In mid-April, I put out an article on Enduro Metals (Compelling Junior Explorecos – https://www.resourcejuniors.com/2021/04/enduro-metals-corp-compelling-junior.html) which outlined the four district scale potential systems on its’ Newmont Lake project.
On July 21st, Enduro Metals put out a news release (https://endurometals.com/enduro-commences-10000-metre-drill-program-at-newmont-lake-project-golden-triangle-nw-british-columbia/) which marked the start of the 2021 drilling season.
I’ve broken it down to key points which should make it easy to understand:
- One diamond drill is turning (July 21st), second rig will be or was added (early August)
- Minimum drill program of 10,000meters (“base case”) with potential to expand
o Drilling to start at Chachi (first drilling ever) area
- Infrastructure upgrades to enable a longer exploration season. Potentially late November
- More detailed target summary and work planned
|
Target |
Minerals |
Deposit Characteristics |
Initial Program |
Evidence of a deposit |
|
Chachi |
Multi-element Cu, Ag, Au, Pb, Zn, Ni, Co |
Alkalic porphyry, epithermal, skarn, IOCG (potentially) |
6 drill holes |
High grade rock samples, IP chargeability anomaly, nearby regional structures, widespread alteration |
|
Burgundy/ 72 Zone |
Cu, Au, Ag, Zn |
Large-scale copper-gold alkalic porphyry system |
Surface work to fine-tune drilling targets |
Previous trenching, drilling with mineralization |
|
Cuba Zone |
Ag, Pb, Zn, Cu |
Carbonate replacement, Epithermal-Type |
2 drill holes |
High grade rock samples, IP anomaly coincident with surface geochemical anomaly |
|
McLymont Fault |
Au, Cu |
Epithermal/Skarm |
Drill to extend mineralization found in 2020, test other high-grade gold trends |
Previous drilling with mineralization |
A re-cap and some thoughts on this news that was put out:
Targets
I encourage you to review my article from April (https://www.resourcejuniors.com/2021/04/enduro-metals-corp-compelling-junior.html) to get a more detailed breakdown of all these district-scale targets, they are all high-quality targets that Cole and the Team at Enduro have spent years doing the ground-work. This is the year that they hit some of them with drill holes for the first time, like Chachi.
10,000m Drill Program
With four great targets, a base-case 10,000meter program is aggressive, but at the same time shows you how serious the team is to go after and make a potentially major discovery (or discoveries) this season. Making infrastructure upgrades to the camp, in my opinion, means they plan on finding something big enough which allows them to expand the drill program and drill as long as they can before the snow sets in by October/November. Don’t forget though that Enduro’s camp sits just a few kilometers off Chachi, which is visible from there. The company has some great videos with Cole on their Youtube Channel https://www.youtube.com/channel/UCNX-YtUF1B2rTZwBXfPv7bg/videos which can be viewed using this link.
If you take a step back and look at companies in the Golden Triangle who start off with a >10,000 meter drill program, you’ll notice that a good chunk of them are worth hundreds of millions of dollars in company valuation, and Enduro sits here today just under $50m. It’s a serious undertaking to start off with such a big program. One the Enduro team has full confidence will lead to success.
Base & Precious Metals (Copper, Nickel, Zinc, Silver, Gold, Lead)
As inflation heats up with no real end in-sight (with many folks saying that transitory really means nothing at all, and is actually more permanent), commodities remain cheap especially base and precious metals. Have a look at the target summary table, Enduro’s targets encompass all of these base & precious metals, which is definitely a positive. They also announced identifying Palladium for the first time ever recorded on the huge land position (over 160,000 acres, which is nearly the size of the state of Texas). To say Enduro is hunting for elephants of the mining world is no joke and they’re already seeing some of the feet and tails of the elephant herd, we’re talking about a handful of possibilities to discover world class deposits on this property which is surrounded by them.
Timing is Key
As mentioned, the best time of the year for Golden Triangle stocks (to buy) is typically in the winter months before drilling. When the article was put out Enduro was trading at $0.185, today it trades around $0.23, a 24% increase in about 3 months. We’re now in the drilling phase, which means that it’s possible the company comes out with assay/drilling news which points to a discovery (or two, or three, or four?) which would provide the potential for multi-bagger gains. Of course, this would require a discovery (backed up by assays). Are there multiple discoveries in the near horizon whereby Enduro could become a white rhino that could become a generational wealth creator? Take a nearby neighbour for example;
Seabridge Gold [TSX:SEA NYSE:SA] was once a junior mining company looking for a discovery. Their KSM project became a massive discovery and now sits with 38.8m ounces of gold, 183m ounces of silver and 10.2b pounds of copper not far away from Enduro. To go from being a sub $50m company to a +$1.7b company is possible in BC's Golden Triangle.
Summary
Enduro Metals is in the middle of a large exploration season, with two rigs operating (by early August)
1) It’s the most exciting time of the year for companies operating in the Golden Triangle - Enduro has four district-scale targets which are being drilled now
2) The company has an aggressive ‘base-case’ 10,000meter program with potential to expand
3) Base & precious metal prices going forward could help provide fuel to the company’s share price
4) Timing is key – and a significant multi-bagger event could occur in the next months if the company delivers a discovery with assays to back it up.
As a reminder; junior exploration is very risky - I remind
you to read the disclaimer.
Hope you enjoyed the article - please let me know if you
have any feedback/comments.
Disclaimer:
The author is not a registered advisory service and does not give investment advice. The author currently has a long position in this stock and may buy more or sell its position at a later date. Our commentary is an expression of personal opinion and should not be construed in any manner whatsoever as recommendations to buy or sell a stock at any time.
The
author has not been paid to write this article, however, Mango Research and
Management Inc., an affiliate to Enduro Metals, is a sponsor to this blog. All
facts are to be checked by the reader. For more information go to
endurometals.com and read the company’s profile and official documents on www.sedar.com,
also for important risk disclosures. This article is provided for
information purposes only and is not intended to be investment advice of
any kind, and all readers are encouraged to do their own due diligence, and
talk to their own licensed investment advisors prior to making any investment
decisions