Prepare for a Gold Miner Collapse

Gold mining stocks are imploding. There are three main reasons. One, bad stocks. Nothing can be done for them. Second is they didn't raise enough cash in the prior bull cycle. One of my former favorites, Maritime (MAE) is out of cash as the bear market hits full stride. Third are companies that are finally raising at horrible prices. LIO is an example of this. Both stocks are below March 2020 lows.

Benchmark hasn't been managed as poorly, yet it has also reversed everything.

Some silver and gold stocks:

It looks like a low could be put in, except I believe the bear market is about to kick off. I believe gold and silver stocks will implode. The time for stink bids is now.

Wrecked Miners

Deflation is coming and gold miners will probably be smashed in the first leg of it, unless investors have learned their lessons and accumulate gold in anticipation of an eventual central bank reversal. I'm still holding some of these, and haven't initiated positions in others yet such as AMX and BNCH, both of which are breaking down too after losing support.

SMI has been one of my few winners, but it has pulled back quite a bit, as I expected following that run.

They Hit Again

Benchmark Drills 52.91 Metres of 7.59 g/t AuEq Near Surface at The AGB Zone

Cancan

Back in November I posted The Hits Keep on Coming. Two of the stocks mentioned reported more great hits.

Benchmark Drills 1.66 G/T Gold Equivalent Over 186.00 Metres Extending Depth And Continuity Of The Mineralizing System At Cliff Creek South

Roscan Gold Discovers New High-Grade Zone 150m West of Mankouke South Intersecting 4.78gpt over 24m Near Surface. Extends Vertical Depth to 220m at Mankouke South and Intersects 2.36gpt over 30m in Fresh Rock

I don't own either of these yet, but they have been near the top of my buy list.

The Hits Keep on Coming

Several companies announced good news today in the middle of the covid-vaccine news sell-off in gold. I'm only posting charts and news with some commetnary, no hard recommendations. I did own KRR when it was RNX. Of the four, I think MEX has the least coverage. The others are well followed. As for the news itself, the Roscan and Mexican Gold hits are great. Those are high grades over a long stretch. A shorthand way to look at this is to multiply the intersect by the grade, so Roscan has a 172 and a 143. Mexican Gold's hits are also above 100.

Roscan Gold Makes New Discovery at Moussala North - Intersects 5.39gpt over 32m from Surface including 8.93gpt over 16m

Mexican Gold Intersects 32m of 4.56 g/t AuEq and 10m of 10.98 g/t AuEq at El Dorado

From Don Durrett of GoldStockData.com, here's the shorthand calculation:

Benchmark is understandably excited about this strike that scores a 384.

RETRANSMISSION: Benchmark Drills 128.10 Metres of 3.02 g/t Gold Equivalent and Substantially Expands the Cliff Creek South Area

Karora didn't have a huge strike, but they're moving towards production. Any hit they make that is economic and minable increases the value of the company, unlike a discovery company that needs a really great find to get the financing to build a mine.

Karora Provides Update on 2020 Drilling Program and Announces New Regional Mining Strategy for Higginsville Area

Brief comments on the charts: Slope updates the Canadian stocks at end of day. BNCH is below resistance today so that is a failed breakout for now, but the pattern still looks good. KRR has a monster base waiting to complete. For traders, MEX gets interesting when it breaks resistance at 15 cents and takes out the old high at 17 cents, completing an inverse H&S that has a target at 31 cents. This is a much earlier play chart wise and the chart isn't bullish yet from an intermediate or long-term view. ROS had a nice breakout and has successfully tested. Looks like a good low risk entry for a trader. If you force me to make a call, I'd say the volatility in BNCH and the great hit in ROS, plus their charts, makes them most likely to move first. I think KRR and MEX will take longer, but I haven't researched these lately. Any fundamental developments or news could accelerate things. Do your research.

Update: I like the risk/reward on the MEX warrants and I'm willing to wait.