Gold and Lithium in South Dakota with a Potential Technical Breakout on the Horizon

Source: John Newell 09/02/2025

John Newell of John Newell & Associates explains why he thinks Lion Rock Resources (ROAR:TSX; LRRIF:OTC) is a Speculative Buy.

Lion Rock Resources (ROAR:TSX; LRRIF:OTC) is a Canadian junior advancing a unique dual-commodity strategy in South Dakota, a jurisdiction with a deep mining history and a supportive regulatory environment. The company’s projects include both gold exploration in a region historically known for its prolific Homestake deposit (which produced over 40 million ounces) and lithium potential at a time when U.S. domestic supply is strategically important.

With gold breaking to new highs and lithium maintaining its role as a cornerstone of electrification, Lion Rock sits at the intersection of two powerful themes.

Why Now?

The setup is timely. Gold continues to trade above US$3300.00 per oz, with technical patterns suggesting higher levels ahead. Lithium remains strategically critical, with the U.S. government and battery manufacturers aggressively seeking secure supply. Lion Rock’s land position in South Dakota gives it optionality to advance projects in both spaces, while its tight share structure and exploration catalysts provide leverage for investors.

The market is beginning to recognize the story. After a long basing period through 2023–24, the chart began to show accumulation in early 2025 — a pattern that has since delivered the first breakout and opened the door for further upside.

Technical Analysis

Lion Rock’s chart progression in 2025 tells the story of a junior moving from obscurity into recognition.

In early 2025 (charts dated Jan–Mar), the stock had been basing tightly with higher lows forming against long-term resistance. That setup produced a clear breakout through the CA$0.18–CA$0.20 zone, with the first target at $0.26 identified months in advance. By late August, that first target was met and exceeded, confirming the strength of the pattern.

The current chart shows the classic “Breakout, Pullback, Go” sequence unfolding. After testing higher levels, the stock has pulled back modestly on lighter volume, while continuing to hold trendline support and its rising moving averages. This is constructive price action that often precedes the next leg higher.

Momentum: RSI sits mid-range (~55–60), leaving room for expansion. MACD remains positive but consolidating, consistent with a pause before further upside.

Volume: Accumulation has picked up, with stronger buying days outweighing selling days, a sign that institutional or strategic interest is entering the stock.

Moving Averages: The 50-day has crossed above the 200-day (golden cross), reinforcing the bullish structure.

Price Targets:

• 1st Target: CA$0.26: achieved.
• 2nd Target: CA$0.40 short-term.
• 3rd Target: CA$0.65 medium-term resistance.
• Big Picture Target: CA$1.50 from the measured base pattern.

Risk Levels:

• CA$0.22 short-term trendline and 50-day MA.
• CA$0.180.20 prior resistance turned support.
• CA$0.11 long-term base support.

The sequence of higher lows, breakout validation, and volume expansion suggests Lion Rock has entered its Point of Recognition (POR), the phase when the broader market starts to assign real value to the story. Sustained closes above CA$0.28–CA$0.30 would strengthen the case for a move toward CA$0.40 and, ultimately, CA$0.65.

Conclusion

Lion Rock Resources combines exposure to gold and lithium in South Dakota, one of the most mining-friendly U.S. states, with a technical chart that has already confirmed its first breakout. With gold at record highs and lithium’s strategic value undiminished, Lion Rock is well-positioned for a re-rating as exploration results and catalysts emerge.

At the September 2, 2025, closing price of CA$0.24, I view Lion Rock Resources as a Speculative Buy.

For more information, visit the company website: www.lionrockresources.com.

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lion Rock Resources.
2. John Newell: I, or members of my immediate household or family, own securities of: Lion Rock Resources. My company has a financial relationship with Lion Rock Resources. My company has purchased stocks mentioned in this article for my management clients: Lion Rock Resources. I determined which companies would be included in this article based on my research and understanding of the sector.
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John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it’s advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

( Companies Mentioned: ROAR:TSX;LRRIF:OTC, )

Source: https://www.streetwisereports.com/article/2025/09/02/gold-and-lithium-in-south-dakota-with-a-potential-technical-breakout-on-the-horizon.html