Jupiter Gold Advances Further In The Amazon Gold Belt
Gold has been on a tear over the past several months. It rose to a new all-time high over $2,000US per ounce before a recent pullback back under that key mark. Despite the pullback, we are still very bullish on gold due to the worldwide pandemic and aggressively loose monetary policy that governments are using to try to combat the economic fallout.
High government debt, inflation and uncertainty has caused the investor flight to gold. We would be remiss to not recommend that our readers do the same with at least a small part of their portfolio for diversification purposes. While buying gold companies might be a prudent idea at this time, the problem is many small cap gold ventures have already moved up a lot.
The TSX Venture in Canada or the ASX in Australia are seen as the prime exchanges to find junior gold companies. That can lead to a few hidden gems being overlooked that are listed elsewhere which haven’t been subject to market hype. One such gem is Jupiter Gold Corporation (US:JUPGF – $1.00), exclusively listed on the OTCQB in the United States. Not only is Jupiter an overlooked gold company, we believe that Jupiter is a junior gold company of high quality. After speaking with management and reviewing its properties, we are confident that it has real potential. The Company gave a bit of a preview of some of that potential this week.
After publishing our initial research report on the Company last week, Jupiter this week announced important advancements made on its Apuí Gold Project located in the Amazon Gold Belt. The work performed included geological mapping and target identification. Geochemical sample surveys were carried out near magnetic anomalies identified by available geophysical mapping. This can indicate viable gold deposits along with other minerals such as copper. The project is close to the town of Apuí, which has the necessary infrastructure to support the setup of a mining project. Jupiter’s acquisition of the Apuí Gold Project is a testament to its experience in the country. The Company’s technical team identified the existence of prior settler gold mining operations two miles from it.
While Apuí is Jupiter’s largest claim at 69,330 acres, the Company considers it the third prospective property behind its flagship Alpha Project and the Alta Floresta Project. The Alpha claim is 22,393 acres but has a historical resource estimate of 64,000 ounces of near surface gold with a cutoff of 0.8 g/t. The Company’s technical team believes that there is significant potential to expand this resource. The Alta Floresta claim is 24,395 acres with one of the mineral rights being next to a currently producing gold mine. While the Amazon region of Brazil in a relatively new gold frontier, primary gold deposits identified in this region have so far usually been greater than one million ounces.
Jupiter Is A Diversified But Focused Mining Play In Brazil
Jupiter has remained under-the-radar as it advanced several highly-prospective gold and other mineral properties in Brazil. What we like most about Jupiter is that it diversifies, but within its area of expertise. It has laid the groundwork for success in Brazil and that is where it will stay. Management, led by CEO Marc Fogassa, has spent years building experience and connections specifically in that country. Through that effort, Mr. Fogassa has the necessary knowledge to lead Jupiter in all aspects of the mining industry in Brazil. That includes understanding the geology in order to choose the right exploration projects. Then having the ability to develop those properties through workforce and management buildup while navigating through mining and environmental regulations and operations.
Jupiter has approximately 5.7 million shares outstanding. The principal owners of the Company’s common stock are the CEO, HSP Resources LLC, and Brazil Minerals Inc., a company also headed by Mr. Fogassa. So shares are tightly held in management and supportive shareholder hands. That leads to a very small float; however, this also leads to limited liquidity as the stock only trades a few thousand shares every week. Jupiter is an ideal investment for investors who are patient. We strongly believe that with this small float and minuscule valuation of less than $6 million that these patient investors will eventually be handsomely rewarded. We have a target price of $2.00 on Jupiter which leads to a 100% upside from today’s price. But the true potential is much higher than that if Jupiter has news that can captivate gold-hungry investors coupled with the limited supply of shares. Smallcaps Recommendation: BUY.
If you want to contact the Company directly, please call Brian W. Bernier, Head of Investor Relations and Corporate Development, at (833) 661-7900 or send him an email at firstname.lastname@example.org.
|Smallcaps.us Advice: Buy||Price Target: $2.40||Latest Company Report (pdf)|
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