Daily Double: A Contest
The drills are mobilizing, the geos are chipping samples and collecting soils, junior resource CEOs are pounding the pavement trying to raise funds and create a bit of interest in their projects before the summer doldrums hit.
So, for fun, I am having a horserace with huge prizes for my subscribers. I’ve picked six junior resource companies ranging from my pal Peter Bell’s very early stage Kermode Resources to Tara Christie’s Banyan Gold with its 7 million inferred gold ounces in Yukon. The list is below.
There are two stages to this race: first, the traders race, for $100.00 which of these companies’ share price will double first from the closing price next Friday, May 10? (In KLM’s case I am putting my thumb on the scale and using $0.02 cents as the doubling price.) If two or more subscribers pick the winner the prize will be awarded to one entrant drawn by lot.
The second stage, the investors race as it were, is pick the company with the highest percentage positive change by the Friday before the Labour Day weekend based on the closing price this coming Friday (May 10, 2022) and win $100.00. If two or more subscribers pick the winner the prize will be awarded to one entrant drawn by lot.
You place your bets, I mean name your companies, from the six listed here, in the comments below this post. The only entry requirement is that you have to be a subscriber…
Here are the horses (in order of price, close May 3):
Kermode Resources (KLM.V) $0.01, market cap $426,000, 42.59 million outstanding
KLM is trying to raise money to assay samples and drill core from a promising Massive Sulphide showing at Mt. Sicker on Vancouver Island and has 12 other prospects under option. KLM has had samples grading 16% copper plus using XRF at its Mt. Sicker showings. Total bootstrap operation. Peter Bell may just pull this off.
Coverage: KLM: Everything, Everywhere, All at Once
Canadian Critical Minerals (CCMI.V) 0.06, market cap 15.43 million, 257 million outstanding
CCMI has a 40,000 ton crushed and screened stockpile of copper/gold/silver rock which it is running through the rented BHS Steinert ore sorter at its Bull River Mine near Cranbrook BC. It is selling truckloads of 3% copper rock with gold and silver credits to the New Afton mill under an Ore Purchasing agreement. It should be making a significant amount of actual money as the trucks roll while it is waiting for its final permits for the Bull River mine.
Coverage: Chasing Copper
Bayhorse Silver (BHS.V) $0.08, market cap $22.18 million, 277 million outstanding
Back in October 2023 it was not obvious BHS was going to survive. But my friend Graeme O’Neill is a wily old bugger and he rented out the ore sorter, raised a bit of money and then, well, BIG happened. All of a sudden a mine rehabilitation operation was sitting on the suture of the Izee and Olds Ferry terranes, the hottest prospective copper district in America. VTEM was flown and interesting resistivity and magnetics turned up on the mining friendly Idaho side of the Snake River. Drilling at the Bayhorse Mine is underway and planned and being permitted in Idaho. Silver plus copper? We’ll have a better idea in the next few months.
Coverage: Battle of the Blobs
Banyan Gold (BYN.V) $0.33, market cap $94.42 million, 286 million outstanding
Tara Christie and her team have a 43-101 compliant 7 million ounce gold resource in the mining-friendly Yukon just down the road from Victoria Gold (VGCX.T). When they drill, they find more gold. Why is BYN not $1.00 a share? It is an obvious takeover target. VGCX has figured out and optimized a gold recovery process for exactly BYN’s rock. A 2X move would still value the gold in situ at less than $30 an ounce.
Coverage: Lags: Gold, Silver and Junior Resource Companies
Intrepid Metals (INTR.V) $0.78, market cap $35 million, 45 million outstanding
I am just in the process of researching INTR and am opening a tiny position. It’s flagship Coral Copper project are near surface copper showings in Arizona. In a May 1, 2023 press release INTR reported “105.20 meters of 1.17% Copper (1.42% CuEq) and 48.85 meters of 2.24% Copper (2.58% CuEq) Near Surface”. Key words, near surface, 10-27 meters down. Other copper contenders are looking at 250-300 meters of overburden. People speculate that INTR’s surface copper may be a hint of an underlying copper porphyry system. Relatively few shares outstanding.
Coverage: none yet but I am planning on writing up my research this week.
Hercules Silver (BIG.V) $0.80, market cap $190 million, 238 million outstanding
Hercules was big news in the last quarter of 2023. BIG.V drilled into what it believes is a blind copper porphyry at Mt. Cuddy Idaho. Barrick came in for 23 million and the shares soared to $1.60. Then some holes came back which were not well received by the market. New IP failed to move the share price. So now it all depends on this season’s drilling. Drills are on site and we’re just waiting for the “drills turning” press release. There is a lot of market attention on BIG and there is likely to be a fair bit of pre-result speculation. Will that speculation be enough for a double? And what would the results have to look like for there to be a run to a multi-dollar valuation?
Coverage: Porphyry Cluster You Say, That Would be BIG
****
In principle, it is a lot easier for a 400k market cap company to double than it is for a $190 million company. Or is it easier for an unknown 15 million market cap outfit to double when it ships tons of above ground 3% copper with over half a gram of gold and 27 grams of silver for processing?
Lots to think about.
So, if you are already a subscriber, put the name of the first company to double and the name of the company with the greatest percentage change by Labour Day in the comments below.
[Disclaimer: I hold shares in all of the companies mentioned except Intrepid Metals (and that may change by the time you read this). I may buy or sell at any time. This is not investment advice. Do your own due diligence. Call the CEOs.]
[Update: Bought an opening position in Intrepid Metals which will account for its 10% decline on May 6.]