Stuhini May Provide the Gold for You to Wear at Europe’s Funeral
Some things are so simple in life that you can’t come to grips with the fact that many people just don’t see them. I posted an article on the 1st of March titled, The US, EU and Nato Just Committed Suicide. To the best of my knowledge I was the first person to suggest that the sanctions against Russia were literally suicide for the US, the EU and Nato. Lots of people now use the term for Europe since it is so obvious that their actions are literally suicide. That is because Europe and the US need to learn a vital fact.
Europe needs Russia. Russia doesn’t need Europe.
Europe is a consumer of materials with a debt based financial system in an economy with cradle to grave benefits financed by negative interest loans that make no sense whatsoever. Russia is gifted with great resources. Russia produces valuable materials that Europe must have or starve or freeze or both.
By now, your pet parrot understands the sanctions hurt everyone in the world.
The US and EU didn’t just pull the pin on a hand granade. They pulled the pin and held the granade next to their vitals to have the most effect. That’s pretty dumb.
Germany is the economic powerhouse of Europe. When Germany collapes financially, the EU dies. Germany runs on the cheap natural gas provided by Russia. In participating in the irrational sanctions set by the Biden admininstration, Germany lit the fuse on a time bomb. They either wake up before October 1st or collapse economically. By October the world will understand how stupid the sanctions were on the part of the EU.
When Germany goes, the rest of the EU goes. And the current head of Germany, called the Chancellor of the country, is Olaf Scholz and he just stepped into a financial land mine and could well be booted out as has already happened in the UK and Italy.
The Netherlands, Italy and Spain all have ongoing strikes and chaos caused by farmers and truckers. The Dutch farmers don’t like the idea of their land being stolen and handed to the WEF for a new city exclusively for illegal immigrants. The truckers cannot cope with the price of fuel.
All due to the sanctions.
Germany could solve their gas problem tomorrow just by turning on the Nord Stream II $3 billion pipeline that they announced cancelling on the 1st of March. But how many governments can ever actually admit they made a mistake?
First the Euro goes, then the USD. You can own paper assets that will soon evaporate or you can own something real. For those who like real things, the junior mining sector looks promising.
On the 7th of July I predicted we were near a tradeable low. That appears to have been accurate and I followed up on the 29th of July saying resource stocks look like they have made a turn.
I don’t want to suggest there are a handful of well run and financed junior resource companies with good projects that you should consider investing in. There are hundreds of them in the bargain bin after being hammered for many months.
In my July 29th piece I mentioned a company named Snowline that went from $.84 on the 29th of June to a high of $2.10 on the 3rd of August based on interesting results from their project in the Yukon. In 2021 the company drilled a 168.65 meter hole of a IRGS giving an average of 1.25 g/t gold. IRGS stands for Intrusion Related Gold System marked by a series of tiny but rich quartz veins. On June 30th the company announced a 415 meter intercept of moderate to intense sheeted quartz veins with many showing visible gold.
It brought to mind another company that I own shares in and haven’t written about because with a market cap of $13 million they own a moly deposit in Northern BC with $8 billion worth of moly that the market has taken near zero interest in. The company is named Stuhini Exploration (STU-V) and they are in the very northern most part of BC at Atlin. I’ve been to the project three or four times when Ruby Creek was in the hands of a mostly promotional management.
Moly goes in and out of fashion. While the price has doubled in the last two years, at present retail investors have little interest in moly no matter how big. But the deep pocket investors have woken up to the incredible potential of Stuhini with or without the moly. 43% of the shares in Stuhini are held by institutions and Eric Sprott. That is a lot.
When drilling two condemnation holes for the tailings pond for the proposed moly mine, the company hit gold IRGS indications. Since I believe the Snowline assays are going to light up the market for IRGS style gold deposits and Stuhini happens to be nearby, I love the idea of them shifting the focus to gold rather than the moly component for now. The Atlin district has been mined for gold for over 120 years with millions of ounces of gold taken out. It all came from somewhere.
The company just announced a $1.5 million private placement with the lead order from Sprott Asset Management. The flow thru units are $.45 with a two year half warrant at $.60. The NFT units are $.40 and the same two year half warrant at $.60. The shares have been as high as $.99 in February and had a low of $.375 recently.
The money is going into a 8-10 hole drill program targeting the IRGS with a 2,500-3,000 meter plan. The drill program is scheduled for the late summer and requires little advance preparation since the ground is flat and has easy road access.
Management is cheap. The drill crew can be put up in Atlin in vacation cabins at $99 a night for two people. Cabins have private rooms with hot showers, a small kitchen, TV and internet services. The entire drill program should cost about $800,000. The president of the company takes home $2,000 a month in salary and there are no office expenses. If the project takes off, he makes a lot of money from his shares. If shareholders lose, he loses.
Stuhini has a couple more interesting projects that I am unable to cover in detail in this piece. They are not a one trick pony. As it stands now, shareholders are paying $12 million for the gold potential and get $8 billion worth of moly for free. Eric Sprott likes it and so do I.
Stuhini is an advertiser. I have purchased shares in the open market so naturally I am biased. Do your own due diligence.
Stuhini Exploration Ltd