Comparing WLV to RYN
TGR:Ryan Gold Corp. (TSX.V:RYG) and
Wolverine Minerals Corp. (TSX.V:WLV)are both drilling geophysical and geochemical anomalies in the Yukont his summer. Yet Ryan is valued at around $230M (million) and Wolverine at around $22M. Can you compare the potential of each of those companies and their values as it pertains to the larger play going on in the Yukon?
BC: That's a real interesting question. Both of them have geochemical anomalies in the Yukon—so do a hundred other companies. Ryan Gold has a very influential and well-connected group of people associated with it. That has helped its valuation a lot.
It also has one project that I consider pretty darn sexy: the Ida Oro Project. It's got the look and feel of a large, intrusive-hosted gold system. That's all we know. We don't even know what the average grade is going to be. If it's a disseminated deposit, which it appears to be, it could be an average of 1 g/t. That's a pretty skinny margin for a deposit in the Yukon and I hope they do better than that. Even at a 2g/t average everything else would have to work to make it an attractive takeover target. That jump between 1 g/t and 2 g/t gold is a big hurdle if you look at a cumulative grade plot for large deposits.
Turning to Wolverine Minerals, it also has good, competent management. I've got a lot of respect for them. The company has a number of projects and I think it will begin drilling on a few of them over the summer. The company's team is out there right now sampling and mapping. If they can pull two drill holes that show a potential economic system, our odds are leveraged at a $22M market cap versus Ryan's $200M. I like Wolverine in that respect, but it does not have the solid target defined yet like Ryan Gold.
TGR: What about Wolverine's agreement with
Strategic Metals Ltd. (TSX.V:SMD)?
BC:Strategic is supplying a lot of the workers, geologist, samplers and mappers. It's certainly an advantage. The company received most of its projects from Strategic in exchange for shares. I think that's the only involvement from Strategic.
TGR: When should we expect some drill results from Wolverine and Ryan?
BC:I suspect they'll be drilling in August. It's taking a long time to get assays to the labs given that everybody and their dog is up there rushing samples to the labs. There could be results in September or October.
TGR: Is there an entry point on those stocks that is favorable?
BC: We got into Wolverine at
.35 in
Exploration Insights and it's trading around
.63 now. For investors looking for high-risk exposure in the Yukon, it's probably a reasonable entry point.
Ryan Gold is a tough call. With Ryan, investors might want to wait and see what some of the results look like.
pub/na/10412
.