As you probably know, I'm a big investor in gold, silver, and mining stocks, with a good portion of my money allocated to metals ETF's and big cap and small cap mining stocks, even though really up until now the masses have been asleep on all of them As January came to an end, all attention in the stock market and mass media began to focus on WallStreetBets and their big play on Gamestop (NYSE: GME), but they also began to turn their on silver and the potential to create a silver buying frenzy. Some big cap silver stocks had big moves last week and silver is gapping up this morning on the first trading day of February.
I believe this may mark the beginning of the masses getting into silver and small cap mining stocks. In some ways we can say before there was Gamestop (NYSE: GME) there was Tesla (NASDAQ: TSLA) as a stock that captivated millions of traders as a battle of Elon Musk against short sellers and other critics of his company. The big rally in his stock over the years also drove sympathy plays in other electric vehicle stocks and created an awareness of the importance of lithium as a critical component for the batteries and helping to provide the energy for them. Many lithium properties got attention to cause the shares of company involved in them to rally strong. With the election of Joseph Biden "green energy" is now going to be a more important area in the economy.
One of the reasons why CAT Strategic Metals Corp (CNSX: CAT) is my top stock pick for February is because among its three key properties it is in development on is a lithium property located in Africa that it is in partnership with. It is the Kamativi Project, located in the Matabeleland North Province of Zimbabwe, Africa. It is a lithium tailings deposit associated with the disused Kamativi tin mine. This tailings stockpile has been surveyed to give an estimated 23,168,000 metric tonnes of historical tailings material on surface.
The survey was completed in 2018 with the completion of a 43-101 technical report, as detailed in a press release by the company. Many lithium stocks have exploded across the board in the past 16 months thanks to the buzz around electric vehicles and batteries and it is likely to only continue. For instance, take a look at what shares of American Lithium have done in the past twelve months.
This stock has gone from under 20 cents in April to trading around $2.00 today. Gains like this show you how powerful lithium has become. I would not buy this stock myself, though, after it has gone up this much, or Gamestop (NYSE: GME) either, because I do not like to buy stocks after they have already gone up like a rocket, but before they do. That means getting in early in a stock move with a good buy point.
CAT Strategic Metals Corp (CNSX: CAT) has that. The shares trade as CAT on the Canadian exchange and as 8CH on the Frankfurt exchange. In the words of the company, "CAT is targeting profitable, long-term sources of strategic metals for the Alternative Energy future, including Electric Vehicles (EVs) and solar power energy supply metals, as well as gold and silver."
I talked to the company's management a few weeks ago and they said that they intend to file to get the stock trading on the US OTC soon. Such a move has the potential to bring many more buyers into the stock as it would make it available to the American trading market. This is why Canadians have what I believe is a perfect early buying opportunity in the stock now.
As you can see from this chart the stock has been trading in a very nice safe narrow range in the past two weeks with resistance at 8 cents and support at 7.
The stock has a total market cap fully diluted of less than $13 million CAD and $10 million USD. In past metals bull markets small cap exploration stocks like this reach market caps around $25 million USD.
The company also three strategic interests in North America, with a gold/silver property located in Nevada, United States.
Yep, I said the world silver there!
Now with these three metals you know why this stock is really a triple play.
This is the Rimrock Gold property, a Carlin-style gold-silver prospect in the heart of the main gold mining belts of northeastern Nevada. Rimrock comprises 81 unpatented lode mining claims (1663 acres; 673 hectares) located in Elko County, Nevada, situated 8 Km northwest of the Hollister gold-silver mine of Hecla Mining, and 16 Km southeast of Hecla’s Midas gold-silver mine. The Hollister Mine had production and reported reserves of approximately 2 million ounces of high-grade gold grading in excess of 1 ounce per ton gold, situated below an old mercury mine. The Midas mine had mine production and mineable reserves of 3 million ounces of high-grade gold and 25 million ounces of silver, in a setting very similar to Rimrock, along the Northern Nevada Rift volcanic belt.
• Rimrock Project is a multi-target gold/silver system, with potential for shallow epithermal systems and deeper Carlin Type deposits
• Epithermal systems (Hollister Style) are low sulfidation, high grade gold deposits, which are fault bounded in the upper geological sequences, with gold being piped up to the surface alongside mercury
• Carlin Deposits are formed alongside the mudstone formation, surrounding the faults which have allowed for the extensive hydrothermal circulation
The company also has an interest in the Burntland Propery in New Brunswick Canada, comprised of approximately 1,200 hectares with potential for gold mining. Grab & chip sample results from a recently excavated 90-meter-long trench exposed an interval of ~10 meters of mineralized, veined, hornfelsed/skarnified argillite-carbonate (Whitehead Formation), and ~2-4-meter porphyry dykes that transition into laterally extensive porphyry. This porphyry is tentatively equated with the Mackenzie Gulch Porphyry. The latter Porphyry is related to the Legacy Skarn deposit (~4.5 km North) discovered by Copperfields M. Co. in the 1970’s. Assay results from grab samples in the altered-sediment-porphyry dyke portion of trench 2020 BRNT 1 on the Burntland property returned an average of 1.67% Cu, 39.3 g/t Ag (n=27).
And just last week it announced that it entered into an option agreement to buy a 100% interest in the Gold Jackpot Mineral Property located 35 Km southeast of Jackpot and 135 Km. NE of Elko, Nevada, in the Pequop gold-copper Trend.
With a nice collection of diversified properties, including a lithium property, I believe CAT Strategic Metals (CNSX: CAT) is perfectly positioned in the markets for an entry point right now.
-Mike Swanson
Disclosure: Mike Swanson is planning on investing in a private placement in CAT Strategic Metals in the coming weeks. Such shares would be restricted with a four-month trading hold period on them. Because it is a small cap stock with a market cap of less than $100 million he has put himself on a trading blackout on it and will not buy or sell a share of them on any exchange for at least 30-days from the date of this post. 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 CAT Strategic Metals. This third party paid Timingwallstreet Inc., $10,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising online campaigns for 30 days beginning February 1, 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.