Are The Junior Gold Miners (GDXJ) On The Verge Of A Major Breakout At $23?

Junior gold miners may be on the verge of a major breakout past three month highs after The Federal Reserve continues to push back interest rate increases. There is a stealth rally underway for junior miners as gold tests resistance after bouncing off its lows in late July. Investors appear to be rotating from the Dow into precious metals as investors may be anticipating even greater easing efforts globally due to China’s recent weakness and Yuan devaluation. This could continue to push precious metals, the large miners such as Barrick Gold (ABX) and mid-tiers such as Alamos Gold (AGI) higher. The fear of rate increases that pushed precious metals down is decreasing. The recent rally in precious metals and junior miners may be just beginning as I expect to see increased mergers and acquisitions off of these depressed low prices.

A company I have highlighted since the beginning of 2015 is Carlisle Goldfields (CGJ.TO or CGJCF) which traded as much as 40% higher on record volume as they released news that they are in “discussions concerning a potential commercial transaction.”  Carlisle is currently partnered with NYSE Producer Alamos Gold (AGI) on Lynn Lake up in Manitoba, Canada. It is one of the top open pit gold projects in Canada.

See the recent news on the potential transaction by clicking here…

See my recent interview with Carlisle (CGJ.TO or CGJCF) CEO Abraham Drost by clicking here…

NuLegacy Gold (NUG.V or NULGF) was up 22% yesterday after they released news that they completed the 70% earn in with Barrick Gold (ABX).  The Iceberg Deposit is adjacent to three of Barrick’s huge gold deposits that are the most profitable and safest in the world.  NuLegacy spent $5 million USD to earn the 70% interest which is quite impressive in this tough market. Barrick has 90 days to elect to earn back in by spending $15 million USD on the property over 5 years or remain a minority 30% partner.

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Disclosure: I own shares in MIN, URRE and EQT. They are all website sponsors so I do have a conflict of interest as I would benefit if the share price increases. This ...

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