The technical action in Seafield is looking increasingly bullish as the stock continues to show very strong support at and around the 13 cent level. Based on stochastics and the RSI, SFF is nearly as oversold as it was in July, just prior to when it tripled in price from 5 to 15 cents in August. A declining 20-day moving average is also now beginning to flatten out, and we believe it won’t be long before that flips positive and a new up-leg begins from current levels. From a fundamental standpoint, we expect the company very soon to announce the second and final tranche of its recently announced private placement at .125. Once that hurdle is cleared, Seafield will be ready for another major advance and one that will likely take it to new highs.
A reader from British Columbia sent us a very thoughtful email yesterday covering a couple of stocks including Seafield. “Regarding SFF, I like your viewpoint….however, I do not see any disclosure by the company regarding 4 million ounces inferred that CCGC has. How can I confirm this?”, he asked.
BullMarketRun broke the news back in October that the Quinchia Property (held by CCGC, which Seafield has an option to earn a 50% interest in) contains inferred (non-compliant) resources of just over 4 million ounces of gold. This information was indeed not reported by Seafield in its October 1 news release, nor were they under any obligation to report it. The fact that to acquire a 50% interest in CCGC is going to cost Seafield $5 million should alert people to the fact that CCGC is indeed holding some very valuable ground in Colombia, and we have learned through additional reliable sources that they are continuing to assemble a very impressive and strategic land package in that country.
Through some rigorous Internet searching last month, we came across a 67-page geological report on the Quinchia Property which was a fascinating read and confirmed that indeed Quinchia contains four million inferred ounces (non-NI-43-101 compliant) based on drilling to date. There is also a lot of blue-sky potential with this property – mineralized areas that need to be drilled that show considerable promise. Quinchia is a low-grade, high-tonnage, open-pit situation, but we’re certain that CCGC will bring even more to the table which makes Seafield’s relationship with this privately-held company very, very important. CCGC knows Colombia, and no doubt they are also very familiar with any available land packages around Ventana – speculation on our part, but that’s what our job is, to look at the context, connect the dots, and understand all the possibilities. In short, we believe this deal with CCGC is absolutely huge and a game-changer and company-changer for Seafield (obviously the Patersons feel the same way).
