MOON.v - 771M lbs Zinc + Yava border 300M oz Ag Hackett Lakereposting an old post. everything is still valid except we are on cusp of a re-rating based on next action, which fuels the next action and thus the stock price as well.
https://stockhouse.com/companies/bullboard?symbol=v.moon&postid=31736333
Blue Moon Zinc (the corporate name but also the name for it's California project) is an under the radar company with high return to risk ratio. Here are the reasons why.
MOON has two properties:
1) Blue Moon in California, USA, 5hrs drive from Tesla Giga Factory in Nevada. Resource valued at $0.33/share
2) Yava in Nunavut, Canada. Resource next to Hackett Lake. Resource not yet available.
Blue Moon, California
Resource: 772M lbs Zinc, 70M lbs Copper, 46M lbs Lead, 300k oz Gold, 10.4M oz Silver
Resource is about 50% inferred and 50% indicated
Value of Resource: using 1% of current spot market price for inferred and 2% of current spot market price for indicated to value the resource, we come up to a value equivalent to $0.33/share.
Predominantly Zinc, which has traditionally just been an industrial metal. In recent years is being researched for the next generation of less expensive, safer and higher capacity portable battery storage. Companies such as Natenergy, E-Zinc, Zinc8 are in the zinc air battery sector to commercialize the technology in California and New York. State government is setting clean energy goals and is looking at alternative technologies than Ion Lithium for clean energy storage. California is beginning clean air emmissions starting year 2024! And Tesla has even applied for metal battery technology patents!
If Zinc becomes the technology of choice which imo is definitely in the lead vs. other technologies to replace/substitute lithium ion, Blue Moon mine being the only meaningful zinc mine in California, will be a top runner in any offtake contract.
Other factors making Blue Moon project a highly prospective return project:
- America first approach; supply chain risk lowered with local source of resource
- Near term production: with resource already in inferred and indicated category, next step is further drilling for feasibility plan, and then permit to construct
- County is supportive of mining job, not expecting political delays/roadblock
- Zinc air battery tech companies setting up shops in California with regulations mandating cleaner air, dealing out innovation funds for companies to research and commercialize zinc technologies
Yava, Nunavut, Canada
This is the most exciting and not yet spoken/marketed property out of the two
Yava is in the same area and made up of the same silver rich volcanic material as Hackett Lake. So what's Hackett Lake?
Hackett Lake which Sandstorm gold has taken a 2% NSR has confirmed the following resource:
- 6B (billion) lbs zinc
- 770M (million) lbs copper
- 950M (million) lbs lead
- 600K oz gold
- 315M (million) lbs silver
Gold is not the most abundant, but 315M oz silver, 6B lbs zinc and 770M lbs copper! Based on macro economics, silver and copper is expected to rise in price, increasing value of this great resource. "“Hackett River is a silver-rich volcanogenic massive sulphide project and is one of the largest undeveloped projects of its kind. The property is made up of four massive sulphide deposits that occur over a 6.6 km strike distance.”
Back to Yava. Yava shares the same Greenbelt Zone, and there is evidence that it is formed fromthe same volcanic material likely at the same time. Much of the details of this is found: https://bluemoonmining.com/wp-content/uploads/2017/05/YAVA-43-101.pdf. While more drilling needs to be done, a grab sample assayed 4960 grams per ton silver! That's amongst the top grading silver in resource exploration!
What will Yava yield? In my opinion based on 1) it's the same volcanic makeup where Hackett resulted in 300M oz silver, 2) proximity between the two properties, 3) grab sample of 4960 grams per ton, 4) same greenshoe belt, there is validity of high potential at Yava. Google search of the Hackett Lake property will yield much more exciting results when drilled by Sabina, then sold to Glencore.
Blue Moon in California was dormant for past year due to the JV Partner not being active on the property. This is likely resulting in the company taking back the property and operating it on its own with feasibility and then mine permitting. Jemini Captial was brought on recently to help with market awareness and financing to execute and making it a success. Blue Moon in my opinion is on auto pilot as we move towards those goals and market cap increases.
Then there is Yava which no one knows about it yet and is not fully mentioned by the Company. If they were to start drilling on that property and first few holes come up with similar grams per ton as the grab sample, this stock is no longer at $5m market cap. Drilling excitment and the potential of the Hackett Lake resources being similar as Yava will send this to $50-$100m market cap quite quickly. Looking further, could an opportunist buy out and combine Yava and Hackett Lake together?
The resource potential for Blue Moon could make MOON one of the most stellar stocks on the TSXV going into and into 2021.