A 40% plus spike marks a perfect start to a new year for First Mining Gold Corp (OTCMKTS:FFMGF). After feeling the full force of short sellers in 2018, the stock has started showing signs of bottoming out. Fuelling the upward momentum is a string of positive developments key among them being management changes.
First Mining Gold Price Analysis
The mining company has moved to strengthen its management echelon as it seeks to reinvigorate its prospects in the industry. The changes come on the heels of the company reporting impressive exploration results from its key Goldlund property project in Ontario Canada.
After the recent spike higher, First Mining Gold faces immediate resistance at the $0.32 level. The stock needs to rise and stabilize above the critical resistance level if it is to continue powering high after one of the worst sell-offs in recent years.
A rally followed by a close above the critical resistance level would open the door for the stock to make a run for the $0.42 mark, the next substantial resistance level. Below the $0.32 mark, the stock remains susceptible to further drops in continuation of the long-term bear trend.
What Does First Mining Gold Do?
First Mining Gold is a mining company focused on the exploration and development of gold projects in North America. In addition, the company also explores other valuable metals such as copper and iron ore. Its portfolio is currently made up of 25 projects spread across the U.S, Canada and Mexico covering an area of about 300,000 hectares.
The appointment of a new Chief Executive Officer appears to be the latest trigger behind renewed investor interest in the stock. The stock has started trading high at the back of high turnover in traded shares, in response to the new appointment.
Daniel Wilton is the new CEO tasked with the responsibility of revitalizing the company’s growth metrics. He joins the company with over 25 years of experience spanning areas of M&A, corporate finance and principal investing.
“[..] We have found a CEO who combines extensive M&A and corporate finance experience, analytical and financial skills, as well as managerial and strategic talents. Dan’s proven record of accomplishment in working with developing mining companies will be invaluable to First Mining as we continue to advance our corporate strategy and move our highly undervalued gold assets forward,” said Keith Neumeyer First Mining’s Chairman.
Goldlund Property Development
The appointment comes just months after the company reported positive assay results and partial metallic screen assay results from eight drill holes at the Goldlund Project in Ontario. Immediate results indicate the potential for significant gold mineralization 10 kilometers from the initial discovery.
The discovery is of great importance given that gold mineralization lies in a 50 kilometers strike length. In a press release, the company notes that the two new holes at the Miller prospect have shown high levels of gold mineralization with visible gold occurrence similar to the first drill holes in the property.
“The early results from the Miller prospect indicate that the entire width of the sill/dyke appears receptive to gold mineralization and this mineralization remains open along strike in both directions and also at depth,” First Mining Corp in a statement.
In addition to the exploration works at the Miller prospect, First Mining Corp is also in the process of completing seven diamond drill holes at the Eagle land prospect. The company is also in the process of completing one diamond drill goal at the Miller prospect in the same property. Completion of the drill works would mark a significant milestone as the company also works on assaying.
What Next For First Mining Corp
First Mining Corp has underperformed the overall mining sector over the past year. However, recent developments provide clear evidence that the company is ready to turn the page as positive trends on operational efficiency continue to materialize.
A phenomenon run over the past few days in the stock market has not come merely on speculation. It has come on investors taking note of the potential impact of management changes. In addition, the company has shown how committed it is to bring to fruition its mining operations at the Goldlund Project.
After taking a huge hit last year, there is no doubt that First Mining Corp is due for a major bounce back as underlying fundamentals continue to show signs of improvement.
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Disclosure: We have no position in FFMGF and have not been compensated for this article.