MZI finally broke above 3 cents and with a first target to close the long term gap at 3.3 cents. A third shipment of mineral sand from Lethbridge South will further boost cash reserves in the 4th quarter. The Keysbrook feasibility study is due to be completed in late September / early October. The intention is to move the project into production in late 2013 with projected revenues of $700m over its 8 year life. NEU also began to come to life with another attempt at breaking the 3.0 cents level looking likely in the near term. With new sites being added to the phase II trial of Intrepid 2566, the drug candidate for Traumatic Brain Injuries, the recruitment of trial participants is likely to speed up. VRX was a very strong performer on Friday with the price closing at the day’s highs of 62.0 cents. I suspect results from Thundana are not too far away along with an updated resource estimate.
Gold put on another $35/oz to close out the week at $1,770/oz. With QE3 announced in the US and European bond purchases set to continue there is likely to be further gains in precious metals. There was certainly some action in gold stocks last week with one of my favourites PXG moving from $0.245 to $0.305 cents. I will be watching VEC closely again this week because their timing for drilling results and a resource upgrade might be perfect. CHZ should also be close to further drilling results from Kestanelik and I expect a move back to 50 cents in the near term. Other gold stocks on my radar include OYM, MYG and BNR just to name a few.
Charts:
MZI: The stock finally closed above the 3 cents resistance level on Friday. I expect the long term gap to 3.3 to be closed shortly followed by a move towards 4.0 cents.
NEU: It looks like NEU is getting set to test the 3 cent level again. A break of that level on significant volume would be a prelude to a move towards 4 cents and above.
VRX: Both the daily weekly and charts give me confidence in setting a short term target of around 70 cents which happens to be where an old gap on the chart is.
