Date : November 20, 2017
New Opportunity: Kerr Mines Inc. (OTCMKTS: KERMF)
Our newest alert is a junior gold miner that is working to maximize the economics of an already proven and fully-permitted well in the southwestern US.
According to our research, the region has produced a mountain of gold in the past, and the company is moving into the project with a lot of factors already lined up, and plenty of cash on hand.
The stock has been acting well, trending higher, and the gold space has been strong this year with a ton of major tailwinds lined up that could provide a ton of upside for junior miners like KERMF.
Company: Kerr Mines Inc.
Latest News: http://finance.yahoo.com/q/h?s=KERMF+Headlines
Company Website: http://kerrmines.com/
Who is KERMF
Kerr Mines Inc. (OTCMKTS: KERMF) is a North American gold development and exploration company currently advancing the fully permitted past-producing Copperstone Mine project.
Copperstone is a high-grade gold project located along the Walker Lane mineral belt in Arizona. The company’s materials make a strong case that this project demonstrates significant upside exploration potential within a 12,000 acre land package which includes a production history of over 500,000 ounces of gold.
The company’s current focus is on maximizing Copperstone’s potential by defining and expanding current resources and strengthening the mine’s economics toward the objective of resuming full gold production.
Our research indicates the company has been strong on funding and appears to be in a robust capital position to take on necessary expenses related to establishing serious production at the mine.
Another sign of this cap sheet strength is the company’s recent announcement of a non-brokered private placement offering at a 25% premium to current share values.
The company is working with an already fully-permitted mine property that contains an extant mine infrastructure, complete with an underground mine development, access, and utilities; a processing facility with a 450 ton/day mill; a tailings storage facility with capacity for existing resource; power and water distribution systems; surface buildings including assay lab; and roads and access to surface exploration sites.
As noted above, for any mining operation, funding and the security of financing needs is paramount. One reason we are so interested in this stock is the company’s recent terms on financing, which suggest the strong potential funding at a premium to current share prices on the OTC. That points to non-toxic capital formation. When you are engaged in a project like Copperstone, the ability to engage non-toxic capital is what separates the winners from the losers.
That fits right in with the company’s prior announcement of initial results of its Phase I underground drilling program. In all, there were 10 of 12 drill holes intersecting significant gold mineralization.
That appears to have powerfully undergirded morale and confidence where expanding operations at Copperstone were concerned. Remember, the Copperstone Zone detachment fault system historically produced over 500,000 ounces of gold from an open pit.
When you pair these results with the financing terms, you can understand why we are watching this stock like a hawk right now.
Martin Kostuik, President, stated, “with these initial Copperstone Zone results and the previously announced Footwall Zone results, (see press release dated 24 October 2017), we remain confident in delivering on our target of producing an updated resource estimate under NI 43-101 guidelines and delivering a Prefeasibility study in Q1 2018.”
The other piece of the puzzle is the action in the gold market. Gold is up big on the year, with gains of around $125/oz so far, and as much as $200/oz. The key drivers are monetary, economic, and geopolitical, with the ECB and BoJ continuing in full QE mode even as inflation data around the world starts to pick up steam.
If you throw in continued nuclear war possibilities in North Korea, brewing discontent in the EU, and complete chaos in Saudi Arabia following the so-called purge last weekend, you have a geopolitical witch’s brew that could fuel meaningful money flows into gold through year-end.
And all of these factors could drive investors toward the search for strong value and beta in the junior gold mining sector, where KERMF is sure to benefit.
echnically, the stock has been locked in an upward trend, consistently holding key moving average supports along the way, and moving higher on gradually rising volume and interest. This is the picture of a strong trend.
Shares have pulled back in a healthy consolidation over the past month, along with the price of precious metals markets. That is only to be expected. The most recent action shows a base of support around the $0.20 level followed by a sharp pop higher and new flows coming in to carve out a higher pivot price of support back above the 50-day simple moving average.
That type of action signals a strong likelihood that the trend in this stock is alive and well. The stock has a ton of strong upside potential from here.
KERMF (Kerr Mines Inc.) operates as a gold exploration and development company in Canada and the United States. Its flagship property is the Copperstone gold mine, which encompasses approximately 35.7 square kilometers of mineral rights in La Paz County, Arizona.
The company was formerly known as Armistice Resources Corp. and changed its name to Kerr Mines Inc. in January 2014. Kerr Mines Inc. is headquartered in Toronto, Canada.
What You Need To Know
- KERMF has a strong upward trend in place that continues to show bullish indications in its latest pullback. This could be another huge opportunity.
- KERMF recently announced positive drilling results in its high-potential Copperstone mine.
- KERMF’s principal mining asset already has significant infrastructure and permitting in place, including access roads, assay lab, all plumbing and electricity, underground tunnel development, and a 450 TPD on site processing mill.
- KERMF is a developing strong potential producer in the gold mining space, where monetary and geopolitical factors drive the story.
- KERMF has a deep-pocketed and committed core shareholder base, as well as good terms on new non-toxic funding.
KERMF is a very promising junior gold miner at a time when the gold space has a ton of new catalysts lined up to deliver major upside potential. The company is seeing positive indications at its primary mining operation and was recently able to secure new financing on good terms, which is the lifeblood of any mining operation.
The stock is sporting very positive technical indications, with a strong trend in place, rising volume, and bullish action at trendline and moving average support, suggesting that a big money trailing bid is driving the action higher. In short, this stock deserves immediate attention before it gets away from us on its next leg higher.