Since the start of April, we said that gold would be a huge focus for the market. This was in light of the moves taken by the U.S. government and Federal Reserve, among other global events. Slowing economies, quantitative easing, and market uncertainty tend to be perfect for gold prices. As we have already seen, the shiny metal just hit highs it hasn’t seen since November 2012. When it comes to gold stocks to watch, during a bull market in gold, history says to look at small-cap gold stocks, a.k.a, gold penny stocks.
[BIG NEWS 4.13.2020] IMC International Mining Corp Announces Commencement of its Analytical Geochemical Program & Sends Rock and Soil Samples for Lab Testing
In light of this, we issued our very first penny stock alert of the year on one junior exploration and discovery company, IMC International Mining (IMIMF)(CSE:IMCX) . To say that April has been a big month for this stock would be an understatement. Since issuing our alert, we’ve watched as this company has executed on several, key milestones that could set it up for a big 2020. The focal point of which has been on its latest acquisition of Thane Minerals and its Cathedral property.
Top Penny Stocks To Watch
Before we get into the details of this acquisition, let’s talk a little bit about the market. When we issued our full report, IMC International was trading around $0.36 at the time. Since then, we’ve seen it rally as high as $0.61 to mark an initial move of 69%. As always, it’s important to understand the risk/reward and trading trends of penny stocks. Case in point, penny stocks can’t go up forever as we all know. On April 8th, we saw the first bout of profit-taking in the market. But both volume and momentum were still strong. As we noted:
If you look at the IMIMF chart, you’ll see that the previous level of resistance that the stock couldn’t break above was around $0.40. Why is this important? In simple terms, if and when a stock breaks through a solid level of resistance, you would ideally like to see that level become strong support. How would you identify support? In most cases, it happens to be where a penny stock rebounds from. Here’s the chart from April 8:
While some may doubt technical indicators for penny stocks, the trend appeared to consistent for it to be a simple coincidence. And as we saw at the end of the week, IMC International proved to remain one of the top penny stocks to watch this month following a strong and noticeable bounce from that $0.40 level:
We can clearly see that IMIMF not only bounced off of $0.40 on April 8, it also continued higher to test $0.50 again and close the week at $0.49. We think that this reinforces our original focus on finding a potential level of support after a stock pulls back. Now, let’s talk about what has transpired within the last 12 days…
IMC International On The Verge Of Something Big?
Unlike many of the “alerts” you’re probably used to, ours are a bit different. We like to alert companies that could have real potential. IMC International Mining (IMIMF)(CSE:IMCX) is a junior exploration company that has quite literally just completed a multi-million dollar acquisition of a company, Thane Minerals, and its Cathedral Property. When it comes to mining and gold stocks, the real excitement comes as new findings are reported on, during phases of exploration and drilling.
On its April 7th conference call you heard CME Consultants’ Chris Naas talk about why the Cathedral Property’s location is so valuable to IMC right now. He feels that even based on early data, this could become a hotbed for gold discovery. What’s more is that land like this (virgin land) is unique especially in the area known as the Quesnel Terrane. This area hosts past and planned production.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Other proven claims have been worked on by some of the biggest names in the mining industry. This includes Royal Gold via a streaming deal with Centerra. For reference, Cathedral is between the Mt. Milligan and Kemess mines.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
The Centerra-owned Mt Milligan copper-gold porphyry deposit contains a combined Measured and Indicated Mineral Resource of 243.9 million tons at 0.134% Cu and 0.226 grams per ton of gold, containing 717.7 million pounds of copper and 1,769,000 ounces of gold. Kemess produced roughly 3 million ounces of gold and 700 million pounds of copper over the life of the mine.
So Is This The Right Time And Is Cathedral The Right Place For IMC International?
That’s obviously an answer you need to come up with based on your own research. Considering that some of the key components of a gold breakout are in play right now, it could be time to find some gold penny stocks to watch. We believe that based on what IMC International has just recently accomplished, it could be one of the names to have on a list of penny stocks right now.
When it comes to junior gold stocks, while they pullback more during gold sell-offs, they tend to outperform the majors in a big way during gold rallies. Consider this: one of the biggest names in gold, Franco Nevada Corp jumped 16% since the beginning of the month. Another, Barrick Gold jumped 22.5% since April 1. Even better yet, Newmont Corporation has rallied 28% since the start of the month. That’s great performance by any means.
But again, the juniors have historically proven to outperform major gold stocks like these. And what has become a prime example? IMC International has rallied as much as 69% since the beginning of April. Furthermore, after the latest developments, it could be one of the top gold names to follow right now in our opinion.
We were asked for a stock alert & we think this has been a great way to get the ball rolling. Ready for what’s next?
Click Here To Start Your Research On IMC International Mining
