It is no exaggeration to say that Great Eagle Gold Corp. (GEGC:CSE; GEGCF:OTC; GI8:FRA) is in the vanguard of a movement that is set to revolutionize the gold mining industry. Many investors in the precious metals sector are painfully aware that gold stocks have been dramatically underperforming gold itself over the past several years such that there is now a yawning gap between gold itself, which has been forging ahead, and gold stocks, which have been moribund.
There are two reasons for this — one is the soaring costs of mining, and the other is the industry's appalling ESG record (ESG stands for Environmental, Social, and Governance), which is actually unavoidable because of the nature of the mining industry — unavoidable up to now that is.
Enter Great Eagle Gold, which is leading the ESG shift from traditional gold mining to digital gold mining. Traditional gold mining involves digging gold out of the ground, an expensive, laborious, and time-consuming business, and then a large percentage of it goes back into the ground in the form of gold bars in bullion vaults.
What Great Eagle Gold will be doing is revolutionary because it will acquire and prepare certified underground gold deposits for tokenization into NatGold coins — the result of this being that the gold in the ground is ascribed value and ownership without ever having to be mined.
It is understood that this will be a hard concept for some older and more traditional investors to grasp, who might be of the view that "If you can't hold it in your hand, it's not real." However, this tokenization of the gold in the ground is probably more real than Bitcoin, and as we know, Bitcoin has entered the mainstream in a big way, so why not gold?
This is considered to be an excellent time to bring Great Eagle Gold to the attention of investors because there is big news out of the company this morning that Great Eagle Gold Corp. has a LOI to acquire patented mineral rights titles containing NI 43-101 certified gold resources, and this important news could very well get the stock moving.
As Andrew Fletcher, CEO of Great Eagle, states in this news release, which bears repeating here — "Having recently secured a supply partnership agreement with NatGold Digital that guarantees Great Eagle the right to exclusively provide sufficient NI 43-101 certified gold resources to generate the first 2.5 million NatGold Tokens, this LOI represents a significant milestone. It positions us as a key player in preparing for the imminent launch of NatGold's revolutionary, patent-pending digital gold mining ecosystem."
Fletcher added: "Our data analytics team at Great Eagle has done an exceptional job identifying hundreds of Tokenization Qualifying Titles worldwide, with a strong focus on the United States and Canada. By signing this initial acquisition, we've taken the first step toward building a low-cost portfolio of optioned, tokenization-ready certified gold resources. We continue to evaluate additional acquisitions and are excited about quickly meeting, ideally exceeding our goal of supplying NatGold with sufficient resources to generate at least 2.5 million tokens."
The following excerpts from Great Eagle Gold's website explain the core problem facing the industry and the company's radical solution.
Gold mining is an expensive and often environmentally devastating business and is becoming more and more socially unacceptable. The problems with it are as follows. . .
The environmental and social backlash against it has seen new capital investment in gold exploration plummet by over 50% in the past five years.
Since gold's true value lies in its existence, not where it is vaulted, these problems are solved by "digital mining."
Great Eagle Gold's solution, in partnership with NatGold Digital Ltd., functions as follows:
An obvious criticism of all this is that, with about 51% of the gold used in the jewelry industry, people are not going to want to wear certificates or tokens around their necks, and in addition, some 11% is used in industrial applications. There are two key points to be made with regard to this. One is that this still leaves 38% of gold in the form of bullion or vaulted by Central Banks, which clearly has the capacity to be tokenized, and the second point is that if existing vaulted gold is tokenized, it can be melted down and made into jewelry, which will correspondingly reduce the need to mine it. Thus, it is clear that if the tokenization of gold is successful, the need to mine new reserves will be vastly reduced so that what demand there is can be met to a considerable degree by existing mines and processing tailings, etc.
Won't this kill the mining industry? While it will certainly eliminate many jobs involved in digging the gold up, it will mean that all mining companies have to do is find the gold. They won't have to bring it to surface or process it, so costs will be vastly reduced — and of course, many companies are already sitting on vast reserves that can be tokenized and thus ascribed value.
Now, we will look at the latest stock charts for Great Eagle Gold, on which it quickly becomes clear that it appears to be building up to breaking out into a significant new bull market.
We start with the longer-term 30-month chart which shows the stock from its inception in mid-2022. On this chart we see that, soon after it came to market it took off in an accelerating uptrend defined by the parabola shown which resulted in very substantial gains in less than a year but it was a case of "too far, too fast" and it broke down and plunged almost back to where it came from by the time it hit bottom early last July at just 7 cents.
On the shorter-term 14-month chart, we can see that after the bear market into the early July low, it marked out a trading range which is now considered to be a bullish Rising Triangle, especially as the volume pattern while it has built out has been positive — mostly upside volume -— that has driven volume indicators, the Accumulation line shown and equally the On-balance Volume line, which is not shown, strongly higher so that they are both making new highs.
This is viewed as most auspicious and suggests that the stock is building up to breaking out of the Rising Triangle pattern into a new bull market, and if it does break higher soon and advance, it will quickly result in a bullish cross of the moving averages. This, therefore, looks like a very good point to buy Great Eagle Gold ahead of such a breakout.
A problem with the charts that we have just looked at is that the huge volume on several days back last January has had the effect of "squashing all subsequent volume flat" because of its effect on the scaling, so it is hard to interpret the recent volume pattern, but we can get around that by also looking at a shorter-term chart which excludes that big volume.
The 4-month chart below is very illuminating as it reveals that nearly all of the volume since late September has been upside volume, which, of course, explains the strong rise in volume indicators during this period. This volume pattern is very bullish and points to an upside breakout soon.
As what we have seen on the charts strongly suggests that Great Eagle Gold is building up to breaking out of its recent base pattern into a new bull market and that such a breakout could happen soon, it is rated an Immediate Strong Buy here.
Great Eagle Gold's website.
Great Eagle Gold Corp. (GEGC:CSE; GEGCF:OTC; GI8:FRA) closed for trading at CA$0.21, US$0.1481 on January 24, 2025.
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- For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Great Eagle Gold Corp.
- Author Certification and Compensation: [Clive Maund of clivemaund.com] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.
