GoGold (GGD, TSX) launches “Monte del Favor” As Exploration Project Numero Dos In Los Ricos District

Feb 26

It was also a breakout week for Fiore Gold (F, TSX-V)!

“We have a strategic plan for the Los Ricos district which includes consolidation of concessions and drilling for ounces.  With the completion of the latest concession acquisitions and our financing, we will be adding drill rigs and accelerating our exploration to showcase the Los Ricos district to be one of the most prospective in Mexico,” said Brad Langille, CEO and owner of 10.8 million shares of GGD.  “All the elements are now in place for us to execute on creating more value at Los Ricos for our shareholders.”

The new concessions come with a legacy database of 50 historical drill holes with grades as high as 2,109 g/t Silver equivalent (6.4 g/t Au and 1,629 g/t Ag) over 24 m.

Langille kinda surprised the market recently by announcing a $25 million financing that halted GGD’s momentum, but only temporarily.  When you’re in a bull market I think you just want to hunker down and hold onto companies like GoGold, one of few pure play Silver producers with Silver and Gold exploration leverage (Los Ricos is presumed to be a multi-million ounce Gold district).  Having a management team with a consistent track record of value creation is the cherry on top.

Maybe Langille could have struck a more shareholder friendly deal, but since he owns 10.8 million I thinks it’s safe to assume he tried his darndest to create a win-win situation.  With this newly raised capital GoGold has $47 million (U.S.) in potential funds available (including receivables from the Mexican government, warrants, and options outstanding).  That’s the kind of money you need to move fast and do some really heavy lifting.  And like I said before I think Langille knows he’s got to get GoGold prepped perfectly for a sale within 2 or 3 years – the additional capital in hand today is the fuel that gets them there.

Breakout Week For Fiore (F, TSX-V)!

I’ve written extensively about this play in recent months, and there’s no reason it won’t hit and perhaps exceed measured Fib. resistance in the mid-70’s before the end of this quarter.  Fiore‘s a small-scale cash flow generating producer and their only product (Gold) is rising in price while costs at the Pan mine rise only slightly in H1 versus last year.  Slightly higher costs relating to infrastructure improvements and strip ratio should become tailwinds during H2 2020.

‘Twas a breakout week on the chart for F.  The stock’s now broken out convincingly on volume above 57 cents, which now becomes support.  As per John’s chart, next measured fib resistance is in the mid-70’s.

We’re still waiting on preliminary economics for Gold Rock (promised this quarter).  Perhaps they’ll have that in time for PDAC.

Don’t forget, Fiore‘s got one of the largest land packages prospective for Carlin-style deposits, too. At 200 sq km the land package is larger than just about any other junior’s.

F closed at a new 2-year high of 63 cents Friday!

Strong fundamentals + strong chart = going higher.