Bullfrog Gold Corp (OTCMKTS:BFGC) is one of many plays in the gold space that may see a very interesting week this week. We noted the issues surrounding the junior gold miners in a recent article, and how BFGC has a potential edge in that space due to some recent clever deal making. That said, we noted previously that we might see the March FOMC meeting as the key catalyst for the space. However, according to some recent rumors, that time table may have to be moved up to this week.
As you know, the Federal Reserve meets this week to announce an interest rate decision and put out a statement. According to our sources, there is more than a little tension developing between Janet Yellen and Donald Trump. Some suggest that, no matter what the Fed decides this week, Trump may well take it upon himself to start tweeting out some potential successors to Ms. Yellen. If they turn out to be names that lack hawkish, independent credibility, then we are likely to see a banner day for the gold market. Given BFGC’s ability to step up production capacity beyond that for most junior miners, this is one play that may have a chance to really go to work for investors.
Bullfrog Gold Corp (OTCMKTS:BFGC) bills itself as a company focused on the exploration and development of its Bullfrog gold Project located 120 miles NW of Las Vegas, Nevada, where Barrick Bullfrog Inc. (Barrick) produced 2.3 million ounces of gold averaging 2.8 g/tonne from 1989-1999.
The Company also acquired Barrick’s comprehensive exploration, mining and processing data base, including information on 157 miles of drilling in 1,298 holes. For reference, Barrick ceased operations in 1999 when the price of gold was less than $300/oz. BFGC has identified 470,000 ounces of gold mineralization remaining between Barrick’s Bullfrog underground and open pit mines and in the M-S pit area.
Big Things Afoot
As discussed above, the gold markets may be running into some interesting catalysts this week.
Bullfrog, itself, can make an argument that it might be the biggest beneficiary of that type of shift in thematic context. That’s what happened the last time.
Shares of the stock are pricing at just $0.10/share at present. The float is small, at under 30M shares. The company has tiny current liabilities and hugely productive assets in place. It also has a track record that includes some dramatic outperformance relative to other juniors when the yellow metal finds some jets.
For example, after the Fed raised rates in December of 2015, gold bottomed and took off higher, reaching over $1300/troy ounce by July. During that time, Bullfrog Gold ripped 2300% higher. Why did it outperform gold and the other miners by such a wide margin? Because it’s thin on the tape, badly under-owned, and trades with a much higher beta.
We believe that may happen again if gold gets moving higher. And Trump’s short list of new Fed chair candidates is going to be the biggest catalyst we’ve seen for gold in a long, long time.
With a major weekly chart bull flag in place now for BFGC, and the Bank of Japan, FOMC, and employment report all on tap this week, as well as a possible tweet or two from Mr. Trump on the future of monetary policy oversight at the executive level, it could be a very interesting week, indeed.
