Blue Moon Metals Inc (BMOOF)

[petunia1]

Going To The Moon! 10-15 Cent Target 1st Quarter

We initially brought Blue Moon Zinc (MOON, TSX-V) to the attention of subscribers last September as an astute buy when it was trading between about 5 and 7 cents. It quickly ran up to 11 cents at the beginning of October before settling back down to strong support.
What we like a lot about Blue Moon is its Zinc project in the foothills of northern California – a deposit with a significant NI-43–101 resource that’s wide open for expansion at depth and along strike (currently 3.7 million tons in the Indicated category grading 8.3% Zinc equivalent and 4.1 million tons of Inferred @ 7.8% ZnEq, both at a ZnEq cut-off grade of 4%).

Admittedly, California is not our favorite jurisdiction for mining – far too many environmental wackos down there. However, location is everything and the Blue Moon deposit has the advantage of being within a county that’s a Republican stronghold and very pro-business and pro-mining. Drill permits won’t be a problem and by all reports, county officials are eager to see this project go into production. This would be an underground operation with a limited environmental footprint at surface.

Mine Development Associates Inc. (MDA) has a solid reputation and is carrying out the PEA. MDA co-authored a 2015 feasibility study for the Soledad Mountain mine in Southern California that went into commercial production in December 2016. With sweeping tax reform in the United States, recently passed by Congress and signed by President Trump, the economics for Blue Moon should be more robust than ever, and of course Zinc prices just hit a new decade high.

MOON has about 90 million shares outstanding (no warrants) for a current market cap of $8 million based on today’s closing price of 9 cents. The move past 6 cents certainly triggered technical buying and strong volume came into the stock today.
It’s very hard in the current market to find a quality resource opportunity under 10 cents. We expect accumulation to continue with plenty of trading to occur in the 10 to 15-cent range this quarter, as you can see in the chart, in advance of the PEA and drilling to expand the resource.

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