Nevada Gold Explorer Looks Like a Worthy Speculation

Allegiant Gold Ltd.’s (TSXV:AUAU) CEO and a Director have continued to buy company shares over the summer

Mickey Fulp | September 29, 2020 | SmallCapPower: In the early summer, I wrote about the most critical factor when picking junior resource stocks: the timing of buys and sells (Mercenary Musing, June 22, 2020).

[This article was originally published on September 24, 2020 on goldgeologist.com]

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I followed that up two days later with my top pick in Nevada exploration space (Mercenary Alert, June 24, 2020).

Now that fall has arrived, I provide an update on this particular junior company: Allegiant Gold Ltd. (TSXV:AUAU) (OTCQX:AUXXF).

My summertime timing was timely as Allegiant Gold got to our goal of a double for new shareholders in two and a half months. The pick was made at 33 cents; it traded in the upper 60s and reached an intraday high of 71 cents on unusually high volumes two weeks ago:

But as usual for stocks that go exponential, Allegiant quickly went parabolic. With traders taking profits and metals, major markets, and the junior sector all selling off this week, it closed at 38 cents yesterday.

My goal for this well-positioned Nevada prospect generator remains a double from its current price. I submit that the current downturn may present a buying opportunity.

My strategy is reasoned and bolstered by these eight factors:

  • Nevada is arguably the best venue for gold exploration and mining in the world (Mercenary Musing, January 28, 2019).
  • Allegiant retains the most successful exploration team in the 55-year history of modern gold mining in Nevada. Led by Vice-President of Exploration and Director Andy Wallace, these experienced geologists come from the renowned Cordex Syndicate.
  • The company is cash flow positive with respect to its annual general and administrative and landholding expenses. All funds raised go into the ground for exploration.
  • Drilling has commenced to increase oxide, open-pit, gold-silver resources at the company’s flagship Eastside project near Tonopah.
  • AUAU’s partners are currently or will soon be drilling three farmed-out projects.
  • Recent abnormally high trading volumes at higher prices have likely washed-out many weak hands and stock flippers.
  • The company’s CEO and a Director have continued to buy stock in the open market over the summer.
  • Allegiant has initiated a new marketing campaign focused on the USA with additional newsletter coverage and meetings with more than 20 brokerage and financial firms scheduled this week.

Folks, there is news coming and a market push is ongoing. Despite recent corrections, the outlook for gold and silver prices is bullish, and given a high gold price, US-based precious metals companies should remain strong and in demand.

I am undoubtedly biased due to a substantial financial interest in this company. That said, I submit its stock has near-term upside. Why not take a gander and see if Allegiant Gold Ltd meets your speculative goals?

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