Month: October 2020

Source: Peter Epstein for Streetwise Reports   10/08/2020

Peter Epstein of Epstein Research profiles this company exploring in British Columbia’s Golden Triangle and explains why he believes it stands out from its peers.

Note: On the morning of October 8th, Sassy Resources (CSE: SASY) announced a C$5M non-brokered private placement.

Few gold/silver jurisdictions on the planet share the high-grade, high excitement and high company valuations of the Golden Triangle (GT) in northwestern British Columbia, Canada. Over 40 companies have all, or substantially all, of their properties/projects there. Below is a chart showing the top 20 pre-construction stage juniors in the district.

Only four have current mineral resource estimates, one has a preliminary economic assessment (PEA) and one a definitive feasibility study (DFS). Yet, these 20 are trading at an average Enterprise Value (EV) (market cap + debt – cash) of $124 million. On average, the top 20 are up +455% from their respective 52-week lows (range 51% to 993%).

Some of the names on the list might be overvalued, but many analysts and market pundits believe there will be a tsunami of precious metals M&A over the next few years. A rising tide will continue to lift all boats. Still, some boats have more lift potential than others.

To be safe, investors should be aware of relative valuation in the GT, and for that matter across the >500 Canadian and U.S.-listed gold juniors.

Sassy Resources—high-grade, high discovery potential on 14,585 hectares

This is my third article on recently listed Sassy Resources (CSE: SASY), a junior with a sizable project in the Eskay Camp, in the heart of the GT. Sassy is a relatively unknown spinout from Crystal Lake Mining (now called Enduro Metals). It may not remain unknown much longer as drill results and new strategic investors are announced later this year.

Sassy controls 100% of the very promising Foremore gold-silver project covering 14,585contiguous hectares, hosting high-grade precious metal targets and non-trivial showings of zinc, lead and copper. This year management is laser-focused on high-grade gold and silver. Look at the map above to see how central this project is.

By way of comparison, Sassy’s 14,585 hectare (ha) footprint is similar in size to other high-profile GT projects like Skeena Resources’ Eskay Creek at 6,151 ha, or Ascot’s Red Mountain (17,125 ha) footprint. Tudor Gold owns 60% of the (17,913 ha) Treaty Creek, and Benchmark Minerals has the (14,000 ha) Lawyers project.

Pre-construction juniors in the GT have EVs as high as Tudor’s $595 million. The top-10 average $222 million. Sassy’s EV is $37 million, the 14th largest on the chart. Note: {I count deep in-the-money shares and warrants in my share counts.}

However, if the company has success on its ongoing drill program at the Westmore target (currently drilling hole #5, results from initial holes should start coming back next month), its valuation could easily break onto the top-10 list!

Visible Gold in first 2 drill holes at Westmore target, this could be BIG…

To be clear, projects controlled by the top 10 companies are more advanced, roughly 2–4 drill seasons under their belts. Skeena’s Eskay Creek has a PEA on it, and Ascot’s project a DFS.

Sassy is just one season into drilling its property, but they already know they’re in the right zip code and have plenty of room for blockbuster, high-grade discoveries.

In Sassy’s most recent press release, management announced that vein sets recognized at surface at Westmore (including visible gold in the first two drill holes) has been intersected to a depth of 270 meters. These holes had core lengths of 211 and 304.5 meters.

Importantly, mineralized zones consisting of abundant quartz veins occur over widths of multiple meters. While visible gold is always nice, management points out the significant amounts of gold and silver in several other samples that did not have visible gold.

This is really big news, and mineralization remains open in all directions. Westmore is just one of a dozen targets on the Foremore property in Northwest BC’s Eskay Camp (in heart of Golden Triangle). Readers should note, management remains interested in the More Creek Corridor and Hanging Valley areas, but the primary focus is Westmore.

Impressively, over 800 chip, grab and composite samples have been collected since July over an exposed surface area of 400 by 400 meters with initial assay results confirming high-grade gold values. Some samples had visible gold.

