It's July 25, 2020 and boy have things really started to heat up in the metals markets. Gold yesterday rallied past $1900 and oz and silver got past $23 an oz. With all of this upward movement in the metals, investors are seeing the mining stock rallying and hitting new highs. One of the hottest areas in Canada is of course the Golden Triangle in northern BC and the juniors that are working in this area are seeing share prices at 52 week highs. Skeena Resources over at the Eskay Creek project saw their share price hit $3.00 this past week and some of the others in the immediate area are starting to get investor attention.
One of those juniors is Enduro Metals TSXV:ENDR. Enduro has the Newmont Lake project which is in close proximity to Skeena's Eskay Creek and Snip properties. Enduro Metals use to be Crystal Lake Mining but had a management switcheroo and is now run by a new management team. The company owns a 100% area of 14,000 hectares and has an option agreement to aquire an aditional 43,600 hectares. One of the interesting aspects of this play is that good portions of this area use to be under glacier ice that is now retreating. Also due to the size of the land package this area was previously drilled and explored by various outfits over the years, so the company has some good ideas of what was found is different areas. By going voer existing cores and re-assaying these the company is getting a better out look on this project.
As an example, earlier in the month the company issued news of 144 m of 3.18 g/t Au from a Newmont core. These results are from previously unsampled drill core by a previous operator whose focus was on narrow high-grade intersects, with the result that only a portion of the core was previously sampled. These recent assays show that R-08-07, drilled vertically in the NW zone near the McLymont fault, intersected 144.00 metres of 3.18 grams per tonne gold and 3.66 g/t silver starting at 9.51 m, including 54.70 m of 7.64 g/t Au and 8.98 g/t Ag starting at 20.00 m.
One of the biggest hurdles for small juniors of course getting money to finance their operations. You need to have a project that investors will buy into. Just a few days ago the company issued news that they had arranged an 8 million dollar financing. What;s really intersting interesting is that Rob McEwen who is the chairman and chief owner of McEwen Mining TSX:MUX bought 2 million dollars of shares. Rob McEwen was the founder and former CEO of Goldcorp TSX:G, so when you can get his attention you know that you're on the right path with a project.
In the latest news release Cole Evans, president and CEO of Enduro, comments:
"Rob McEwen's expertise in the mining and investment industry is world class and we are grateful to have him as one of Enduro's largest shareholders. Equipment is in place for the 2020 exploration season and the company will be mobilizing to the Newmont Lake project immediately upon closing of the offering, and will be providing batches of technical updates as more information becomes available."
It will be very interesting to see what the company does through the remainder of the season and I know investors will be looking forward to drilling news as time progresses now that financing is in place. This along with the aded news from Skeena Resources TSXV:SKE next door along with Benchmark Metals TSXV:BNCH to the east in the so called Golden Horseshoe. Friday last week saw their stock rocket to new highs also.
Keep your eye on the triangle this summer. In my opinion fortunes will be made by some especailly with the rally in gold, silver and copper prices.
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Added note: The author of this article holds postions in all the above at the time of this writing. The author may buy or sell any time going forward.