Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) announced in a December 13 press release that it completed its field program on the La Plata copper-silver-gold-PGE (platinum group element) project, which included 4,530m of drilling and returned evidence of expanded mineralization.
According to the company, four new drill holes encountered continuous mineralization from top to bottom, expanding the mineralized zone announced earlier this year in drill hole LAP22-04 which found 0.41% copper equivalent across 816m. The company believes the results will allow it to update the current copper and silver mineral resource estimate on the project. Drill hole LAP23-06 was the deepest drill hole to date, reaching depths of 1,350m. The company also conducted geologic mapping, sampling, and geophysical surveys identifying several new potential targets.
The President of Metallic Minerals, Scott Petsel, commented “We are excited to have completed our largest drill and field program to date at La Plata with the collaboration of our strategic investor, Colorado based Newmont Corporation (NYSE:NEM), which recently acquired Newcrest Mining. This year’s drilling was designed to expand the existing resource at the Allard deposit and the develop vectors towards the strongest mineralized parts in the system. Full results are pending, and the Company anticipates final assays to be reported in early 2024.”
Copper and Silver Deficits
Chen Lin provided an analysis of the silver market in a report from December 12, 2023. In the report, he highlighted the importance of solar panels as drivers for silver, and the deficit this has created in the market for silver. According to Chen Lin, “in order to increase efficiency, 25-150% more silver is needed for the future generation of solar panels,” meaning that the worldwide silver deficit is likely to grow.
Ron Struthers of Struthers Resource Stock Report reviewed the copper market on December 12, 2023, where demand is also outstripping supply. As governments around the world attempt to embrace green infrastructure, the need for copper has skyrocketed. Struthers commented “I amm not as bullish as many on the speed of electrification and EVs, but if demand even grows at half of the projections, there will be shortages.”
119% Return on Investment
Couloir Capital released a review of the company on June 23, 2023, and rated Metallic as a “buy” for potential investors, with a share target of CA$0.70, representing a potential return on investment of 119%. The report cited a number of factors in the company’s positive rating, including funding from the strategic equity investment by Newmont, and drill results from the company’s Colorado and Yukon Projects. Couloir Capital commented that “Given the current and imminent work at La Plata and Keno, near term stock catalysts are expected.”
Technical Analyst Clive Maund also rated Metallic Minerals as a “speculative buy here for all timeframes.” Maund focused on the company’s stock patterns, stating “the Accumulation line is very positive indeed as it is already making news highs despite the drop in the price, and this holds out the promise of a new uptrend getting going soon.”
According to the company’s investor presentation, there are a number of near term catalysts, including drill results from La Plata. Metallic also expects to announce drill results and an inaugural resource estimate at its Keno Silver project, in the Yukon's high-grade Keno Hill silver district directly adjacent to Hecla who is expecting to return their mine operations to full capacity in the coming weeks.
Ownership and Share Structure
Streetwise Ownership Overview*
Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB)
Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own 5.59% of the company. According to Reuters, CEO and Chairman Gregory Johnson owns 4.23% of the company with 7.05 million shares, Director Gregor Hamilton owns 0.82% of the company with 1.37 million shares, President Scott Petsel owns 0.51% of the company with 0.85 million shares.
Reuters reports that institutional investors own approximately 23.05% of the company, as Eric Sprott (2176423 Ontario, Ltd.) owns 12.92% of the company with 21.54 million shares, Newmont Corporation (formerly Newcrest Mining, Ltd.) owns 9.50% of the company with 15.84 million shares, U.S. Global Investors, Inc. owns 0.60% of the company with 1.00 million shares, and Arrow Capital Management Inc. owns 0.03% of the company with 0.05 million shares.
According to Reuters, there are 166.72 million shares outstanding with 120.04 million free float traded shares, while the company has a market cap of CA$38.85 and trades in the 52 week period between CA$0.20 and CA$0.44.
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- Metallic Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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