Gold Co. Releases Drill Highlights
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Eagle Gold Corp. and Fitzroy Minerals Inc.
2. Michael Ballanger: I, or members of my immediate household or family, own securities of: American Eagle Gold Corp. and Fitzroy Minerals Inc. My company has a financial relationship with  Fitzroy Minerals Inc. I determined which companies would be included in this article based on my research and understanding of the sector.
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This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

American Eagle Gold Corp. (AE:TSXV) recently intercepted 175 m of 1 gram per tonne gold equivalent (g/t AuEq), 275 m of 0.9 g/t AuEq, and 108 m of 1 g/t AuEq, all from surface at NAK.

The stock is down 18.46% this morning to CA$0.53 amidst confusion over the way they reported the results of the Gold Holes portion of their 2024 program. Instead of reporting a "Cu-equivalent" (copper-equivalent) average grade, they reported an "Au-equivalent" average grade, which makes perfect sense because, after all, it was the gold-bearing portion of NAK they tested first.

However, this is mid-August, and as we have seen throughout the spring and summer, traders take these news releases as liquidity events — opportunities to capitalize on the volume — and they sell. I will be asking Tony Moreau why he picked mid-August when we are only nine trading sessions away from Labor Day.

The results do nothing to alter the potential underlying the NAK project, and they will certainly do nothing to dissuade Teck Resources Ltd. (TECK:TSX; TECK:NYSE) from continuing its sponsorship. However, they have lost retail momentum with this poorly-timed release, so I will be following the "three-day rule" after news comes out. You buy after three days of decline, usually on the third-day opening, so I would guess that at CA$0.40, AE:TSXV represents a decent level at which to add. The risk, of course, is that the institutions decide to rescue the deal later today and turn momentum back up — doubtful as it may seem in August, NAK remains a solid project with many more results from the copper zones to report in September.

While I have my position in AE, I am preserving my cash for the Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQB) Buen Retiro project in the vent they launch a funding after Labour Day.

AE:TSXV is a Buy at or below CA$0.40.

Postscript: I just spoke to CEO Tony Moreau and learned that the TSX demanded that they report the results using the dominant metal (in this case, Au) as the grade equivalent.

When asked why he released the results in the midst of the deadest time of the year for junior miners, his response was, "There's no good time to release results," which is not the case based on my time investing in juniors dating back to the 1970s. However, he feels that traders are using his release as a "liquidity event" (as I mentioned earlier) and that it will stabilize and move higher in anticipation of more results from the copper-centric portion of the 2024 NAK drill program.

I would agree with that assessment.