| It could be worse. A lot worse.
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| After gold shed about $1,000 and silver plummeted $50 at the end of last month, gold and silver bugs were right to worry about the absence of the biggest buyer this week during China’s New Year celebration.
But despite a big sell-off yesterday and thanks to a nice rebound today, the metals continue to trade in their previous range. The chart below tells the story clearly for gold.
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| Of course, this doesn’t guarantee anything as far as the future goes. But it’s a good sign...and there are others as well.
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| Golden Opportunities continues below...
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| Wherever Miata Metals (MMET.CSE; MMETF.OTC) drills at its Sela Creek project in Suriname, it keeps hitting gold — and not just in one isolated zone.
Miata controls a massive 215-square-kilometer land package along the Central Guiana Shear Zone, one of the most productive gold belts on Earth. Across a 14-kilometer trend marked by extensive artisanal mining, the evidence is clear: Gold runs throughout this system, and much of it has never been properly drill tested.
At Jons Trend — the company’s most advanced target — drilling has outlined a mineralized corridor roughly 750 meters long by 250 meters wide, open in all directions. Intercepts include 35.6 meters grading about 3 grams per tonne gold, 22.7 meters at 2.23 grams, 57 meters at 1.01 grams and a standout 4.3 meters at 12.49 grams per tonne, including over 29 grams over 1.3 meters.
Importantly, almost every hole at Jons Trend has hit gold.
And it’s not a one-zone story. Miata has also intersected strong mineralization at Puma East, Golden Hand and Big Berg, confirming that multiple zones along the same structural trend host gold in fresh bedrock beneath the shallow saprolite that local miners have worked for years.
With more than $10 million in the treasury, Miata is fully funded for an aggressive 25,000-meter drill program now underway. One rig is already turning, with a second expected to start shortly. Roughly half of the upcoming drilling will test entirely new targets — meaning the company is expanding known zones while simultaneously chasing fresh discoveries.
Management’s stated goal is ambitious: outline three to three-and-a-half million ounces before moving toward full resource definition — the kind of scale that has defined other major deposits along this same belt.
Miata Metals remains a relatively small, early-stage company in a blazing-hot gold market. But with kilometers of mineralized trend, multiple discoveries already in hand and steady drilling ahead, the story is building quickly.
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| CLICK HERE
To Learn More About Miata Metals
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| Mining Stocks Pointing Higher
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| I’ve mentioned before how different this bull market is from any other in history.
Again, the key difference is how mining stocks lagged gold during much of this bull run. A number of analysts have come out to say this is typical behavior, but I can tell you that the absolute opposite is the case.
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| Historically, the gold mining equities have led gold itself.
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| The change this time around came because this bull market was sparked by central bank gold buying, and this price-insensitive demand has continued to support the trend. But Western buyers finally jumped into the market at the end of last summer, largely through the gold stocks, and this seems to have restored the equities to their lead position.
And that’s good news, if you consider this chart:
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| As you can see, gold stocks (represented here by the GDX Van Eck Gold Miners ETF) dropped along with gold at the end of January, but have traced out an uptrend since then.
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| If the mining equity sector has once again claimed its role as a leading indicator for gold, then that’s a good sign for the future.
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| An eventual breakout to a new rally in gold would fit the pattern of this two-year-old bull market. The timing is the big question to me. Past patterns indicate that it could be several weeks to several months, although I lean toward a shorter timeframe.
The record also shows that these consolidation periods in the metals are the best time to pick up the top mining shares, and I believe the junior mining stocks in particular are a great opportunity at current levels.
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| By and large, companies are flush with cash and this year’s exploration season in the northern latitudes may be the busiest we’ve ever seen. Share prices are still in their winter doldrums, but this will soon change.
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| I’ve recently come out with some exciting new recommendations in Gold Newsletter, and I have some more on tap with our upcoming March issue.
Knowing what I know about those new picks, I have one piece of advice: If you’re not already a subscriber, the time to fix that is now.
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| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
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| CLICK HERE
To Lock In A Full Year
Of Gold Newsletter
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