Today’s bear market reduces the risk of new gold discoveries :: InvestMacro


source: Matt Badiali 08/07/2022

Independent financial analyst Matt Badiali reviews the current bear market in junior mining stocks, and profiles Vizsla Silver, Arizona Sonoran Copper Company, and Cross River Ventures Corp. To tell you which stock risk is worth the reward.

There is a bear market in small mining stocks today.

Investors are scared and this casts a shadow over everything. It makes great projects cheaper and overshadows some great new discoveries.

You don’t need to look further than the market’s response to the good news lately. Takes Vizsla Silver Corp.’s (CVE: VZLA) The latest press release for example.

Monday, June 21StreetThe company reported drilling a hole of 1,030 grams per ton of silver over 20.45 metres. This is great news and should lead to a jump in the stock price. This is what the arrow did (photo on the left).


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Another example is Arizona Sonoran Cooper Corporation (TSE: ASCU), which announced that copper reached 1.32% above 479 feet on June 23. The press release was excellent… and this news was sold by investors as well.

Either way, the results created real value for shareholders. And in a rational market, the announced results of both companies will lead to higher share prices.

But today we have a “risk-off” market. The good news is receiving higher selling volumes. The owners use any news to offload the stock and run it.

This has put significant downward pressure on prices across the small mining sector. But it creates an opportunity for investors who understand the cyclical fluctuations of the natural resource markets.

And while current shareholders bemoan this situation, the rest of us should be licking our slides. Because some exciting projects get cheaper and less risky from a price perspective.

Take this small exploration company Cross River Ventures (CRVC: CSE; CSRVF: OTC; C6R: FWB) In Ontario, for example.

back in March 2022, I have written about several exciting gold projects in the Red Lake District of Ontario. Red Lake is nicknamed the “Nevada of the North” and is currently the darling of big gold companies looking for new ventures.

In the article, I mentioned two small companies preparing for exploration…and one of them has paid off. As I mentioned in this article, Cross River Ventures Company The first drilling expedition was carried out on the McVicar project last winter. The results were better than expected. The program achieved high-quality gold in the first drilling program in the Bear Head area.

The BH-02’s high-grade gold appears to be part of a vertically submerged hull, as you can see below.

This structure pops up on the surface and holds gold in holes BH-03 and BH-02. On BH-02, the heart had visible gold:

These are huge results for such a small company. It is a new discovery of gold at the grassroots level in Red Lake.

The company released the news on June 16The tenth It amounted to 41.1g/ton of gold above 0.5m with visible gold in the core. This is an excellent result for the first drilling program.

As expected, the market sold off the company, as you can see below.

Cross River is a small company. In the normal market, the discovery of the Bear Head Zone could have sent the stock higher.

But this market is brutal. This gives us the opportunity to get stock at a huge discount.

Cross River Ventures has a highly anticipated 11,500-hectare project on the Lang Lake Greenstone belt, just east of Red Lake. The rocks seemed like a great area to explore. But they now have a high-quality gold find in the first set of holes. They are currently waiting for the rest of their drilling results to come out.

It is the story of exploration that is often swallowed up by the shock of the bear market.

A small company finds high quality gold and no one notices. That’s why I’m telling you now. The story is great, the inventory is cheap, and the rocks are exciting.

Cross River Ventures is one to keep an eye on.

Getting to Matt Badiali in www.mangroveinvestor.com.

Matt Badiali is the founder and CEO of Mangrove Investor Media, an independent investment research publisher. He is a geologist by education, an investment analyst by profession, and a writer by nature. He began researching and writing on natural resource investments in 2004. His research appeared in BloombergAnd the BaronAnd the The Wall Street JournalAnd the Forbes. He is an avid surfer, boater and fisherman. You can find it in www.mangroveinvestor.com.

Disclosures:

1) Matt Badiali: I or my immediate family or family members own shares in the following companies mentioned in this article: Vizsla Silver Corp. And the Cross River Ventures Corp. I personally, or my family or family members, pay me the following companies mentioned in this article: Cross River Ventures Corp. I have selected the companies to be included in this article based on my research and understanding of the sector.

2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. click over here For important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, a Streetwise Reports affiliate has an advisory relationship with Cross River Ventures Corp. Please click over here for more information.

3) Statements and opinions expressed are those of the author and not those of Streetwise Reports or its officials. The author is fully responsible for the correctness of the data. The author has not been paid by Streetwise Reports for this article. The author did not pay Streetwise Reports to publish or promote this article. Streetwise Reports requires contributing authors to disclose any contributions or economic relationships with the companies they write about. Streetwise Reports relies on the authors to provide this information accurately and Streetwise Reports has no way to verify its accuracy.

4) The material does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action the reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ full legal terms of use disclaimer. This article is not a solicitation to invest. Streetwise Reports does not provide general or specific investment advice and the information in Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the businesses, 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 said securities. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or selling such securities on the open market or otherwise from the time of the decision to publish an article until three business days after the article is published. The foregoing prohibition does not apply to articles that merely repeat in substance the company’s previously published versions. As of the date of this article, the officers and/or employees of Streetwise Reports LLC (including their family members) own the securities of Cross River Ventures Corp.And the company mentioned in this article.


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