Sun Metals Corp. V.SUNM

RE: The Future May Be Very Bright for Sun Metals

[Nickphil]

Sorry. This is the correct link: https://hydracapital.ca/hydra-blog.html

Nickphil wrote: https://www.stockhouse.com/companies/bullboard?symbol=v.sunm&replyto=0

So, it's not often that I go from having never heard of a company to being long stock in less than an hour, but in the case of Sun Metals (SUNM.V, last at $0.255) that's exactly what happened when I read the company's press release detailing a high-grade replacement skarn hit at its Stardust project in B.C. There's no way I have time to describe the technical story here... but one thing I do know is that when Dr. Peter Megaw is telling you that something "may be a game changer" with respect to drilling results within a Carbonate Replacement Deposit (CRD) system, you best sit up and listen. Peter is one of the most widely respected and knowledgable exploration geologists on the planet, especially when it comes to CRD deposits. There's a video on the Sun Metals website in which Dr. Megaw discusses some of the core in this newly discovered zone and how it relates to all of the other historical drilling on the property that has led to this point.

I can't say what the future holds here, but 36.5 metres of 7.8% copper equivalent rock is a very nice place to start from... that's one of the best high-grade copper intercepts I've seen in some time. The results are apparently still distal (peripheral to) the main "guts" of this CRD system according to Dr. Megaw's evaluation of some of the textures and mineralogy seen in drill core (link to the video here). CRD mineralization forms as carbonate rocks are dissolved, altered, and replaced, by mineralization that is derived from fluids that are generated during the intrusion of a large magma body into the host rock. Those fluids can travel great distances (SUNM has followed a 2km-long "trail" to get to this part of the system), but like smoke, they can be followed by to the source by someone who knows what to look for; like Peter Megaw. True thicknesses of the new discovery are unknown at this time, but I'm not sure that the market will care that much just yet given the penny-stock prices.

In any case, have a read of the press release and see what you think. I've heard some amazing stories about world-class CRD/skarn deposits that you would hardly believe in terms of grade and tonnage and I've seen plenty of small ones too. The Stardust property is cored by a fairly large igneous intrusion that was the source of the heat, metals, and fluids in the system, so the potential for scale is certainly there... and if this is what they get when they are still "distal" in the system, I'd love to know what the guts look like. Sometimes penny stocks turn into real stocks on the merits of their project(s) and management team. In this case, the management team and technical talent are more than up to the job of telling the story and driving the exploration program forward (just have a look at their bios, this is nobody's first rodeo). It'll take some feeling around to keep following the system and I'm not sure when drilling is going to start up again, but the story just made a huge leap forward today and there are plenty of assays pending from the drill program that just wrapped up. Here's hoping that structural complexity is minimal, because if that's the case, there's likely some even juicier rock not that far away.

Early days, but sometimes one hole can really shine a spotlight on a project and that feels like the case with the highlight hole that was just released here... it's unlikely to be isolated with thickness and grade like that. Below I've included a couple of figures from the company. The first is a generalized conceptual diagram of what a system like this might look like. I've put a dashed oval on the diagram to highlight the general part of the system that hole 421 would appear to be from. A more detailed schematic from SUNM's press release is shown in the second image and it includes the massive sulphide intercept reported in hole 421 (it also diagrams the location of the second zone, for which assays are pending). Lots of work to do, but I don't think there's much question that SUNM has tapped into a significant part of the mineralizing system here.

Update: There was a 25 cent financing earlier this year that appears to be churning in the market here at roughly break-even levels. That financing came with a 35 cent warrant, so perhaps some people from that deal are selling the stock here and keeping the warrant. To those people, I would ask, "What else were you hoping for when you played the 25 cent deal?". It seems odd that anyone who played that deal would be selling now, especially given that the company has made a new discovery following the exact exploration model and business plan that was laid out on the raise, but as they say; that's what makes a market...

Happy hunting.