CSE:ESNR had a solid day yesterday.

SmallCapFirm

Full Friday Update On Gold Idea (CSE:ESNR)

April 9th

SCF Readers,

CSE:ESNR had a solid day yesterday.

Trending green the majority of the day, CSE:ESNR eventually closed up from Wednesday's close and could be setting up for a continued vertical move short term.

Here's why...This week, the company released two potentially game-changing press releases:

4/8 - E79 Resources Announces U.S. Listing and Begins Trading on the OTCQB Exchange Under Symbol ESVNF

4/6 - Visible Gold Intersected Down Hole in Maiden Exploration Drill Hole at Happy Valley Gold Prospect

Closing at $.325 yesterday, CSE:ESNR is currently displaying upside potential of 161% to its March 2021 high of $.85.

With this major news dropping this week, it will be key to keep a close eye on CSE:ESNR again today as these press releases could become potential catalysts towards a vertical move.

If you haven't read my initial report below, do so now and get it on your radar quickly.

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Listen, you're a smart person...

You realize that gold serves a bigger purpose than just pretty jewelry, or fancy dental work, or what I've seen lately, as an edible covering on certain foods.

That said, we saw a major gold breakout in 2020 as it hit a record peak of $2,089/oz. in August.

But, if you've been looking recently, it's now trading around $1,740/oz. mark. Obviously, it has fallen off dramatically in the span of several months.

Though we've seen this pullback, gold could be setting up for an earth-shaking comeback especially since it has gained roughly 3% since a 2021 low of $1674 in March.

Even Citigroup has slapped a price target of $2,500 on gold during 2021.

Knowing the possible upside for the yellow metal from current levels, I've been on the hunt for junior miners that could lead the way to having the most impressive potential for gold exposure.

And, one junior miner requires your full attention immediate due to recent, potentially game-changing find they are reporting this week:

*E79 Resources Corp. (CSE:ESNR)*

E79 Resources is focused on exploring for Fosterville-type mineralization at its Beaufort and Myrtleford properties in the Victorian Goldfields, Australia.

At Beaufort, an opportunity exists to explore for a hard rock source of a major alluvial goldfield along a structure that is known to host gold in the region.

The Myrtleford property represents the consolidation of an entire historic gold camp with over 70 past producing gold mines on the property, where the bulk of historic mining stopped at the water table. The Company continues to evaluate corporate development opportunities in the underexplored and historically prolific Victorian Goldfields.

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Myrtleford - Victorian Goldfields, Australia

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Myrtleford is a granted exploration license and located in the north-east of Victoria, approximately 290 km northeast of the Victorian capital Melbourne and approximately 40 km south of the Victoria – New South Wales border cities of Albury – Wodonga. The license consists of a single contiguous parcel covering 418km².

The Exploration License lies within a northwest-trending belt of alluvial and hard rock gold mines that collectively produced 6.3 Moz 3 in the past, mostly from alluvial mining, but also from hard rock production.

Myrtleford represents the consolidation of an entire historic gold camp with over 70 past producing gold mines on the property, where the bulk of historic mining stopped at the water table.

Myrtleford Highlights

  • Permit hosts over 70 past producing high grade underground gold mines with grades often greater than 31 g/t Au*
  • Large alluvial district with historic production of >5Moz*
  • Vast majority of historic mining and exploration terminated at the water-table due to a lack of capital*
  • Unique proposition – district scale consolidation of historic gold mining camp which hasn’t seen holistic, modern exploration approach

*Myrtleford Technical Report, effective October 26, 2020

Gold Camp Consolidation

  • License consolidates a strategic land package & encapsulates majority of the prospective structural trend and hard rock production potential
  • Majority of historical hard rock mining limited to depth of water table – small mining claims with no scalability limited historical miners
  • Numerous trends defined by historical mining – not explored to date
  • Large structural trends, hosting high grade historical mines, not systematically explored to date – unique opportunity in a tier-1 jurisdiction

Underground Targets

  • Shear-hosted vein accessed through the lower adit to Champion Reef – Happy Valley goldfield
  • Ready access to multiple reef structures
  • The margins of the reef are highly sulphidic with pyrite and arsenopyrite

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Beaufort - Victorian Goldfields, Australia

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Beaufort is a granted exploration tenement located in the southwest of Victoria approximately 145km west of Melbourne, the capital of the State of Victoria. It is approximately 48km west of the regional town and historic gold mining center of Ballarat.

The Beaufort Goldfield has been extensively mined in the past almost exclusively for alluvial gold, with an estimated 1.16 Moz of historical production. Local primary sources for the alluvial gold have not yet been identified.

At Beaufort, an opportunity exists to explore for a hard rock source of a major alluvial goldfield along a structure that is known to host gold in the region.

Beaufort Highlights

  • 1.16Moz historical alluvial production with no hard rock source identified*
  • Gold nuggets up to 400 oz recovered from adjacent alluvial fields – supporting idea of proximal primary gold source*
  • Fosterville style mineralisation not considered by previous explorers targeted large tonnage, low grade open pitable type deposits
  • Orientation soil sampling defined a 2.5km long gold-arsenic-antimony trend common geochemical pathfinder association in Victorian goldfields. Trend open along strike.

