Drilling Hartless Joe Complete
There is a good news/bad news element to bear markets turning into bull markets. In a bear market you can have drill results back in two to three weeks. The bad news, of course, is that you can’t raise the money to drill or pay for assays. On the other hand, in bull markets money flows like fine wine at a PDAC dinner but assays take an eternity.
I began telling the story of Strategic Metals (SMD-V) a little over a month ago. Go back and reread the piece, it’s good. Ten days after I wrote my piece, Strategic Metals announced the commencement of at least a 5,000-meter drill program on three of its wholly owned projects in the Yukon. The program is open-ended based on results received. The company is well cashed up with over $20 million in the till.
So far the company has finished 6 holes at Hartless Joe and has moved the drill rig to the Mars property. Strategic would like to continue drilling Hartless Joe this year but delays at the assay lab will probably prevent that. Access to many holes will require construction of chopper pads and the winter comes early in the Yukon. Look for complete results from Hartless Joe in about four weeks. Expect more drilling there next spring depending on the results.
On the other hand, the Hopper high-grade gold project has road access. SMD has moved a 2nd drill to the project and has begun to drill. Again, expect drill results in 4-6 weeks and depending on the result the company may extend the drill program into later in the fall.
With 122 wholly owned projects in the Yukon, the company enjoys an embarrassment of riches. With cash and shares of other junior mining companies given in return for joint ventures equal to their market cap, SMD has utterly derisked investing in the company. In a wise move, the company is drilling three of their highest potential targets this year. If they drill all 122 projects themselves and they all come up a cropper, I will be leading a lynch party with President and CEO Doug Eaton as the guest of honor.
A year or two ago you could have invested in the very best of mining companies with the most wonderful projects and all you would have accomplished was to give your money away. Everyone hated mining stocks.
This year obviously is different. Many stocks are up 500% and a few up 1000% just as I forecast 18 months ago. A tiny few have escaped the scrutiny of eagle eye investors looking for the next big thing. Strategic Metals is one. The market doesn’t get it and I can assure my readers that should they by accident find the next Eskay Creek deposit in the Yukon, I will be the very first to tell you, I told you so.
Doug Eaton and his highly qualified technical crew spent the last five years building the company that exists today. They know the Yukon like the back of their hands and have assembled more projects than they have names for. Other project-less companies are doing deals with them as I write and they have a cash treasury that will pay for a lot of exploration. They are in elephant country and the question isn’t are they going to hit, the question is, just how soon are they going to hit.
The world stands on the edge of a financial abyss and is teetering on the point of falling. When the financial collapse comes you will have the choice of owning real assets or pieces of worthless financial paper. I know what I will be holding.
Strategic Metals is an advertiser and I am biased. When I was first told that they had cash and shares worth as much as their market cap, I went out and bought shares in the open market. I believe their concept of being Yukon’s project generator will be highly successful and profitable. Please visit their site and go through their presentation, it will answer many of your questions. It’s your money, do your own due diligence.
Strategic Metals Ltd