I looked at following criteria for buying the shares
1. Fundamental storey is solid and improving. Fantastic drilling results. I came accross this company on Korelin Economics Report.
2. Checked both daily and weekly charts and both indicates CTM to be around 10 and that is very oversold levels.
Daily Chart:
Daily chart showing CTM around 10 i.e. extremely oversold Weekly Chart
Weekly chart showing CTM at 10 i.e. extremely oversold 3. In December 2021, the company sold new shares at 20 cts. Now it went below 10 cts. You are buying at half the price.
4. Insiders have not sold any shares. Most of them have shares costing above 20 cts. and this is bullish.
5. There is already a resouce of 500K gold. The market cap is only about $10 million. And that means that the valuation is very cheap. You would at expect dead cat bounce from here.
It has been climbing in the last few sessions to about 12cts.
6. They are located in very stable jurisdiction - Nevada. Tier 1.
7. Gold extraction is going to be very simple and straight forward. And most likely quite cheap.
8. The company is already talking about going into production - most likely next year. In the meantime drill results are coming out to be very good.
I used to own shares of Great Bear Resources and its symbol was GBR. This company's symbol is almost identical - GBRC. !!!
Share prices of junior mining companies have tumbled due to general down trend of the market with interest rates going up.
When you have fundamentals of the company going up and share prices going down because of market condition, you need to be a buyer of this company.
Recent drilling results : Excellent drill results - 2 Excellent drill result - 1 North Hill drill results - Extensions Following comments from CEO should be very comforting:
Gold Bull CEO, Cherie Leeden commented: The more we drill, the more ounces we are defining outside the known resource at Sandman. In addition to adding ounces, the consistent grades returned from within the North Hill deposit including 32m of near-surface oxidized mineralization grading 1.31g/t Au (including a high-grade zone going 9.34 g/t gold over 1.5m) make for a compelling case to investigate the economics of a start-up operation. We have circa half a million ounces of gold sitting at or near the surface and intend to commence a Scoping Study after receiving the lab results from this drill program.