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Tuesday, 01/27/2015 5:57:23 PM

Tuesday, January 27, 2015 5:57:23 PM

Post# of 66
Gold Makes Reverse H&S Breakout, Junior Gold Miners (GDXJ) Bouncing Off Support at 20 DMA

The big banks are finally realizing that the US Fed may not be so quick to raise rates in 2015. Investors may wake up when the Fed institutes more QE to keep up in this global currency war. Eventually, investors should want precious metals.

Gold Stock Trades readers are already positioned for the scenario which is currently being played out. By now my readers should own a considerable amount of physical gold and silver bullion as well as high quality junior miners on the verge of major growth. If gold steadies around $1300 a lot of junior miners are going to breakout.


For instance two weeks ago, I highlighted Gainey Capital (GNC.V or GNYPF) as an interesting cash flow opportunity in the junior mining sector as it owns an interesting property and a mill in the heart of the Sierra Madre Gold/Silver Trend. Unlike many juniors it has cash and near term cash flow.

Recently, Gainey announced a 10k ton per day processing agreement with Belmex Resources. I hope to hear more deals announced in the coming weeks as Gainey owns the only gravimetric/flotation processing plant in the area which is designed to increase recovery rates. Its also operated by an experienced milling supervisor George Cantua who supervised Barrick’s 24k ton per day mill in the Dominican Republic.

Investors should look where Gainey’s mill is located in relation to some of the other gold-silver deposits nearby. As gold and silver comes back into favor, miners may look to process increasing amounts of their ore with Gainey. I hope to hear positive developments with more processing agreements and the beginning of exploration on El Colomo.
See the latest news release on the processing agreement by clicking on the following link:

http://gaineycapital.com/component/content/article/8-news/56-gainey-signs-10-000-ton-ore-processing-agreement.html