"Good Afternoon,
Premium members and others out there have had quite huge scores in Garibaldi Resources (GGI) and Metallis Resources (MTS). Both stocks have gone up 10 fold in less than 10 weeks! Eric Sprott just invested millions into each company and he doesn't tend to be late to the party.
It's always the case that folks that don't take early action watch a stock go up so much and wonder if they should still buy it, that's pretty normal. I took my principal risk out of Metallis today (I bought in at around a 29 cent cost average buying initially at 25 then adding up to 40 cents) so I won't tell anyone to buy it now, even though I have no plans to sell the main chunk of my position anytime soon. But it got me thinking if we might have "then next big one" on our radar and, if so, which company is it?
Today, I want to spotlight a stock that has MTS/GGI type potential and is still only at 14 cents, Gungnir Resources (GUG/ASWRF). This is an example for even free readers where we are already up huge from my late 2015 buy recommendation on GUG but I just bought more stock today averaging up. Why? Because this thing looks terrific technically and 25 then 50 cents are the next real resistance areas. Plus, after drilling all of September, Gungnir will have drill results out in October, maybe as soon as next week (?).
Discoveries drive huge gains in exploration juniors and I think Gungnir has as good a shot as any company to have hit into a major ore body in Sweden. Aurion Resources (AU.V) is Gungnir's neighbor in Sweden and their Finland discovery has driven their share price from 6 cents to $3 in the past 20 months! I believe Scandinavian juniors and discoveries are the second hottest area play to the Golden Triangle right now. GUG has about a $6MM USD enterprise value, which is peanuts! Aurion is nearly $140 million USD and another area play, Barsele, is $60 million.
There is a big gap here but some drilling success by Gungnir could cause the stock to play serious catch up to its peers and AU/BME also could continue to outperform. I think the odds are high that Gungnir at least verifies historically significant holes. As far as new areas, if they hit high grades we'll be looking at a lot of blue skies. If they don't hit, yet, I don't see a ton of downside anyways. They own 2 big nickel resources, have a $1MM annual royalty coming for 4 more years, and lots of acreage to explore for a gold elephant deposit.
If you want to roll the dice on a potential monster stock pick, I suggest adding GUG/ASWRF before they start releasing drill results within the next 2 weeks or so. To make the big 10-20-50 baggers, you have to swing the bat relatively early in the game. The charts attached show a very bullish and healthy consolidation has occurred in the mid teens. This new triangle is subtly being broken out of right now and the next real resistance is around 25 cents on GUG. Buying up to .165 allows for 50% upside if it goes to 25 cents shorter term. The share price was over $3...10 years ago. I have no idea yet if it will go back there but 30 cents is certainly quite reasonable based on the story.
I definitely will take some stock off in the .20's, primarily to raise cash to exercise warrants in GUG that I have from last years private placement FYI. I don't think Gungnir is on many radars yet outside of GIL and some random folks who have dug up Gungnir's acreage position when looking for the next Aurion. Drilling results could change that so I am excited to see what they found on the initial modest program"