Continental Gold (CNL.TO) is rallying back above C$3.00 today as it tests a key resistance zone:
The support/resistance zone between C$3.00 and C$3.25 represents a crucial test for CNL. A breakout above C$3.25 would complete a 9-month rounding bottom pattern with a handle of a cup & handle pattern forming in the last couple of months. A breakout over $3.25 would target C$5.00+.
More importantly I would assert that a decisive breakout above C$3.25 would offer a strong indication that Continental’s flagship Buriticá project is well on its way through the permitting phase and closer to becoming a real mine.
Our C$5.00 technical price target in the event of a breakout above C$3.25 is interesting because the latest report from RBC on Continental offers a C$5.50 upside scenario target in the event that Continental successful moves forward with de-risking Buriticá via successfully permitting and financing the project through to commercial production:
The following slide from CNL’s latest corporate presentation illustrates that CNL is cheap relative to its peers and that there is significant upside revaluation potential in the event the company receives its environmental permits from the ANLA (national agency):
We will continue to monitor updates from CNL and look forward to hearing the results of additional exploration drilling at Buriticá and of course environmental permitting.
DISCLAIMER: The work included in this article is based on SEDAR filings, current events, interviews, and corporate press releases. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.