New Released This Morning from Surge Exploration Inc. (SURJF) A Stock to Quickly Turn Your Attention to
Good Afternoon Traders,
Gold is expected to rally this year again and with the anticipated January Effect looming, gold mining stocks could soon be pushed into the spotlight.
The January Effect, which seems to affect small caps more than mid or large caps because they are less liquid, is a hypothesis that small-cap value investments can tend to have a good month in January over other months of the year.
Worries over the U.S.-China trade war made gold an absolute star in 2019 with the precious metal heading towards record highs not seen for years.
Concerns that the two biggest economies in the world may not be able to establish a truce for a long time could spike gold even higher in 2020!
“Watch gold in 2020. It has a chance to be an interesting investment,” says Byron Wien recently, one of the most influential investors on Wall Street.
Canadian billionaire investor Eric Sprott believes there are discoveries, not by the major miners, but by junior gold and silver explorers. Sprott is the largest check writer in the junior mining arena.
He recently said, “I keep reading that people are never making (gold) discoveries, the rate of discoveries is going down. The funny thing, well, I guess I’m the sucker then because I keep buying guys who say they’re making discoveries.”
On his golden investment spree (which he has poured millions into), Sprott has remarked, “It’s like being at a table with a winning run.” The man has invested considerably into properties NEAR Surge Exploration.
With many analysts betting on gold’s extended rally in 2020 and Canada’s biggest gold proponent loving junior gold mining stocks, I want to bring your attention to this under-the-radar Au miner:
*Surge Exploration, Inc. (OTCQB: SURJF)*
Surge Exploration also trades on the TSX-V under the symbol (SUR), and on the Frankfurt Stock Exchange under the symbol (DJ5C).
The company has been strategically getting involved with properties next to notable names that are already producing.
SURJF owns 100% interest in the Golden Triangle – Trapper Lake Group of 23 mineral claims which are located in the prolific Golden Triangle Region of northwestern British Columbia approximately 90 km ENE from Juneau, Alaska.
The company’s staking program totals an area of approximately 325 sq. km within the regionally important geological and structural trend. A large portion of the new property is adjacent to the Thorn Project owned by Brixton Metal’s Corp. (“Brixton”, TSXV: BBB) with the balance covering prospective open ground containing numerous B.C. Minfile showings with Cu, Ag, Au values adjoining the boundaries of the Golden Bear Mine, a 480,000 oz Au past producer.
In Brixton’s news release dated July 15, 2019 (Brixton News Release), they reported results from drill hole THN19-150, which was drilled to 829.06 metres depth at the Oban diatreme breccia pipe within the Camp Creek copper corridor.
Brixton reported a drill hole intercept of 1.97 grams per tonne gold equivalent across 554.70 meters including 135.96 meters of 1.35 g/t Au, 0.31% Cu, 133.62 g/t Ag or 5.00 g/t Au eq including 6 meters of 3.56% Cu, 3.37 g/t Au, 257.77 g/t Ag.
SURJF’s Trapper Lake property is located near Brixton Metals’ Thorn Project and Stuhini Exploration project, both of which have received big investments from billionaire investor Eric Sprott.
These mineral claims are also near the Golden Bear Mine, a 480,000 oz Au past producer, currently owned by Newmont Goldcorp Corporation (NYSE: NEM) (TSX: NGT).
SURJF added new claims in the area last September, further solidifying its commitment to the BC Golden Triangle are.
The claims have been acquired to provide additional exploration potential within this regionally important geological and structural trend in Canada. A large portion of the new property is adjoining both the Thorn Project and the boundaries of the Golden Bear Mine.
The company’s focus on such a prolific area for gold exploration could bode well as gold prices are expected to continue rallying.
Recently CIO of Plurimi Investment Managers, Patrick Armstrong, told CNBC’s “Squawk Box Europe” that the trade war is “unresolvable.”
Armstrong said, “He’s [Trump] combative, he wants to have an opponent — he’s going to change his attention from China to South America to Europe, and I don’t think we’re going to have a trade deal that just leads to a resumption of global trade.”
The mounting anxiety over a weaker dollar, global economic growth slowing down and political turmoil could lead investors towards safe- haven assets like gold again this year and this may help gold mining stocks rally alongside.
The threat of a recession is still hovering, and forecasters surveyed in November by the National Association of Business Economics put the odds of recession this year at 47%. Economists polled this month by Wolters Kluwer Blue Chip Economic Indicators predict there’s a 33.1% chance of a downturn in 2020.
Goldman Sachs economists are maintaining a bullish gold target price of $1,600/toz.
The U.S. and China trade war, Brexit, the Hong Kong protests, fear of a weakening dollar, political turmoil with Turkey and Syria, Iranian sanctions, President Trump being impeached, and many other developments have led to the possibility of gold having another exceptional year as investors search for safety with their money.
Gold prices have soared in the past year after falling in 2018. Take a look at this chart:
Why is Gold Moving Higher?
Investment sentiment towards the yellow metal has been bullish as gold acts as a potential hedge against rising geopolitical uncertainty.
Gold has rallied to the highest in more than six years, bullion will still benefit from safe haven flows, according to Suki Cooper, precious metals analyst at Standard Chartered bank.
Both Russia and China have been beefing up their gold holdings. Russia’s central bank gold reserves are valued at more than $100 billion.
China has also added almost 100 tonnes of gold to its reserves over the last year. So far this year a total of 14 central banks, primarily from emerging markets, have increased their gold reserves, according to data from the World Gold Council.
The best part about SURJF, is that they are not only looking for gold, but they are also exploring for copper, another metal expected to see tremendous moves in 2020.
