After the DOW took a big tumble on Monday, it put on a strong rally on Tuesday. Before the opening bell yesterday, I put out some notes about what I thought was going on and I still hold the views that I wrote in them. I think the internal weakness we saw going into Monday’s drop is troubling, but that the odds favor a rally/bounce into several key earnings reports next week.
There are several key leadership stocks that report earnings next week. Traders and computer robots are likely to buy ahead of their reports and that can help the market. These stocks include AAPL, AMZN, MSFT, GOOG, FB, and PYPL. I’ll talk more about them in future posts, but I did a video about how I confirmed that these stocks are now key for what will happen with the markets going forward yesterday you can watch here.
Now, yesterday my top stock pick for this month, Sonoro Gold, reported some updated drill results and once again hit it out of the park. The stock ticked up on the news, but the current weakness in the rest of the market Monday probably is getting some who would normally have bought a little skittish. Well, another up day in the markets and those fears will vanish quickly.
In a press release yesterday the company reported that it was “pleased to report assay results from surface sampling recently completed at the Company’s Cerro Caliche gold project, located in Sonora State, Mexico. The results confirm material extensions of several of the project’s oxide gold mineralized zones and demonstrate linear structural corridors of anomalous gold, silver, and base metal mineralization. This ongoing surface sampling program will be part of the foundation for the upcoming drilling program designed to materially expand and categorize the project’s oxide gold mineralization.”
Among the highlights of the press release include:
- Collected 1,292 soil and surface rock samples from several well-defined vein and gold mineralized, structural corridors.
- Surface sampling methods consist of continuous chip sampling perpendicular across measured veins and wall rocks.
- Confirmed 600-meter southern extension of the El Colorado – La Ventana Corridor; assay results returned 23.7 meters averaging 1.7 grams of gold per tonne (“g/t Au”), including 5.5 meters averaging 6.0 g/t Au; 8.0 meters averaging 0.6 g/t Au.
- Confirmed 750-meter southern extension of the Buena Suerte – San Quintin Corridor; assay results returned 52.6 meters averaging 0.2 g/t Au including 2.6 meters averaging 2.2 g/t Au; 8.0 meters averaging 0.8 g/t Au; 1.0 meters averaging 9.4 g/t Au.
- High silver content identified at La Magdalena from the northeastern La Magdelena – La Española corridor; assay results returned 1 meter averaging 1,230 g/t Ag with 6.6 g/t Au.
“The following map shows four southern vein and gold mineralized corridors with selected assays and target zone for the upcoming drilling campaign.”
“The following map shows two gold bearing northeastern corridors with high silver contents, a common character of Low Sulfidation mineralization at higher levels in the boiling zones.”
This news is good and is simply further confirmation of Sonoro’s prospects. It is what is to come that has me excited and is a fully update NI 43-101 technical report. Read these words really carefully, which are in the press release:
“Drilling activities on the concession have been paused since May 2021 pending financing and to provide the exploration team sufficient time to ensure all data and assistance was available for the completion of two independent NI 43-101 technical reports, scheduled to be filed by mid-August 2021. As previously announced, the Company engaged Micon International Ltd. to prepare an updated Technical Report and D.E.N.M. Engineering Ltd. to prepare a Preliminary Economic Assessment (PEA).”
“These reports are expected to expand the resource size and upgrade the classification of Cerro Caliche’s identified mineralization and confirm if it is sufficient to support the Company’s proposed HLMO with an initial operating capacity of up to 15,000 tons per day (tpd).”
When it comes to small exploration and junior mining companies N1 43-101 technical reports serve as milestone events for them and one is coming for Sonoro. It may be one of the reasons the folks at Equity Reports put a price target for over $1.00 on the stock.
Disclosure: Mike Swanson owns shares of Sonoro Gold. Because it is a small cap stock with a market cap of less than $100 million USD he has put himself in a trading blackout on Sonoro Gold and will not buy or sell a share of its stock for at least 30-days from the date of this post (07/06/2021). Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Sonoro Gold. This third party paid Timingwallstreet Inc., $12,000 USD to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days from the date of this post (7/06/2021). 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.