NIA's #1 stock suggestion for 2020, Ascot Resources (TSX: AOT), appears to be setup perfectly here at $0.53 per share. In our opinion, an explosive rally could be imminent due to major unexpected extremely bullish developments! AOT also has a U.S. symbol AOTVF.
Our original plan was to announce AOT as our #1 stock suggestion for 2020 in the final weeks of December, but NIA decided two weeks ago that it needed to announce AOT immediately after it saw capitulation take place in the stock on October 28th and October 29th. After reaching a medium-term peak 11 months ago on December 13, 2018 of $1.44 per share, AOT trended downward for the following 10 1/2 months for reasons that had nothing todo with the company's fundamentals, which have actually been rapidly improving underneath the surface despite what the share price has shown. Because AOT continued declining during a major gold price rally, investor sentiment became extremely negative and many investors dumped their AOT shares in frustration, fearing they would miss out on other gold stocks that were already rallying.
In recent months, we literally could NOT find one single investor who was bullish on the company, which told us that a bottom was near. On both October 28th and October 29th, AOT double bottomed at $0.45 per share on very high two-day volume of 1,486,627 shares. After closing October 29th at $0.46 per share, AOT immediately began to bounce big on October 30th, rising by $0.05 or 10.87% to $0.51 per share despite only trading very light volume of 249,978 shares!
NIA knew AOT's decline of 68.75% from $1.44 per share down to $0.45 per share over 10 1/2 months was mostly caused by one major seller who was selling recklessly due to reasons that had absolutely nothing to do with AOT or its fundamentals.
In August 2018, AOT acquired a 100% interest in the Silver Coin project, located directly in between AOT's Premier Gold Mine and Big Missouri project. In the early 1990s, ore mined from Silver Coin grading an average of 9.28 g/t of gold equivalent had been successfully processed at AOT's Premier Mill, located only 8km away by road. The acquisition of Silver Coin greatly improved the economics of AOT's Premier Gold Mine, because AOT will now have the ability to mine high grade ore from three deposits simultaneously allowing their Premier Mill to operate at full capacity of 2,850 tpd to maximize gold production!
To acquire 100% of the Silver Coin project, AOT issued 15,179,497 common shares to its 80% owner Jayden Resources plus an additional 3,794,874 common shares to its 20% owner Mountain Boy. While Jayden did the right thing by widely distributing its AOT shares through a stock dividend to all of its shareholders, Mountain Boy owed option payments to other companies but had practically no cash on hand to make them. After being forced to sell 761,500 AOT shares between March and May, Mountain Boy was forced to sell an additional 1,540,500 AOT shares between June and August leaving it with 1,672,874 AOT shares at the end of August. Mountain Boy still missed a CAD$350,000 option payment that was due on August 20th. NIA believes it is likely that Mountain Boy finished selling its remaining AOT shares on October 28th and October 29th when AOT double bottomed at $0.45.
If we are right, look for AOT to become one of the top TSX percentage gainers in the upcoming weeks from its current price of $0.53! Major huge unexpected developments are currently taking place with AOT. The company announced one week ago that during surface exploration at its brand new Silver Hill Prospect, located 9km north of the Premier mill, two surface grab samples returned some of the highest silver grades we have ever seen in history! AOT's Silver Hill Sample 1 contained a spectacular 14,898 g/t of silver along with 5.9% lead and 5.75% zinc! AOT's Silver Hill Sample 2 contained an incredible 12,393 g/t of silver along with 3.42% lead and 4.86% zinc!
These results were so stunning that AOT immediately drilled four diamond drill holes totaling 816m along the vein system where these grab samples were recovered. AOT traced this vein system at surface along a strike of more than 200 metres and a width of more than 20 metres! Assays are pending for the four drill holes! We have a picture of one of the grab samples and it shows how besides the clearly visible sulfide mineralization and quartz, you can also see visible electrum - a naturally occurring alloy of gold and silver!
NIA's President has purchased 150,000 shares of AOT in the open market. Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.