According to a study by Bloomberg, a deficit in copper is likely to emerge around this year.
McKinsey’s latest automotive forecast estimates that by 2030, electric vehicles could represent about 30 percent of all new cars sold globally, and will be close to 50 percent of those sold in China, the European Union, and the United States.
Copper is a major component in EVs used in electric motors, batteries, inverters, wiring and in charging stations.
COPPER AND GOLD PROJECT – MINERAL MOUNTAIN PROPERTY
SURJF owns a 100% interest in the Omineca Group of 12 claim blocks which are located in the Omineca Mining Division of north-central British Columbia, approximately 150 km north of Fort St. James.
B.C. Minfile assessment report data indicates that most of the area covered by the Omineca Group claim blocks were at one time or another covered by staking during surges of exploration in B.C. dating from the 1940’s to present day. Largely the claims appear to have been minimally explored with little follow-up. However, some work was recorded on several claims with results for stream sediment sampling showing anomalous to highly anomalous results for gold in a few areas.
These areas were recommended for detailed follow-up, however due to a previous commodity price downturn no further work was recorded. There could be potentially a major discovery to be made here by the company.
Prominent among early discoveries in the Omineca region were the nearby Lustdust/Stardust property (Sun Metals Corp. TSXV: SUNM) covering a large, coherent integrated porphyry-skarn-manto, epithermal system; the Kwanika property (Serengeti Resources Inc./POSCO Daewoo TSXV: SIR) a promising advanced stage copper-gold project; the Lorraine property (Teck Resources and Sun Metals) host to a significant copper gold NI 43-101 resource.
The Surge tenures are located between the Kemess North project being developed by Centerra Gold‘s subsidiary Aurico Metals and Centerra Gold’s operation Mt Milligan mine.
SILVER AND COPPER PROPERTY
It was last November that Surge announced it has entered into a Property Option Agreement to acquire a 100% interest in three mineral claims known as the Caledonia, Cascade and Bluebell, subject to a 2% NSR.
The claims are located in the Nanaimo Mining District of northern Vancouver Island, adjacent to the joint venture partnership between
Freeport-McMoRan and Northisle Copper and Gold Inc. and under the terms of this joint venture partnership agreement, Freeport- McMoRan can earn up to a 65% with C$24 million in exploration expenditures over seven years. Freeport-McMoRan is currently one of the world’s largest copper producers.
As pointed out by Tim Fernback, Surge President & CEO, “The area of our Caledonia Project and Silver Skarn mineral claims remains relatively underexplored and has a strong history of past mineral exploration. This results in plenty of blue-sky potential for Surge. I believe we can greatly expand on the known mineral discoveries within our project area and this exploration potential should excite our investors over the course of 2020.”
SURJF then announced in December that the company has added additional mineral claims in the area of their Caledonia Project in Northern Vancouver Island British Columbia under the previously announced Purchase and Sale Agreement in November.
The price of copper has started to climb again in recent months.
Why should SURJF be looked at?
With several quality gold and copper projects in Canada, positioned next to many mining giants that are already producing and spending millions on their deposits, the current valuation for Surge could be potentially low.
The Golden Triangle is home to many famous gold mines that have been created there.
Surge’s Trapper Lake property is located beside both Brixton Metals and Stuhini Resources properties in BC’s Golden Triangle Region and both these companies have seen sizable investments lately from billionaire gold investor Eric Sprott.
Surge additionally has an experienced management team with deep geological experience, specifically in British Colombia.
SURJF’s key geological advisor is Bill Morton, a 40 year veteran geologist and mineral explorer (see his Bio here). He is the founder behind the Lorraine Copper (recently sold to Sun Metals) and Eastfield Resources.He has actively explored in Canada finding many gold deposits over his forty year career at both Lorraine Copper and Eastfield Resources. The latest being the Stardust deposit in Lorraine Copper which was recently acquired by Sun Metals (Sun Metals News April 12, 2019).
SURJF is continuing to add new properties to explore and develop in Canada, within the gold space specifically.
Copper and gold are both expected to be the next big metals trades of 2020 and now could be one of the best times to consider Surge Exploration, Inc. (OTCQB: SURJF).
Sincerely, Kai Parker
(Always Remember the Stock Prices Could Be Significantly Lower Now From The Dates I Provided.)
Surge Exploration Inc. (“Surge”) has taken all reasonable care in providing, reviewing and editing the information contained in this Article which is being provided by Small Cap Canada to Surge. Although considerable care has been taken, the Article is provided on an “as is” basis, without warranty of any kind, either express or implied, with respect to the accuracy or completeness of the information. Material in this Article may still contain technical or other inaccuracies, omissions, or typographical.
The opinions and analysis included in this Article are related to the business objectives of Surge and represent the personal and subjective views of Small Cap. The information provided in this Article and the content has been obtained from public disclosure provided by Surge’s management which Surge believes to be reliable. The opinion, analysis and content of the Article are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the Surge’s filings made on SEDAR at www.SEDAR.com or on Surge’s website at www.surgeexploration.com before making any investment decisions and should understand the risks associated with an investment in Surge’s securities,
Neither Surge nor its members, officers, directors, partners, consultants, nor anyone involved in the publication of this Article, is a registered investment advisor or broker-dealer or associated person with a registered investment advisor or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of Surge is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. Therefore, information in this market letter is not intended to be, and shall not substitute, an offer to sell nor the solicitation of any offer to buy any security.
Pursuant to an agreement with Surge and Small Cap, Surge compensated SWN US$20,000 to conduct a one-week advertising and marketing campaign for Surge from January 6, 2020 to January 10, 2020.
Third Party Information and Links
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