Insightfull coments From the comments section of
Marathon Gold: Sitting On A World Class Gold Deposit?
Author Comment: Great resource, knocking on door of 3 million ounces, but PEA will be the key. Heck of an average grade for an open-pit deposit, and now the largest of its kind in Atlantic Canada.
One of the best looking charts in the gold sector of the 100 I track. Daily chart might be a bit messy, but those looking at the forest can see the big fat 2-year cup with a 1-year handle forming. The out-performance vs. the GDXJ is outstanding. (+) 80% for the year vs. flat for the GDXJ. On a relative basis to other gold stocks and the indexes, this out-performance is very noteworthy.
Strong support at $0.96 CAD, as long as we keep defending there all is well. Insider buying is cherry on top.
Comment #2: I think you nailed it, there seems to be amazing resilience at the dollar level. The open pit constrained resource has now reached 2 million ounces (including inferred), which I mentioned before is a sort of hurdle for driving the more attractive PEA numbers. In looking over the first pass economics of similar projects there should be room for upside in the share price here. Perhaps some reluctance could be encountered at higher levels due to poor outcomes for other advanced projects in the recent past (Magino, Cote Lake, Hardrock, etc.) although the superior grade and geology may offer respite from a similar fate for Marathon. There really should be no reason to own the stock at this point if not willing to hold through the PEA (so at least 6 months) as shares should be higher at that point regardless where they might trade in the meantime.