The Golden Triangle has a New Kid on the High-Grade-Gold Block
The market has been more than willing to reward exploration companies showing high-grade gold results lately. After releasing incredible results from a Red Lake District drill program, Great Bear Resources shot from $.58 a share on August 20th to an amazing $3.25 today.
I wrote up Westhaven Ventures several times in the last six months starting at $.19 a share. I last talked about them on October 3rd when they were still at $.225 a share. The Spences Bridge Gold Belt explorer in British Colombia just announced a brilliant intercept and the shares rocketed up $.44 on the day for a 108% advance before settling at $.76 at the end of the week.
White Gold in the White Gold district came up with great results and they shot from $.58 on Sept 12th to $2 a share a month later. In short, when companies actually do what they say they are going to do and deliver good results, the market will reward shareholders.
As an investor, if you want to make money you need to invest before the results come out. I wanted to write up Great Bear Resources when the company was $.50 a share but the company jerked me around and totally failed to communicate so my readers didn’t get a chance to buy until I wrote about them at $1.70 a share just to show I could. It then went up to $3.50.
Investing at a profit is easy. All you have to do is buy cheap and sell dear. It is no more complex than that. If you follow the chat boards, all of the sheep on the Novo boards are whining about how unfair it is that they bought at the top and now the price went down. Stocks go up and stocks go down. If you will buy when no one wants them and sell when everyone wants them, it’s easy to make money.
I was writing about Novo at $.45 a share six years ago and my readers aren’t whining. I was writing about White Gold at $.58 six weeks ago and those who bought have tripled their money. They aren’t whining. I wrote about Westhaven at $.19 a share and it went up 300% in a month. They aren’t whining.
If you look around you and you are surrounded by a bunch of four legged critters wearing soiled sheepskin coats, you are in a herd of sheep. We happen to live next to a working farm that has 28 sheep. On occasion they wander over to our grass field and begin to mow the lawn. I’m quite happy for them to mow it, the alternative is that I get on a tractor and have to mow it myself.
But they will be wandering about, munching on clover when one looks up, gets nervous and heads for the exit. All of a sudden you have a herd of 28 furry creatures doing the 440-yard dash. They don’t know why, they just follow the first fool. Investors are exactly the same.
I try to let readers know about good companies in advance of news. Yes, many juniors don’t do squat and some go to zero. These are lottery tickets. Do you whine about buying a lottery ticket that doesn’t pay off? Do you really expect to make money on every single purchase?
Benchmark Metals is a born-again junior lottery ticket. In March of 2018 they did a rollback, added management, did a name change and picked up a new former gold mine located in the famous Golden Triangle region of British Columbia. The option, for 75% of the Lawyer’s Gold Project in the Golden Triangle calls for an initial payment of $200,000, transfer of 4 million shares of Benchmark over three years and expenditures of $9 million over three years with $2 million in the first year.
Over a four-year period from 1989 until 1992 the Lawyer’s Mine produced 171,200 ounces of gold and 3.7 million ounces of silver. Over $50 million in infrastructure remains with the mine. In June of 2018 Benchmark released a maiden 43-101 resource showing 91,000 ounces of gold and 3.7 million ounces of silver at the Cliff Creek portion of the property.
The 2018 exploration program at Lawyer’s consists of over 1,000 soil samples and 312 rock chip samples, airborne VTEM, resampling and logging historic drill holes along with a 5,100 meter drill program. Initial drill results are due out shortly and results will continue through December.
Results this year continue to be spectacular. At the Phoenix occurrence a grab sample measured 220 g/t Au and +10,000 g/t Ag. You can’t measure higher than that, it’s over ten percent silver. Another was 160 g/t Au and 1,440 g/t Ag and 23.1 g/t gold with 5,370-g/t silver.
On the 9th of October Benchmark announced a discovery of an entirely new zone of mineralization they call the Phoenix East zone showing samples of 3.61 g/t Au with 32 g/t Ag. 3.4 g/t Au with 131 g/t Ag
This year’s 5,100-meter drill program drilled mostly 100 meter or so deep holes. Some were diamond core and some RC. None were twins of existing holes such as Garibaldi used. A geophysics program was completed with results due in November.
Christmas came early to Benchmark shareholders as the company reported discovery of 1,051 meters of newly sampled historic drill core. Past assays from the most mineralized portions of the core showed assays of up to 87 g/t Au and 2,407 g/t Ag but the intervals both before and after the high grade have never been sampled. The additional sampling has been sent off to the lab.
At today’s price, Benchmark has a market cap of about $10 million CAD or $7.5 million USD, which is cheap. But they do have substantial work commitments to earn their 75% of Lawyer’s. In good news/bad news story they do have 21.2 million warrants at an average price of $.225 that will bring in another $5 million. So with progress this year they will be fully cashed up but there will be more shares outstanding. Fully diluted the company has 63.2 million shares that will bring in about $6 million.
Obviously the Golden Triangle is hot. Past production numbers and assays show Benchmark is literally sitting on a gold mine. It doesn’t come cheap; they are committed to over $10 million to get 75%. They hit the ground running and have come up with excellent results so far. I expect the assays from the drilling to be barn burning. Management is going to have to work very hard to screw this up.
I liked the story a lot and Benchmark has become an advertiser. I have gone out into the open market and bought a lot of shares. Since the warrants are in the money there will be a tendency of people wanting to sell shares in order to exercise warrants but that is a really good thing. It means shares will be relatively cheap until the overhang has been absorbed. That’s wonderful news for potential investors. It might not go up 108% in a day as Westhaven did last week but it will go up with outstanding results.
I own shares, I have to be biased but this is both an easy and great story. I believe the shares will go a lot higher. The company has just come out with a new presentation and all potential investors should view it.
Benchmark Metals Inc