Connect with us

Articles

Shares of Norseman Silver Are Perfectly Positioned For a Fall Rally

Source: Mike Swanson for Streetwise Reports   09/21/2021

Mike Swanson, the editor of WallStreetWindow.com tells Streetwise Reports that small-cap…

Published

on

This article was originally published by The Gold Report

Source: Mike Swanson for Streetwise Reports   09/21/2021

Mike Swanson, the editor of WallStreetWindow.com tells Streetwise Reports that small-cap exploration stock Norseman Silver is projected to have a fall end-of-the-year rally. Here’s why.

A stock I am very excited about for a fall end of the year rally is small cap exploration stock Norseman Silver Ltd. (NOC:TSX.V), which trades on the TSXV as NOC and on the US OTC as NOCSF.

I own shares of it and believe that on a technical price basis it is showing great potential, because it has been outperforming its sector.

“I believe that Norseman shareholders are in for a fun ride.”

 

 

It also is consolidating in a range, which provides new buyers with a great entry point, and should lead to a nice rally to the upside once it is broken.

You can see what I mean from this chart.

As you can see, Norseman shares have been trading in a range between 41 and 45 cents as resistance and 32 cents as support. This makes for a clearly defined entry point for a great trading set up. Stocks that consolidate like this in range typically have big rallies once they break their range. For instance, when this stock cleared 30 cents in December it more than doubled by rallying up to 75 cents.

There are two key reasons why a big move can happen before year end.

First, as I mentioned, shares of Norseman have been outperforming other mining stocks to position itself as an emerging sector leader.  They also did this in July and early August while gold pulled back.  When a stock holds up like a rock when the sector it is in has a dip it is time to take notice.  And Norseman shares did exactly that.

The indicator on the bottom of the price chart is the NOC/GDX relative strength ratio, comparing the performance of Norseman with that of the GDX mining stock ETF. When GDX and gold fell in June and July and early August this ratio simply went sideways. It acted firm, because Norseman simply remained in a range that month while most mining stocks went lower.

In other words, when it comes to the technical price factor of relative strength NOC has now risen to the top of its sector. It is in position to become a leading mining stock starting this month, if not now.

“You can consider it a value play.”

Secondly, Norseman is trading with a market cap of roughly $16 million US dollars (USD). Most small cap mining stocks are now trading with market caps over $20 million USD and in past bull cycles just about all small caps gold and silver stocks get to market caps over $25 million USD.


The company announced the launch of an accelerated drill program at the end of August, which should bring it positive news flow from now through the rest of this year.
To put it another way, this stock has a much lower valuation than most stocks in its sector and is trading with great relative strength.  You can consider it a value play.

Norseman’s property portfolio includes the Cariboo, Silver Vista, and Silver Switchback projects, all based in mining friendly British Columbia. In March the company also issued a LOI “with the Bussandri-McMillan partnership (the “Optionors”) to acquire a 100% interest in the Taquetren Silver Project (the “Project”), which is located in the Rio Negro province of Southern Argentina. The Optionors have agreed to work exclusively with Norseman.”

This project, Norseman summarized in a press release, “covers approximately 285 square kilometers (110 square miles) and is located the within the Somun Cura Massif. The geologic setting of the Project is calc-alkaline, bimodal Jurassic Taquetren Formation volcanic rocks, within the Gastre fault zone. The Gastre fault system is a transcontinental shear zone, which extends from the Andean Cordillera to the Atlantic coast resulting in a series of half grabens and tectonic basins and associated faulting. Work to date has suggested favourable hydrothermal alteration. However, the Company wishes to note that the Project is an early-stage exploration property.”

Sean Hurd, President and CEO for Norseman, commented: “We are very excited to potentially enter one of the most under-explored mining districts in Argentina. The region contains significant discoveries, Patagonia Gold’s Calcatreau (Gold-Silver Deposit) and Pan American’s Navidad (one of the worlds largest undeveloped silver deposits) with a resource in excess of half a billion ounces of silver. Our team and our new partners have extensive experience in Argentina, and in the Rio Negro province in particular. Our entry into Argentina could be a significant move forward as we seek to expand Norseman’s commitment to becoming a premier silver exploration company.”

