Vizsla Resources – More information on the recent high grade silver results
Vizsla Resources (TSX.V:VZLA & OTCQB:VIZSF) has been a standout silver stock this week after the Company released a batch of extremely high grade drill results from the Napoleon Vein Corridor on the Panuco Project in Mexico. Headlines numbers include hole 7 which yielded 8,078 g/t silver equivalent (1,808.2 grams per tonne (“g/t”) silver, 66.8 g/t gold, 2.99% lead and 3.30 % zinc) over 6.0 meters.
Mike Konnert, President and CEO, and Charles Funk, VP Exploration, both just me to recap the results and look ahead to follow up work. We put these drill results in context with the last round of high grade results. Also outline some of the other vein targets on the property that will be tested this year.
If you have any follow up questions for Mike or Charles please email me at Fleck@kereport.com.
Click here to visit the Vizsla website and read over the recent news release.
I see you charted Cape Canaveral activity.
Haha! Good one David.
Sold all my VIZSF FOR A 6 BAGGER, 70% of HL @ $4
Nicely done. I sold my VIZSF in 3 tranches for a 3.5 bagger, 7.5 bagger, and 9 bagger, and came out with a little more than 6.5 bagger. I had a good smaller trade in there too, so that rounds it up to about a 7 bagger cumulatively.
I did grab a new starter position today when it pulled down further than where I sold it yesterday, so I’m back in again, but want to see if it corrects down for a while before adding more. I just wanted to have an iron in the fire in case they put out another whopper of a drill hole before it corrects a bit more. 🙂
Marty – 6 and 7 baggers are fantastic, but my mind is still blown with your 70 bagger in Silvercrest. That is truly awesome man!
Ssr Rocco several weeks ago mentioned that Newmont was the largest silver producer in the world. That got my attention. NEM has been stagnant the last 10 weeks, so if we get an imminent breakout above $21 US, LOOK FOR NEWMONT to cash in.
I’ve got limit buys in on VIZSF @ 1.20 & lower based on EMAs I USE
That’s interesting about Newmont being the largest silver producer. I hadn’t heard that before.
Coming out of the March 16 PM sectors lows, the Silver producers have done fairly well on the move from $12-$19 Silver. I agree though that once Silver surpasses the $21.23 surge high from 2016, then the real fireworks will start.
March 16th – July 10, 2020 (I couldn’t fit all the Silver Producers on here – only 12).
SVM – Silvercorp up 181%
IPT – Impact Silver up 161%
FSM – Fortuna Silver up 142%
HL – Hecla Mining up 137%
SCZ – Santacruz Silver up 129%
EXK- Endeavour Silver up 128%
PAAS – Pan American Silver up 124%
CDE – Coeur Mining up 116%
GPL – Great Panther up 113%
AG – First Majestic up 90%
HOC.L – Hochschild up 81%
FRES.L – Fresnillo up 80%
http://cdn.ceo.ca/1fgism9-Silver%20Producers%20Performance%20Chart%20Since%20March%20Lows.JPG
I’m with X, ready to see how low this goes & add on weakness
The vast majority of mining stocks have really blasted off higher since the March 16th sector lows, with many companies up 100% to 1000%. That in itself is reason to take a step back and do a bit of harvesting.
While new generalist money could keep piling into the Jr miners forcing them even higher, most have been technically overbought on larger volume the last few weeks, and things are looking a bit overdone and frothy at present in almost every chart I look at.
Anecdotally, When I read the comments in the few dozen popular stock rooms on a few forums investors are starting to get a bit too enthusiastic, smug, or confident their stocks are going to blast off even higher from here. That makes me take pause, take profits, and take shelter from the storm (even if people don’t see the dark clouds yet).
With the explorers it is more challenging to know when to sell compared to the Producers or Developers (even when using charting), because stellar drill news can suddenly spike the share-price in a dramatic fashion on a smaller exploration drill play. We’ve see that playing out in dozens of stocks the last few months, where they sudden spike up hundreds of percent in a week or two out of nowhere on newsflow. This was obviously just the case with Vizsla, and while the drill hits were great, the move up so fast and so high surprised me and many others when it ripped that hard on massive volume.
The thing is we are mid drilling season with Gold at 8 year highs, and Silver starting to get a bid again, so really good news or a sequence of good news will still be rewarded by the marketplace, and send the Jrs up multiplefold from their already lofty levels.
Having said that, a corrective move lower that knocks some of the froth out of the market is a bit overdue. If that plays out then better price points for adding many stocks will be available in the not so distant future.
