It all began about a year ago after a monster gold discovery was made…..and then a savvy junior mining company scooped up the adjoining land plus one of the largest past-producing mines in Quebec’s history, looking for a repeat discovery.
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.
They announced that after three weeks of drilling, the drilling was going so well that they brought on a second drill rig a month later – a prime indication of success – and they are reported to have now ordered a 3rd drill rig to the property.
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.
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.
Its board includes veteran mining executives like Bob McAdam of Barrick Gold, Tom Albanese of Rio Tinto, Joe Jimenez of Dow Chemical Company and John Wiebe of Kinross Gold Corporation.
As gold climbed to record highs thanks to investors piling into gold due to the COVID pandemic, Newmont has seen a boom in its share price.
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.
Earlier in 2021, Yamana signed an agreement with industry giants Glencore and Goldcorp to develop and operate another Argentinian project, the Agua Rica.
It also operates a joint venture with AngloGold Ashanti Limited that provides mining services at two sites in West Africa—one of which was recently awarded an environmental permit from the government of Guinea.
Because smaller miners benefit big on even the smallest moves in gold prices, if the price of the precious metal does see an uptick in the coming months, Kinross will likely be one of the biggest benefactors.
The two companies have agreed to split the cost 50/50 over five years with each company investing $15 million every year into joint projects between both companies for exploration purposes only – at this point it seems like a win.
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.
FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.
You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission.