Brascan Resources Inc (BRAS.C), a small mining exploration company, has a 25% stake in The Iceberg Project, located 10 kilometers east of La Scie in Newfoundland Canada.
Why do you care? Well, judging by the share price you don’t, or at least you haven’t heard of it before.
Here’s why The Iceberg is interesting; Brascan bought a company called North Atlantic Aggregates Inc. (NAAI) in August 2022. As you can tell by the name, that company was based around sand and gravel, which fuel the construction industry, and have brought in revenue for a long time.
But there was more than gravel out at the Iceberg once folks started digging in.. The project includes an area named the Bailey Zone, where they’ve found several spots that appear to be incredibly rich in other minerals – these include a mix of iron, titanium, vanadium, scandium, and phosphorus. These minerals have been found in layers within the earth across a stretch of about 740 meters, with some layers being as wide as one meter in different spots. Recently, samples taken from this area have shown high concentrations of these minerals – including up to 63% iron oxide and significant amounts of the other minerals mentioned.
Come for the aggregates, stick around for the battery metals.
Looking forward, NAAI is planning to start a large drilling program this year in the Bailey Zone to see exactly what they’ve got down there. The goal is to locate more of these high-value mineral layers and, in addition to this, they’re going to use geophysics to get a better understanding of how these minerals are distributed below the ground surface.
They’ll also be building a road to make it easier to access the area for future drilling and sample collection, which isn’t something you do if you have only a minor notion that there’s ore to be found.
Brascan has recently learned that a new area, the Bailey North Zone, sits not too far away from the original Bailey plot. This new area seems to have similar mineral-rich layers as the Bailey proper, with some layers reaching up to one meter in thickness. They’re still waiting for the test results from samples taken from this area, and they’ve applied for permits to start digging and drilling there ASAP.
According to Alex Bailey, the CEO of NAAI, they believe these discoveries could lead to a large, high-quality, and low-cost open-pit mine. The Iceberg project is making great strides, and the drilling program set for 2023 is a crucial step towards making this project a reality.
Now here’s the punchline: You can buy in for 2c a share. Brascan is a tiny company and folks have yet to figure out what they’re sitting on as a result. Alongside the Bailey they’re also into gold at the Allegre Project, and lithium in Quebec and Brazil.
But the results at the Bailey are intriguing because nobody has expected what they’re finding to show up under Newfoundland gravel.
Future news will show exactly how much there is there.
— Chris Parry
FULL DISCLOSURE: Brascan is an Equity.Guru marketing client and we own the stock.
