Echo Resources (EAR)

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I bought a small parcel of these guys today, dipping my toes into the higher risk junior gold sector.

Seems to me they might have been a bit of a dog explorer that could be be getting a new lease on life, with a new board (9 months old) and a potentially exciting resource being uncovered. They are in the process of acquiring Metaliko (MKO) which is a nearby plant that might complement the resource discovery and allow them to fast-track into development and production.

All up they look like a stock the market has discounted and I reckon they could have some real potential upside with regards to both resource expansion and being able to quickly move into production. Obviously it's a high risk prospect though.

Anyone have any experience with this stock, or thoughts on it?

 

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EAR chart update (see 11 Sept chart above).

EAR has some serious momentum with volume now. No red candles in 10 weeks.

 

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EAR at highest price in over 10 years with 26c Resistance breaking - a key R point which now must hold as Support. Potential next R at 30-31c.

 

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NST has emerged as a 16.4% holder of EAR after buying 80million shares Thursday after market at 29c per share.

This should put the spotlight under some unloved junior gold stocks. About time, its been a pretty bad year for most of the gold sector.

I currently hold EAR.

 

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NST confirming after market today that it has lifted its stake in EAR to 19.19%. NST has a tonne of cash at the moment, would not be surprised if they announce a takeover.
EAR is attractive with high grade gold (Aurelia deposit) and processing plant (bronzewing) that won't take too much time and capex to get back into production.

 

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Laest drill results at Orelia:
* incl. 34m @ 10.74g/t Au from 95m.

Just Nth of Orelia:
* incl. 9m @ 17.34g/t from 54m.

Orelia deeps hit gold, but needs more drilling.

 

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EAR had a pretty disastrous 2018 (shareprice wise), but doing very well at the moment.

 

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Solid week +17%.

'Rising 3' candlestick pattern on daily chart. Often a good sign of continuation in a Stage 2 bull trend. As highlighted in my previous (weekly) chart, 22 - 26c area of historical Resistance.