![]() Hinton to a private company called Territory Metals. REWIND: In the summer of 2017, Strategic sold six properties including Mt. Eaton has been involved in several of the Territory’s major discoveries, including the Casino copper-gold porphyry (now being developed by Western Copper and Gold). He has an almost-encyclopedic knowledge of Yukon mining projects, which helps Strategic snap up forgotten but highly prospective projects. Eaton, a geologist, has been working in the Yukon for almost 50 years.Eaton remains a believer that the Rackla deposits will one day produce tens of millions of ounces of gold. Strategic holds a 6.4% stake in ATAC and is incentivized to see the company succeed. Hinton’s prospectivity than they do the potential of ATAC’s Rackla project. But a couple of key differences make his observations worth a closer examination: We have a chance of a major gold discovery under the till or talus.”Įaton’s comments about Mount Hinton’s possibilities sound like fairly typical Howe Street-style promotion. “It’s much more exciting than ATAC was at this stage. “Mount Hinton is the same kind of setup but the project is much more readily accessible than Rackla and it’s earlier-stage,” Eaton said. That share price was propelled by gold’s rise to US$1,900 an ounce - less than $200 an ounce higher than current levels - as well as ATAC’s high-grade gold discoveries at the Rackla property in Yukon (ATAC is part of the Strategic Exploration Group).ĭoug Eaton (right), Strategic’s CEO and principal of Archer Cathro, the storied Yukon geological consultancy, was in the thick of it during ATAC’s high-grade discoveries.īut the veteran geologist says he’s more excited about Mount Hinton because of the volume of high-grade gold found at surface at such an early stage, during what appears to be a perfect storm for the gold price. It’s a far cry from the $4.35 level ($381M market cap) that the stock hit in 2011. Strategic shares currently trade at about 35 cents, for a $34-million market capitalization. In Yukon, mining and exploration have been designated an essential service. The program, of course, is dependent on how the Coronavirus pandemic plays out in the coming months. Hinton this season, including up to 6,000 metres of drilling (diamond and RAB). Strategic plans to spend about $3 million to explore Mt. Strategic, Yukon’s largest claims holder, is cashed-up to drill its Mount Hinton high-grade gold prospect in the Yukon Territory’s Keno Hill district. COVID-19 forced the suspension of Azimut’s follow-up 6,000-metre diamond drill program at Patwon.Īzimut closely resembles another project generator with a wholly owned gold project that will be drilled this summer: Strategic Metals (SMD-V, SMDZF-OTC). The stock rocketed to $1.50 the following day and remains at about that level, despite the uncertainty and tough market conditions that persist in the junior mining complex. ![]() The day before the discovery was announced, Azimut shares closed at 50 cents $31M market cap). On January 14, the project generator announced multiple high-grade gold intercepts at the James Bay project, including 12.43 g/t Au over 6 metres and 27.36 g/t Au over 4.7 metres. ![]() Azimut is Quebec’s largest claims holder, diversified across metals and known for its technical savvy. Azimut Exploration (AZM-V) proved it in January with their Patwon gold discovery at the Elmer property in Quebec. The picture changes completely, however, when project generators make a high-grade discovery on a wholly owned project. Project generators typically retain only limited exposure to discoveries through royalties or small equity stakes. Those bricks provide stability but weigh down the “rocket ship” when a junior exploration company hits a bona fide high-grade gold discovery. ![]() They are businesses, not cash-burning lottery tickets like most junior explorecos.īut for many speculators, that level of diversification is a knock. Their share prices are typically backstopped by healthy treasuries, royalties and equity stakes, as well as extensive claims holdings. Well-run project generators are brick houses in a speculative corner of the market, where the winds of commodity prices and dilution are often house wreckers. ![]()
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