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 challenge in Colorado. Might this be a game-changer for shareholders?
Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) La Plata copper-silver porphyry challenge in Colorado has its first useful resource estimate, and it’ll give copper-hungry corporations 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 beneath floor.
“It is a huge system. And that central gap — and others on this space — principally began in mineralization after which led to mineralization. What that tells us is now we have bought to maintain drilling to grasp how huge it’s in the end going to get,” Metallic Minerals Chief Govt Officer and Chairman Greg Johnson informed Streetwise Stories.
Metallic Acquired La Plata on the Backside of Metallic 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 via 2023. Every unit consists of a share and a half buy warrant that’s topic to sure phrases.
There’s additionally a 2% NSR that may be purchased all the way 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 far more for lesser belongings, usually in additional unstable jurisdictions).
Earlier than La Plata discovered its approach into Metallic’s arms, 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 corporations 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 challenge in late 2019, Metallic has accomplished an extra 1,980 meters of core drilling, resampled historic drill core, and took underground samples from the Allard deposit. The junior additionally carried out airborne and ground-based geophysics and floor sampling throughout the broader property. The useful resource was calculated by SGS Geological Providers utilizing the latest and historic knowledge.
The work Metallic has performed at La Plata is actually the one fashionable exploration undertaken on the property in about 50 years. By way of targeted affirmation drilling the corporate was capable of develop a NI 43-101 useful resource estimate for the property in pretty quick order.
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 enlargement at depth and alongside strike. And 16 extra untested porphyry facilities have been recognized utilizing superior machine studying know-how on the better 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 outdoors the porphyry core. Johnson believes these zones might maintain valuable metals mineralization, maybe not dissimilar from their Keno Silver challenge in Yukon.
“We’d anticipate including worth as we drill the system extra to check its final measurement extent and to herald worth for gold and different metals as effectively. Specifically, there’s good potential to herald high-grade epithermal silver and gold techniques which are close by however aren’t on this (useful resource) proper now,” Johnson informed Streetwise Stories.
A Two-Flagship Mission Firm?
With Metallic advancing its flagship Keno Silver property in Yukon, and now La Plata, it gives extra choices for shareholders, Johnson says.
“We’re successfully a two-flagship firm now,” Johnson defined. “Already we’re seeing curiosity from producers primarily based on the standard and ‘blue sky’ potential of the 2 belongings.”
“Our perception is that La Plata is a very good challenge and provides worth to what we have been already being valued on for our half of the Keno Hill District. We’ll have the ability to advance these (tasks) in parallel, and down the street, the good upside for shareholders is that we might decide that there are literally two company-makers right here,” Johnson informed Streetwise Stories.
At $25/oz silver and $4.50/lb. copper, it doesn’t 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 price 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 “honest worth” goal on Metallic of CA$0.68.
Famend mining investor Eric Sprott owns 16% of Metallic, whereas San Antonio, Texas – primarily based US World 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.
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