*Beaufort Technical Report, effective October 26, 2020

Beaufort Target

  • Alluvial goldfields & large nuggets all associated with the N-S trending anticlineaxis and thrust faults
  • Large and well defined target zones
  • Good structural setting with cross cutting late structures
  • Setting analogous to numerous other significant deposits in Victoria
  • Target has not been tested at depth and no systematic program aimed at Fosterville style mineralisation has been executed to date

Soil Sampling Program

The 2020 soil grid successfully demonstrated:

  • A gold-arsenic-antimony geochemical fingerprint over the key structural trends, an element association that is the hallmark of several of the major gold districts in Victoria
  • The effectiveness of a 100 x 100 sampling grid of residual soil material in delineating kilometer scale anomalies
  • A 2000m long, gold-arsenic-antimony trend paralleling the regional structural trend
  • Indication of the presence of a second gold trend along the NE trending secondary structure, with a strike length of around 600m.

Location of Central block, the focus of this program, plus North & South Blocks. Notably, the 2km long anomaly which has been defined on the central block sits within a much larger mineralized trend (over 18km in strike), which has the potential to host a large gold system.

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#1 Top Potential Catalyst - Major News This Week

Visible Gold Intersected Down Hole in Maiden Exploration Drill Hole at Happy Valley Gold Prospect

VANCOUVER, BC, April 6, 2021 /CNW/ - E79 Resources Corp. (CSE: ESNR) ("E79" or the "Company") is pleased to report the discovery of visible gold within the Company's maiden exploration drill hole at the Happy Valley Gold Prospect on its Myrtleford property in Victoria, Australia. The diamond drill hole is the first in a program designed to test for down-dip extensions of previously mined high-grade quartz vein structures and is also designed to generate structural, lithological, alteration and geochemical information and its relationship to mineralization at the Happy Valley Mining Centre.

Rory Quinn, E79's President and Chief Executive Officer stated, "This is a superb start to the program and confirms the Company's belief in the potential of the Happy Valley target.

Rarely does the discovery of visible gold occur at the start of a program. Its presence gives us confidence to continue to target down dip and along strike extensions of known mineralization.

As soon as assays have been received, we will update the market further."

Highlights

  • Multiple occurrences of visible gold observed in drill hole HVD002, in two separate zones. The gold occurs in association with quartz veining and appears accompanied by a variety of sulphide minerals
  • Happy Valley Mining Centre was a high-grade historical gold mine (~31g/t Au)
  • HVD002 confirms the extension of mineralized structure below the known historic mining levels
  • HVD002 is being logged and zones of interest will be submitted for gold assaying and multi-element analysis
  • Further drilling is continuing to test the extents of the mineralized structures below known mine levels

Read the full article here.

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#2. Top Potential Catalyst - Oversold Leaning Technicals/Possible Heathy Reversal

As of 11:00AM EST Wednesday, CSE:ESNR was displaying multiple oversold leaning technicals that could be signaling an upcoming bounce.

Here are a few to keep a close eye on (reported by Barchart):

  • 9-Day Relative Strength Index: 12.36%
  • 14-Day Relative Strength Index: 16.32%

When these numbers drop down to the 30% range and lower, they can be viewed as being in oversold territory. While in this territory, they can paint the picture of a profile that is undervalued.

  • 14-Day Raw Stochastic: 2.74%
  • 14-Day Williams %R: 97.26%

As the Raw Stochastic nears the 10% range and lower and the Williams %R nears the 90% range or higher, these technical indicators may also be viewed as oversold and undervalued.

In recent weeks, CSE:ESNR has been on a pullback since a March 1st high of $.85.

From current levels, that March high provides CSE:ESNR with huge upside potential.

Now, I'm not saying this profile is going to go surging to those levels Thursday, but you need to recognize how much higher CSE:ESNR was trading in the recent term.

Plus, this downtrend could be signaling a potential healthy reversal in this profile's future.

Here's the definition of a "reversal" from Investopedia:

"A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart."

Could a reversal start soon based on the potential catalysts in this report (including this week's HUGE news)?

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#3. Top Potential Catalyst - Low Float

According to Yahoo Finance, CSE:ESNR has a relatively low float.

The website reports this profile to have approximately 31.64Mn shares in its float.

Why is that important? It's important on one crucial level. Volatility.

With so few shares available for trading, potential catalysts like a positive press release can send shares heading vertical in the short-term.

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Right now, coverage is officially initiated on CSE:ESNR.

When you have a moment, consider doing this to make sure you receive my updates as quickly as possible.

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If there are any more updates, I'll get them out to you quickly today.

Sincerely,

Axel Adams

Editor, SCF


Company Website


(Always Remember The Stock Prices Could Be Significantly Lower Now From The Dates I Provided.)​

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