PEX stays as one of my preferred stocks this week due to the imminent results from their Mallee Bull discovery, and as I have previously mentioned, judging by the images of their assays from the announcement they should be good. For those who want exposure to PEX’s discovery with lower risk GCR is worth researching, including John435’s excellent maps which show their tenement holdings in relation to PEX. Although much higher volume is needed I am definitely going to be watching VEC closely this week, especially given the strong $35+ move up in the gold price on Friday night. The daily and weekly charts are looking better and with many drilling results from Gwendolyn and Mt Dimer due plus a significant resource upgrade imminent (external consultants SRK are preparing), I would not be surprised to see a strong move soon.
With the strong move up in gold I will be watching other gold stocks closely including CHZ, which I expect to move towards $0.50 cents and PXG, which should head back over $0.25 cents.
Charts:
PEX: The key in the short term is a break of $0.32 on the daily. A break of this level on significant volume gives a target around the mid 50’s. I expect the assay results for Mallee Bull to be released early this week.
GCR: For those wanting exposure to PEX’s Mallee Bull results but without the extreme volatility risk a better option might be to research GCR. GCR have tenements surrounding PEX’s discovery and are the dominant ground holder in the region. They are currently conducting an airborne EM survey over their tenements, a tool which PEX successfully used to assist in the discovery of Mallee Bull. The current market capitalisation is $12.25, EV $8.60m. The gap to 1.1 cents looks set to close once 0.9 cents is broken.
VEC: With assay results due from 82 RC holes and an external resource upgrade due shortly, the level of interest in the stock is likely to increase. Although the stock broke out of its downtrend on Friday it was on low volume and created a gap to 7.1 cents. I will be watching for a break on much higher volume to confirm a move is on.
