THE RESOURCE BEAT: 6 mining explorers teed up to run

When you’re in the business of talking about public companies, there are some days when there’s not much to talk about, and others where there’s too much.

This day is the latter. Don’t let anyone tell you the market is down, you just need to know where to look, who to talk to, and what signs to watch for.

So get your notepads open, because I’m going to introduce you to some opportunities you should know about. Some are clients, some might be clients one day, but others are just good deals that I respect, complete with their own individual soundtracks because, why not groove while we make moves.

DEAL 1: SAGA METALS (SAGA.V soon)

Soundtrack: The Object Of My Affection, by Peter, Bjorn and John.

And the other day, this new friend of mine/Said something to me/“just because something starts differently/Doesn’t mean it’s worth less.”

Saga Metals isn’t public yet. It’s getting there, but is taking the path of running an IPO (initial public offering) instead of the usual quick-to-market RTO (reverse takeover) path.

What’s the difference?

In an RTO, you’re climbing into a company that is already on the markets and may well be a shell with baggage. It’s faster to get to market and takes less regulatory work, but there’s almost always tumours that will need to be cut out of the shell in the first four months of trading.

In contrast, an IPO is where folks buy stock in advance of opening day via a prospectus, at a price set by underwriters, that will be free trading on day one. The company will land clean, without any pre-existing shareholders who may have bought into previous iterations of the company and find themselves under water or, worse, burdened with tonnes of cheap shell paper that’s profitable to sell all the way down to pennies.

Saga came proper.

Saga has four projects – lithium, uranium, titanium/vanadium, and high grade iron ore – all of which would keep a single company busy by themselves, they’ve got an incredible mega-partner on one of those in the giant Rio Tinto, who have done due diligence on the company and decided they’re worth cozying up to, and the IPO process, which is far more stringent from a regulatory standpoint than an RTO, shows they’re not afraid of transparency and hard work in the process of setting themselves up right.

The Rio Tinto lithium partnership pays for exploration on their uranium project AND got them more lithium land to boot, so they’re good dealmakers and like using other people’s money to move things along, which I can absolutely dig.

Landing in the summer isn’t ideal, but you can’t let perfect be the enemy of good – you play the ball where it drops.

I’ve talked to these guys a lot, they are a client company that we pursued hard because there’s a lot to like, and I can honestly say their professionalism is a breath of fresh air.

INFO HERE: https://sagametals.com/ipo-opportunity/

DEAL #2: LONGHORN EXPLORATION (LEX.V)

Soundtrack: Go For a Soda by Kim Mitchell

Might as well go for a soda/Nobody hurts and nobody cries

Natural hydrogen, kids.

Okay, so here’s the deal on hydrogen plays. They’re qualified by a colour system that indicates how environmentally friendly they are in production.

Grey hydrogen is produced from natural gas without carbon capture, and sucks.
Blue hydrogen adds carbon storage but comes with the need for fossil fuels as a feedstock. Meh.
Green hydrogen uses water electrolysis to make zero carbon emissions real, but comes with a cost. Okay.
White hydrogen is naturally occurring and clean right out of the hole, if extracted properly.

You want white hydrogen.. but you rarely find it.

Longhorn’s got it. We told you about it and the price popped. Now they’re doing geophysical work to get at it proper.

The stock has held like a straight line in the time since that news came out, as if everyone is just chilling on the sidelines and waiting, rather than doing the usual up and down churn.

Or, maybe, every time someone sells below $0.39, someone else is seeing an opportunity to feast.

Still only a $6m market cap, despite the massive spike.

Personally, I can’t wait to see what they’ve got. Good results will blaze this thing up like a Mars mission on lift-off.

Not a client, no commercial connection.

DEAL 3: REX RESOURCES (OWN.V)

Soundtrack: Blow Up by Beaches

Take me somewhere new/I’ve already been here once before/Somewhere unbelievable/Before it starts to blow up.

READ THE TEA LEAVES.

Not to be confused with Orex Minerals, which has the REX.C ticker symbol, or Rex Minerals on the ASX, or the US ethanol company REX American Resources, BC’s own Rex Resources (OWN.V) is best known for being unknown – presently.

Inside trades at the company have been stagnant since 2022 – that is, until May through July of this year, when warrant executions and purchases on the market have started dropping among the control group, right alongside news the company has optioned a property near Port Alberni in BC..

Market cap is just $2m, only 20m shares out. Share price has moved from $0.06 to $0.14 this month before a little fall away.

So what’s that property look like?

No idea. No website. No deck that I can find. News releases don’t describe much beyond “8 claims” on 275 hectares, and dont even mention what metal they might be looking for.

And those of you who have been arond the traps know, when all of the above is the case, it’s deliberate.

