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BMR Evening Alert From PDAC! - BullMarketRun.com

March 5, 2018

BMR Evening Alert From PDAC!

11:00 pm EST (from Toronto)

(Exclusive to BMR Subscribers – Not for Distribution or Posting on any Board!)

Greetings again from Toronto where it was a busy Day 2 at PDAC.

Interesting action on the Venture today as the Index led the broader markets higher from the opening bell and finished up 13 points at 839.  We’ll therefore be watching closely tomorrow for confirmation of a breakout above key resistance at 833.

If you recall, PDAC wasn’t nice to the Venture last year as the Index tumbled 26 points or 3.2%, from 818 to 792.  Looks like it could avoid the infamous “PDAC Curse” this time around.

Investors are proving to be a lot smarter than many of the clowns in the mainstream media who late last week were essentially calling for Market Armageddon as Donald Trump, the businessman President who understands the “Art of the Deal”, was playing hardball trade negotiator.

The Dow rocketed 337 points higher today.

Why Are These People Smiling – Their Stock Has Tanked 80%! 

Below is a picture of the GT Gold (GTT, TSX-V) crew at the PDAC “Core Shack” this afternoon.

Charlie Greig, one of our favorite geologists, is the second from the right in this picture, holding some highly mineralized drill core in each hand from the company’s Tatogga Property (Saddle South Discovery) in northwest B.C. near Iskut.

After surging as high as $2.76 last summer (BMR gave a sell recommendation at Fib. resistance at $2.65 after our original buy alert below 40 cents during the first half of the year), GT Gold has fallen 80% to just 55 cents (today’s close).

Ouch…but these folks are all smiles!

Charlie’s no market wizard (virtually no geologists are) but he does understand how to find Gold, and he has found lots of it at Saddle South – a high-grade epithermal Gold-Silver vein system that was never drilled until last year.  GT Gold completed 28 RC holes last summer and 58 diamond drill holes for 16,000 m.  Abundant juicy intercepts along 1,000 m of east-west strike to >500 m down-dip from surface were highlighted by 51.5 g/t Au over 6.95 m in hole #7.

Meanwhile, a potential Red Chris-style porphyry system has been drilled into at Saddle North.

GT Gold is fully financed for this year’s work (about 85 million shares outstanding after the 84-cent flow-through PP closes) and Charlie told Jon this afternoon that the company expects to drill as much as 30,000 m in 2018, starting in June.

So this is why Charlie & Co. are smiling – they know they’re onto something big and they’re confident about where things are headed once the drills start turning again.

We bring GT Gold to your attention tonight, not because you should buy it tomorrow morning but you should put it on your “watch list” as a strong candidate for at least a double or even a triple from the spring lows to this summer’s high.

Technically, the stock is still being pressured to the downside but the absolute bottom in our view is 35 cents.  Anywhere in the 40’s would be a really astute buy for traders looking to cash in by mid-to-late summer.

Those Nickel Mountain Rocks! 

Daniel said it best earlier tonight, “Dr. Lightfoot’s excitement and intellectual intrigue for this property cannot and will not be contained!”. 

When the book is written on one of the great Nickel discoveries in Canadian history, the first chapter will be dedicated to Dr. Peter Lightfoot whose unique understanding of global Nickel sulphide deposits – a gift that puts him in a league of his own – has reshaped the exploration and mining future of northwest British Columbia.

Click on the arrow for the 3rd video clip in our PDAC series with Dr. Lightfoot (adjust the setting feature near bottom right of video to maximize quality):

Marijuana Stocks Gain Fresh Momentum

Canopy Growth Corp. (WEED, TSX)

Despite a recent correction that knocked more than half the value off Canopy Growth (WEED, TSX), the Big Daddy among marijuana stocks remains locked in an unambiguous bullish phase that we believe will ultimately take it to more than $70 a share (see Fib. Set #2 on the left of John’s long-term monthly chart).

WEED jumped $3.38 a share today to close at $32.37, a gain of just under 12%.

National Access Cannabis Corp. (NAC, TSX-V)

Recent weakness has been a great accumulation opportunity in National Access Cannabis (NAC, TSX-V) with the next measured Fib. resistance levels at $1.09 and $1.65.

NAC is a stock we initially recommended in November when it was trading in the low-to-mid-20’s, preparing to break out from a classic cup-with-handle pattern.  We remain long on this play because not only is the chart terrific, but the company’s growth prospects are more exciting than ever.

Christian Sinclair advocates that aboriginal people should be partners, not veto-holders.

On February 16, NAC announced that it has been selected by the government of Manitoba as one of 4 recipients of licenses to operate privately owned retail cannabis stores in the province.  Under the terms of the retail organization agreement with the Manitoba government, the company will be permitted to build, develop and operate in approved municipalities in the province.  In addition, NAC has completed several First Nations partnerships which will lead to the construction of retail cannabis locations on First Nations land in Manitoba. 

Mark Goliger, CEO of NAC, stated:  “With our history in successfully operating nationwide medical cannabis clinics, strong First Nations and licensed producer relationships, combined with our deep knowledge of safety, security and harm reduction, NAC is perfectly suited to exceed Manitoba’s current and future cannabis retail regulatory requirements.  With the province’s decision today, Manitobans will have responsible, secure access to recreational marijuana once legalization occurs.”

In late January, NAC appointed First Nations entrepreneur Christian Sinclair as a director of the company.  Sinclair is Chief of the Opaskwayak Cree Nation and co-chair of Manitoba’s Northern Economic Development Strategy. Since 2002 he has worked with indigenous groups across Canada and the United States, focusing on corporate development for major natural resource projects related to hydro, mining, Oil and gas.  He’s also one of the youngest recipients of the Top 40 under-40 executives in Canada, awarded in 2003.

NAC, which is backed by cannabis investor Chuck Rifici, co-founder of Tweed and CEO of Cannabis Wheaton Income Corp. (CBW, TSX-V), spent the past 6 months signing up Manitoba First Nations to its retail vision.

NAC 6-Month Chart

Like WEED and other marijuana plays, NAC backed off quite a bit from its recent high ($1.20) but it’s locked in a powerful bullish trend (has one of the best charts in the sector) with the EMA(20), currently 92 cents, providing reliable support since the uptrend began.

NAC closed up 4 cents today at 93 cents.

Growing company in a growing industry – no reason this stock shouldn’t continue to outperform the VentureNAC closed a $6 million financing at the end of January and has 130 million shares outstanding.

Note:  John, Jon and Daniel hold share positions in GGI.  Jon also holds a share position in NAC.

6 Comments

  1. Literally been minimal interest on CCW…even after name change and news…any thoughts?

    Comment by flyinthruu — March 6, 2018 @ 6:47 am

  2. Be patient, flyinthru…there’s a lot going on there…it’s not showing up yet in the market but it will.

    Comment by Jon - BMR — March 6, 2018 @ 6:49 am

  3. Thanks Jon…patience it is…

    Comment by flyinthruu — March 6, 2018 @ 7:12 am

  4. Looks like CCW in another short term downtrend, Jon you think it will hold major uptrend support again this time?

    Comment by TradingAgent — March 6, 2018 @ 8:49 am

  5. Certainly nothing to cheer about , unless there’s a bit of green kicking around to gobble up more GGI Shares under 2.26 !!! At least this scenario is keeping me cheeeeeeerrrry ……. AIS and CCW and CYX keeping me depressed …….. Farmer T

    Comment by farmer — March 6, 2018 @ 9:03 am

  6. Who is this GeoLossControl fella posting subscriber-only GGI material on ceo.ca?

    Comment by adrobyshev — March 6, 2018 @ 11:21 am

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