One more concern I have with the Producers is that while the metals prices have been supportive, and fuel costs have been lower, everyone seems to be expecting record Q2 results. Many miners were partially or fully shut down due to Covid-19 for 2-3 months, so there is a potential for disappointment if the quarterly operations reports don’t live up to investors expectations. In several company interviews for the Silver miners in Mexico, they’ve mentioned that Q2 was kind of a dead quarter when they were forced to curtail or stop operations, but people are bidding companies up like everything was great. I feel much better about Q3 having great production metrics, but have reservations about just what actually got done in Q2. Obviously it depends on the jurisdiction and if a miner was allowed to keep operating or not. Just another passing thought.
Yes I sold my other 1/2 this morning too. Put in a stink bid right away in case it sold off big….. not that lucky yet.
I will say with how silver has traded this week and even held steady today I’m a little disappointed in how Kootenay has traded this week.
Wolfster I feel that same way about a number of the Silver stocks this week, especially because at one point Silver moved up into the low $19s and I would have expected a bit more action in many of them. Sometimes the miners take a while to digest the moves in the metals though, so we’ll see how things go next week.
Silver Could Be At The Very Beginning Of A Monster Move Higher
Jul. 9, 2020
The Impact On The Silver Market Of The Auto Sector Electrification
By Rhona O’Connell, Head of Metals – GFMS, Thomson Reuters
http://www.lbma.org.uk/assets/Alchemist/Alchemist_90/Alch90OConnell.pdf
Supply disruptions now extend to more than just gold
Marked gaps in spot and futures prices is now spreading to other metals
Bloomberg – July 03, 2020
“Now it is silver’s turn to feel the mismatch between spot and futures prices, as shipments get delayed.”
“The chaos that engulfed the gold market in March as the global pandemic choked off physical trading routes is rippling through other precious metals, resulting in price dislocations and a surge in exchange inventories for silver and platinum.”
“Silver and platinum futures have traded at elevated levels relative to spot metals since early April. And as in the case of gold, the premiums are spurring big increases in on-exchange inventories in New York.”
Gold Stocks Blast Higher
Adam Hamilton – Jul 10, 2020
“The gold miners’ stocks are blasting higher, just achieving major new secular highs! Traders are flocking back to gold stocks as the metal they produce relentlessly advances on strong investment demand. That is atypical during market summers, but the pandemic has made for unprecedented times. This gold-stock upleg is big, but doesn’t look excessive yet. It should keep marching with investment capital flowing into gold.”
“With these red-hot stock markets fueled by extreme Fed money printing, the small contrarian gold-stock sector has largely remained overlooked. But the gold miners’ gains since March’s stock panic have been awesome.”
http://www.321gold.com/editorials/hamilton/hamilton071020.html
Significant Breakouts For The Miners
Morris Hubbartt – July 10, 2020- Super Force #PreciousMetals #TechnicalAnalysis #Video
ex, none of the 321gold.com sites work?
The Remarkable Gold Index Sign Vs. the Miners’ Strength
Przemysław Radomski – Jul 09, 2020
“The take-away is the long-term turning point is a big deal, and gold could fall significantly before it soars due to extremely positive fundamental outlook.”
“The only other case when the index was at 100, was in mid-2016. We marked this situation with a vertical dashed line. Did miners continue to move higher for a long time, or did they move much higher? No.”
“Precisely, the index reached 100 on July 1st 2016, and gold mining stocks moved higher for two additional trading days. Then they topped. This was not the final top, but the second top took miners only about 5% above the initial July high.”
“This year, the index reached the 100 level on July 2nd – almost exactly 4 years later, and once again practically exactly in the middle of the year. Yesterday was the third day after this move. It’s not justified to assume that the delay in the exact top would be 100% identical, but it seems justified to view it as similar.”
While I don’t believe the set up in PMs or the macro economic backdrop now is anything like what it was in 2016, that Gold Miners Bullish Percentage Index (BPGDM) hitting 100 is cause for concern that an intermediate top in the miners could have just formed.
Something to keep an eye on and be aware of.
Personally, I’ve been starting to lighten the load in some of my more profitable positions over the last few weeks, and have the largest cash position I have had in a while. I’ve also been trimming back some of the more speculative miners gains and moving them over to the royalty companies for “safer” keeping, even though nothing about the PM stocks with exposure to miners is really that safe.
I may get a bit more aggressive in trimming the winnings next week, and take on an even more defensive strategy, as the miners and metals have had one hell of a run higher the last few months coming out of the mid-March sector lows. Getting a corrective move soon would be healthy and normal.
Cory thanks for this interview & update with Vizsla team as they’ve had quite a week (and really quite a few weeks).
Their chart tells the story best:
> (VZLA) Vizsla Resources #Chart:
http://schrts.co/fCyYiEDs
Ever Upward!