As the reality that inflation is not as “transitory” as the Fed would have us believe kicks in—though chairman Powell now concedes that it will likely be more “persistent” than previously thought—some are calling for violence in the gold arena.

An October 22nd Bloomberg headline…

Gold’s Inflation-Haven Appeal Means ‘Violent’ Run-Up May Be Ahead

We’ve been talking about this pervasive price pressure for months.

Anyone who hasn’t encountered inflation in their day-to-day—anyone who hasn’t experienced it on a gut level—is either living off the grid consuming their own livestock and produce, or is a shut-in with little contact from the outside world.

Fatter price tags and leaner volumes (smaller packages) are what I observed today while shopping for my daily carbs, veg, and protein.

Brutal. I feel for those who are already living below the line.

Where the precious metal is concerned, the spring coils tighter with each passing day. Quoting David Garofalo, the ex-chief of Goldcorp and current CEO of Gold Royalty Corp, from the above-linked article:

I’m talking about months,” he said. “The reaction tends to be immediate and violent when it does happen. That’s why I’m quite confident that gold will achieve $3,000 an ounce in months not years.”

Months, not years? I’m pretty sure I could live with that kind of price pressure.

Companies on our list making headlines

Forum Energy Metals (FMC.V) – (FDCFF.OTCQB)

On October 13th, Forum announced the completion of a first pass exploration campaign at its recently acquired Quartz Gulch Cobalt-Copper Project in mining-friendly Idaho.

Forum Completes Exploration Program at the Quartz Gulch Cobalt-Copper Property, Idaho

The 10.65 square kilometer Quartz Gulch project is roughly five kilometers southeast of Jervois Global’s Idaho Cobalt Operation and the past-producing Blackbird cobalt mine.

Quartz Gulch is on trend with both projects.

Location of the Quartz Gulch property southeast of the past-producing Blackbird Mine and Jervois Global’s Idaho Cobalt Operation under development.

A regional geological and stream sediment sampling study conducted by Noranda in 1982 deemed Quartz Gulch prospective for stratabound cobalt mineralization and cobalt hosted in quartz-tourmaline breccias.

Dahrouge Geological Consulting out of Denver Colorado was contracted to carry out a program of geological mapping, prospecting, outcrop sampling, and soil sampling.

A total of 94 rock samples and 329 soil samples were sent off to the lab for assay—results are expected in late November.

In addition, the interpretation of remote sensing hyperspectral data identified 14 anomalous targets along the property.

Rick Mazur, Forum’s CEO:

These anomalies were never followed up after closure of the Blackbird mine. Forum is the first company to conduct a thorough exploration program on the property. Forum’s exposure to cobalt in North America’s pre-eminent cobalt mining camp rounds out our focus on the energy metals- uranium, copper, nickel and cobalt.”

Cobalt is currently trading north of $25 per lb, up dramatically from its $14.32 52-week low.

We’re currently waiting on drill results from two projects located in north-eastern Saskatchewan—Janice Lake and Love Lake. An update from the Company’s extensive uranium project pipeline in and around the prolific Athabasca Basin is also due. Concerning its uranium assets, we’ll see at least one drill program this winter—the Northwest Athabasca JV Project—where Forum stands to increase its interest to 47% (the current control stands at Forum 39.25%, NexGen 28.25%, Cameco 20%, and Orano 12.5%).

Just a heads up: CEO Rick Mazur will be at the Metals Investor Forum, a two-day event at the JW Marriot Parq in Vancouver, on November 12-13.

Rick will be presenting during John Kaiser’s session.

HighGold Mining (HIGH.V) – (HGGOF.OTCQB)

“A mining engineers dream”

If you’re long HighGold, you should watch this vid…

Here, CEO Darwin Green talks about the Difficult Creek discovery hole at his flagship Johnson Tract Project577.9 g/t Au, 2,023 g/t Ag, 2.15% Zn, 0.30% Cu over 6.40 meters—and the geological setting underpinning this exceptional hit.

He also updates progress/developments along the main JT deposit area—750k ounces AuEq @ 10.9 g/t AuEq Indicated (plus 134k ounces AuEq @ 7.2 g/t AuEq Inferred)—where the company has been stepping out from the main resource base.

