In early 2007, Northern Lion Gold Corp. transformed itself from a Finnish gold explorer to a Portuguese Zinc hunter and deserves a serious fresh new look. I met with John again two weeks ago and came away calling my brokers to buy. In the past few days I bought 200,000 shares at 44 cents.
Northern Lion is exploring the Iberian Pyrite Belt (IPB), where giant mines such as Eurozinc’s Neves-Corvo and Rio Tinto’s Mine reside. The claims, which extend to some 600 square kilometers, are located in highly-prospective areas of Portugal: Cercal, located in the Iberian Pyrite Belt, and Moura, located in central Portugal. Northern Lion has secured a large land package with numerous high grade zinc anomalies.
The company plans an 8000 meters drill program on Moura and Cercal, and a rig is currently on the Preguica target, then will move on to Enfermarias. The results should become available in 6 to 8 weeks. A second drill rig is expected to arrive later in November. This will allow the Company to follow-up aggressively on initial drill results.
With $10 million in cash and securities, a $13 million market cap, and a chance to strike big in an elephant, prolific, proven zinc belt with active participation by the majors, Northern Lion fits perfectly into my exploration portfolio. Technically, the stock tested strong support at 200 DMA of 39 cents late October on very heavy volume, once 50 cent resistance level is over come, the stock could reach 75 cents in a hurry, then ultimately test the $1 target. Selling for merely THREE MILLION DOLLARS net of cash, Northern Lion is as low risk as one can get in the exploration league.
The extensive write up for Northern Lion can be found at: http://www.goldmau.com/marketupdateoct31.php
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