Investors should keep a close eye on Romios Gold (RG, TSX-V) this summer as the company has started a $6 million exploration program, including 12,000 metres of drilling, at three advanced and highly prospective projects in the Galore Creek area of northwestern British Columbia, a copper-Gold rich region with improving infrastructure. Drilling at Romios‘ Trek Property commenced June 2 (10,000 metres is planned) while some drilling will also take place this summer at the Dirk and Newmont properties. As always, perform your own due diligence but Romios‘ 26,000 hectare land package does offer tremendous exploration upside in our view.
Technically, Romios is looking very healthy with rising long-term moving averages and solid Fibonacci support at 40 cents which also happens to be the 100-day SMA. The stock moved nicely last week off the 40-cent area, climbing as high as 50 cents and closing Friday at 47 cents. As John’s chart shows below, the downside risk with RG at the moment appears to be limited. With 139 million shares outstanding, the company’s current market cap is a modest $65 million which is certainly reasonable given the fact that Trek, Dirk and Newmont are advanced plays in such a prolific region with a major exploration program underway.
Note: John, Jon and Terry do not currently hold positions in Romios Gold.