We should see an updated resource estimate by April of 2022.

Concerning the Company’s Timmins assets—a story that isn’t as well known—HighGold has been busy consolidating its land position in the area over the past couple of years.

This area of the Timmins camp is witnessing an acceleration in activity with Moneta (Golden Highway/Tower), Mayfair (Fenn-Gib), and McEwen (Black Fox) operating in the region.

The Company’s Munro Croesus Project is slated for a drill campaign before the year is out.

For now, assays continue to roll in, albeit hole by hole, from the Company’s 8,475-hectare flagship project in Alaska.

On October 13th, the Company dropped the following headline:

HighGold Mining Intersects 18.7 g/t Au over 56.6 Meters at JT Deposit, Alaska

Hole JT21-125, an infill hole designed to provide material to support Phase I met-testing, successfully intersected a long interval of gold-rich rock—mineralization significantly richer than the JT deposit average.

Hole JT21-125 highlights

  • 18.69 g/t Au, 2.43% Zn, 0.47% Cu over 56.6 meters, including;
  • 31.69 g/t Au, 1.82% Zn, 0.58% Cu over 32.9 meters, inc two high-grade intervals of;
  • 64.74 g/t Au, 1.49% Zn, 0.53% Cu over 5.0 meters and;
  • 114.37 g/t Au, 3.51% Zn, 0.33% Cu over 4.9 meters;
  • Nice hit.

Darwin Green, CEO:

We are very pleased to report this new intercept from the deeper reaches of the JT Deposit that confirms the strength of the mineralizing system. In combination with the recent drill results from the DC Prospect 4km to the northeast, the Johnson Tract Project continues to establish itself as one of the pre-eminent high-grade gold exploration projects located in the USA.”

On the strength of these initial results from the 2021 drill campaign, on October 18th, HighGold announced the following raise:

HighGold Mining Announces $10 Million Bought Deal and Concurrent $5 Million Private Placement Financing with Strategic Investor for Total Gross Proceeds of $15 Million

On a bought deal basis: 6,250,000 shares at $1.60 for total gross proceeds of approximately $10 million. No warrants.

The same afternoon, roughly four hours later…

HighGold Mining Announces Upsize to Bought Deal Financing to $12 Million

There’s an appetite for this stock. I know what you’re thinking… who is the “existing strategic investor / senior gold producer?”

The ultimate scenario in my mind would be JT getting taken out at a fat premium by a resource-hungry predator, perhaps by the “existing strategic investor / senior gold producer“. At the same time, the Timmins assets getting spun out into a NewCo. We all know how this works—Premier Gold getting taken out by Equinox Gold is a good, recent example.

Prime Mining (PRYM.V) – (PRMNF.OTCQB) – (04V3.Frankfurt)

October 12th, Prime reported additional positive Phase 1 drill results from its wholly-owned Los Reyes Gold-Silver Project in Sinaloa State, Mexico…

Deeper Phase 1 Drilling Confirms Strike and Depth Potential of the Zapote-Tahonitas Mineralized Structure

The Company reported 18 drill holes in this October 12th press release—seven within and adjacent to the Zapote South deposit and eleven within or adjacent to the Tahonitas deposit.

(Zapote South and Tahonitas are two of the eight known gold-silver deposits at Los Reyes)

All 18 drill holes tagged potentially economic mineralization—eight returned significant high-grade values.

Drill hole table link here.

Highlight Drill Intercepts

Zapote South Step Out Drilling:

  • 6.12 g/t Au and 61.8 gg/t Ag over 18.4 meters (11.8 meters estimated true width (“etw”)), including 12.02 g/t Au and 60.8 g/t Ag over 8.5 meters (5.5 m etw) at 33.0 meters from surface (21ZAP-12A);
  • 3.36 g/t Au and 83.2 g/t Ag over 16.0 meters (13.1 m etw), including 5.77 g/t Au and 110.4 g/t Ag over 9.0 meters (7.4 m etw) at 197.0 meters from surface (21ZAP-21);
  • 2.18 g/t Au and 45.4 g/t Ag over 20.6 meters (13.2 m etw) at 50.2 meters (21ZAP-16);
  • 2.85 g/t Au and 31.1 g/t Ag over 9.3 meters (8.4 m etw) at 150.1 meters (21ZAP-18);
  • 3.89 g/t Au and 13.4 g/t Ag over 2.0 meters (1.4 m etw) at 159.0 meters, including 6.52 gpt Au and 13.9 gpt Ag over 1.0 meter (0.7 m etw) (21ZAP-20).