“Norseman is at a key moment for the life cycle of a small cap mining stock.”

Last month Norseman closed a private placement raise of up to $1.5 million to augment its existing $1 million in cash on its balance sheet and to fund a drill program on its B.C. properties and advance its Argentina project, which being new for the company, has the potential to really get attention from other stock market investors.

Some key facts are that it is:

– “Located in the Navidad-Calcatreau Mining District, Argentina”

 – “An under explored district hosting one of the largest silver deposits in the world”

– “In the SW of Rio Negro Province ~30 km N of the border with Chubut Province”

 – “Comprised by 3 cateos (Prospecting Licences) selected to cover key stratigraphic and structural elements associated with the newly-discovered Navidad-Calcatreau mining district.”

The “Argentinian team includes first-hand participation in the discovery of the Navidad Silver Deposit (M&I: 632M Oz Ag contained in 155.2 Mt @ 127 g/t Ag, 0.85% Pb, 0.05% Cu, 150 g/t AgEq)- Permits have been obtained to conduct initial geological, prospecting and geochemical sampling with work is commencing May 2021- Accessed by high quality and well maintained paved and gravel roads.”

You can find the full corporate presentation for Norseman here in PDF form.

To summarize the situation here for you, Norseman is at a key moment for the life cycle of a small cap mining stock. This could be the reason why its shares have been displaying powerful relative strength in their sector and are now in position. I believe that Norseman shareholders are in for a fun ride.

Go NOC! Go NOCSF!

Mike Swanson is the editor of WallStreetWindow.com.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Streetwise Reports Disclosures
1) Mike Swanson: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Norseman Silver. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Norseman Silver. Please click here for more information. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Norseman Silver. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Norseman Silver, a company mentioned in this article.

WallStreetWindow Disclosures

Mike Swanson owns shares of Norseman Silver

Wallstreetwindow.com, is owned by Timingwallstreet, Inc., was compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Norseman Silver during the month of August, 2021. This third party paid Timingwallstreet Inc., $13,000 USD to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns during the month of August, 2021. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only.

Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.

( Companies Mentioned: NOC:TSX.V,
)





Author: Author

Articles

Metalstech drops the Tlamino purchase option

 
Just a few weeks after announcing it had entered into an option agreement with Medgold Resources (MED.V) whereby Metalstech (MTC.AX) could acquire the…

Just a few weeks after announcing it had entered into an option agreement with Medgold Resources (MED.V) whereby Metalstech (MTC.AX) could acquire the Tlamino gold project in Serbia, Metalstech decided to terminate the option agreement as the project was ‘not a fit’.

This means the company remains fully focused on its flagship Sturec gold project in Slovakia where the company is continuing its aggressive drill program which will expand and increase the credibility level of the underground gold mineralization. Metalstech has recently appointed a Chief Permitting Officer and country manager which seems to indicate the company wants to keep the momentum going at Sturec.

Metalstech is also looking into obtaining a listing in London which could help the company’s financing efforts, considering it is working on an European project.


Disclosure: The author has no position in Metalstech. Metalstech is a sponsor of the website. Please read our disclaimer.


Author: CR Team

Continue Reading

Energy & Critical Metals

IPO Watch: Lithium explorer Winsome Resources listed today – here’s how it performed

Two companies IPOd today but the biggest winner was lithium explorer Winsome Resources (ASX:WR1) who listed after raising a tidy … Read More
The post…

Two companies IPOd today but the biggest winner was lithium explorer Winsome Resources (ASX:WR1) who listed after raising a tidy $18 million at $0.20 per share.

The company’s shares were trading at 26 cents per share near close of play –  a healthy 30% above issue price.

Funds from the IPO will accelerate the company’s exploration at its three project areas – Cancet, Adina and Sirmac-Clappierin the James Bay Region of Quebec Province, Canada.

The aim is to establish a maiden resource of high quality spodumene concentrate that is suitable for conversion across multiple battery applications.

