Yesterday gold and silver gapped up on the open and exploded. Gold even tapped on the $2100 an ounce market level and was just a few dollars from making a new all-time high at one point Tuesday. Big cap mining stocks are starting to runaway from people and yesterday the price of nickel doubled in a day. Yeah, you read that right it went up to $100,000 a ton before the London Stock Exchange had to halt trading on it. It looks like trading for it won’t resume till Friday. Those short nickel are now in total terror, but the big jump in nickel and other metals is going to cause the costs for EV companies like Tesla to go through the roof. EV cars are not a magic bullet solution to higher oil prices or to solve global warming. You can expect a bad earnings report from Tesla coming up now at some point this year.
What is really happening for serious investors and Robinhood players, though, is a market environment not seen since the first few months of 1973. The thing is there are still opportunities to get on board. When gold and silver jump like this typically big cap mining stocks surge first and the juniors sit there for a short-period of time before they then come alive. I think we still got a buy point here in my top stock pick of the month as a result.
I’m talking about Norseman Silver, which trades as NOCSF on the US OTC and as NOC in Canada on the TSXV, which is its home listing. Yesterday, the company reported an exploration update on its Taquetren Silver-Gold Project in Southern Argentina. According to a press release, they “successfully discovered a low sulphidation (LS) epithermal vein system within its 285 sq. km Taquetren project in Rio Negro, Argentina.”
“Towards the southern sections of the group of claims (or SSW sections of Coiron 3 claim), the team encountered a highly mineralized vein with distinct Cu sulfides/oxides (Veta Juan). A calcite-quartz-sulfide vein (10-20 cm wide) and traceable to a strike length of about 300 meters was observed. Seven (7) samples collected along the vein’s strike (outcrop and floats) all assayed >1% Cu. Four of the samples contain >100 ppm Ag, two of which having >200 ppm Ag. Gold is also anomalous and ranges in values from 0.06 to 0.49 ppm. Although the structure is quite narrow, this is a very encouraging occurrence and an indication of a currently perceived Calcatreu-type of mineralization in the area. This certainly comes in as one distinct target area.”
“Along the western portion of the claims, and still following the margins of a circular structure, Norseman’s team has also encountered the same geology/stratigraphic sequence similar to the Navidad setting i.e., carbonate rocks on top of a volcanic breccia rock unit. These rocks serve as the favorable host rocks of the Ag and poly-metallic mineralization at Navidad. No evidence of previous exploration on the ground has been identified. The Company staked an additional 300 sq. km in Q4 2021 that is contiguous to the original Taquetren claims to expand the property boundaries.”
“Taquetren is located in the Navidad-Calcatreau Mining District in SW Rio Negro Province, and approximately 30 km north of Chubut Province. Accessed by high quality and well maintained paved and gravel roads. This under explored district hosts several deposits, including Navidad, one of the largest silver deposits in the world (M&I: 632M Oz Ag contained in 155.2 Mt @ 127 g/t Ag, 0.85% Pb, 0.05% Cu, 150 g/t AgEq).”
The chart for the stocks looks great.
Shares of Norseman Silver came alive in the past three weks as gold and silver began to breakout and have been pausing to digest that move. Volume has remained high as the stock has traded sideways around 25 cents a share. I’m looking for this news to help drive a new rally to end this pause in the stock. Silver is on fire and it should be time for small cap silver stocks like Norseman to begin to move.
-Mike
Disclosure: Because Norseman Silver is a small cap stock with a market cap of less than $100 million USD Mike Swanson has put himself in a trading blackout on Norseman Silver and will not buy or sell a share of its stock for at least 30-days from the date of this post (03/01/2022). 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 Norseman Silver. This third party paid Timingwallstreet Inc., $16,000 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 (3/01/2022). 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.
