Strickland Metals (ASX:STK) is the latest junior to pop on the gravity-defying gold run of early post-COVID history with its discovery of new porphyry targets on-site its Serbian Rogozna gold and base metals project, itself a major copper-producing country (gold-copper porphyry targets are not at all unheard of).
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While no assays were included in Thursday’s reporting news, it’s the geological pedigree of a porphyry target that has really gotten investors excited.
An igneous rock, the long and short of it is that such systems indicate a higher chance of finding mineable quantities of target minerals, and with less tricky downstream processing needed, Strickland has explained.
With gold prices supporting the economics of low-grade gold mines right now, it’s obvious why investors have thrown cash at Strickland; also notable is that the company already boasts an existing resource of some 7.4Moz of gold equivalent (AuEq) on-site; the thinking now surely goes that resource could be expanded.
Strickland’s currently got further magnetics surveys planned on-site to better whittle down their way to actual drilling, and with the company currently boasting $52M in bank, it’s unlikely to need a cap raise. Especially after Chinese mining goliath Zijin Mining took a stake in Strickland earlier this year, leaving one HotCopper user asking if a Zijin takeover offer is on the cards in the foreseeable future.
That mightn’t be to the preference of management, who on Thursday were understandably bullish on the latest gravity results that found the new porphyry targets; especially after East Coast Research gave the stock a target above 60cps (this journalist receives no kickback from East Coast, nor is he too familiar with their valuation methodology.)
“We are constantly surprised on the upside by the scale of the opportunity at Rogozna, and are looking forward to pursuing these large porphyry areas in parallel with our ongoing resource growth drilling at cornerstone skarn-hosted deposits such as Shanac, Gradina, and Medenovac,” Strickland MD Paul L’Herpiniere said.
Too much drilling can be a bad thing for some explorers, but in Strickland’s case, the market clearly wasn’t bothered on Thursday.
STK last traded at 20cps.
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