New Point Exploration Corp (CNSX:NP) continues to hit lower lows in the market, the stock’s sentiments among investors has turned sour. In the last two months, the stock has shed more than 70% in market value as short sellers remain in firm control.
The stock is currently trading in a downtrend and in dire need of new catalysts to avert a further slide. However, as it stands, it would take a groundbreaking development for the stock to bounce back given that the implosion has come even on the company serving a string of positive news.
The stock is currently trading at the $0.07 handle, its lowest level since the company went public. Given the strength of the downward momentum, the stock could continue trading lower. On the upside, it faces immediate resistance at the $0.08 handle, above which the stock could make a run for the $0.10 mark.
New Point Exploration Corp Business Overview
New Point Exploration Corp is an early stage mining company that acquires and explores mineral property assets in Canada. Incorporated in 2017, the company has an option to acquire 100% interest in the Columbia Shear Property, made up of 23 mineral titles on Vancouver Island, British Columbia.
Subdued trading activity around the stock does not come as a surprise, given that New Point Exploration Corp is yet to achieve significant milestones as a mining company. The company is still in the process of amassing property in U.S and Canada, in the hope of generating value on acquired mineralization property.
The company is fresh from optioning a land package adjacent to its Moosehead Gold project in Newfoundland Canada. The optioned property is 2.5 km long adjacent to Sokomon Iron Corp property
New Point Exploration Corp has already acquired the property in question even on cautioning investors that mineralization on the Moosehead property is not indicative of what they should expect in the new property. The company is also yet to verify the Sokomon exploration data.
“The company made the decision to ensure our shareholders had exposure to what we feel could be a very prosperous area of interest. The Sokomon intersection consisted of quartz veining at a down hole depth of 109m to 120.9m. Visible gold was noted in the quartz veining. True width is not known but appears to be 50% to 80%,” New Point Exploration in a statement
New Point Exploration has also completed the acquisition of St Johns Bay Gold on Thwart Island. Under the terms of the agreement, New Point is to pay $60,000 to become the beneficial owner of the prospective claims. The property has so far returned property gold grab values ranging 26,485 parts per billion. However, the company is yet to verify the historical exploration data.
U.S Mining Opportunities
Canada is not the only country where New Point is exploring mining opportunities. The U.S is another frontier where the company is maintaining a keen interest in. The company has already kick-started exploration activities at the Majuba Hill Copper Project in Nevada.
Plans are already underway to consolidate, integrate and utilize database information in a bid to expand the known drill targets of copper mineralization on the property. Chief Executive Officer Bryn Gardener Evans says they are in the process of testing for the extensions of copper mineralization.
In addition to pursuing Gold and Copper mining opportunities, New Point Exploration is also exploring lithium mining opportunities having completed the acquisition of Goldhat Resources Inc. in May. The acquisition provides the company with access to a promising lithium property, Empire Lithium Property, at a time of heightened demand for Lithium to power electric cars.
“This property is of particular interest due to its geological setting and the presence of lithium in active geothermal fluids and surface salts in the San Emidio Desert, which reflect many of the same characteristics of lithium brine deposits in Clayton Valley, Nevada, and South America,” said CEO Mr. Gardener.
New Point Exploration stock is a shadow of itself given the amount of market value it has lost over the last two months. The implosion is in response to the fact that the company is still in the early stages of becoming a key player in the lucrative in the Mining sector. The company is yet to discover significant mineralization deposits that investors can use to gauge its long-term prospects.
As it stands, the stock look set to remain under pressure until the company makes substantial discoveries, from the mineralization properties it has amassed so far. That said it might wisely take a back a seat and wait for the company’s fundamentals to improve before considering any investment.
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Disclosure: We have no position in NP and have not been compensated for this article.