Notably, the most advanced project – Cancet – is a shallow, high grade lithium deposit and is strategically located close to established infrastructure and supply chains.

Plus, the company says that Quebec is one of the world’s most supportive, lowest risk mining regions, renowned for its world-class infrastructure and support for mining developments and is at the forefront of the North American push to develop its own EV battery supply chain.

Winsome managing director Chris Evans was previously MD of FireFinch (ASX:FFX) and COO of Altura Mining (ASX:AJM) – so it’s safe to say he knows what he’s talking about when he says it’s an exciting time to be exploring for lithium.

“Current trends show up to 10 times more lithium is required in the next decade to meet the demand and it is going to require a huge investment to get there,” Evans said.

“With more than 99 per cent of the world’s lithium reserves located in Australia, Argentina, Chile and China, our projects offer jurisdictional diversity and opportunity to contribute to the expanding North American battery industry.”


 

Biome Australia (ASX:BIO)

Also listing today was microbiome health company Biome Australia, who licences, develops and markets innovative, evidence-based, complementary medicines, including nutraceuticals (food-based vitamins and weight management products) and live biotherapeutics (probiotics).

The company IPOd at $8 million at $0.20 per share, and its shares were trading at 11 cents per share – a huuuge 41.25% drop below the issue price.

Biome will use the funds to accelerate new product development and commercialisation in the complementary medicines industry – which it says in Australia is estimated to be worth $5.69 billion.

The company currently distributes 22 products through more than 2,300 community pharmacies and a range of health practitioners and health food stores in Australia, New Zealand and the United Kingdom, with some of its products also available online.

“While supporting health professionals to improve patient health outcomes, Biome has doubled its revenue over each of the last two financial years, with annualised sales revenue to October 2021 showing continued growth,” chairman Ilario Faenza said.

It has a clear growth strategy that will be propelled by the IPO proceeds, accelerating commercialisation and product development.”


 

The post IPO Watch: Lithium explorer Winsome Resources listed today – here’s how it performed appeared first on Stockhead.



Author: Emma Davies

Continue Reading

Articles

Lunnon Metals charts path to success in world-class nickel domain after transformative year

Special Report: While the world is on the lookout for nickel sulphide deposits anywhere they can be found, Lunnon Metals … Read More
The post Lunnon…

While the world is on the lookout for nickel sulphide deposits anywhere they can be found, Lunnon Metals chief Ed Ainscough maintains there’s no place like Kambalda.

The mining town 50km south of Kalgoorlie in WA has produced 1.6Mt of the stainless steel and now lithium ion battery ingredient since 1966, when WMC driller Jack Lunnon punched the discovery hole and gave birth to Australia’s first nickel boom.

Since listing in a $15 million IPO in June, Lunnon (ASX:LM8) has continued Kambalda’s rich legacy of delivering high grade nickel.

Lunnon owns the Foster and Jan nickel mines from which WMC produced more than 90,000t of nickel metal from the 1975 to 1994, operations that missed the early 2000s nickel revival that proved the making of ASX success stories Mincor, IGO and Panoramic.

Lunnon already boasts 39,000t in resources at typical Kambalda nickel grades of 3.2% and drilling since its float is already delivering high grade results.

These have confirmed historical results from kilometres of old WMC drill core logged by Lunnon at the Kambalda coreyard and backed the Lunnon team’s conviction in the quality of the Foster and Jan assets.

“One of the benefits at Kambalda is that generally above a 1% cut off if you’re going to mine, it’s going to be in the high 2s or 3s,” Ainscough said.

“And it is very pleasing to not only reproduce the nickel where WMC was hitting it, but to be hitting it at the same level of mineralisation.

“I just think that speaks to the quality of the camp and that particular contact between the Kambalda Komatiite and the Lunnon Basalt.

“It’s a world famous contact, and nearly all the nickel in Kambalda is on or close to that contact, and it’s proven to be the case so far. You’ve got to persevere and be resilient because the rewards are definitely worth the effort.”

