Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


First Drill Results from Gold Asset Boast Bonanza Grades
Research Report

View Important Disclosures for this Article
Share on Stocktwits


Returned grades were as high as 29,098 grams per ton silver equivalent, noted a Red Cloud Securities report.

Initial drill results from Blackwolf Copper & Gold Ltd.'s (BWCG:TSX.V) Harry property in British Columbia's Golden Triangle highlight a gold discovery in the Swann zone, reported Red Cloud Securities analyst Taylor Combaluzier in an October 31 research note.

"We believe that a follow-up drill program is already warranted to better define and expand the high-grade mineralization at Swann," Combaluzier wrote.

139% Return on Investment

Based on the news, Red Cloud maintained its target price on Blackwolf of CA$0.55 per share, noted Combaluzier. In comparison, the Canadian explorer's current share price is about CA$0.23. 

Based on these figures, the implied return to target for investors is significant, at 139%.

Blackwolf remains Buy-rated.

"We continue to believe that Blackwolf is poised for growth as melting glacial ice exposes new, untested areas," Combaluzier wrote.

Focus on Sixth Hole

The maiden results are from one hole of the completed seven-hole, 1,740-meter (1,740m) program in Harry's Swann zone, reported Combaluzier. This sixth hole, H23-017, is the one previously reported to show coarse visible gold.

H23-017 was a stepout, about 250m from a hole drilled by Optimum Ventures, that demonstrated 1,437 grams per ton silver equivalent (1,437 g/t Ag eq) over 15.64m.

High Grades Encountered

Combaluzier highlighted that H23-017 returned two zones of bonanza-grade gold.

One zone showed 312 g/t gold (Au) and 101 g/t silver (Ag), starting 139m downhole and spanning 1m. These grades of precious translate to 29,098 g/t in silver equivalent.

The other zone demonstrated 277 g/t Au and 118 g/t Ag, over 1m starting from 199m downhole. In silver equivalent, these grades equal 25,862 g/t.

"The intercepts occur in a wide zone of multiple, overlapping phases of sulfide mineralization and quartz veins," Combaluzier wrote. "Mineralization remains open along strike."

These results are only some of the available data for hole H23-017; more are to come soon.

Next year, Blackwolf intends to circle back to Harry, conducting follow-up drilling in the Swann zone and drilling untested areas.

Mineralization Seen Before

Combaluzier pointed out that the mineralization seen at Harry is similar to that at nearby high-grade mines, including Brucejack and Premier. Specifically, the gold is high grades and occurs within coarse gold veins.

"The Harry property lies along a geological corridor prospective for gold-silver mineralization that is at least 15 kilometers (15 km) long by 3 km wide," the analyst explained.

Stretching from the Scottie mine down to south of the Premier mine, this corridor also hosts the Big Missouri, Silver Coin, and Martha Ellen deposits.

Catalyst-Rich Q4/23

Blackwolf has three potential stock-moving events slated to happen before year-end.

1) One is the release of the remaining 2023 drill results from Harry, anticipated in November.

2) Another is drill results from the 1,356m drilled this year at its Cantoo project.

3) The third is the results of phase two processing studies relating to a potential mill at Kitsault.

Want to be the first to know about interesting Gold and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. Blackwolf Copper and Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackwolf Copper and Gold Ltd. 
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  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.

For additional disclosures, please click here.

Disclosures for Red Cloud Securities, Blackwolf Copper and Gold Ltd., October 31, 2023

Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., 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, Red Cloud Securities Inc. 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. Red Cloud Securities Inc. 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 take into account 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 investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.

Company Specific Disclosures:

1. The analyst has visited the head/principal office of the issuer or has viewed its material operations.
2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on via login and password.

Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Want to read more about Gold and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe