Categories: General Market Commentary
Topics: General Market Commentary

Tigers by the tail in the markets

Hey everybody,

This is your Resource Stock Digest editor Gerardo Del Real. I wanted to touch base real quick and give you an idea of a few things I’m looking at this week. 

We'll be keeping a close watch on the lithium spot price where it looks like we’ve put in a bottom with two straight weeks of some pretty consistent upward price action. We’ll be watching to see if that trend continues and if the equities start participating in a meaningful way as they did a few weeks back before the recent pullback.

These intermittent pullbacks are a healthy part of any bull market with legs. We’ve seen it with uranium, and indicators are pointing to the same thing happening in the lithium space. 

Remember, we saw a surge to US$110/lb in the uranium price before the current pullback to right around US$95/lb. It looks like that may be the new bottom, and I’ll be curious to see if we can break back out to triple-digits within the next couple of weeks here. 

In terms of company specific news, I’m eager for Patriot Battery Metals (TSX: PMET)(OTC: PMETF) to report results from its CV9 discovery. We know they've hit wide widths of mineralization there. But what we don't know is what the grade is going to come in at. 

We also don't know how far away those 18 holes are spaced… so really looking to see how that all comes together. CV9 could be another significant discovery for Patriot at Corvette where 10 rigs are currently spinning and where the team is looking to connect the CVs.

Turning to the yellow metal, the gold price is now flirting with US$2,200 an ounce. And along with that timing, Mawson Gold’s (TSX-V: MAW)(OTC: MWSNF) 51%-owned Australian-listed subsidiary Southern Cross Gold just reported one of the better intercepts I've seen in quite some time. It came in at 7.2 grams per tonne gold across 455.3 meters.

This was at Southern Cross’s Sunday Creek project in Victorian Goldfields, Australia. It’s a discovery many are calling the rebirth of the Victorian Goldfields. There are seven holes that are currently being processed and analyzed with another three holes in progress. I absolutely cannot wait to see what the rest of the numbers look like because in speaking with Mawson executive chairman and interim CEO Michael Hudson, they certainly have a golden tiger by the tail.

Last but definitely not least, I have to mention Bitcoin as BTC has now breached the US$72,000 level — an all-time high. Our in-house crypto expert Chris Curl believes we’re only just getting started there!

It’s looking like another very interesting week in the markets. I hope everybody has a great one.

Let's get it!

Gerardo Del Real
Editor, Resource Stock Digest