The Charts of The Week: Soaring Silver Stocks & Beaver Creek Breakouts
It was another bull market week across the junior mining sector with many stocks breaking out to 52-week highs.
The gold price has reached such a high level that it no longer needs to continue rising for junior gold miners to keep making new highs. We saw plenty of evidence of this over the past week. In addition, silver is now regularly outperforming gold’s upside performance by a ratio of two-to-one or even three-to-one.
This firmly places us in the risk-on phase of the current precious metals bull market cycle—a phase that could last another week or another year.
Place your bets.
I will have more to say about the macroeconomic backdrop, gold, and next week’s Fed decision in a weekly video over the coming days. For now, let’s dive into the charts that caught my attention last week.
Another powerful Friday rally for Tombstone Gold Belt explorer Rackla Metals (TSX-V:RAK):
RAK.V (Daily)
If you zoom out to a one year chart you will see that Rackla is up ~800% YTD! A remarkable rally, especially for a company that has yet to report a single assay result in 2025. The drill core visuals from the Grad Project do indeed look damn good, and the company has done a good job of regularly providing drill program updates with a high level of technical disclosure.
Last week, Rackla announced that the 2025 drill program at Grad has concluded, with 10 diamond drill holes completed for a total of 4,486 meters of core drilling. Additionally, the final two drill holes (G25-009 and 010) were drilled on the southern margin of the intrusion and encountered impressive alteration zones and abundant sheeted veining.
I especially like these excerpts from last week’s news release:
“The drill program tested an area measuring 600 x 360 x 550 m…..A broad zone with intense quartz and quartz-tourmaline veining and elevated bismuth content was intersected at the top of holes G25-004 and 005. This zone has been intersected in holes G25-006, G25-007, G25-009 and G25-010. The zone shows good continuity and appears robust with increasing strength and width as the intercepts get deeper.”
The drill program appears to have ended on a high note with hole 10 encountering a 230+ meter interval (beginning at 218 meters downhole) with some of the highest observed to date, averaging 24 veins-per-meter, including an abundance of bismuth minerals (strong gold pathfinder mineral).
What I love more than anything about the Rackla story is that it demonstrates the thrill of exploration, and the power of effective corporate communication with the investing public. Based on pure probabilities over a large sample size, we know that the odds are that the drill results will disappoint relative to today’s lofty market expectations. However, in the event that Rackla has made a truly world class RIRGS discovery then the upside could still be several multiples of today’s valuation.
It is this mystery and thoughts of “what could be?” that makes this game so fun sometimes. Of course, on the flip side of the mystery we often see disappointment and misery. The knife cuts both ways. We can’t have the potential for multi-bagger gains in a short period of time, without the possibility of enormous drawdowns. This is why proper position sizing, and good entries (when it’s quiet and the share price is lower) are paramount in the long term success of a junior mining speculator.
A stock that caught my attention early in the week at the Beaver Creek Precious Metals Summit was Newcore Gold (TSX-V:NCAU). It seems that I wasn’t the only one—NCAU shares rose 18.46% on the week:
NCAU.V (Weekly)
One week ago, Newcore announced high-grade drill results from its earlier stage Kojina Hill Gold Target, an area at Enchi that does not yet have a mineral resource estimate. Newcore is working diligently towards delivering a PFS in early 2026, with 3 drill rigs currently active at Enchi. The removal of a warrant overhang in two weeks could help to trigger a further rerating in Newcore.
This week’s heavy trading volume, and break-out to multi-year highs certainly helps to confirm the notion that NCAU is ready to embark on its next leg higher after a 6-month consolidation.
While many stocks had big breakout weeks, Minnesota/Michigan nickel-copper-cobalt-PGE explorer/developer Talon Metals (TSX:TLO) continues to have one of the quietest chart consolidations I’ve ever witnessed.
Talon Metals (Daily)
While some speculators may be frustrated by the sideways share price amid declining volume since early August, I couldn’t be happier. The best bull market stocks tend to follow a pattern of strong advances that last for 1-2 months, followed by pullback/consolidation phases that also last 1-2 months. It’s not a perfect science, but the important thing to understand is that stocks need to rest and digest. This is particularly true for a stock that has risen 400%-500% over a relatively short period of time.
The TLO daily chart is bullish and I wouldn’t mind seeing another 1-2 weeks of churning in the $.36-$.42 range. We are likely on the cusp of a period of much busier news flow from Talon that will last through the end of the year. The calm share price consolidation stands in contrast with what may be just over the horizon.
What a week it was for silver stocks! Guanajuato Silver (TSX-V:GSVR) was up 32.5% on heavy volume:
GSVR.V (Daily)
Last week’s gain comes on the heels of a 35% gain the week before. As of today’s close, GSVR shares have doubled since the end of August.
Why the big rally in silver stocks?
The simple answer is a $42/oz silver price. But the more complex answer is that there is clear evidence of hedge funds getting positioned for a much larger rise in the silver price later this year.
The fact that the universe of publicly traded silver miners is still relatively small lends to the potential for outsized rallies. Just like we’ve witnessed over the last couple weeks.
KTN.V (Daily)
Kootenay Silver (TSX-V:KTN) holds 100% ownership of the high-grade La Columba Silver Project located in Chihuahua, Mexico. La Columba has a 54 million ounce resource grading 284 g/t silver. Resource expansion drilling is underway with two core rigs at La Columba, and as of last week’s update 5 drill holes have been completed for a total of 2,500 meters drilled.
Kootenay is fully funded for a 30,000 meter resource expansion drilling program, having closed a C$20,000,000 bought deal financing in July. At $40+/oz silver, a junior explorer drilling out a high-grade Mexican silver vein field might even be more attractive than a fartcoin or a jpeg of an ape.
Disclosure: Author owns shares of Newcore Gold, Rackla Metals, and Talon Metals at the time of publishing and may choose to buy or sell at any time without notice.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, corporate presentations and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This article is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SedarPlus.com for important risk disclosures. It’s your money and your responsibility.