Silver Spruce Resources (SSE.V) made a little noise earlier this year when hype surrounding their REE property on Pope’s Hill, Labrador reached a fever pitch. Unspectacular drill results from their first drilling attempt then pushed the SP back into the dime range, give or take a couple pennies, where it has traded for nearly three months now. With a current SP of 0.11, SSE.V presents a very interesting opportunity with considerable upside.
SSE.V fell below its 50-day moving average back at the end of February and maintained a steady decline throughout the Spring. It tested this 50-day MA at the end of May and again at the end of June, but was ultimately unsuccessful in breaching the resistance level. However, on July 7 it finally broke through and closed above this key resistance level,sitting at a discounted 0.11. The 20-day EMA is also finally showing some upward movement, and a few days at 0.11+ should see the 20-day EMA cross above the 50-day MA, which is generally a sign of an uptrend. Keep an eye on this over the next few days.
REE Summer Exploration Program
SSE.V released a fairly detailed set of plans for their Pope’s Hill REE Summer exploration program on June 28 (which is already underway); take a moment to read it HERE.
As you can tell from this release, there will be a considerable number of news releases generated throughout the course of the Summer and Fall as the various components of this program begin reporting results. Obviously it’s impossible to tell whether or not these results will be positive, but if there’s one thing the Venture market loves, its speculation, and that puts SSE.V very much in play.
Uranium and the Labrador Question
Back in2007, SSE.V’s stock price soared above $2/share on uranium discoveries in Labrador. Unfortunately, in early 2008, the Inuit government in Labrador narrowly passed (by a vote of 8-7) a motion to ban uranium work on their lands, tanking a number of companies’ stock prices in the speculation leading to that decision. It goes without saying that SSE.V suffered as a result.However, that moratorium officially expired earlier this year, and the topic is scheduled to be revisited by the Inuit this September. SSE.V isn’t the only company with a lot riding on this decision. Paladin, for example, remains committed to their Labrador uranium projects, which may provide clues as to direction in which the Inuit may be leaning. At this point, companies are working closely with the community to make sure all concerns are heard and address, and that the many benefits for the community are understood so that the ban may be lifted in the Fall. Should this happen, one can very likely expect a significant spike in SSE.V’s stock price.
Big Easy Gold Property
In addition to their flagship REE and Uranium properties, SSE.V is also conveying a sense of increasing optimism around the Big Easy gold property in Newfoundland. They recently completed a drilling program on this property—the first ever conducted on the site—and continue to work the area. In a recent interview with the Wall Street Reporter, CEO Peter Dimmell (who has an extensive geological background) expressed his optimism toward this project,along with the Pope’s Hill REE property. It’s a revealing interview and worth the listen.
Well, feel free to draw your own. While the winter REE drilling program on Pope’s Hill was ultimately unsuccessful in locating the source, this is often the case with junior mining companies. It can often take several rounds of drilling to make the discovery that sends the SP skyward, and if SSE.V continues their field work,the chances of success will only improve. Factor in a market that loves speculation,a steady stream of upcoming news releases, the alignment of technical indicators, and the possibility of lifting the Labrador uranium moratorium, and you have the recipe for big potential. Do some due diligence and come to your own conclusions, but I personally have high hopes for the coming months.