I think it's time to prepare for liftoffThat handle looks like its finally ready for breakout. Friday was a big day for volume and firming up, shaking off the last of the sellers at that level and bringing in new buyers (who will hold for higher prices). Cup and Handle go time! But the question a person has to ask is how the technicals are lining up with the fundamentals. And within the next week or two we'll be getting some news that we've been waiting for. The new 43-101, including 118 holes that were drilled in last year's program that haven't been reported yet. Looks to me like the increase in volume last week was the new group of people ready to ride the next wave. Smart people, them. If you think Dines and the Rare Earth newsletter writers got the word out on CCE over the past 3 months, you haven't seen anything yet. To quote The Carpenters, "we've only just begun."
In the world of tantalum, 3 of the 4 major miners shut down all or part of their operations and are not likely to start up again. This has left the planet with a 48% supply side deficit, however the Western World now has a 90% supply side deficit. CCE has the strongest and most active tantalum project in the world. They've spent 20 times on Blue River what anyone else has spent on any other tantalum project on the planet. Things are marching right along, with the scoping and feasibility study due out in October/November, as well. And it will be written up by an industry heavyweight.
I've been at this game a long time and I've never seen the stars line up quite so perfectly for a junior exploration company heading to production. A convergence of many, many factors (all in our favour) will result in huge gains from here on out. Smart management populated with and assisted by industry insiders and heavyweights, very tightly held share structure, no debt, money in the bank, mine-friendly jurisdiction, stable political environment, close to infrastructure, minimal timeline to production, massive supply side deficit, rising price of tantalum, rising demand of tantalum and the increasing global political, producer and consumer awareness of the situation in the Congo, etc.
It's only a matter of time before not only governments get involved in upping the visibility of this story, but producers like AVX who will use it as positive PR in an attempt to inform their end users about their 'clean' supply of tantalum in an effort to distance themselves from what's going on in the Congo. It's blood diamonds and dolphin-safe tuna all over again. And more people buy, use or depend on electronics than diamonds and tuna. Which means more money for us due to the complete lack of alternate feasible options anywhere else in the world at this time.
To the longs: If you haven't talked to Chris Grove in a few months, give him a call and get an update. You won't be sorry. I've said it before and I'll say it again, there is not a single IR rep out there with more knowledge of his company and industry than Chris. No obfuscation, just the facts and relevant information. And plenty of it. His memory is astounding.
The Fever