Date : September 19, 2017
New Opportunity: Kerr Mines Inc. (OTCMKTS: KERMF)
Hello Traders! After testing the OTC market over our last couple alerts – and scoring huge, I might add – it seems like the momentum is red hot in that market segment right now as we work our way into the full brunt of the Fall trading season. So, we’re going to go back to the well once again.
Our newest alert is Kerr Mines Inc. (OTCMKTS: KERMF), a junior gold miner that is working to maximize the economics of an already proven and fully-permitted well in the southwestern US. 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 is acting extremely well, with big momentum in place and rising liquidity in the tape. Let’s go make it back to back to back!
Company: Kerr Mines Inc.
Latest News: http://finance.yahoo.com/q/h?s=KERMF+Headlines
Company Website: http://kerrmines.com/
Who is KERMF
Who is KERMF
Kerr Mines Inc. (OTCMKTS: KERMF) is a junior gold miner in a very mining-friendly region. The company is focused on developing and optimizing 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.
The company has over $5.42M in cash and short-term cash equivalent assets on the balance sheet as of July 2017, and 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.
This bodes well for shareholders and likely explains much of the stock’s strong recent momentum on the chart (see below).
The company recently announced that it has initiated the first phase of the underground drill access mine development for the 2017 Copperstone Mine exploration/development program and pre-feasibility study. Approximately 1,200 feet of new exploration drift is planned to be completed in the first phase. This drift will provide first-time underground drill access to facilitate further definition of the parallel Footwall Zone and to enhance the existing resource in the Copperstone Zone.
According to the release, “the new underground drift will be accessed from existing workings and will extend mine access drifting by approximately 1,200 feet to the Southeast, along the strike of the Copperstone Zone. This access is placed between the Copperstone Zone and the parallel Footwall Zone, giving exploration and development drilling access to both zones. The drift is strategically placed in the footwall of the Copperstone Zone, to provide access for potential future mining.”
That announcement was followed up recently by news that the company was starting to head underground. Then we got word that the company had commenced with the underground exploration and development drilling campaign mine pre-feasibility study and exploration program.
“Approximately 4,600 meters (15,000 feet) of drilling is allocated to the first phase with the goals of increasing the confidence levels and ounces of the existing resource in the Copperstone Zone, and further defining the parallel Footwall Zone.”
In other words, the process of recovering full and possibly optimized production at Copperstone is proceeding as planned.
Technically, the stock has been acting extremely well, locked in a strong and potentially accelerating upward trend since carving out a pivot low and respectable technical base back in early 2016.
So far in 2017 we have seen over 150% in upside, with volume numbers growing basically every day.
The stock’s latest key move was a sharp breakout higher in August that came on very strong volume and takes the MACD momentum indicator into “strong bull trend” mode without pushing RSI into an overbought state, which is perhaps the best arrangement of affairs in terms of indicator readings.
That move has been followed by a clear extension, pushing the stock into a parabolic rally. Parabolic moves, when they are driven by fundamental strength, can go much further than you might think. The last thing you want to do is bet against this monster trend right now.
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 and accelerating bullish trend in place for over 18 months featuring a 3,600% growth in average trading volume over the life of the trend.
- KERMF recently announced the initiation of underground drilling access 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.
- KERMF carries sufficient liquid assets with which to undertake remaining development of the Copperstone upgrade project
KERMF represents an old-fashioned breakout in the junior mining space. The company is executing on its project with strong assets and a strong cap table in place. And the market is rewarding management with a strong chart.
With all the geopolitical angst in the air these days and central bankers continuing to pump the system full of money, it’s no wonder gold has been on fire over the past couple months. KERMF offers a high-beta way to play it.