Shares of Spearmint Resources Inc. (CNSX:SPMT) continue to fly high in response to the company expanding its footprint in the Golden Triangle of British Columbia. With the acquisition, the company has gained access to nine new claim blocks poised to strengthen its exploration and mining operations in the province.In addition, the company has confirmed that serial entrepreneur David Stadnyk has joined the company’s advisory board. A string of positive development, in the recent past, has helped strengthen investor sentiments in the stock after a whirlwind first half of the year.
Spearmint Resources Price Analysis
Since the start of October, the stock has rallied by more than 50%, fuelling talks of a possible emerging uptrend. However, the stock remains engulfed in a long-term downtrend after coming under immense short selling pressure in the first half of the year.A closer look at recent price action activity, it is clear Spearmint Resources faces immediate resistance at the $0.06 mark. A breach of the critical resistance level should open the door for the stock to make a run for the $0.08 mark, which happens to be the next substantial resistance level.Short Sellers could regain control, on the stock plunging below the $0.04 mark, seen as the immediate support level. Below the critical support level, the stock would be vulnerable to further declines to 52-week lows of $0.02.
What Does Spearmint Resources Do?
Spearmint Resources is an exploration stage company that acquires and explores mineral resources across North America. The company is the holder of 100% interest in BC EL North and EL North 2nickel copper and gold prospects in the Golden Triangle in British Columbia.
Golden Triangle Footprint Expansion
The signing of share purchase agreement for the acquisition of a district size package made up of 9 separate claim blocks is the latest development, to have caught the attention of investors’. The acquisition of the blocks totaling 28,293 acres is set to expand Spearmint’s footprint in the lucrative Golden Triangle.Upon closing, the new claims will increase Spearmint’s property portfolio to 6,803 acres. With the acquisition, the company is now one of the largest landholders in the region.
“The Golden Triangle is one of the most legendary and prolific mining districts in the world. We currently have work programs ongoing on Spearmint's strategically located properties in the Golden Triangle, and operations about to get started on our Vanadium Prospects in Quebec. Therefore, Spearmint is coming into a very active period of work and news flow,” said James Nelson President of Spearmint.
Investors continue to push the stock up the charts on the expectation that the company’s Golden Triangle property will generate significant value going forward. Abe Resources Inc. which is bordering Spearmint Resources has already announced significant drill results of 38.7 grams per ton gold over 10 meters. Immediate drill results also indicate that the property could have 62.4 grams per ton of gold over 6.0 meter.In addition, Spearmint Resources has engaged the services of Jack Stadnyk as it looks to gain valuable insights on investor relation services. The company is looking upon Mr. Stadnyk to spearhead the next wave of public awareness by assisting on corporate communication as well as on marketing endeavors. He is also to oversee ongoing engagement with shareholders as well as finance professionals and media contracts.
Bottom Line
Spearmint Resources trading activity had for the longest time remained subdued in the market at the lack of no substantial news needed to gauge long-term prospects. A spike in Spearmint Resources trading activity, in the recent past, attests to an important phase heading into the year-end.Fast forward, it appears the company has entered a period of significant news flow as well as increased exploration activity. The acquisition of additional claim blocks in the Golden Triangle project underscores the company’s focus on pursuing opportunities in the lucrative gold and copper project. Positive drill results on Gold and copper prospects by Abe Resources in Golden Triangle project attests to the fact that there is some value worth pursuing in the property.The most recent bear run to have hit the stock came at the backdrop of no substantial updates about the company’s operations. However, that looks set to change especially with the acquisition of the new property claims.Positive updates about exploration work at the Golden Triangle project should go a long way in strengthening investor confidence in Spearmint Resources going forward. After the recent spike higher, waiting for further updates would be the right play, to get an idea of whether the stock will continue climbing high.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:SPMT, sign up below!Disclosure: We have no position in CNSX:SPMT and have not been compensated for this article.
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