Could 11, 2022 (Investorideas.com Newswire) One Vancouver-based junior exploration firm simply went from one to 2 flagship tasks with the discharge of the maiden useful resource estimate on a copper-silver mission in Colorado. May this be a game-changer for shareholders?
Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) La Plata copper-silver porphyry mission in Colorado has its first resource estimate, and it’ll give copper-hungry firms looking for belongings one thing to chew on as copper costs proceed to hover round $4.50 per lb, down from their all-time highs in early March.
The Nationwide Instrument 43-101-compliant La Plata useful resource rings in at 889 million lb copper and 14.975 million ounces silver (Moz Ag) in a constrained mannequin containing 115.7 million inferred tonnes at a median grade of 0.39% copper-equivalent (CuEq) (0.35% Cu and 4.02 grams per tonne silver (4.02 g/t Ag), utilizing a 0.25% CuEq cutoff grade.
The useful resource focuses on the central Allard copper-silver porphyry deposit.
The mineralized zone that varieties the useful resource is a single porphyry intrusive-hosted sulphide system that was drilled over an space measuring about 1 kilometer by 400 meters, with the spacing between holes usually various between 50 and 100 meters (some spacing is 150 meters).
The deepest gap drilled led to mineralization about 1 km under floor.
“It is a large system. And that central gap – and others on this space – principally began in mineralization after which led to mineralization. What that tells us is we’ve got received to maintain drilling to know how large it is in the end going to get,” Metallic Minerals Chief Govt Officer and Chairman Greg Johnson informed Streetwise Studies.
Metallic Acquired La Plata on the Backside of Steel Value Cycle
Metallic acquired La Plata (which interprets to “the Silver” and was found by Spanish explorers within the 1700s) in an equity-based transaction in late 2019. The deal was for a complete of 10 million Metallic “items” and $500,000 money, as soon as sure milestones are accomplished by way of 2023. Every unit consists of a share and a half buy warrant that’s topic to sure phrases.
There may be additionally a 2% NSR that may be purchased right down to 1.5% (neither quantity is prone to impede any takeover bid as producers buying copper properties within the present copper value setting are paying way more for lesser belongings, usually in additional risky jurisdictions).
Earlier than La Plata discovered its means into Metallic’s palms, Kennecott (Rio Tinto Plc’s (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) U.S. exploration group), Exxon Mobil Corp. (XOM:NYSE) (when oil and fuel firms nonetheless seemed for base metals deposits) and Phelps Dodge (now Freeport-McMoRan Inc. (FCX:NYSE)), had drilled a mixed 56 holes totalling nearly 13,000 meters on the property.
Since buying the mission in late 2019, Metallic has accomplished a further 1,980 meters of core drilling, resampled historic drill core, and took underground samples from the Allard deposit. The junior additionally performed airborne and ground-based geophysics and floor sampling throughout the broader property. The useful resource was calculated by SGS Geological Companies utilizing the latest and historic knowledge.
The work Metallic has achieved at La Plata is absolutely the one trendy exploration undertaken on the property in about 50 years. By means of centered affirmation drilling the corporate was capable of develop a NI 43-101 useful resource estimate for the property in pretty quick order.
A mannequin of the Allard deposit on the La Plata copper-silver mission in Colorado. Supply: Metallic Minerals Corp.
Drill outcomes alongside the Allard porphyry system have proven some spectacular numbers. Gap LP-03 returned 395 meters grading 0.57% copper equal (CuEq) (0.51% Cu, 6.3 g/t Ag, 0.017 g/t Au), whereas gap LP-01 intersected 854 meters grading 0.26% Cu, together with a higher-grade interval of 254 meters grading 0.41% Cu – each holes began and led to mineralization.
Allard stays open to growth at depth and alongside strike. And 16 extra untested porphyry facilities have been recognized utilizing superior machine studying expertise on the larger La Plata property space. Metallic is working with Goldspot Discoveries Inc. (SPOT:TSX.V), a Vancouver-based agency that makes use of geological and geophysical knowledge, in tandem with synthetic intelligence, to higher “perceive” steel deposits.
Johnson says a few of these targets have comparable and even stronger mineralization signatures than the Allard system itself.
Metallic plans extra follow-up drilling and geophysical surveys in 2022, particularly within the epithermal zones exterior the porphyry core. Johnson believes these zones might maintain valuable metals mineralization, maybe not dissimilar from their Keno Silver mission in Yukon.
“We’d anticipate including worth as we drill the system extra to check its final measurement extent and to usher in worth for gold and different metals as nicely. Particularly, there may be good potential to usher in high-grade epithermal silver and gold methods which are close by however aren’t on this (useful resource) proper now,” Johnson informed Streetwise Studies.
A Two-Flagship Venture Firm?
The Keno Hill Mine advanced in Yukon. Supply: Metallic Minerals Corp.
With Metallic advancing its flagship Keno Silver property in Yukon, and now La Plata, it offers extra choices for shareholders, Johnson says.
“We’re successfully a two-flagship firm now,” Johnson defined. “Already we’re seeing curiosity from producers based mostly on the standard and ‘blue sky’ potential of the 2 belongings.”
“Our perception is that La Plata is a extremely good mission and provides worth to what we have been already being valued on for our half of the Keno Hill District. We’ll be capable of advance these (tasks) in parallel, and down the street, the great upside for shareholders is that we might decide that there are literally two company-makers right here,” Johnson informed Streetwise Studies.
At $25/oz silver and $4.50/lb. copper, it would not take lengthy to calculate that the present within the in-the-ground steel worth of 15 Moz Ag and 900 Mlbs Cu is about $4.4 billion. Even at a 75% low cost fee to present metals costs to account for the inferred grades, potential capex, and mining prices, and many others., La Plata stays a possible billion-dollar asset within the making.
Even with out the maiden useful resource at La Plata, Vancouver-based fairness analysis agency Couloir Capital had a 12-month “truthful worth” goal on Metallic of CA$0.68.
Famend mining investor Eric Sprott owns 16% of Metallic, whereas San Antonio, Texas – based mostly US International Buyers and Hungarian agency OTP Funds are additionally giant shareholders. Administration and insiders personal about 19%.
Metallic has a present market cap of about $60.5 million and trades in a 52-week vary of CA$0.66 and CA$0.42.
Disclosures
1) Brian Sylvester compiled this text for Streetwise Studies LLC and offers companies to Streetwise Studies as an unbiased contractor. He or members of his family personal securities of the next firms talked about within the article: None. He and members of his family are paid by the next firms talked about on this article: None. His firm has a monetary relationship with the next firms referred to on this article: None.
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