Quinton Hennigh, Geologist and Technical Advisor to Crescat Capital, began his briefing with a report on Monarca Minerals Inc. (MMN:TSX.V; ORAGF:OTCMKTS). After some delay due to COVID-19, the company is now drilling at its San Jose project and has sufficient funds to complete the program, Hennigh said.
The San Jose property sits on Mexico's Chihuahua trough, an area dotted with longstanding producing mines and boasting world-class deposits. For example, the Bismarck project nearby has an Inferred resource of about 13,000,000 tonnes, and the underground mine there produces about 2,500 tonnes per day of silver, lead, zinc, and copper ores.
Results for the initial two holes, which were drilled into blind targets at San Jose, are in. Whereas the southern hole hit 52 meters (52m) of exoskarn and endoskarn, the northern one hit 160m.At San Jose, a sampling program returned high grades of gold, zinc, and lead. Specifically, samples from the Guadalupana shaft showed 13,500 parts per million (13,500 ppm) lead, 13,700 ppm zinc, and 9.5 ppm gold. Samples from the El Tiro shaft returned 149 ppm silver and 37,000 ppm copper. Subsequently, an induced polarization survey of San Jose showed what appeared to be two intrusive centers, one in the south and one in the north.
"Now is a good opportunity to make a lot of money on a bet like this."
"This is a very good start," Hennigh said. "Already in the first two holes, they are seeing what they were targeting, and that's really, really exciting." What Monarca is targeting is a big-tonnage deposit chock-full of metals.
One could very well be there, under the terrain, Hennigh purported, based on results of the exploration work completed so far. Such a discovery would greatly impact the value of the company, the market cap of which is only CA$8.4 million, or about US$6 million. The stock right now is "an absolute bargain," trading at $0.07 per share.
"This company has an opportunity to unlock a tremendous amount of value out of the San Jose project," Hennigh added. "Now is a good opportunity to make a lot of money on a bet like this."
Hennigh made note of nine other exploration stories, all in Crescat's portfolio, and gave an update on each one.
Goliath announced this week that its first three drill holes all hit mineralization. Specifically, all encountered a long interval, 36m of 6.4 grams per tonne (6.4 g/t) gold, or 228 gram meters.
"That is a remarkable outcome for a first pass drill program," Hennigh said, "so I think people can take things pretty seriously going forward whenever there's reports of ‘Hey, we're seeing this or that in these holes’."
With three drill rigs operating on the property, Goliath expanded its drill program to about 6,000m.
A company with a cornerstone position in the underexplored Selwyn Basin, Snowline just released results of one hole testing a new target in the Jupiter area. It, too, showed mineralization, Hennigh said.
Kingfisher has completed about nine holes covering 3,200m of its planned 5,000m drill program. One of the deepest holes drilled thus far continued showing mineralization between 500m and 600m downhole, which is remarkable, Hennigh said.
BCM Resources Corp. (B:TSX.V; BCMRF:OTCMKTS)"This is a very exciting play because every single one of the drill holes that have been completed to date has hit mineralization," Hennigh said. "Pay attention. These guys seem to be on to a discovery."
BCM appointed porphyry expert Dr. Sergei Diakov as its new president. Instrumental in finding Oyu Tolgoi in Mongolia, Diakov has a long track record of discovering varied targets in complicated geological systems.
In other BCM news, an audio magnetotellurics geophysical survey of its Thompson Knolls porphyry copper-gold project in Utah is underway.
E2 is mobilizing a second rig to its property to accelerate drilling, ultimately to determine if there is another Hemlo-type deposit in the McKinnon zone.
"I absolutely love the story," Hennigh said. "I can't wait to see what comes out of it."
Red Pine continues to drill the Wawa gold project in Ontario. It just delivered a high-grade result of 3.15m of 109 g/t gold, for a 345 gram meter hole.
Blackrock Silver Corp. (BRC:TSX.V; BKRRF:OTCQX)
"They're onto something," said Hennigh. "I'm very confident they're in the right type of system and this is a story to continue to watch."
Blackrock announced some more results from Tonopah West that included some impressive numbers, Hennigh said. The company's hit rate is better than 50%, and the hits are mostly delivering what are going to be economic holes.
"This is a great trajectory for this story," Hennigh added.
Blackrock will likely release a resource update in the next few months, so stay tuned.
Cabral continues to release drill results, the most recent ones being mostly from the Pau da Marenda blanket. The company continues to hit blankets along with the bedrock gold like in the MG and Central Deposits, Hennigh said.
"There's a lot more to this story," he added.
GBM announced it identified "a beautiful anomaly," according to Hennigh, through a geophysics survey. New drill results showed intervals of vein mineralization.
"This epithermal system up in Queensland could be a monster," added Hennigh.
Missed the macroeconomic portion of the briefing? Click here for part one of Crescat's coverage.
Streetwise Reports Disclosures:
1) This is contributed content from Crescat Capital compiled by Brian Sylvester for Streetwise Reports LLC. Brian Sylvester provides services to Streetwise Reports as an independent contractor. 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. Her company has a financial relationship with the following companies referred to in this article: None.
2) Dr. Quinton Hennigh is Crescat Capital’s full-time Geologic and Technical Director. You should assume that as of the publication date, Dr. Hennigh has a position in the securities discussed and therefore stands to realize significant gains in the event the price of security moves. Crescat owns securities of Monarca Minerals Inc., Goliath Resources Ltd., Snowline Gold Corp., Kingfisher Metals Corp., BCM Resources Corp., E2Gold Inc., Red Pine Exploration Inc., Blackrock Silver Corp., Cabral Gold Inc., and GBM Resources Ltd.
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