Visible Gold Mines (VGD, TSX-V) is rapidly gaining momentum in terms of both its drill programs in northwest Quebec and its share price. The stock has gained 79% over the last 18 trading sessions since hitting a yearly low of 19.5 cents June 28. Today, on its best volume in nearly three months, VGD closed 4 cents higher at 35 cents. It busted through its 100-day moving average (SMA) and the 50-day SMA has swung decidedly positive for the first time this year. This is a classic example of a stock on the move.
With four major projects on the go and 40,000 metres of drilling this year, Visible Gold Mines is a strong candidate for a significant discovery and it’s still very much a hidden gem. Despite a top-notch geological crew, led by Robert Sansfacon who was involved in the discovery of Osisko’s (OSK, TSX) Canadian Malartic deposit, VGD has been flying under the radar of most investors who simply don’t understand that this is a company with one of the best land packages in one of the most prolific areas of the world for mining and exploration. From Joutel to Lucky Break, VGD is extremely well positioned for exploration success.
We will update the fundamental case for Visible Gold Mines over the next few days. Tonight, John examines the technical side of the equation and sees some extremely bullish chart patterns. When we find a situation we like, we definitely get excited and this is indeed a play that could be a barnburner during a sizzlin’ summer and early fall for the CDNX.
Note: Both Jon and John hold positions in VGD.
