​Colorado Resources (CXO.V): Provides Update on Seabridge Gold Property

Bolton Flautt  |

When investing in small cap stocks, it is much easier to gather and collect information on companies doing business in the metals and mining sector. Precious metals are the epitome of basic supply and demand economics, so deciding whether or not to launch the due diligence process on a small cap gold and copper exploration company like Colorado Resources, Ltd. (CXO.V) is very easy, and here is what I found from my initial probe. The company’s stock price has a 52-week range between $0.05 and $0.71 per share. Colorado Resources has a market capitalization of $36.8 million and an average daily volume of 408,500 shares. The company is located in West Kelowna, British Columbia, and has 9 full time employees.

As mentioned earlier, Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and is also seeking opportunities in Southwest USA and Latin America.

Colorado’s current exploration focus is to continue to advance: the KSP property currently under option with Seabridge Gold Inc. (SA), located 15 km’s along strike to the southeast of the past producing Snip Mine*; its 100 percent owned Kingpin property; its 100 percent owned North ROK property, located 15 km’s northwest of the Red Chris mine development, both located in northern central British Columbia.

In a recent press release, Colorado Resources provided an update on drilling at the Inel and Khyber Zones on the KSP Property under option from Seabridge Gold Inc. whereby Colorado has the right to earn an 80 percent interest. Adam Travis President and CEO of Colorado stated in the press release: “Although we started drilling only 7 short weeks ago, we already have our second set of assay results from Inel drillholes 9-30. They have clearly demonstrated some very significant high-grade gold results up to 5.3 ounces/tonne gold over 1.0 m.”

Taking a look at the driving factor behind companies like Colorado Resources – gold (XAU/USD) has racked up impressive gains of 21 percent in the first half of 2016. Gold may be hard-pressed to repeat this feat in the next six months, but the forecast for gold remains positive, with the metal expected trade in the range of $1300-$1400 at the end of the year.

At the start of 2016, gold was trading at $1060, and has not looked back since that time. Global growth took a hit in the first quarter of the year, as China recorded softer growth and hence weaker demand. This resulted in weaker first quarter growth in the developed economies, notably the US, the Eurozone and Japan. Global markets plunged, and alarmed investors flocked to gold, which provided a safe haven from market turbulence and volatility. Gold prices were up sharply in the first quarter of 2016, climbing close to the $1300 level in March. Gold is also closely linked to market sentiment regarding US interest rate policy. Speculation that the Federal Reserve would raise interest rates pushed gold prices higher, but the metal dropped whenever expectations for a rate hike receded.

Stay tuned for further updates about gold and, more importantly, about companies like Colorado Resources. We will reach out to the CEO to get updates on current operations and projects for the purpose of passing along to our audience.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
SA Seabridge Gold Inc. (Canada) 13.15 -0.02 -0.15 222,578 Trade
CXO:APH Colorado Resources Ltd. n/a n/a n/a n/a

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