Lunnon Metals
Lunnon has hit high grades on the contact of the Kambalda Komatiite and Lunnon Basalt. Pic: Lunnon Metals

An option to play the Kambalda narrative

Kambalda is on the cusp of a revival.

Mincor Resources will open the first new nickel mine in the district since production at the Long mine ceased in 2018, when its Cassini operation starts production in 2022.

That will see BHP’s Nickel West division restart its Kambalda concentrator, just a few clicks from Foster/Jan, for the first time in four years.

Unfortunately for investors there are not a lot of options to play the Kambalda story, with what was a diverse field of ASX companies a few years ago whittled down to just Mincor and Lunnon after Panoramic sold Lanfranchi into private hands in 2018.

That’s where the opportunity lies, Ainscough says.

“Lanfranchi’s private now, so that’s been a big message I’ve been trying to sell – if you want to invest in Kambalda through the ASX it’s Mincor, and it’s a half-a-billion dollar company plus, or little old us at $50 million,” Ainscough said.

The key for Lunnon will be resource growth, which Ainscough said is a major aim in 2022 after its success with the drill bit in recent months.

“It’s a 10 times gap and the encouragement is that’s a big gap, but it’s a gap we feel we can make a big effort to fill next year,” he said.

“That will be filled by drill results and resource growth, but we’ve just got to get the runs on the board…  but what better place to be trying to do that than Kambalda?”

Lunnon Metals
Lunnon has hit high grades on the contact of the Kambalda Komatiite and Lunnon Basalt. Pic: Lunnon Metals

East Cooee resource drilling under way

One of the company’s priority targets outside its Foster and Jan mines is East Cooee, a prospect to the north-northwest of Jan consisting of known hanging wall nickel mineralisation that was underexplored when the mines were in WMC hands.

Since drilling began in July, assays from East Cooee have delivered a string of strong nickel grades, with Lunnon also recording a hit of 2m at 5.07% Ni in its first assays from the East Trough target in September.

Subsequent encouraging results at East Cooee have included 1m at 3.15% Ni, 2m at 2.44% Ni and a best hit of 9m (8.7m true width) at 1.66% Ni from 113m, including 1m at 7.44% Ni.

Contractors Blue Spec are now drilling the hanging wall prospect on infill drilling spacing of less than 40m x 40m to support the delivery of an initial Mineral Resource estimate.

East Cooee is just over 300m from a mothballed open cut gold pit mined by Lunnon’s major shareholder Gold Fields, providing a potential access point into a future underground development.

“That’s been a little bit of the surprise package because it’s so shallow and it’s so close to that existing gold open pit,” Ainscough said. “I hadn’t really considered  that we would have the ability so early to have a second centre on top of the resources in the Foster Mine.

“We’ve gone back there with the RC rig and we’re drilling that out probably better than 40m by 40m.

“It’s so shallow we can drill it pretty quickly, we can get that done before Christmas and then as and when we get the results back next year we should be able to put that into a maiden resource.”

Ainscough said the location of the gold mine relative to the shallow East Cooee mineralisation meant it wasn’t out of the question that study work could begin before underground drilling starts at Foster.

Lunnon Metals
East Cooee could be a second centre for Lunnon. Picture: Lunnon Metals

Warren, historical core also delivers the goods

The other areas where Lunnon is seeing success include the Warren channel, an underexplored nickel deposit which currently hosts 211,000 tonnes at 3.1% Ni for 6400t of nickel metal.

Located 1km to the northwest of Foster itself, Lunnon believes it has the potential to mirror that mine with assays from RC drilling up and down plunge of the known resource delivering impressive results.

They included a best hit of 4m at 3.44% Ni from 163m in the channel position at Warren.

“It was seen as part of Foster underground mine (by WMC),” Ainscough said.

“Where they could they tried to drill it from Foster so the drill angles are pretty horrible.

“So I think next year for us with Warren is the ability to try and demonstrate that channel is a channel in its own right and has the ability to be as long and as prospective as Foster main.

“That’s all about resource growth.”

