Canuc Drills High Grade Silver
I did an interview a couple of weeks back and discussed the top three investments we saw being overpriced. That included the S&P, Bitcoin and Tesla. Since then both Tesla and Bitcoin have crashed. My belief is that investing is not a lot more complex that determining what is cheap and what is expensive.
As I explain in my book, Nobody Knows Anything, investors should ignore all the “experts” and learn to think for themselves. After all, it’s their money to be made or lost. Isn’t it true that all “gurus” have both a bias and an agenda?
In my view, both silver and platinum are especially cheap at least in comparison to other precious metals. If I am right, they should lead the next move higher. I think we will see a low in the next month or so before starting a multi-month advance. I like silver a lot in here and there aren’t that many real silver companies around.
A new silver company named Canuc Resources (CDA-V) came to me recently with an interesting silver project in Sonora, Mexico they call the San Javier project. The Santa Rosa silver/gold mine is located about 146 km southeast of Sonora’s capital city, Hermosillo. It has power; water and a major road running near the project. Santa Rosa was an operating silver/gold mine in the early 20th century but has never been drilled until now.
Canuc’s biggest problem today is lack of visibility. The shares pretty much trade by appointment. But silver bugs love a good silver story and with a few more high-grade silver intercepts, the shares may well take off. Canuc began a 3000-meter drill program in July. They began to release drill results two months ago showing all holes have hit the targeted Santa Rosa Vein system.
A month ago in early October Canuc released an assay of hole 3 showing 1,514 g/t silver and 2.91-g/t gold with good values of both lead and zinc. The rock was worth over $1200 in the ground over a 1.5-meter intercept. The same release gives figures for surface sampling of 274 g/t silver over 11 meters at the Carranza breccia zone and at Cerro Colorado some 285 g/t silver over 11.3 meters. Wide intercepts of high-grade silver at surface suggest a good potential for open pit mining.
Canuc owns a few oil and gas wells in Texas and gets a minor income from them that at least offsets some of their overhead costs. Management was adamant with me that their objective is to get and keep their share structure under control. I always like that.
The company has over eight million warrants at an average of $.36 outstanding and four million options at an average price of $.36. With any drill success we can reasonably expect a higher price for the shares and the next drill program hopefully being financed by the outstanding warrants and options.
Canuc is a silver work in progress. Higher prices for silver, or higher prices for the precious metals or more high-grade drill results should move the market cap higher. The shares are cheap today but that may not be true forever.
Canuc is an advertiser and I participated in the last pp. Do your own due diligence; it’s your money.