Tahonitas Step Out Drilling (note the silver values):

  • 14.51 g/t Au and 82.1 g/t Ag over 4.9 meters (3.8 m etw) at 16.5 meters, and 3.96 gpt Au and 9.2 gpt Ag over 2.9 meters (2.2 m etw) at 37.5 meters (21TA-08);
  • 5.55 g/t Au and 163.8 g/t Ag over 2.8 meters (2.1m etw) at 13.5 meters (21TA-10);
  • 2.07 g/t Au and 247.8 g/t Ag over 3.8 meters (2.90 m etw) at 113.0 meters, including 7.32 g/t Au and 840.0 g/t Ag over 0.9 meters (0.7 m etw) (21TA-05);
  • 1.90 g/t Au and 78.3 g/t Ag over 6.0 meters (3.9 m etw) at 72.0 meters (21TA-09);
  • 3.86 g/t Au and 448.0 g/t Ag over 1.0 meter (0.9 m etw) at 48.2 meters and 1.55 g/t Au and 230.2 g/t Ag over 4.4 meters (4.0 m etw) at 58.4 meters (21TA-11).

These new results are from the west end of Los Reyes where the dominant northwest-southeast trending Z-T structure remains open at depth and along strike to the southeast.

This press release emphasized that current drilling at Tahonitas has yet to test the zone’s potential at greater depth:

“Importantly, none of the current drilling at Tahonitas is to a sufficient depth to have tested the deeper high-grade gold zone found in Zapote South that was intersected as reported May 15, 2021 in drill hole 21ZAP-15, 4.49 g/t Au and 67.9 g/t Ag over 8.3 m (7.4 m etw), and in the newly reported drill hole 21ZAP-21.”

There are currently 27 holes additional holes from the Phase-1 program awaiting assays.

Three drill rigs continue to turn at the project.

Drilling at Los Reyes is about to find a whole new gear with the rainy season drawing to an end. This will allow for better access to the east side of the project.

Planning for an aggressive Phase-2 campaign is currently underway—a campaign that will see an increased number of drill rigs mobilized to the project—three rigs will focus on expanding resources at Zapote-Tahonitas alone.

As per this October 12th press release, key takeaways from the Z-T drilling include:

  • Deepened the epithermal boiling elevation by at least 50 meters. At Zapote, Phase 1 drilling has extended the potential boiling zone height which hosts the highest-grade mineralization, from 530 masl by 50 m to 480 masl. This “deepening” of the bottom elevation of the boiling zone elevation provides exploration prospects below Zapote and across the entire Z-T structure to that depth. Follow-up is a part of Phase 2;
  • High grade mineralization intercepted in ‘below-pit’ drill holes. 21ZAP-21, with 3.36 g/t gold and 83.2 g/t silver over 13.1 m etw, 21ZAP-19 with 0.75 g/t Au and 13.7 g/t Ag over 19.3 m etw, and 21ZAP-20 with 3.89 g/t gold and 13.4 g/t Ag over 1.4 m etw. All three drill hole intercepts are below the current resource pit bottom providing significant opportunity to expand resources at depth (Figure 3– Zapote South Longitudinal Section, Figure 4: Section B-B’, and Figure 5: Section C-C’);
  • 21ZAP-21, with 13.1 meters of high-grade precious metal values, shows that on the most southeasterly section drilled to-date at Zapote South there is high-grade mineralization with its dip extent of at least 125 meters including 50 meters below the current pit bottom. (Figure 4: Section B-B’). Zapote South remains open to the south-east towards Tahonitas, presenting a Phase 2 exploration opportunity;
  • Shallow Drilling at Tahonitas. Phase 1 produced positive results encountering near surface mineralization with our initial drilling. However, drilling to-date has not yet targeted the Z-T structure at the same depth where good high-grade mineralization is encountered at Zapote South. Deeper drilling at Tahonitas is a key Phase 2 exploration opportunity;
  • Phase 1 successfully targeted significant areas of inferred resources for in-fill drilling and produced positive results.