The analysis of historical WMC core is also paying off for Lunnon, with re-assayed samples from the unmined N75C area at Foster delivering 15.75m at 2.76% nickel at an estimated 10.7m true width.

This compared well to WMC’s result for the same hole (CD 54) of 16.52m (11.2m true width) at 3.05% Ni from 268.22m.

In 2022 a deep drilling program is also planned beneath the historical Jan mine and a government-supported hole at the new Kenilworth target is due to be drilled.

“I think we’ve set the groundwork in the last six months of the year to really have a big year in 2022, hopefully leading into a buoyant nickel market,” Ainscough said.

Lunnon Metals
Owned by gold miner Gold Fields at the time, the Foster and Jan mines were among the only former WMC mines to miss the last nickel boom. Pic: Lunnon Metals

Nickel market on the up

Led by former Donegal Resources boss and now Lunnon non-executive director Ian Junk, Lunnon initially moved into the Foster and Jan projects in a joint venture with Gold Fields back in 2014.

Back then nickel was looking on the up, hovering around the US$20,000/t mark before slipping into a long bear market.

But with excitement around the use of nickel in batteries and electric vehicles and shifting supply-demand dynamics, it recently peaked above US$21,000/t, hitting a seven-year high.

Ainscough said being in Kambalda, Lunnon is seeking to outline high grade resources that are not dependent on booming nickel prices, but believes the broader market is looking positive.

“I think there is a natural rhythm to the nickel price and we’re entering into that next cycle, but the whole electric vehicle story, the energy transition, that’s all just a fantastic macro backdrop to the nickel price,” Ainscough said.

“I try not to pontificate too much about the nickel price.

“My firm belief is that wherever it gets to, being in Kambalda and mining at the grades that Kambalda delivers – I won’t say it doesn’t matter what the nickel price is but I’d certainly rather be mining in Kambalda regardless of the nickel price.

“I think there’s a momentum now to the whole electrification of everything that we’ll just see a new floor develop in the nickel price. Where that is, I don’t know.”

Q&A Time

Lunnon’s 2021 highlights

  • Acquiring 100% of the Kambalda Nickel Project.
  • Fully underwritten, oversubscribed, successful $15M IPO.
  • Drill rigs turning within a month from a standing start.
  • HIT NICKEL – confirming WMC historical data.
  • East Cooee shaping as second centre of mineral resource growth.

“Our goal is to replicate the success of those ASX companies that bought assets from WMC before the last nickel boom. Each one of the above milestones is a key step to demonstrating we are on that trajectory and can offer investors a similar growth story leading into the next nickel cycle.”

Where is the nickel market heading?

“LM8 sees the macro setting for nickel as extremely positive; there are generational shifts under way at country, government, city and corporate levels regarding the push to achieve net zero goals that all tie in with the energy transition away from fossil fuels.

“These are all strongly in favour of nickel being an important, sought after and in demand metal.

“Covid-19 has also highlighted the issue of supply chain sovereignty and having nickel assets in one of the world’s best nickel camps in a Tier 1 country offers the sort of sustainable supply chain that governments and downstream businesses will value highly in the future.”

What is the upside for Lunnon and why will it be a good investment in 2022?

“We tell investors if you want to be exposed to nickel in Kambalda (and why wouldn’t you want to be exposed to one of the world’s most famous nickel camps against the backdrop described above?), you really only have two choices on the ASX.

“Mincor, who have done an amazing job of restarting their operations in Kambalda and Widgie with Nickel West planning to open up the Kambalda Concentrator, and Lunnon Metals.

“We are just starting out on the same growth journey as Mincor. Kambalda has three key advantages: The grade is high (often >3%), Nickel West’s concentrator offers a ‘capital light’” restart solution and the nickel assets themselves are renowned for delivering extensional growth year after year.

“We are expecting a big year in 2022 for all of these reasons.”

 


 

 

This article was developed in collaboration with Lunnon Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

 

The post Lunnon Metals charts path to success in world-class nickel domain after transformative year appeared first on Stockhead.




Author: Special Report

Continue Reading

Trending