Core Assets Corp ($CC.CN) early stage drill results on its Blue Property show that it may have the potential to develop into a world class porphyry-CRD-skarn deposit. But its shares are trading at the same level as when it was releasing rock and channel samples.
The sleepy days of summer are the best time to build positions in underappreciated discovery stories. At around current prices of 23 cents, SGL believes Core Assets represents a compelling early stage speculation on a potential world class discovery.
August 1, 2023
Since late September 2022, precious metals equities have been acting much better. Recent chart action appears to indicate that the next phase of the gold bull market has started.
As we have mentioned in another post on Angel Wing Metals, nothing goes up more in a gold bull market than a brand new discovery.
Core Asset Corp ($CC.CN) is proving up a complex silver rich system in British Columbia, Canada. Core Assets' early stage drill results on its Silver Lime Project within the center of the Blue Property show that it may have the potential to develop into a world class porphyry-CRD deposit. However, in the sleepy days of summer, no one is paying attention - which is the best time to establish a position.
Despite having already reported promising assays, Core Assets is trading at the same price and a comparable market capitalization to its January 2022 price - when it only had channel and rock samples to show to the market.
As a result, we believe that at around current prices of 23 cents, Core Assets represents a compelling early stage speculation on a potential world class discovery.
Stealth Bull Market?
The sentiment in the junior gold space is once again at all-time lows.
Nobody, even the pros, wants to touch a Vancouver stock. Even the best private placements are struggling to raise new money.
People believe that junior miners cannot go up before the end of the summer holidays i.e., mid August. More importantly, investors - tired of downside volatility - want to see clear upside momentum before sticking their neck out. But in the face of all this negativity, the gold miner indices have been making higher lows and higher highs. This is the definition of an upward trend as we mentioned in our posts since October 2022: The New Gold Newsletter, Bull Markets Start with a Bang, the Historic Breakout, and the Next Phase of the Bull Market.
The only bright side of this gloomy atmosphere is that you can still pick up some amazing opportunities on the cheap.
Underneath a Receding Glacier - Silver!
Investing in exploration companies is always a tough business.
In a normal precious metals bull market any sign of a discovery is heavily bought and promoted. An investor is always buying a potential discovery at an inflated and often unreasonable price. Today, this is not the case.
In 1968, a famous slogan of the French rioting students was "Beneath the Pavement, the Beach”. This referred to the sand underneath the cobblestone streets, which the rioters encountered when they were hurling cobblestones at the police.
Here in the high mountains of British Columbia, not too far from the Golden triangle, Core Assets could say, "Underneath a Receding Glacier, Silver”. This is the story of Core Assets Corp.
Nick Rodway, a young brilliant geologist and CEO and President of Core Assets, has put together a district scale land package of 1140 km² in the prolific Atlin Mining District.
Although more easily accessible than other projects located to the south of the Golden Triangle, Core Assets' Blue Property is one of the last unexplored areas of the prolific Stikine Terrane region.
The Silver Lime Project within the center of the Blue Property contains one of the largest and highest grade documented surficial expressions of any early stage CRD project, with indications of a potential porphyry at depth.
In the summer of 2021 Nick Rodway and his team started to encounter mineralized outcrops. From then on many high-grade rock samples and channels, were assayed all over this huge area. The assays showed significant values in silver, gold, copper, zinc including samples, grading more than 2 kg silver per ton.
World-class Porphyry-CRD-Skarn deposit potential
According to Quinton Hennigh, Crescat Capital's famous geologist, this could be a giant porphyry mantos system with many chimneys that have the same type of geology as the famous Taylor deposit in Arizona or the Naica property in Chihuahua.
Drilling results are already starting to prove this idea. In 2022, drilling at the Grizzly CRD target intersected 5.64m of 659g/t AgEq (254g/t Ag, 5.1% Pb, 4.8% Zn, 0.11% Cu and 0.12g/t Au) including 1.16m of 3,056g/t AgEq (1,145g/t Ag, 23.2% Pb, 23.5% Zn, 0.52% Cu, and 0.37g/t Ag) from 58.54m depth. Another example in March 2023, the first 4 drill holes completed on the silver lime project included 1.25 m of 215 grams per ton silver, 9.9% zinc, 8.9% lead (i.e., 18.8%Zn + Pb) and 0.36% copper.
On July 17th, 2023, Rodway announced a brand new CRD discovery in the first ever drill hole at Pete’s CRD Target, which is located 1.7 kilometers northwest of the Grizzly CRD Target on the Silver Lime Project.
This shows clearly how big the system is today with a 6 km x 1.7 km footprint. Now Core Assets have 5 discoveries: Sulfide City, Jackie, Grizzly, Laverdiere and Ted. Assays on Pete's CRD Target should be released within a couple of weeks and could have a significant impact on the price of the Core Assets' shares.
Cash, Newsflow and a Clean Share Structure
This young company has only 107.4 million shares fully diluted for a market capitalization at $.24 of about $C25 million. Insiders own 23% of the shares and the CEO has most of his wealth invested in this company.
The company raised $C 3 million in a non-brokered private placement on February 17th, 2023 at 43 cents. They have plenty of cash for this drilling season which should provide ongoing news and the potential for significant price appreciation.
SGL believes that with a little help from the silver market and activist exposure from Crescat Capital, which is a major shareholder, positive assay results could lead to a massive rerate in Core Assets' share price.
Disclaimer: SGL does not provide investment advice and is not a registered investment advisor. Always do your own due diligence before making an investment. Investing in securities, especially junior miners, can be risky and never invest money you cannot afford to lose. SGL cannot guarantee the accuracy of the information in this post. SGL and its contributors have attempted to present the information fairly, but it may own shares of Core Assets Corp so bias cannot be excluded. SGL or its contributors have no relationship with Core Assets Corp. SGL or its contributors may buy or sell shares at any time.
SGL makes no representations, and specifically disclaims all warranties, express, implied, or statutory, regarding the accuracy, timeliness, or completeness of any material on this website. You should seek the advice of a securities professional regarding any stock transactions. SGL cannot guarantee in any way that it is providing all of the information that may be available. Please do your own due diligence before buying or selling any security.