Meloy Property Sports Ball Crushing 7 x 3 km Copper Soil Anomaly! Strategic Metals (SMD, TSX-V)

Mar 17

Meloy Property Sports Ball Crushing 7 x 3 km Copper Soil Anomaly! Strategic Metals (SMD, TSX-V)

We all know the world is hungry for Copper, and it’s got an appetite that’s unlikely to be satisfied.  Explorers and geologists are chasing this stuff like crazy, they’re looking in very nook and cranny from New Mexico to No Man’s Land.

 

More of those energies and monies will eventually wind up in the Yukon, where good ol’ Strategic Metals (SMD, TSX-V) is sitting on two very prospective (and massive) porphyry targets.

 

1) Meloy!

 

SMD -- meloy2

 

Pretty impressive isn’t it!  Western Copper’s Casino deposit is big, like really big, weighing in at 4.5 billion pounds Copper and 8.9 million ounces Gold (and that’s in the “reserve” category).

 

…and the geochemistry footprint/anomalies on Strategic Metals’ Meloy Property is at least 300% larger.

 

2) How Much Copper Could Be In The Hopper?

 

SMD -- hopper3

 

The boys at Strategic Metals seem to like picking on “Casino”, don’t they!

 

I’m no geologist, but from what I’ve read and heard “geochemistry” and “soil anomalies” are good early-stage indicators (especially in the Yukon). Yes, it’s very early in the discovery process, but here Strategic Metals is sitting on two properties with exceptional exploration potential (Casino-like potential?) and they’re basically worthless.

 

Strategic Metals’ market cap is $37 million and they have about that much worth of cash and securities.

 

SMD -- holdings 2

 

With any luck, Strategic Metals’ 40% stake in Rockhaven (RK, TSX-V) could be worth more than its current market cap alone.  Its Klaza deposit is currently the highest-grade Gold deposit in the Yukon.  With an estimated 1.3 million ounces in the ground, Strategic Metals’ share would equate to roughly 520,000 ounces.

 

Here’s some opposing ideas on how a prospective investor/shareholder might think about SMD:

  • Screw these guys, I’ll never buy SMD because they have little or no respect for “marketing” and “promoting” their stock. They have a “build it and they will come” mentality.  There’s too many moving parts.  Therefore, it will remain undervalued and stuck in the “value bin” collecting dust.  CEO Doug Eaton and Co. will never test their theories to the extent they could have, assuming the stock traded above its liquidation value from time to time (I’m sure it will at some point in this cycle, but wanted to be somewhat dramatic).
  • This is one of the cheapest damn stocks in the entire resource market!  Prospect generation is arguably the most reliable and relatively safest ways to participate in a mineral discovery (without losing all your money a couple times first).  We’re in the first or second inning of a “discover/exploration driven bull market”, and as the largest claim holder in Yukon (supported by smart people and the best geological database) Strategic will eventually perform.

 

Here’s a link to Strategic Metals’ most recent presentation if you want to explore it further. I’m a shareholder.  I’ve been sitting on SMD for nearly 2 years now.  Following my next BIG WIN, it’s definitely a place I’d consider parking more money.  In my view the downside from 40-cents is minute.

 

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*Author has a long position in Strategic Metals

 

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