Gryphon Minerals (ASX.GRY)

Gryphon Minerals is another very attractive gold explorer in West Africa. Th attraction of this company is that they are outlining a multitude of ore zones, and drilling results to date have been high grades over commercial zones. With a multitude of targets to test, it has scope to be a significant gold mining operation. Exploration over the next 12mths should demonstrate this, and with the gold price proving its meddle, there should be a substantial re-rating in this company from $50mil to $150mil.

I have actually been following this stock for some time, though it fell off my radar. Looking at the chart we can see consolidation at this level - I think this will turn out to be a flag structure. The implication is that I can see a move to 80-85c pretty soon. But we should wait to see if that flag structure is confirmed by consolidation at current levels. And weakness below 55c would be a sign of a fall back to lower support, and present an even better entry (if you can get it).

- Andrew Sheldon www.sheldonthinks.com