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Mining Co. Finds Large, High-Grade Copper and Nickel Deposits

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Stillwater Critical Minerals has announced that it has found a new system of mineralization on its Stillwater West property. Read on the see why analysts like this company's stock.

Stillwater Critical Minerals Corp. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) has announced in a press release that it has an update related to its drilling program on the Stillwater West property. The property is located in Montana and hosts nickel-platinum-group-element-copper-cobalt deposits.

According to the company, this program was intended to follow up on previous discoveries on the Chrome Mountain deposit and included six drill holes that intercepted new mineralization on the property. Drill hole CM2021-05 also referred to as N1 in the report, returned a grade of 2.89% nickel equivalent (NiEq) over 400.8m at a depth of 37.6m. The drill program found nickel and copper sulfide in the mineralized structures, which have been named the "N series."

The company estimates that this mineralization is part of a larger system of high-grade structures that intersect with previously known mineralization structures, such as the Platreef-style mineralization on the property. Stillwater Critical is planning an expanded drill program for 2024, focusing on the newly identified mineralization structures for the Stillwater West project.

The CEO and President of Stillwater, Michael Rowley, commented, "We continue to advance new sulfide-rich discoveries at our flagship Stillwater West project as we apply geologic models from South Africa's giant polymetallic nickel sulfide mines to similar geology at our Stillwater West project. Recent work is identifying additional styles of mineralization, and we look forward to expanding further on these exciting developments as they advance."

A Commodity in Backwardation

Rick Mills of Ahead of the Herd reviewed the copper market on December 2, 2023, and concluded that there were several factors, many of them related to the climate crisis, driving up the need for copper, an element critical to the electrification of the world's infrastructure. Additionally, Chile, a country that produces the majority of the world's copper, has been experiencing complications related to a limited water supply, as copper processing requires large amounts of freshwater.

As a result, copper looks as if it is facing rising demand and tightening supply.

Josh Chiat with Stockhead covered the copper market earlier this year, on September 29, and concluded that the metal has the potential for a sharp rise in prices because current conditions have put consumers in desperate conditions.

Chiat stated, "A commodity in backwardation — where prices are higher for immediate delivery — is one ripe for sharp spot price rises because customers are so desperate, they're ready to kill you and pry the metal from your cold dead hands."

A 106% Return on Investment

A report from Couloir Capital reviewed the company on October 6, 2023, and rated the company as a "Buy" for potential investors and named a target price of CA$0.35 per share, representing a potential return on investment of 106%.

The report cited several factors in the company's positive rating, including its plans to advance its Montana properties with an expanded NI 43-101 compliant resource and drill targets on Chrome Mountain and Iron Mountain.

Stillwater has several catalysts to report, according to its investor presentation, including pending ESG and metallurgical updates and updates to Heritage Mining and the Kluane project.

Ownership and Share Structure

streetwise book logoStreetwise Ownership Overview*

Stillwater Critical Minerals (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE)

*Share Structure as of 12/6/2023

Reuters has provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 8.53% of the company.

Executive Chairman and Director Gregory Shawn Johnson owns 3.28% of the company with 5.83 million shares, President and CEO Micheal Victor Rowley owns 2.83% of the company with 5.04 million shares, Independent Director Gregor John Hamilton owns 1.82% of the company with 3.25 million shares, Independent Director Gordon L. Toll owns 0.56% of the company with 1.00 million shares, and Vice President of Exploration Daniel F. Grobler owns 0.04% of the company with 0.06 million shares.

Reuters reports that institutions own approximately 12.31% of the company. Glencore Canada Corp owns 11.10% of the company with 19.76 million shares, U.S. Global Investors, Inc. owns 1.12% of the company with 2.00 million shares, and Plutos Vermogensverwaltung AG owns 0.09% of the company with 0.16 million shares.

There are 178.03 million shares outstanding with 143.08 million free float traded shares, while the company has a market cap of CA$22.92 million and trades in the 52-week period between CA$0.14 and CA$0.28.

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Important Disclosures:

  1. Stillwater Critical Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. 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.

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