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Sendero Surrounded by Giants in Vicuña District ArgentinaBob Moriarty The price of gold bottomed in August/September of 1999. Resource stocks in general as measured by the XAU bottomed in November of 2020. Silver hit its low in November of 2001. As those measures reversed the flow of money into the sector increased between 2000 and 2008. Every laid-off taxi driver in Vancouver or person who had run a drill crew figured they might as well cut off a slice of the pie. A thousand or more new lottery tickets were formed. Their primary objective was to tie up a hunk of moose pasture and milk investors for as long as they could. Some are still around. Most died off and took all that investor money and flew off to money heaven. I used to say that 70% of junior resource companies were lifestyle companies with zero chance of ever developing a real project. If I was wrong it was because I was too much of an optimist. The old Corps is gone. If you were among the three or four investors who went to a gold show ten years ago everyone was ancient. For those who still had any hair left, it was all gray. Times have changed and a new young generation has discovered that there are only three ways to create wealth. You can grow it. You can manufacture it or you can mine it. The quality of projects and management that I have seen lately far surpasses any period in the last twenty-five years. Naturally $5000 an ounce gold, $121 an ounce silver and $6 a pound copper draws a lot of headlines. But if you think about it, those prices suggest hyperinflation is not far off. An investor can invest in paper, Bitcon, or real assets. Many are opting for real assets. I think we are going to enter a golden age of mining not seen since the 19th Century. Someone came to me a short time ago with a large project located in the center of the Vicuña District in Argentina. Now few people actually understand this but Argentina is open for business. Like Bolivia next door, voters have rejected failed socialism and opted to be run by people who understand business. Last year, Argentina was the only country in South or Central America to actually run a budget surplus. Sendero Resources (SEND-V) has 100% ownership of 120 Km2 in the Vicuña District along with options on an additional 91.7 Km2. Located contiguous with the Caserones mining project owned by Lundin Mining, Sendero’s Penas Negras project is just 21 Km northeast on trend of the world famous Josemaria and Filo del Sol projects also operated by Lundin Mining in a JV with BHP. (Click on images to enlarge)
The Vicuña JV on Josemaria and Filo del Sol between Lundin Mining and BHP shows a 43-101 resource of 38 Mt of copper along with 81 Moz of gold and 1,467 Moz of silver. Over the past thirty years, the Penas Negras project has been explored by a number of companies including Anglo American, Vale, Golden Arrow, Eldorado and Solitario. There has been almost 16,000 meters of drilling across 80 holes. Historic results have included 354 meters of 0.53 g/t AuEq, 68 meters of 1.11 g/t AuEq and 78 meters of 1.09 g/t AuEq.
The company has an especially strong technical team but their real strength may lay in their strategic backers led by Peter Marrone. Peter, of course, just sold Allied Gold for a $5.5 billion dollar cash offer. He didn’t invest millions in Sendero to see it become a $500 million company. With his background he is swinging for the fences and he is in the right area to do it. Sendero has cashed up and has about $5 million in the till to support ground exploration and a fully permitted drill program for 2026. With a tiny 26.5 million shares outstanding Sendero has a market cap of about $42 million today, far cheaper to their junior neighbors in the area. Basically the project is exceptional, the company has incredible strategic supporters and money in the bank. What is not to love? Sendero is an advertiser. I have gone out and bought shares in the open market so naturally I am biased. Do your own due diligence. Sendero Resources Corp ### Bob Moriarty 321gold Ltd |
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