2020-09-25

Aurania Possible Breakout

I have a horizontal at $4.95, and the high from early 2018 is $5.21 per share. Aurania briefly broke $5.21 today, currently trying to hold the $5.00 area. This is a popular and expensive stock. It trades about 10x to 20x what similar companies trade at, plus it is in Ecuador, no longer a friendly mining jurisdiction. It's expensive for two reasons. One, it is founded by Keith Barron. He found a big deposit in Ecuador in the last bull cycle. Two, he is looking for mines that supplied the Lost Cities of Gold. It doesn't get any more "castle in the sky" than this.

Mianmi Herald: Have these men found a forgotten road to lost Spanish gold mines in Ecuador?

The two mines, Logroño de los Caballeros and Sevilla de Oro, were established around 1562 and abandoned 40 years later after a smallpox epidemic killed the indigenous workforce and the Spaniards came under prolonged attack from local tribes. At one point the conquistadors who owned the mine appealed to the Spanish crown to send African slaves to keep the enterprises alive, but by that point the empire was bankrupt. As the jungle reclaimed the area, the mines themselves were lost to history — last pinpointed on maps in about 1650. Barron’s obsession with the South American mines began almost by chance.

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