Merrex Gold – MXI.V along with MRZ.V – Mirasol Resources have recently found their way into my portfolio. I recently added a West Africa Sector Overview Chart to my public list. As you can see most of the stocks that list includes are looking great. From a technical perspective most are poised to move up much higher pretty soon. The reason why I like the West Africa Gold Theme so much is that it is somewhat flying under the radar. Whenever something ‘new’ and under-followed pops up in my scan I try to position myself accordingly. That’s because ‘new stories’ is where the money is flowing into. It’s what I like to call a: ‘High Potential Situation’. It is a situation where stocks have the potential to develop into true story stocks. The key word here is ‘develop’. The stocks are not well known therefore lots of potential new buyers are out there that will have to buy after you bought. In my opinion West Africa, which includes Mali, has the potential to generate huge interest and outstanding opportunities during 2010. I will write more about potential candidates soon.
The MXI.V – Merrex Gold chart looks awesome. It is displaying the chart characteristics I am typically looking for: A strong thrusting move with an ensuing consolidation pattern. I typically try to buy a position before a stock breaks out to the upside and resumes the direction of the trend leading into the consolidation pattern. Take a look at the 60 minute chart. It displays the same pattern the overall bigger pattern displays i.e. another thrusting move with a consolidation pattern. The micro pattern is confirming the macro pattern. The last few days the 60 minute chart has built a bullish triangle pattern. Basically MXI.V – Merrex Gold is displaying the same characteristics MRZ.V – Mirasol Resources displayed before it broke out to the upside. MRZ.V has a joint venture with a big player: CDE – Coeur d’Alene Mines. MXI.V on the other hand is backed by another big cap senior gold miner: IAG – Iamgold. I am simply playing the odds here.
The chart tells me a break out to the upside is very likely as the stock is trading at a 52 week high and has no immediate overhead resistance. When you are dealing with strong stocks it is often best not to flip pennies. Timing is more important than price. Let’s see what happens.
Up-to-date price MXI.V – Merrex Gold chart on my public list.
Corporate profile from the Merrex Gold website:
Merrex Gold Inc. is a Canadian-based mining exploration company hosting a diversified portfolio of projects in Africa and Canada. Headquartered in Bedford, Nova Scotia, Merrex Gold Inc. was formed through the reverse takeover of Merrex Resources Inc. by Jubilee Minerals Limited (a privately held company). Merrex Gold Inc. now holds significant assets and trades on the TSX Venture exchange under the trading symbol MXI.
For three years, prior to the reverse takeover of Merrex, Greg Isenor was the President, CEO and a Director of Jilbey Gold Exploration. Greg led the Jilbey team in the exploration and discovery of the Bissa gold deposit in Burkina Faso and the same experienced team is now managing Merrex. In August 2005, Greg successfully negotiated the takeover of Jilbey Gold by High River Gold Mines Ltd.
Merrex’s strategy is to acquire large, strategically located land areas possessing geological characteristics similar to those of major mineral deposits, including gold, lead and zinc.
The Sirabaya Gold project in Mali, West Africa is the main focus for the Company. Siribaya is located within the prolific West Mali Gold Belt, which produces upwards of 1.5 million ounces of gold each year from deposits such as the Sadiola, Loulo and Tabakoto mines. The Merrex team is very familiar with this Belt and will apply its technical and geological know-how gained from exploring and discovering the Bissa gold deposit.
In addition to Africa, Merrex continues to explore and develop a high grade base metal target in Canada. Jubilee’s zinc/lead deposit located in the Little Narrows area of Central Cape Breton, situated in northeastern Nova Scotia.
Have a great evening!
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