Daniel Kunz, CEO:

With today’s release, the Zapote-Tahonitas structure (“Z-T”) is over 1.2 kilometres long and remains open to the southeast. Phase 1 drilling has been highly successful. At Zapote South, we have converted Inferred category resources to Indicated and deepened the central area of the resource pit by at least 50 m over a strike length of no less than 300 m. At Tahonitas, initial shallow drilling returned strong near-surface mineralization well above the corresponding elevation at which robust high-grade is encountered at Zapote South. We are also pleased to be encountering high-grade silver at Z-T as we gather silver data that was largely missed by prior operators at Los Reyes. Results to-date indicate that silver will be a significant by-product credit and have a material positive impact on the economics of future mining operation at Los Reyes.”

Kerry Sparkes, Prime’s technical advisor:

Z-T proves to have good area continuity and remains open at depth below the Zapote pits and below the current Tahonitas drilling. Recent drill results indicate that the optimum boiling elevation for deposition of high-grade mineralization is lower than previously interpreted. This provides rich targets for our Phase 2 drilling.

At Los Reyes, we have all the key components for continued value creation: resource conversion potential (upgrading Inferred material to the higher confidence categories), resource expansion potential via stepping out from the known mineralized zones, and exploration upside.

According to slide #9 on the Company’s current deck, there are 8 to 10 new high-grade surface discoveries fit for a proper probe with the drill bit. The discovery potential extends to the untested claim blocks recently added to the project.

Slide #10 from the Company deck

With the influx of positive drill hole data in recent months, the next resource update could represent a significant price catalyst for the stock.

On the subject of resource updates, the fact that previous operators failed to capture Los Reyes’s significant silver values will undoubtedly augment Los Reyes’ ounce count.

Prime’s impressive price trajectory is a clear stand-out in the junior arena. The stock was trading at $1.52 when I first featured the Company eleven months ago.

Skyharbour Resources (SYH.V) – (SYHBF.OTCQB) – (SC1P.Frankfurt)

I first featured Skyharbour in these pages on September 7th in a piece titled Uranium tags multi-year highs, Skyharbour Resources (SYH.V) in the spotlight…

The above-linked piece digs into Skyharbour’s high-grade flagship asset—the Moore Uranium Project—in the prolific Athabasca Basin of Saskatchewan.

This cash-rich AB land baron also holds an extensive portfolio of projects beyond its flagship property, all strategically located—all boasting significant discovery potential.

Hook Lake

The Hook Lake Uranium Project (previously hailed as ‘North Falcon’) is a joint venture (JV) with Valor Resources—a deal inked back in December of 2020.

Extraordinary U3O8 surface values were encountered along the northern edge of the property back in 2015.

In October 2015, on the northern side of the property at the Hook Lake target, Skyharbour reported that it had confirmed the presence of high-grade uranium mineralization with up to 68.0% U3O8 in a grab sample from a trench. The trench is referred to as the Hook Lake U-Mo showing and was the focus of the Company’s Summer 2015 field program which consisted of detailed prospecting and vegetation sampling. Skyharbour randomly selected three grab samples from the Hook Lake showing to verify historic results and these grab samples returned 68.0% U3O8, 35.7% U3O8 and 29.8% U3O8.”

Previous operators were unable to locate the source of this high-grade surface material.

A recent surface sampling campaign on the property encountered the following values from the Zone S Prospect:

  • 59.2% U3O8, 499g/t Ag, 5.05% TREO (11,797ppm Nd2O3 + Pr6O11 and 1,825ppm Dy2O3), 14.4% Pb (Float sample);
  • 57.4% U308, 507g/t Ag, 3.68% TREO (8,562ppm Nd2O3 + Pr6O11 and 1,676ppm Dy2O3), 14.5% Pb (Rock chip sample);
  • 46.1% U3O8, 435g/t Ag, 2.88% TREO (7,054ppm Nd2O3 + Pr6O11 and 1,139ppm Dy2O3), 8.8% Pb (Rock chip sample);
  • 6.92% U3O8, 0.81% TREO, 2% Pb (Rock chip sample);
  • 6.42% U3O8, 1.17% TREO, 1.8% Pb (Rock chip sample).