Those in the know are chomping up cheap stock before the word gets out.

So I put my journalist hat on and went looking through the archives.

From the BC Ministry of Energy and Mines in 2000:

From same in 2004:

On the Mactush property (MINFILE 092F 012), SYMC Resources reports copper-silver bearing stockwork veins and soil geochemical anomalies in the ’Bowl zone’ that warrant further exploration. No exploration work was completed at Mactush in 2004.

In 2006, SYMC, which had been exploring the property in a scattergun approach since 1981, put out a resource estimate that said, in short:

Zones: SYMC conducted 982 meters of diamond drilling across five target areas (MC Zone, Zinc Vein, Moly Vein, Jack Vein, and Sara Vein). The program also included geological mapping and sampling. The property hosts several mineralized zones with varying grades of copper, silver, and gold. The Fred and Zinc veins had shown marginally economic grades at the time.
New Discoveries: The 2006 drilling program identified additional mineralized zones, such as the MC2 and MC3 veins, which were open at depth and along strike, indicating potential for further exploration.
Geochemistry and Geophysics: A detailed geochemical and geophysical survey was conducted, identifying multiple anomalies and targets for further investigation. The Rex area emerged as a top priority for future exploration due to its significant geophysical and geochemical expressions.
Resource Potential: The estimated resource grades from the explored zones were considered sub-economic at the time, but the potential for bulk mineable deposits, particularly in the Rex area, suggested further exploration could reveal economically viable resources.

That 43-101 was reiterated by World Organics in 2015, confirming the above.

SO WHAT DOES THIS ALL MEAN?

In 2006, the drilling didn’t show economic prospects, but that was at 2006 copper prices.

Here’s what’s happened to those in the years since:

Copper has 3x’ed since then.

Let’s look at silver in the same time:

Oh, no big deal – only up 700%.

Those patches are WELL WORTH EXPLORING.

Now, nobody can say what a public company is going to do before they confirm they’re doing it, but the tale of the tape here is intriguing.

Insider buying
Warrant exercising
Tight float
Only as much news as is legally required
Existing work done over 40 years
Project looking fairly economic at first glance
Shares starting to run

Not a client. I don’t own any, but if I was that sort of guy, I wouldn’t tell you guys about this before I’d finished getting my own fill of cheap stock.

Thankfully for y’all, I’m not that kind of guy.

Run with the big dogs, my loves!

DEAL 4: RAMP METALS (RAMP.C)

Soundtrack: Get Lucky by Daft Punk and Pharrell Williams

We’ve come too far/To give up who we are/So let’s raise the bar/And our cups to the stars.

These guys came out of the gate stating they were going to drill and let the bit tell the story, and they absolutely fucking nailed it, drilling 7.5m of 73.55 g/t gold at Ranger-01.

Side note: They weren’t looking for gold, but gold jumped out of the ground.

That splooshed their share price from $0.15 to $0.90 overnight.

Now, obviously the company wanted to go raise some money to do more drilling, and fast, so they while the stock was touching almost a buck they announced a raise at $0.50.

Nothing shady there – financing prices aren’t based on where you are, but where you’ve been most recently on an average. That said, the cheap raise in comparison to the share price saw a sell-off down to the $0.50 financing level.

What’s interesting is what’s come next – With the financing done, the stock went running again. and this time touched a buck proper in just a couple of days.

Long holders will be stoked at their luck, that the company has not only gone on such a run BUT ALSO cashed in and picked up some drill dough with only a marginal down time as punishment.

I can’t tell you whether Ramp just got lucky or got smart, but whichever it is, they are batting 1.000 right now and have a LOT of eyes on them.

Again, not a client, but we showed you this when it was little and now it has become a man. Buy it a beer.

Deal 5: ALASKA ENERGY METALS (AEMC.V)

Soundtrack: Stronger by Kanye West and Daft Punk

REMOVED AT REQUEST OF THE COMPANY.

Deal 6: Emerita Resources (EMO.V)

Soundtrack: No Alarms and No Surprises by Frank Watkinson (and Radiohead I guess)

This is my final fit/
My final bellyache with/
No alarms and no surprises/
No alarms and no surprises/
No alarms and no surprises, please.

This deal just keeps getting stronger.

They’re part of a big lawsuit that it appears they’re likely to win, that would see them take over one of the biggest miing projects in Spain. That’s the crazy upside potential.

But while that suit rolls forward, they’re also wastng no time in drilling the Iberian Belt West project where they just keep banging in great holes.

The whole deal is priced at bascially the IBW value, so your upside is supercharged should the suit turn out as it would appear likely, and investors are just gathering like moths to a light.

Check the chart.