That won’t happen until February once the soil samples and other data is mapped and analyzed, and when Argentina gets back to work - not sure I’m kidding, as it seems things happen very slowly in December and January down there. Regardless, the news is potentially exciting. I can’t wait until they drill it. First Quantum’s (FM.TO, MCap $10.8 billion) management would have a stroke!
They could have bought it for a few million when Cascadero was down and out but if McWilliam is right and there is a mineable gold, copper, or silver system on that property, and First Quantum is going ahead with its Taca Taca mine next door, they will absolutely have to own Sarita and all the connected properties.
Taron could make this a $1 stock, but a gold strike at Sarita would make it a moon shot.
The company is still advancing its Taron Cesium deposit, but there are steps that have to occur - i.e., that have not been completed - in order to get the resource estimate we are waiting on. These steps will include additional infill drilling and continued metallurgical work. The studies conducted by the local University (of British Columbia) proved successful in recovering high quantities of the targeted Cesium using a short and simple process. They also reported success at reducing costs. But they think they can reduce them further.
Hence, additional steps will include another phase of metallurgical work, which will allow the company to lower its cut off grades, and together with the infill drilling, ultimately get a more robust resource for Taron.
The drilling will include step outs by the way. When we started promoting Cascadero I mentioned that they were planning to drill out only a fraction of the prospective target system, and that the actual system was so large that it didn’t make sense to fund a system wide exploration program at the current share price. As a result, the plan was to drill out a small section, and they chose to concentrate on the area where they had previously trenched and drilled. However, the property has several indicators that have never been tested.
The drill program will test a few of them, perhaps also finding a higher grade area.
The company announced that the exchange finally released the shares and cash (two tranches) from the
proceeds of the sale of a non Argentine gold property to the Dickinson group up here in British Columbia. They seem to have enough cash to get them through the trenching at Sarita and additional drilling required to
get to the Taron resource. I exercised some options in the batch that expired last week, adding to it a bit.
The market is down on this company because it has taken longer than we thought to get to a resource estimate
and because Dave Trueman’s surprise resignation in June caused the glass to turn half empty.
But there has not been any negative news, not fundamentally speaking. The news has been positive. Just not
as positive and timely as originally expected. The current lull is an opportunity to load up on this deal. There is not a stock on the board that I feel has the same or a more favorable reward-risk ratio.
I mean it when I say it is a steal below 10 cents. And it is a buy up to 20 cents. You’ll see.