Mark Scott, president and CEO, commented,

“It is rare to have a grassroots target turn into an early-stage discovery like this after only a few months of field work followed by the first two drill holes, but this speaks to the energy and boldness of our team and the prolific nature of this district. We will push the drilling as far into the fall as possible as we have multiple high-quality targets to test thanks to extensive mapping and sampling.”

Select blockbuster surface samples, will drill results impress?

Results are being received for sampled quartz veins occurring 100 to 300 meters south of the original surface discovery reported on September 4th. Needless to say, expansion of the prospective mineralization by hundreds of meters would be incredibly important.

Preliminary assay and check assay results at Westmore have highlighted widespread high-grade gold mineralization. These surface samples range up to a gold equivalent grade of ~157.5 grams per tonne (g/t), (the second best grades ~150 g/t gold equivalent).

At least one full drill core has been submitted to a lab for assay, delivered about 10 days ago. Due to unprecedented delays in BC labs, it’s hard to know when to expect results, but next month news should start to flow and continue flowing well into December.

As mentioned, the first two drill holes produced core with visible gold and demonstrated continuity from surface to (at least) 270 meters. If visible inspections of drill cores continue to identify multiple meters of potentially high-grade mineralization, that would generate a great deal of attention.

Imagine having such substantial exploration success so soon—on the very first drill program—on 1 of 12 targets. That’s what we’re looking at here. That’s why management is so excited and why the company just announced a private placement with “strategic investors” to raise cash to do a lot more drilling!

Perhaps less appreciated by investors is management’s ongoing quest to make acquisitions. Unlike most GT-focused juniors, Sassy plans to control high-grade projects in North America upon which they can drill year-round. Multiple discussions are underway, and I believe at least one deal will be announced before year-end.

CONCLUSION

Looking at the top-20 GT names again, 9 are up >+500%. Could some of those stocks double or triple from here? Sure. But if they did it would probably be in large part due to soaring M&A activity, a higher gold price and/or new investors entering the precious metals sector.

If some of the best performers were to rise by another 100%–200%, I feel confident that Sassy would increase by a lot more. Two more things in the company’s favor are the tight share structure (under 40 million shares) and modest EV, under $40 million (pro forma for today’s announced equity raise).

Make no mistake, Sassy Resources is an earlier-stage and riskier company than most of the top-10 names, but it offers a compelling risk/reward investment proposition.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Sassy Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Sassy Resources are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Sassy Resources was an advertiser on [ER] and Peter Epstein owned zero shares, options & warrants in the Company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sassy Resources, a company mentioned in this article.

( Companies Mentioned: SASY:CSE,
)

Source: Streetwise Reports   10/08/2020

Dr. Peter Megaw, MAG Silver’s chief exploration officer, has been waiting for decades to explore the Deer Trail Mine area.

MAG Silver Corp. (MAG:TSX; MAG:NYSE A), known for its high-grade Juanicipio silver project in Mexico that it is developing with Fresnillo Plc, is branching out with an earn-in agreement to acquire 100% of the Deer Trail Project in Utah.

The company has consolidated lots of different claims—the property totals about 5,600 hectares and includes 111 patented and 682 unpatented claims—to form the project. The project combines the Deer Trail Mine with the surrounding Alunite Ridge area.

Dr. Peter Megaw, MAG Silver’s chief exploration officer, has had his eyes on the property since the early 1980s, when he was working for Kennecott in the central Utah area. “Kennecott sent me out to look at some regional prospects, Deer Trail being one of them, which was being explored at the time. And I really liked what I saw and filed it away,” Dr. Megaw told Streetwise Reports.

“This is classic replacement style mineralization; the more I learned about Deer Trail and the more I learned about other carbonate replacement systems (CRD), the more it says there’s something important here,” Dr. Megaw explained. Deer Trail is on the same fault as the major porphyry and CRD deposits Bingham Canyon and Tintic.

