RE:Cordoba drills Colombia's next porphyry belt~~THE STOCK
Despite Cordoba’s methodical steps to advance San Matias and prove up its geological theory, the stock has flatlined under 10 cents, caught in the relentless downdraft that has brought down the entire junior mining sector.
But unlike most junior exploration companies, Cordoba is cashed-up, with an estimated $3.5 million in the treasury as of the end of 2014.
About a year ago, Cordoba raised $15 million at $1 per share with the participation of such investment powerhouses as PowerOne Capital, BlackRock, Geologic Resource Partners and RBC Global Asset Management.
Now, the market is valuing the company at just under $5.3 million.
To number cruncher Stifano, a chartered accountant, the downside looks minimal and the upside could be explosive.
“Some very smart money came in at much higher prices.”
Cordoba is cashed-up to conduct its 2015 exploration program and has no plans to raise additional funds – especially at these stock levels, says Stifano.
But its control of an emerging porphyry district has attracted the attention of several majors, Stifano says. Cordoba would consider doing a joint-venture deal, but only if it creates shareholder value.
As for next steps, this year Cordoba is targeting the best prospective areas on the southern 8 kilometres of strike, Grainger says. (2014 work was mostly limited to the northern 3 kilometres of strike.)
One valuable clue discovered by Cordoba’s geos are high magnetite levels in the highest-grade porphyry areas, Grainger says. So the company is doing ground geophysics and magnetics over several areas to isolate those high-grade porphyry areas.
The focus on the southern portion will be ground magnetics and sampling in 6 or 7 target areas with stream and soil anomalies. Once ground magnetics are completed and mapped, diamond drilling will follow.
The potential is huge, but right now, there is little appetite in junior mining markets for greenfield exploration. That has suppressed Cordoba’s share price, but could multiply the potential return when the tide turns.
However, some patience on the part of investors will be required, Grainger says.
“I think it’s a very good time to be in Colombia, this country’s completely wide open. In tough times like this, the good projects survive, and this is one that will survive.”
Says Stifano: “We’re going to confirm to the market that we have a high-grade copper-gold porphyry belt.”