Three key developments have recently come out of Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) aggressively advancing its projects, reported Couloir Capital in a March 21 research note. The metals explorer hit a large mineralized intercept at La Plata, received positive drill results out of Keno, and entered a royalty agreement with the star of the "Gold Rush" TV series.
"With a positive 2022 exploration program and a celebrity royalty deal, we believe Metallic Minerals will look to build on recent strength and maintain momentum going into the rest of 2023," Couloir wrote.
Also, the Canadian explorer, at its current share price of about CA$0.30, offers investors a significant potential return. Couloir's CA$0.75 per share fair value on Metallic Minerals implies possible 156% gains from here. The company is rated Buy.
The CA$0.75 per share fair value is new, having recently decreased from CA$0.90 as a result of Couloir updating its valuation model on the mining firm.
In its report, Couloir addressed each of Metallic Minerals' three new developments, highlighting that they are "catalytic events that could fundamentally change aspects of our valuation thesis for [the company] moving forward."
Royalty Deal Inked
Metallic Minerals signed a gold production royalty agreement on its Australia Creek property, also in the Yukon, with Little Flake Mining Co., owned and operated by Parker Schnabel, the star of the Discovery Channel's "Gold Rush." This partnership could raise Metallic Minerals' profile and attract new investors.
Further, Couloir noted, should the arrangement be successful, "we can expect similar other deals given Metallic Minerals' huge land package at Klondike gold district."
Positive Drill Results in the US
Results from Metallic Minerals' two-hole exploration program carried out last year at its La Plata copper project in Colorado showed high-grade mineralization and indicated it remains open to significant expansion.
As an example, hole LAP22-04 returned a large mineralized intercept, 816 meters (816m) of 0.41% copper equivalent (copper, gold, and silver). Hole LAP22-03 encountered 913.79m of 0.12% copper equivalent.
Metallic Minerals is working on updating the resource estimate for La Plata, which will include the results of all 2022 drilling. It is expected to be done by mid-2023.
"Should the company manage to achieve similar results with its 2023 follow-on drill program at La Plata, management believes the project could start to attract interest from major mining companies," wrote Couloir.
More High Grades in Canada
Results of 2022 drilling at the company's Keno silver project in the Yukon were noteworthy for high-grade silver, lead, and zinc mineralization at East Keno and West Keno, Couloir reported.
"We expect these results will be instrumental in advancing Keno silver to its maiden resource milestone," added Couloir.
At East Keno, the new drill data extended known mineralization downdip and along trend. The highest grade of silver equivalent encountered, 1,087 grams per ton (1,087 g/t), came from hole UKHM22-01 drilled in the UKHM target.
As for results from West Keno, they included multiple intersections of broad bulk tonnage silver, particularly at the high-priority Formo target. For instance, hole FOR22-01 drilled in Formo, hit 0.54m of 2,291 g/t silver equivalent.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and 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.
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Disclosures for Couloir Capital Ltd., Metallic Minerals Corp., March 21, 2023
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations.
Couloir Capital Ltd. is affiliated with Couloir Securities Ltd., an Exempt Market Dealer. They shall be referred to interchangeably as Couloir Capital herein. Part of Couloir Capital's business is to connect mining companies with suitable investors that qualify under available regulatory exemptions. Couloir Capital, its affiliates, and their respective officers, directors, representatives, researchers, and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Couloir Capital may have provided in the past and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Couloir Capital has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not consider the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investing. Couloir Capital will not treat recipients of this document as clients by virtue of having viewed this document.
Company-specific disclosures, if any, are below:
1. In the last 24 months, Couloir Capital Ltd. has been retained under a service agreement by the subject issuer. This service agreement includes analyst research coverage.
2. The views of the Analyst are personal.
3. No part of the Analyst’s compensation was directly or indirectly related to the specific ratings as used by the research Analyst in the Reports.
4. The Analyst DOES NOT maintain a financial interest in the securities or options of the Company.
5. Couloir Capital DOES NOT maintain a financial interest in the securities or options of the Company.
6. The information contained in the Reports is based upon publicly available information that the Analyst believes to be correct but has not independently verified with respect to truth or correctness.