Consolidating the area allows MAG Silver to apply an “integrated district-scale exploration approach based on the continuum of mineralization styles from CRD through skarn to porphyry copper-molybdenum shown by many related systems worldwide. This model suggests that the high-grade silver, gold, lead, zinc and copper CRD sulfides of the Deer Trail mine are linked by kilometers of continuous mineralization to a porphyry copper-molybdenum center lying to the west near Alunite Ridge,” the company stated.

Geologists believe that the Deer Trail deposit is a hub and spoke system, with the porphyry being the hub. The company’s initial focus has been on one spoke. “Because of work that’s been done historically, including the 20,000 meters of historical drilling, we understand what we call the distal end of the spoke pretty well. We think that when they found the Deer Trail in outcrop in 1878, they found basically the tip of the one spoke. That tip has a very characteristic gold bearing quartz style of mineralization associated with it; they followed that down dip, ultimately for two and a half kilometers. It went from that style of gold quartz mineralization to the massive sulphide mineralization that is typical of the Deer Trail manto.” Dr. Megaw said.

As for the porphyry, Dr. Megaw explained that about a half dozen holes were drilled into it from various places, but by companies holding only small pieces of the property package. “One of those drill holes actually got something that has to be very close to the porphyry because they’ve got hundreds of meters of pervasive sericite alteration, a high temperature acid alteration that’s typical of when you’re near or actually in the porphyry. They also cut, but didn’t sample, high-grade quartz-molybdenite veins,” he stated.

One of the features MAG is searching for is Redwall Limestone, which is more than 300 meters thick, and should underlie the relatively unfavorable section that hosts mineralization in the historical Deer Trail mine. “The Redwall is the most favorable unit in the Western United States for carbonate replacement mineralization. We want to figure out how deep we have to go to get to it. And we want to focus our exploration there because you want to focus in what you think is the highest potential host rock. So the identification of the Redwall Limestone host rock is what our first round of drilling is targeted on,” Dr. Megaw said.

MAG Silver has already conducted a small seismic survey, employing technology used by oil explorers. “We used what’s called a Thumper, which is like a hydraulic pounder on the back of a mine cart, Dr. Megaw explained. “We could only see about 150 meters below the adit, but we could see the bedding very nicely. And we could see the structures in that, the same ones that we see and can recognize are feeders in the workings. So we got really good ground truth from that.”

Next up is a 1.8-kilometer-long seismic survey. “We’re using small explosive charges because explosives give you a sharper signal, penetrate better and give you higher resolution. That could see 600–700 meters in depth, well past where we think the Redwall is,” Dr. Megaw explained. “We’re expecting to be able to see a lot with that. We also know based on surface use of the same approach in similar types of replacement systems that sulfides have a very distinctive signature, so we are hoping to pick them up too.”

MAG Silver is partnering with a local university to run the seismic survey. The seismic work will be used to refine 3D models and guide drilling.

MAG Silver is fully permitted for its initial, 6,500-meter surface drill program, with holes targeting depths of 800 to 1,000 meters.

“We’re going to start to understand our first spoke, then we’re going to try to find where the porphyry center is. A porphyry deposit is not a target for a junior company. For a porphyry to make sense, you need a billion tons of 0.5% copper; there’s no way we want to do that. But if we can demonstrate that there’s one there and it’s a viable target, then perhaps a major would be interested in partnering with us on that part of the system, leaving us to continue to explore all around the system, looking for the high-grade silver, lead, zinc, copper, gold mineralization that we see at the Deer Trail and have every reason to think there’s more of.”

The Deer Trail agreement is structured so that the property and claims holders contributed their properties into DT Mining LLC in exchange for 99% ownership. MAG Silver holds the remaining 1% and has the right to earn a 100% interest by spending $30 million in expenditures and $2 million in royalty payments over 10 years. The parties retain a 2% net smelter recovery (NSR) royalty. MAG Silver has no obligation to make any payments beyond the $2.5 million first year commitment of royalty and expenditure payments, which has already been satisfied.

