Monday Morning Update On Mineral Exploration Profile (WDFCF)
US: (WDFCF) TSXV: (KNC)
WDFCF has come out of the opening bell and has started making some early moves.
Currently up approximately 11%, WDFCF is up from this past Thursday's close of $.29.
WDFCF is already trading above both its 5-Day and 20-Day Moving Averages at this moment.
If you haven't done so yet, take a moment now and read my initial report on WDFCF below.
Coming off last week's gold related profile that opened at $13.92 and ran to a high of $16.49 for an intraday surge of approximately 18% plus a new 52-week high, I've uncovered a new idea you got to pull up now.
Currently flying under Wall Street's radar, this junior explorer could be ready to strike it big as its flagship project is adjacent to Sokoman Minerals’ Moosehead project, which is backed by billionaire gold inves*tor Eric Sprott.
And, as we've seen repeatedly through 2020, gold has been red hot metal as prices have soared all the way to a high of over $2K.
Because of gold's price this year, junior explorers/miners have been major targets, especially if they have properties in hot spots like this company.
For January 4th, there is only one profile to have on your radar:
K9 Gold Corp. (WDFCF)
K9 Gold Corp. is a mineral exploration company headquartered in Vancouver, British Columbia, Canada, and currently exploring for gold in Central Newfoundland.
Gold Soars In 2020 - Analysts Bullish On 2021 And Beyond
Recently, Saxo Bank analyst Ole Hansen shared, “We are entering 2021 with some nervousness as we got stock markets at elevated levels and (on) prospects of additional stimulus against the prospect of vaccine starting to improve the economic outlook... but overall it hasn’t reduced the appetite for safe-haven metals.”(1)
Typically seen as a hedge against inflation, gold's 24% rise this year was potentially driven by the significant stimulus measures to mitigate pandemic impacts.
Yeoh Choo Guan, head of Asean global markets at Swiss bank UBS shared, “We are very bullish on gold. We think that the prices will go higher and what is interesting is we think it will stay higher for longer than expected.”(2)
Goldman [Sachs] expects the metal to average a price of $2,300 per ounce in 2021, up from its predicted average of $1,836 per ounce this year.(3)
Goldman analysts Mikhail Sprogis and Jeffrey Currie said in a note recently, “In our view the structural bull market for gold is not over and will resume next year as inflation expectations move higher, the U.S. dollar weakens and EM retail demand continues to recover.” (4)
With many analysts bullish on gold in the near-term, it's important to focus in on WDFCF's potential driver indicators that could propel them to notoriety in 2021.
#1 Potential WDFCF Driver Indicator - Plans For 2021
K9 Gold Outlines Plans for 2021 and Provides Year-End Review for Stony Lake Project, Newfoundland
Vancouver, British Columbia, Dec 17, 2020 (Newsfile Corp via COMTEX) -- Vancouver, British Columbia--(Newsfile Corp. - December 17, 2020) - K9 Gold Corp. (TSXV: KNC) (OTC Pink: WDFCF) (FSE: 5GP) ("K9" or the "Company") is pleased to provide this year-end review of exploration work at its Stony Lake gold project, Central Newfoundland, and to outline plans for an aggressive exploration program in 2021.
During a condensed field program in 2020, the company completed several airborne surveys, including Versatile Time-Domain Electromagnetic (VTEM), LiDAR and Orthophotography. A program of till sampling was completed, as was a two-week field mapping and sampling program. Results are starting to come in, and will be interpreted over the coming weeks.
Planning has commenced for an aggressive exploration program in 2021. A permit has been received for the first phase of trenching, and permit applications for the rest of the work are being drafted. Following the well-documented successful techniques used on nearby properties, the program will include extensive trenching and till sampling, as well as IP-Resistivity surveying. This will lead to an anticipated drill program, starting as early as Q1 2021, weather permitting.
News Releases from other companies active in the Central Newfoundland Gold Belt continue to increase the profile of this newly emerging gold district. For example, on November 19, 2020 Sokoman Minerals announced drill results which included two zones in hole MH-20-115, 47.2 g/t Au over 4.60m and 68.7 g/t Au over 8.10m at their Moosehead project, immediately adjacent to K9's Stony Lake property. On December 15, 2020, New Found Gold announced intercepts of 45.3 g/t Au over 13.1m in hole NFGC-20-32 and 25.0 g/t Au over 16.9m in hole NFGC-20-29 at their nearby Queensway property.
K9 CEO Jeff Poloni commented, "I am extremely proud of our exploration team's systematic approach in what has been a challenging year with CV-19. We look forward to executing on our plan with the initiation of trenching followed by a complete analysis of work done to date that will lead to a well defined drill program starting early 2021."
The company is also pleased to announce that as of December 7th, 2020, the company's US ticker symbol, OTC: WDFCF, is now DTC eligible. DTC eligibility means that a public company's securities can be deposited through DTC. DTC is the largest securities depository in the world and holds over thirty-five Tn doll-ars' worth of securities on deposit. DTC accepts deposits of securities from its participants only, who are usually clearing firms.
