The junior resource stocks on our list have seen drastic share-price increases in conjunction with a spike in average daily trading volume
SmallCapPower | September 12, 2018: Today we have uncovered some junior resource stocks that have experienced a surge in its stock price, coupled with an increase in trading volume in the last month. These companies could offer investors a potential momentum play as they seek to capitalize on upswings. The four companies on our list have seen an average monthly return of 156% and have doubled their average daily trading volume during the past three months.
Great Bear Resources Ltd. (TSXV:GBR) – $2.15
Specialty Mining & Metals
Great Bear Resources is focused on exploration of gold and other precious metals within Ontario. Great Bear controls 13,000 hectares of the Red Lake District across two properties; the Dixie Project and the West Madsen property. On August 22, 2018, the Company announced high-grade intercepts at two locations within the Dixie Project, including 26.9 g/t Au over 16.3 meters and 44.5 g/t Au over 7.0 meters.
- Market Cap: $39.7 Million
- 1 Month Total Return: 298.1%
- Average Daily Volume – 30 Days: 451,476
- Average Daily Volume – 100 Days: 172,308
Gungnir Resources Inc. (TSXV:GUG) – $0.32
Gungnir Resources is a gold and base metals exploration company focused on assets in Sweden. The Company’s flagship project is the Knaften project, a 37.2 sq. km property located at the south end of the “Gold Line” prospective area of northern Sweden. The Company also holds two permits covering nickel deposits at Lappvattnet and Rormyberget, which collectively hosts 70 million pounds of nickel in historical resources. On August 27, 2018, Gungnir Resources announced that ongoing drilling at the Knaften project has revealed a 120-meter zone with high-sulphide mineralization and the presence of chalcopyrite, indicating a reserve rich in iron, copper, and zinc.
- Market Cap: $14.3 Million
- 1 Month Total Return: 166.7%
- Average Daily Volume – 30 Days: 313,706
- Average Daily Volume – 100 Days: 120,849
Royal Nickel Corp. (TSX:RNX) – $0.18
Royal Nickel is a Canada-based mining company operating in Canada and Australia. The Company holds stakes in two producing assets, the Beta Hunt gold-nickel mine in Australia and the Reed copper-gold mine in Quebec. The Company also owns the Dumont nickel deposit, the world’s largest undeveloped nickel reserve, hosting 1,200Mt at 0.3% Ni. On September 9, 2018, the Company announced a high-grade gold discovery at the Beta Hunt Mine, yielding an average of 70 oz/tonne Au in a 130-tonne sample.
- Market Cap: $66.0 Million
- 1 Month Total Return: 94.4%
- Average Daily Volume – 30 Days: 1,831,107
- Average Daily Volume – 100 Days: 1,082,638
Triumph Gold Corp. (TSXV:TIG) – $0.68
Triumph Gold is a Canada-based junior resource company engaged in the acquisition and exploration of mineral properties in the Yukon and Arizona. Its projects include the Freegold Mountain project, which consists of various exploration properties, such as the Tinta Hill Property, Freegold Property, Goldstar Property and Golden Revenue Property. On August 23, 2018, the Company announced high-yield gold intercepts at the Blue-Sky Zone located at the Freegold Mountain Project. Assays included 1.24 g/t Au, 7.0 g/t Ag, and 0.31% Cu over 125.1 meters.
- Market Cap: $56.5 Million
- 1 Month Total Return: 65.9%
- Average Daily Volume – 30 Days: 297,243
- Average Daily Volume – 100 Days: 131,169
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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