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:
F.V (Daily)
This rally is likely due to 3 primary factors:
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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.
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The gold mining sector turned higher beginning in mid-December and Fiore is a gold producer that certainly benefits from a higher gold price.
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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.
Disclaimer:
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Fiore Gold is a high-risk venture stock and not suitable for most investors.. Consult Fiore Gold’s SEDAR profile for important risk disclosures.
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.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. 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.