Read the full article here.
#2 Potential WDFCF Driver Indicator - Receiving Key Approval
K9 Gold Receives Approval for Trenching Program
Vancouver, British Columbia, Dec 10, 2020 (Newsfile Corp via COMTEX) -- Vancouver, British Columbia--(Newsfile Corp. - December 10, 2020) - K9 Gold Corp. (TSXV: KNC) (FSE: 5GP) ("K9" or the "Company") is pleased to announce approval has been granted by the Newfoundland Department of Natural Resources, Mineral Lands Division. This will allow the Company to complete trenches in two high priority target areas, the Jumper's Pond and Rabbit Track areas, in the northern part of the property. In both areas, multiple rock and float samples have assayed >1.0 g/t Au. The trenching program will assist in identifying the trend of the bedrock anomalies, which will then be used to develop a diamond drilling program.
Subsequent to the field work completed in November, the Company is reviewing the application for an additional 4 high priority areas for trenching, as a key element in a planned aggressive 2021 exploration program.
Read the full article here.
#3 Potential WDFCF Driver Indicator - Stony Lake Update
K9 Gold 2020 Exploration Program Update for Stony Lake
Vancouver, British Columbia, Nov 09, 2020 (Newsfile Corp via COMTEX) -- Vancouver, British Columbia--(Newsfile Corp. - November 9, 2020) - K9 Gold Corp. (TSXV: KNC) (FSE: 5GP) (OTC Pink: WDFCF) ("K9" or the "Company") is pleased to update the 2020 exploration program for the Stony Lake Project, Central Newfoundland. The current program consists of till sampling, mapping, orthophotos, LiDAR, and VTEM airborne geophysics.
Overburden Drilling Management (ODM) has completed the preliminary phase of till sampling. The program followed up on the compilation of historic exploration work on the property that has identified a large area with highly anomalous gold values in tills collected in 1989 by Teck Explorations Limited. These samples are clustered around the Island Pond - Moccasin Lake area in the central part of the property. Calculated visible gold assays, by ODM, yielded 15 samples with values over 1500 ppb, four of which had values of 11.8, 12.8, 14.1 and 19.5 g/t Au. Analysis of a non-magnetic heavy mineral concentrate by Chemex Labs yielded 16 samples with values >1000 ppb Au. Four of these samples were reported as >10,000 ppb Au, which was the upper detection limit.
The first phase of mapping and sampling to follow up on the anomalous 2019 results covering the north east section of the property is complete, with samples shipped for whole rock and geochemical analysis.
Leading Edge Geomatics of Lincoln, New Brunswick has completed the LiDAR and Imagery survey over the Stony Lake Project. The survey will assist with ground mapping to extrapolate geomorphology and both regional and local geologic structures. On the property, large areas of significant gold mineralization occur in altered Botwood sediments and Quartz Feldspar Porphyry intrusives associated with intense silicification, sericite-chlorite-carbonate alteration and a strong pyrite-arsenopyrite mineralogical association. The features indicate epizonal/mesozonal temperatures for the hydrothermal fluids and support the exploration model of hydrothermal fluids leaking upwards into the Botwood sediments from a deeper igneous intrusive source. Quality Control and data processing is underway.
Geotech Ltd of Aurora, Ontario has completed 100% of the planned Versatile Time-Domain Electromagnetic (VTEM™ Plus) survey.
#4 Potential WDFCF Driver Indicator - Oversold Technicals, Possible Healthy Reversal
Right now, WDFCF has several oversold leaning technicals that could be lining it up for potential reversal in the short-term.
Here's Investopedia's definition of a reversal:
"A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart."
After trading in the mid $.30 range during the beginning of December, WDFCF has been on a downtrend to Wednesday's 12/30's close of $.28.
At 12:30PM EST Thursday, WDFCF's technicals were hovering around oversold areas and will be ones to watch closely moving forward (from Barchart):
- 9-Day Relative Strength Index: 39.05%
- 14-Day Relative Strength Index: 37.32%
When these numbers drop down to the 30% range and lower, they can be viewed as being in oversold territory. While in this territory, they can paint the picture of a profile that is undervalued.
- 14-Day Raw Stochastic: 25%
- 14-Day Williams %R: 75%
As the Raw Stochastic nears the 10% range and lower and the Williams %R nears the 90% range or higher, these technical indicators may also be viewed as oversold and undervalued.
#5 Top Potential Driver Indicator For WDFCF - Low Float
According to Yahoo Finance, WDFCF has a small float.
The website reports this profile to have 30.39Mn shares in its float.
Why is that important? It's important on one crucial level. Volatility.
With so few shares available for trading, potential driver indicators can send shares heading vertical in the short-term.
Stony Lake Gold Project in Central Newfoundland