“A total of 57 samples were taken from across the Hook Lake Project with assay results now having been received. The results are highlighted by the assays from the Hook Lake (or Zone S) prospect which confirmed the reported historical high-grade uranium mineralization. A total of seven rock chip samples were taken from a historical trench located at the Hook Lake prospect, with four of these samples returning high-grade uranium assays (>6% U3O8) as well as highly elevated rare earth (>0.5% TREO*), silver (>50ppm) and lead (> 1.8%) assays.”

The setting at Hook Lake is reminiscent of Fission Uranium’s Triple R discovery back in 2012—high-grade boulders were traced up ice leading to a discovery that opened up the whole western side of the Athabasca Basin.

An October 6th press release:

Skyharbour Partner Company Valor Provides Update on Field Programs and Upcoming Drill Program at the Hook Lake Project

Valor lays out its exploration plans for a maiden Hook Lake drill campaign in this one.

Highlights:

  • Planning of diamond drilling program at Hook Lake Project well advanced;
  • All necessary permits in place for diamond drilling program to commence;
  • Drilling to test at depth and along strike from historical trench at Hook Lake / Zone S Prospect where recent surface sampling returned assays of up to 59.2% U3O8, 5.05% TREO, 507g/t Ag, and 14.5% Pb;
  • Diamond drilling to also test targets at West Way Prospect;
  • Drilling set to commence in December 2021 with a program of at least 2,500 meters proposed;
  • Project Geologist seconded from Dahrouge Geological Consulting.
  • Aside from the outstanding U3O8 grades, note the elevated REE, Silver, and Lead values.

As noted above, drilling will revolve around the Zone S Prospect in an effort to locate the source of the high-grade surface material encountered during previous field campaigns.

All the necessary drill permits are in hand. All relevant stakeholders, including the First Nations communities, are in the (consultation) loop.

This program will be supported by helicopter to minimize any adverse impact on the environment.

“Final drill hole locations are currently being determined with historical drilling data being digitised and compiled and integrated into a 3D geological model over the Zone S target area. The Hook Lake high-grade uranium (and rare earth) mineralisation is interpreted to be located at a dilational trap/jog which has formed at the intersection of a northeast-southwest trending shear zone and a possible north-south trending structure (potentially a re-activated Tabbernor fault structure). Besides the downdip and down-plunge potential of the immediate Hook Lake target, there is potential for further structural targets of this nature along strike to the northeast and southwest from the Hook Lake prospect.”

Valor expects to mobilize a rig to the project in December.

We could see as many as 15 holes drilled during this first pass campaign—up to 4,500 meters.

Mann Lake

On October 18th, there was a new development on the Prospect Generator front:

Skyharbour Signs Option Agreement with Black Shield Metals Corp to Option 75% of the Mann Lake Uranium Project

Here, Skyharbour announced an option agreement with Black Shield Metals (BDX.C), where BDX can earn up to 75% in the 3,473-hectare Mann Lake Uranium Project.

Mann Lake Uranium Project Summary:

Mann Lake is located in the eastern Athabasca Basin, roughly 15 kilometers to the northeast of Cameco’s Millennium uranium deposit and 25 kilometers southwest of the McArthur River Mine.

This is an upscale neighborhood—McArthur River is currently ranked THE largest (high-grade) uranium deposit on the planet.

Mann Lake is also adjacent to the Mann Lake Joint Venture operated by Cameco (52.5%), along with partners Denison Mines (30%) and Orano (17.5%). Denison Mines acquired International Enexco for its 30% interest in this adjoining project after a 2014 winter drill campaign tagged high-grade, basement-hosted uranium mineralization.

