence in the direction in which the company is headed.

Following the financing, management was quick to move forward with rehabilitation of both mines, while also working diligently on putting their 100% owned Bishop Mill (close to the Radcliff mine) into operation.  Over $12 million has been spent advancing both projects to where they are today!

CMC has already realized revenue from Radcliff.  Over the past few years, approximately $1 million in revenue has been generated by processing stockpiled ore from past operations. Consider this revenue as "test runs" for future production.   Fast forward to today, with the recent restructuring, financing and progress on both mines, as well as Bishop Mill, we foresee a rare opportunity for investors to ride the wave of success as CMC moves toward realizing positive cash flow from all operations.... more on this in future blogs!

CMC’s initial intentions are to “high grade” the mines; that is, process the highest grade ore first and use part of the proceeds to expand the resource, thus increase valuation significantly, on both projects – while keeping share dilution to a minimum.

The company expects to have a busy Fall/Winter season on the news front, as both projects have most of the lengthy approval and development processes completed.  It's clear sailing to gold and silver production. With a market cap of less than $4.5 million, we see only upside... and if the numbers the mines produce come close to what my projections indicate, I believe we are witnessing the emergence of Canada's next mid-tier mining company.

I urge all potential investors to further their research through the company’s website and speaking with management.

Disclaimer: I own shares of CMC, purchased through the open market over the past 2 weeks.