Northern Dynasty (NAK) Best Junior Gold Takover Target for 2010: Breakout Expected
Northern Dynasty’s Pebble Project is the top undeveloped gold and copper mine in the world at the moment and it is located in Alaska which is very friendly to mining. It is an open pit mine near Anchorage with a massive deposit which has continued to expand full of copper and gold. I believe that right now it is trading at a discount and what we have witnessed with the takeover of Corriente in Ecuador major capital is flowing to major undeveloped projects.
They already have partnerships with major mining companies such as Rio Tinto and Anglo American. This is still early for the company as production is not expected to 2016, however in this environment we will see a race for natural resources. NAK will get a major premium and could catapult from these price levels.
Technically the chart looks like it could make a major move. Northern Dynasty is showing classic signs of institutional buying before a move. It is a classic cup and handle pattern which has historically led to major moves.
Disclosure: I own shares of NAK.
Correction: The Pebble Project at the moment will be both open pit and block cave.
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