In 2014, Skyharbour carried out a ground-based EM survey focused on a 2 kilometer long aeromagnetic low, an anomaly that coincided with basement conductors derived from earlier EM surveys. Confirmation of a broad, NE-SW trending corridor of conductive basement rocks (likely graphitic metapelites) was the upshot from this round of geophysics.

“The Mann Lake Uranium Project has seen over $3 million of previous exploration expenditures consisting of geophysical surveys and two diamond drill programs totaling 5,400 metres carried out by Triex in 2006 and 2008. The geophysical surveys identified graphitic basement conductors and structural corridors containing reactivated basement faults. These features trend onto the adjacent ground operated by Cameco. The 2006 diamond drill program intersected a 4.5 metre wide zone containing anomalous boron (with highlight values of up to 1,758 ppm B) in the sandstone immediately above the unconformity in drillhole MN06-005. Boron enrichment is common at the McArthur River uranium mine, and along with illite and chlorite alteration, is a key pathfinder element for uranium deposits in the Athabasca Basin. In the same drill hole, altered basement gneissic rocks with abundant clay, chlorite, hematite and calc-silicate minerals were intersected about 7.6 metres below the unconformity and contained anomalous uranium, including up to 73.6 ppm over a 1.5 metre interval. Background uranium values are commonly between 1 and 5 ppm.”

The terms

Black Shield’s price of admission: $850,000 in cash and $1,750,000 worth of Black Shield common shares (based on the 20-day VWAP at the time of issuance) PLUS a minimum of $4,000,000 in exploration expenditures spread out over three years.

This is a good deal for both companies.

Skyharbour gets an immediate cash injection of $100k and $250k worth of BDX common (BDX last traded at $0.75).

Black Shield is committed to spending $1M in the first year of this JV agreement (there’s nothing to stop them from accelerating the spend-cycle).

If you’re long Skyharbour, or are looking for exposure to U3O8, mark this event on your calendar…

Sokoman Minerals (SIC.V) – (SICNF.OTCQB)

Shortly after I featured Sokoman in these pages on September 27th, additional results were released from their flagship Moosehead Gold Project in north-central Newfoundland.

A September 28th headline…

Sokoman Expands 75 Zone and Releases Additional Results from Eastern Trend, Moosehead Gold Project, Central Newfoundland

Highlights:

MH-21-234: 30.59 g/t Au over 2.75 meters (within 4.80 m of 17.56 g/t Au) from the 75 Zone
MH-21-243: 32.72 g/t Au over 1.70 meters (within 9.20 m of 6.70 g/t Au) from the 75 Zone

MH-21-215: 36.15 g/t Au over 0.35 meters (within 2.35 m of 20.39 g/t Au) from the Eastern Trend
MH-21-229: 18.41 g/t Au over 2.10 meters (within 5.10 m of 7.64 g/t Au) from the Eastern Trend

Then, on October 6th, the Company announced results from a Phase 1, C-Horizon till sampling campaign at its 100%-owned Fleur de Lys Gold Project located on the Baie Verte Peninsula in north-central Newfoundland.

Sokoman Reports Strong Gold Grain Counts in Till at Fleur de Lys Project North-Central Newfoundland

Based on discussions with Ottawa-based Overburden Drilling Management (ODM), the company overseeing the project, background gold grain counts have been determined to be 10 grains per sample with an anomalous sample having 2X background or 20 gold grains. Of the 400 results received to date, 109 contain at least 20 gold grains and are considered anomalous with the two highest gold grain counts, 111 and 116 grains, carrying 90 and 84 pristine grains respectively, suggesting a very local source (less than 200 metres) on the Fleur de Lys property. A follow-up program of infill tills, based on the results to date, will commence immediately.

The presence of “pristine grains” in soils is a potent indication that the source of mineralization lies nearby.

The Company is busy. On October 12th, a drill rig was mobilized to one of its JV’d properties…

Benton Resources and Sokoman Minerals Commence Diamond Drilling Grey River JV Project, Southern Newfoundland

Eight to ten reconnaissance holes will test an area along the eastern portion of the property where historic grab and channel samples assayed up to 225 g/t Au. The Company is also using geophysical data from a recently completed high-resolution magnetic/electromagnetic airborne survey to help guide the drill bit.

