Off the Beaten Path: Based Miners

SMI has already broken out, posting simply as an update. Not an area I'd be chasing.

I still like Maritime Resources. I believe the stock is caught in a "doom loop" where investors are selling because they expect dilution. As the price drops, the dilution becomes larger, more investors sell and so on. I pray they do not fund the mine down at these levels, but instead wait for either strong drill results or a rebound in the gold price. If either of those situations unfold, then it will flip into a virtuous cycle where the value of the mine rises, the stock price rises, the needed dilution falls. I also expect there will be a "goldilocks" window opening for all gold mining stocks, similar to spring 2020, where energy prices are down, labor and material supplies for mine construction will be available and the gold price will be high. Navigating this opportunity will separate many winners from losers.

On a Quest

Lithoquest will be cashed up from a private placement closing soon. Funding will go towards drilling their properties in Northewest Ontario. There are historical drill results in the area that suggest there's gold in them thar hills, but success will only come if they can zero in on targets and find it. They conducted LiDAR surveys followed uby airborne magentic surveys. Actual drills will go into the ground this year.

The chart has based and broken out. If it can hold the breakout and strikes gold, there could be considerable upside. The company has market cap of CAD14 million.

I am long.