Since bottoming at C$.60 on December 11th Fiore Gold (TSX-V:F, OTC:FIOGF) has rallied nearly 100%, reaching a high of C$1.18 on Monday:
This rally is likely due to 3 primary factors:
Operational success has paid off: Fiore has made progress with ramping up production at its Pan Mine, and remains on track to produce 35,000-40,000 ounces Au in fiscal 2018. Fiore also received positive news that the Nevada State Office of the Bureau of Land Management has completed its review of the Final Environmental Impact Statement (“FEIS”) and advanced it to the Washington DC office for final review and publication – this puts Fiore on track to receive a Record of Decision at the federal level during Q1 2018.
The gold mining sector turned higher beginning in mid-December and Fiore is a gold producer that certainly benefits from a higher gold price.
The large seller who had been persistently on the offer through October and November finally ran out of shares to dump on the market. In addition, tax loss selling season ended at the end of December.
The Record of Decision for Gold Rock will be a huge milestone for Fiore in that it would give the company a federal permit for a mine that they don’t yet have a PEA for. This is still good for Fiore because it allows them to drive the timeline for mine construction as opposed to the usual situation in which a mining company is sitting around waiting for permits.
Fiore will also be drilling at Pan within the next few weeks in order to continue adding to the resource & reserve base at Pan. At Gold Rock Fiore is also chomping at the bit to begin exploration drilling; the company has drill pads staked out and they are just waiting for the spring when the roads will be clear and drilling productivity will be higher (shareholders can expect Fiore to begin drilling at Gold Rock in Q2 2018).
Fiore is in a nice situation in which they have solid cash flow from Pan alongside a portfolio, highlighted by Gold Rock, with substantial exploration upside. I’ve said it before and i’ll say it again, Gold Rock is where the “juice” really lies for Fiore. Kinross took a 9.9% stake in Fiore as part of the GRP/Fiore combination financing and they did this for a strategic rationale; Kinross’s Bald Mountain mine to the north has the same geology and structure as Gold Rock and Kinross is clearly interested in the exploration upside at Gold Rock in addition to the potential synergies between the two mines.
2018 could be the year in which Fiore vaults itself to the brink of being a 150,000+ ounce producer. As an investor I will be looking to add on weakness and take profits into strength – Fiore is not a momentum stock (at least not yet), it is a unique value play with the potential to unleash a home run in the event Gold Rock becomes a producing 1 million+ ounce gold mine in the best gold mining jurisdiction on the planet.
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EnergyandGold has been compensated for marketing & promotional services by Fiore Gold so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
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