My reasoning on why GLDN will 2-3x. i just created this account on stockhouse. but i posted this earlier on reddit today and had good questions and comments. someone DM'd me and told me I should post here, on stockhouse. So here I am.
My last thesis post for Rockridge Resources (TSXV: ROCK) (https://www.reddit.com/r/CanadianInvestor/comments/hsdmhi/my_thesis_on_why_rock_ridge_resourcestsxv_rock/) has gone up as high as ~70% and is building a nice base around 20c. My next pick is in a newer HOT Canadian #gold jurisdiction – Newfoundland
There has been a lot of hype this summer with gold, silver and precious metals in general, but in addition, the newest prospective jurisdiction in the America’s has certainly been Newfoundland. New Found Gold Corp. (TSXV: NFG) went public earlier this month with a valuation currently over $220mm. Marathon Gold Corp (TSX: MOZ) has been a tear since March 2020 going from 0.80 to over $2.50 this month. Both have caught the markets attention for different reasons (which I’m not going to get into), but wanted to relay my opinion as to why Golden Ridge Resources (TSXV: GLDN) is the next junior in Newfoundland to make a major discovery and to see significant returns on the share price.
GLDN is the junior explorer stock to own IMO in Newfoundland. The company was known for their projects in B.C.’s Golden Triangle, in fact they hold one of the larger land packages in the Triangle. But recently GLDN completed a 1:5 share roll back (https://goldenridgeresources.com/news/2020/index.php?content_id=135 ) and then came out with monster news of the total acquired 194 square km precious metal properties in Newfoundland (https://goldenridgeresources.com/news/2020/index.php?content_id=137 ; https://goldenridgeresources.com/news/2020/index.php?content_id=133).
The share count as of the August investor presentation shows an outstanding share count of 37mm. post roll back, the OS was only 19.7mm, so as of August there is less than 20mm free trading! Obviously a very very attractive float for catalysts. The company also has approx. $3mm in working capital. The value proposition here is quite incredible. The stock closed at $0.24 making it a tiny $8mm market cap. The land they acquired has some very early grass roots properties, but a couple of them are very attractive at this early stage. The Williams property is smack dab in the middle of New Found Gold’s Queensway gold project where they drilled 92.86gpt Gold on the Appleton Fault Zone which runs continuously through GLDN’s Williams property. Grab samples on the property went up to 51.6gpt gold.
The most exciting property though IMO is the Heritage project. This is a district scale property, on the coast, with tide water access and 2 existing ports. This project was acquired from Puddle Pond Resources, and a wealth of information is on their website regarding the project (https://www.puddlepondresources.com/heritage-project/invest). The Eagle zone is the main zone which has been explored. In fact there is a resource on one small showing of the strike that has been drilled where the strike is known to be at least 4.5km long with the current data. This proves there is gold there. The resource is open at depth and along strike leaving A LOT of upside potential on this zone & property for GLDN. The assays on this zone start with gold and silver just 18m down hole. This is an excellent project, with a defined resource and near surface. Drill targets are being designed right now for the summer/fall program. Earlier in August, GLDN staked an additional 7854 hectares to connect Heritage with Eagles claw – this newly staked area is called Eagle’s Talon (https://goldenridgeresources.com/news/2020/index.php?content_id=141). These 3 connected properties combined make up over 24,000 hectares; and brings GLDN’s total land holdings in Newfoundland to over 200,000 hectares.
The stock has been trading in a very tight range between 20 and 26 cents for a couple of months. There was never a significant pull back even during the financing. This shows enough demand at low to mid 20’s to absorb any selling pressure. In addition, Mike Blady, the CEO, purchased another bunch of the stock in the open market – 50,000 at 24c.
The risk reward here is attractive because of the base it is building in the mid 20’s with a technical breakout not far away at 27cents. I believe with a couple good drill hits this stock will 2-3x which is a reasonable market cap of $16-24mm, and as per above there is a lot of potential for GLDN to hit bonanza grade! I’ve been a big buyer in the 20s and with the macro’s in Newfoundland HOT, and gold & silver very HOT, I believe this will be a multi bagger from mid 20s.