They managed to strategically acquire all the land adjacent to Amex’s big discovery and also went one step further and acquired the past producing Normetal mine.
While Starr Peak always knew that their drill targets might be very good, what they probably didn’t expect to hit was something better than just gold.
VMS stands for Volcanogenic Massive Sulphide, and these deposits are rich in base metals such as copper, zinc, silver, gold and other minerals.
The first batch of drill results that Starr Peak just showed off this past week had highlights of 20.94% Zinc, 0.43% Copper, 39,58 g/t Silver and 0.21 g/t Gold over an intercept of over 12.1 meters.
That puts Starr Peak in the middle of what could be a potential metals bonanza when at the start, all they were looking for was gold.
With his world-class reputation on the line and a significant Amex discovery already under his belt, we don’t think he would risk his title on anything less than a pretty sure thing.
Over the past three years, Amex has grown from a small junior gold company to now a major gold name with a market cap of approximately $300 million.
It has just attracted the founder and Chairman of Amex to give his expertise, and the three drills that are currently drilling aren’t likely to be stopping anytime soon.
In a recent announcement from Berkshire Hathaway to buy $564 million worth of Barrick Gold shares at a time when gold was soaring, is a strong indication that he may be changing his mind about the precious metal.
Yamana had been on an upward trend until February when it announced that three mines were closing and more than 1 billion dollars would be cut from their budgets as part of ongoing austerity measures due to slumping prices for precious metals and weak demand for mining equipment across the industry.
Initial analysis suggests the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes in exchange for a $75 million payment to Kirkland Lake Gold.
Risks that could change or prevent these statements from coming to fruition include that politics don’t have nearly the strong effect on gold and other base metal prices as expected; that demand for base metals may not continue to increase; the Company may not complete all its announced mineral property purchases for various reasons; that the Company may not be able to finance its intended drilling and exploration programs; Starr Peak may not raise sufficient funds to carry out its business plans; geological interpretations and technological results based on current data that may change with more detailed information or testing; that the preliminary drilling results may not be confirmed during further exploration; that Starr Peak will fail to gain the attention and interest of other mining companies; that Starr Peak’s exploration results may fail to find additional promising results justifying ongoing exploration and/or development efforts; and despite promising results from drilling and exploration, there may be no commercially viable minerals or ore on Starr Peak’s property.
This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.