RE:RE:RE:RE:RE:Next month is determining!At its peak, gold in the ground was valued between $100-$150 per oz and in many cases a lot analysts are predicting higher gold prices to reach $1500 and even $1700 by the end of this year. If we can get through $1360 resistance and confirm an uptrend direction, many of these juniors will start waking up and can eventually trade within these ranges. We’ve been in this horrific bear market for about a decade and IMO the cycle for gold will bounce back very soon. My predictions as to the gold price trending higher is mid 2020 going into 2021. Some even say the debt ratio in the US should have gold ranging between $8 000 - $10 000 gold. Imagine!
As for the conservative target, when crunching the numbers $40 per oz is reasonable. It is also clear to me that the M&A cycle is the right place to be, companies are cashed up and looking to secure resources. We’ve been seeing majors in the space having this approach quite aggressively and I think the money will eventually trickle down to the juniors holding valuable assets. Something that captured my attention is the Elonore project being a few kilometres away from Cheechoo with a current mine capacity restricted at around 50%. This means Cheechoo has the potential to make Goldcorp’s production rate far more efficient with some additional opex, more importantly, very minimal or no capex required.
JK recently valued the ounces in the ground at $30 for Cheechoo project, this would still triple our investment and ramp up the SP to 0.70 cents.
Conclusion: $0.70 - $2.80 price range within the next 18 to 24 months are my predictions