The Mining Play

Other Mining Stocks

A number of years ago I pointed out the similarities between the ADL and its story and that of Hot Chili Limited some few hundred KMs north of the ADL: low altitude coastal deposit in Chile, infrastructure, copper / gold porphyry, etc.

But Hot Chili has had some big supporters. They are partnered with CMP of Chili. They have big investors like Sprott and Rick Rule and others in Australia.

They just recently came out with a 500MT initial resource (multi-million Au ounces) with multiple porphryries identified after 10 years or so of property consolidation and work with hopes of getting to 1000MT+ resource. It appears to be one of the best copper deposit discoveries in the world in the last number of years.

Even with all this going for them they are still at about an $80M - $90M USD mkt cap (trades in AUD). Potentially worth a look if you want to consider copper stocks: https://www.youtube.com/watch?v=3yFYkwv4hJU

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CHG, if you had to decide which is the better value between Medinah with its $3m market cap and Hot Chile with its $100,000,000 market cap which would you choose ??? IOW, is it your opinion that Hot Chile is worth 30 times more than Medinah ??? This is a serious question :face_with_monocle:

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Spargos is a big plus for Karora. Very good news going forward. Not buying here, but only because I have a “full” overweight position. Karora is well positioned to be an early gainer from here when POG upward trend resumes.

Seasonality in the PM space is a very major influence. This is a major good time to replace profits from positions sold this summer. Stink bids getting filled … but were they really stink bids?
One should note that for producing miners seasonality influence will depend on which hemisphere the producing mines are located. For diversified major miners this is less important and the major influence is POG.

I consider my PM investments in several different categories and are diversified into majors, midtiers, micro and speculative explorers. All are played a little different. An especially important space during a bull PM trend are the streamers. Right now is a good time for stink bids to get filled, especially for speculative plays with the nonproducing explorers who have stopped reporting drilling results due to winter weather or Covid restrictions.

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Well, not to get hung up on 30x or 20x or whatever, it is worth a lot more at this point. Whether the respective deposits are worth more or less is only knowable in the distant future. But at this point, HCH has done over 40Km of drilling, having spent over $100M so far, has a maiden combined resource of over 750MT with a realistic goal of getting to 1000MT, which is Tier1 copper size. Their grades are good, if not eye-popping great. They are spread out over some distance as they are combining a couple of deposits, which is not ideal. But they have all the advantages often talked about for the ADL in terms of altitude, available infrastructure. In addition they already have a state-partnership with CMP and they have heavyweight supporters with money who have put up lots of dollars and now have lots of skin in the game. The ADL seems years away from this state.

It should be noted that much of HCH’s progress has come in the last 2 years out of the 10 years they have been working. They started out trying to define a copper deposit but could not come up with size, grades, etc. to make it work. Then they went through a couple of years of trying to identify a high grade gold deposit on the property and start out as a gold company. That failed too. They came close to ceasing to exist for sure. Then they made a big deal and combined properties and they made some fortunate discoveries and in two years they have a promising first formal resource defined.

It should also be noted it is unclear how HCH ends. They already have 3B shares outstanding fully-diluted. They only have a few $M in treasury. So how they actually turn this into a mine seems likely to involve some large players to take over the heavy lifting at some point assuming they can come up with the resource size that makes those players interested enough to pay up.

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Much appreciated !!! My Chilean stocks keep getting worse and worse. Think I’ll move to Mexico . . .
maybe look at Vizsla. :roll_eyes:

The Pebble Creek project in Alaska is very close to being completely dead.