“MAG is not interested in small mines, MAG is interested in big, high-grade mines with a long mine life, because it’s just as much trouble to put a small mine into production as it is to put a big one into production. But a small mine runs out faster, and you don’t really make any big money. A large mine is also big enough to last a couple of market cycles, at least,” Dr. Megaw concluded.

A report by Stifel GMP Analyst Stephen Soock on September 11 focused on MAG’s new property. “The acquisition comes with an extensive amount of data that has been compiled on a regional scale for the first time. This includes surface and UG geological maps, geochem sampling, logs, core and chip samples from 20,000m of drilling, extensive geophysics surveys and 2.5m of accessible underground drift. MAG’s primary focus will be on the deeper limestone unit prime for hosting CRD mineralization between the Deer Trail mine and source porphyry intrusion 3-5km away. The company’s technical advisor, Dr. Peter Megaw, is the world’s leading expert on CRDs.” The firm increased its target price to CA$27.75 and maintained its Buy rating. MAG shares are currently trading at around CA$22.35.

MAG Silver has around 94 million shares outstanding, 96.6 million fully diluted. The company’s market cap is approximately CA$2.10 billion.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: MAG Silver. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Stifel GMP, MAG Silver Corp., September 11, 2020

Important Disclosures and Certifications
Each research analyst and associate research analyst who authored this document and whose name appears herein certifies that: (1) the recommendations and opinions expressed in the research report accurately reflect their personal views about any and all of the securities or issuers discussed herein that are within their coverage universe; and (2) no part of their compensation was, is or will be, directly or indirectly, related to the provision of specific recommendations or views expressed herein.

Stifel Canada Analysts are compensated competitively based on several criteria. The Analyst compensation pool is comprised
of several revenue sources, including secondary trading commissions, new issue commissions, investment banking fees, and
directed payments from institutional clients.

Company-Specific Disclosures: None

( Companies Mentioned: MAG:TSX; MAG:NYSE A,
)

I hate moving. We moved from Kentucky to Florida about a year ago. It wasn’t fun. It was stressful. I lost things. Now, imagine moving $11.7 billion in gold bars and coins. No thanks! But Netherlands’ central bank recently did just that. It moved 14,000 gold bars and about 1,000 boxes of gold coins. The […]

Regal Cinemas shut down all of its US theaters this week. The company said the closure is temporary, but it reveals the deeper strain in the retail sector. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey digs deeper into the retail mess and talks about what it is telling us about […]

Trump does have some options to continue unemployment payments, but a stimulus deal would be much better to get the economy back to work… Greg Hunter gives The Weekly News […]

The post No More Debates, Kamala is Speaking, Sick Economy appeared first on Silver Doctors.

“Prices for products containing silver will change EFFECTIVE October 13, 2020…re-setting silver prices is necessary”… (by Half Dollar) No inflation, huh? The US Mint even says below, to “cover rising […]

The post The US Mint Is Hiking SILVER Prices, Will Charge $67 For Each 1-Ounce Uncirculated American Silver Eagle Coin STARTING Tuesday, October 13! appeared first on Silver Doctors.

Stimulus “negotiations” are ongoing in what Trump fans call an “art of the deal” kind of way, and Trump’s beat The China Virus, so it’s all good, right? Everyone thinks […]

The post Is This The Weekend It All Falls Apart, With Silver Surging Sunday Night…?!? appeared first on Silver Doctors.

The online review website Yelp is giving the woke mob a new tool to use… by Simon Black of Sovereign Man Are you ready for this week’s absurdity? Here’s our […]

The post Yelp Places Badge Of Dishonor On Businesses Accused Of Racism appeared first on Silver Doctors.

We are on the cusp of absolute tyranny. The presence of the military on American streets should concern everyone…  by Mac Slavo of SHTFplan We are seeing the National Guard […]

The post MINNESOTA NATIONAL GUARD ACTIVATED OUT OF “ABUNDANCE OF CAUTION” appeared first on Silver Doctors.