Great Atlantic Resources Corp. (TSXV:GR) hopes to follow in the footsteps of New Found Gold Corp. (TSXV:NFG)
Bob Moriarty | December 10, 2020 | SmallCapPower: Prices for the metals have been tumbling lately but that is a good thing and indicates the necessary correction is near over. Investors began to get cocky with how high their resource shares were flying and Mr. Market loves to smack cocky investors.
(The following is an article originally published on 321gold.com on November 25, 2020)
But there are a lot of great stories out there. Assays are dribbling out from the overworked labs. In the first half of 2020 money poured into the coffers of junior resource companies and they in turn poured it into drill core. The assay labs were swamped with work and it took months for results to come out.
Great Atlantic Resources Corp. (TSXV:GR) is cheap. With a tiny share structure of under 15 million shares, at today’s price they have a market cap of only C$9.6 million. They have hit gold and they are in an interesting neighborhood in Newfoundland. Between Labrador Gold and New Found Gold Corp. (TSXV:NFG) there has been a lot of attention paid to the province and all the companies in the neighbourhood will benefit.
The project has a tiny resource of 119,900 ounces in a 43-101 but the company is busy adding ounces in its current drill program. On the 24th of November GR announced completion of two drill holes both showing quartz veins with sulfides. That’s where the gold has been before and it would be reasonable to find it there again. One of the sections of core showed visible gold.
Obviously this announcement is not of major importance but the shares are so cheap and we are going into tax loss silly season where everything that has declined goes on sale. The assay labs are beginning to produce results and I expect GR will have excellent numbers and it’s cheap now. As more and more news comes out of Newfoundland in the next few months expect a rerating of all Newfie gold shares.
Great Atlantic is an advertiser and I have bought shares in the open market so that makes me biased.
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