Gold On The Verge Of A Major Breakout As Junior Mining News Flow Heats up

August gold futures are trading $1772 as I type these words. Meanwhile, a weekly close above $1775 would all but give final confirmation that gold is breaking higher from its recent two month trading range ($1675-$1775):


Gold (Daily)

A MACD bull cross and Daily-RSI(14) turning higher from the median line offer strong clues that this gold breakout could be a powerful one. In addition, we saw a broad rally across the gold mining sector yesterday with the GDXJ up roughly 5% and many individual junior mining stocks up double-digit percentages on the trading session.

I must say that it feels like this breakout is the real deal. If gold thrives on macro uncertainty and volatile environments then the current macro backdrop couldn’t be a more positive one for gold. Everything is lined up both fundamentally and technically for gold to blast higher as the summer officially begins.

Turning to the junior mining sector we continue to receive a steady dose of news flow as companies get their summer exploration programs underway and other companies report results from drilling that has already been underway:


Canada Nickel – Canada Nickel Drills .42% Nickel Over 306 Meters

A significant infill hole drilled at Canada Nickel’s Crawford Project near Timmins, Ontario. Crawford continues to get better and better as CNC continues to drill this resource out.These early results highlight the potential of the higher-grade core in the Main Zone at Crawford. I couldn’t be more pleased with how fast this company is moving ahead. Expect an updated resource by the end of July followed by a maiden PEA by the end of 2020.

Ero Copper – Ero Copper intersects 96.4 meters grading 3.97% copper including 60.6 meters grading 5.61% copper in the highest grade-meter intercept drilled to date in the Curaçá Valley

Ero delivers one of the best copper drill intercepts i’ve ever seen. Ero continues to have success in demonstrating high-grade continuity and wide-open potential at depth within the ‘Superpod’ discovery below the known extent of the Pilar Mine.

Skyharbour Resources – Skyharbour Doubles Extent of Maverick East Zone with Additional High Grade Uranium Drill Results and Announces Upcoming Fully-Funded Summer 2020 Drill Program

Skyharbour continues to discover new high grade uranium mineralization in the underlying basement rock at the Maverick corridor while significantly expanding the Maverick East Zone. Planning is currently underway for a 2,500 meter summer diamond drilling program to commence later in the summer. The program is fully funded and permitted.

Victoria Gold – Victoria Gold’s 2020 Dublin Gulch Exploration Program is Underway

Victoria Gold is picking up right where it left off last season as it continues to define the high-grade Raven target. The 2020 Raven drill program will extend drill coverage across a broad, more than 1.5 square kilometer coincident gold, arsenic and bismuth-in-soils anomaly that was first defined from 2018 soils geochemical sampling and then expanded (by over 500 m2) from 2019 soils surveys.

Finally, I think it’s worth pointing out the widespread divergence in year-to-date US equity market performance:

2020 Returns

Nasdaq 100: +16%

S&P 500: -3%

Dow Industrials: -9%

NYSE Composite: -14%

Russell 2000: -14%

Dow Transports: -17%

Berkshire: -20%

Simply stated, without mega-cap tech this stock market would look a heckuva lot worse than it does. With industrials and transports displaying a wide negative divergence relative to tech, I can hear famed Dow theorist Richard Russell (R.I.P) shouting from the rooftops that we have a Dow Theory sell-signal.



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. Skyharbour Resources Ltd. and Victoria Gold Corp. are high-risk venture stocks and not suitable for most investors. Consult Skyharbour Resources Ltd. and Victoria Gold Corp’s SEDAR profile for important risk disclosures.

EnergyandGold has been compensated for marketing & promotional services by Skyharbour Resources Ltd. and Victoria Gold Corp. so some of’s coverage could be biased., 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 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 for important risk disclosures. It’s your money and your responsibility.