On October 14th, Sokoman dropped yet another headline:

Sokoman and Benton Expand the Kraken Lithium Pegmatite Swarm in Newfoundland

At the Kraken Pegmatite Swarm, the Company announced that prospecting expanded an area containing lithium-bearing pegmatite dykes to approximately 2.2 km-long by 0.85 km-wide. High-grade surface values—up to 2.37% Li2O—were recently reported from this pegmatite swarm.

“The Alliance is planning detailed geological mapping and a high-resolution drone survey that will include imagery, lidar and magnetic datasets to assist in the mapping and targeting the dyke system for drilling which will commence shortly. The companies have already completed a 5,709 line-km Heliborne High-Resolution Aeromagnetic & Matrix Digital VLF-EM Survey flown by Terraquest Ltd. with the final data currently being processed. The survey will provide the structural / lithological setting and help identify gold-bearing structure extensions, as well as any unrecognized structures including those potentially related to the lithium-bearing pegmatites.”

Sokoman is a company that doesn’t get much respect from the market these days, despite the multiple irons in the fire—despite the succession of high-grade assays flowing from its flagship project. There always seems to be a pack of motivated sellers looking to take advantage of any news-driven price strength. It could be that this disdain is due to the lack of a 43-101 compliant resource at Moosehead.

Personally, I’d like to see management step in and buy a significant whack of shares at current prices.

Highly anticipated results from a barge-based program shouldn’t be too far off. Here, at least 5,000 meters of drilling is planned to test the Upper Eastern Trend and Footwall Splay targets where previous drilling tagged some of the best grades/widths encountered to date—47 g/t Au over 4.6 meters (Footwall Splay) and 68 g/t Au over 8 meters (Upper Eastern Trend).

Defense Metals (DEFN.V) – (DFMTF.OTCQB) – (35D.FSE)

On October 25th, Defense announced a new hire, and it looks like a good one:

Defense Metals Corp. Appoints New Director

Dr. Luisa Moreno is a Physics Engineer, with a PhD in Materials Science and Mechanics from Imperial College London, in the United Kingdom. She held positions as Senior Analyst, at Toronto based investment banks and as an Investment Research Analyst at a global investment research firm. She is known as a leading analyst in rare earths and has published several reports and articles for the investment community. Dr. Moreno has co-authored a book on mineral processing and project financing and authored a number of advanced industry and technical reports on several technology minerals.

Currently, Dr. Moreno is the Chief Executive Officer of Graphano Energy Ltd. and the Managing Director of Tahuti Global Inc., a company that she founded. As a strategic consultant she assists both public and private companies and institutional investors with economic and technical assessments of mineral assets and technologies. She also works with government institutions tasked with mineral development, value addition and supply chain development. Dr. Moreno is also on the board of directors of several companies developing strategic minerals and green technologies. She is a recognized strategic minerals specialist and a common guest speaker on television and at international conferences.

Craig Taylor, CEO:

As we near completion of our ambitious 2021 Wicheeda REE deposit resource expansion and delineation diamond drill program and economic scenario analysis being conducted by SRK, we are excited to welcome Dr. Moreno to the board. Dr. Moreno has demonstrated an ability to analyze the technical aspects of specialty metals deposits and brings with her a wealth of knowledge and international capital markets experience that will be critical in moving Wicheeda forward.”

Dr. Luisa Moreno:

Having followed rare earths projects around the world for several years, I believe the Wicheeda project is one of the most prospective rare earths projects in Canada and globally. Therefore, I am delighted to be part of the Defense Metals team and I look forward to working with the board to make Wicheeda an integral REE source for the global supply chain.”

I’m expecting robust newsflow on multiple fronts out of Defense over the balance of the year. The stock has formed a 5-month-plus base—a solid volume-driven break above $0.30 could be meaningful from a technical point of view.

END

—Greg Nolan

Full disclosure: Forum and Defense are Highballer clients. I own shares in HighGold, Sokoman, Skyharbour, and Defense, where I may elect to add additional stock, or sell, without notice. Please be advised that I’m biased here. Use my insights as fodder, but do your own due diligence.

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