Mining companies are beginning to report incredible earnings due to an explosive run in many commodities. Consumers are beginning to bypass vacations and restaurants and strictly load up on physical goods.
The Bloomberg Commodity Spot Index, a basket of nearly two dozen raw materials, continues to trade close to its 10-year high, indicating that this “transitory” inflation narrative that central banks continue to push is far from the truth.
Copper is up nearly 50% over the past year, and this comes during a time the global copper market could see significant disruption due to strike disruptions at three mines in Chile that have come in effect; Chile is the world’s largest copper producer.
Currently, workers at the biggest copper mine in the world, Escondida, owned by BHP, rejected a final wage offer in voting last week.
If they can’t find a resolution this week, the market may be left without production from a project that churned out 1.2 million metric tons last year.
Two smaller mines (Codelco’s Andina and JX Nippon Mining & Metals’ Caserones) are currently going through the same process regarding their collective bargaining.
This potentially disrupts 7% of the world’s copper population if a resolution can’t be finalized shortly.
Blackwolf Copper & Gold:
A few months back, I introduced my readers to the Blackwolf Copper and Gold story, and since then, the company has continued to advance its 100% owned and flagship asset, the Niblack Project on Prince of Whales Island located in southeast Alaska.
For new readers, the Niblack Project is endowed with volcanogenic massive sulphide (VMS) mineralization, including the Lookout and Trio deposits, which host 43-101 compliant copper, gold, silver, and zinc resources.
The project hosts six known VMS zones:
- Niblack Mine site
The indicated resource has grown from 2.6 million tonnes to 5.6 million tonnes, and the inferred resource has increased from 1.7 million tonnes to 3.4 million tonnes since 2009; the company is planning to publish an updated resource estimate by the end of 2021.
It is worth highlighting that the company already has an agreement in place for a low-interest $125M infrastructure loan from the Alaska government.
Recent Drilling Results:
In mid-June, the company announced that they intersected 27.0 meters, averaging 1.1% copper, 1.9 g/t gold, 32.8 g/t silver, and 1.0% zinc or 3.1% copper-Equivalent from the Lookout zone, which hosts the largest deposit on the property.
This was impressive as the news release indicated that the expansion drilling intersected much wider intervals than expected from the previous modelling, with consistent polymetallic grades.
Highlights of the drilling at the Lookout and Lookout Extension zones include:
Currently, the company is rehabilitating 1km of underground workings to facilitate 2021 drilling at the Lookout Zone. The company is planning to conduct step-out drilling from underground to add high-grade tonnage to the upcoming upgraded resource estimate.
It is worth noting that the company is well-capitalized. The company raised 5.4 million dollars in April, which will finance all the ongoing work and development for the remainder of 2021.
The equity structure is extremely tight as, on a fully diluted basis, only 31.1 million shares are outstanding with a strong book of shareholders:
- Insiders & Advisors 22.8%
- Crescat Funds 8.6%
- Delbrook Capital 7.3%
- Other Institutions 12.0%
- Sino Capital 3.3%
Be on the lookout for ongoing drilling results in the fall at Niblack. This is the real value driver for the company as it gives investors unique exposure to numerous elements (gold, silver, copper, and zinc) in a rising commodity environment, which continues to pull very impressive results.
Since my last article on the company, they have also been very active in building out its asset portfolio by acquiring three projects through direct staking.
Blackwolf announced that it acquired multiple high-grade gold and silver targets in Southeast Alaska residing in the golden triangle belt, targeting polymetallic base and precious metal mineralization similar to its flagship asset in Niblack.
Texas Creek Property:
The Texas Creek property is a 3163-hectare claim block comprised of 326 claims and is surrounded by past-producing mines:
- 6 kilometres south of the past-producing Granduc copper mine
- 10 kilometres southwest of the past-producing Scottie copper mine
- 9 kilometres west of the past-producing Premier gold mine
During the 1990s, US Government geologists’ sampling identified multiple veins and shears hosting gold and silver.
Of 31 samples collected, gold and silver values range from trace to 37.5 g/t Au and trace to 1,168 g/t Ag. 16 samples returned over 1.0 g/t Au, with individual samples including:
8.1 g/t Au
742.6 g/t Ag,
6.8 g/t Au
1,045 g/t Ag
37.5 g/t Au
56.9 g/t Ag
15.4 g/t Au
339.1 g/t Ag
32.4 g/t Au
62.7 g/t Ag
24.7 g/t Au
118.6 g/t Ag.
Cantoo Mountain Property:
The Cantoo property is a 527-hectare area comprised of 63 claims and, like all the new property acquisitions, is surrounded by former producing mines:
- 3 kilometres west of the past-producing Premier Gold Mine
- 10 kilometres south of the past-producing Scottie Gold Mine
The Property is underlain by the Texas Creek stock, a dioritic synvolcanic intrusive that was the feeder to host rocks and mineralization at the two mentioned deposits.
US government geologists collected 19 samples, six of which assayed over 1.0 g/t.
Individual samples include:
- 5 g/t Au
- 1,206 g/t Ag
- 2 g/t Au
- 1,173 g/t Ag
- 7 g/t Au
- 5 g/t Ag
Casey VMS Property:
The Casey Property is a 711-hectare claim block comprised of 85 claims and less than 1 kilometre south of Blackwolf Copper and Gold’s Texas Creek property, solidifying a strong portfolio of exploration assets in the Southern golden triangle belt.
The Casey Property hosts several historic precious and base metal prospects, occurring within a similar geological setting to significant mineral deposits in the Golden Triangle.
Thirty-five float, subcrop, grab, and channel samples were taken on the property by US Federal government geologists in the 1990s and 17 assayed over 1% zinc, including eight over 10% zinc, often with high base and precious metals.
Individual high-grade samples include:
- 0 g/t Au
- 4 g/t Ag
- 1% Cu
- 5% Zn
- 4 g/t Ag
- 0% Cu
- 3 g/t Ag
- 3% Cu
- 8% Pb
- 0% Zn
- 6 g/t Ag
- 9% Pb
- 6% Zn
As many of my readers know, I continue to be very bullish on commodities long term. In this increasing inflationary environment, I expect developers such as Blackwolf to perform very well in this next cycle as investors will have that torque from the mineral wealth in the ground.
It is worth noting for my new readers that a seasoned and proven mining entrepreneur is leading the company in Robert McLeod.
Mr. McLeod has over 25 years of experience in mineral exploration and mining, working for various junior and major mining companies primarily in Alaska.
Most notably, he was the founder and VP of Exploration of Underworld Resources, which Kinross Gold Corporation acquired for $140M after an initial resource estimate of over 1.4 million ounces gold at the White Gold deposit, Yukon.
He was also the president and CEO of IDM Mining which was also acquired.
The company is well-positioned for success with:
- Excellent management
- Great equity structure and fully financed for 2021
- The ongoing work program at its flagship asset
- An upgraded resource estimate by the end of the year
- Strong portfolio of newly acquired exploration assets
I will be catching up with Mr. McLeod for another Q&A in about a month for another corporate update as the company should be very active for the remainder of the year.
Please visit the company’s infographic here.
Please visit the Blackwolf’s corporate presentation here.
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