BTU Metals Corp. (TSXV:BTU) stock has surged as speculators hope the Company’s share price will following that of Great Bear Resources Ltd. (TSXV:GBR)
SmallCapPower | December 16, 2019: BTU Metals Corp. (TSXV:BTU) shares are heating up during the month of December. Since November 28, 2019, BTU stock has skyrocketed more than 143% to its current price of $0.39.
A big reason for the recent share-price move is that BTU Metals’ flagship Dixie Halo project in Red Lake, Ontario, surrounds Great Bear Resources Ltd.’s (TSXV:GBR) Dixie project (see image below). Shares of Great Bear Resources have soared as much as 1800% since late summer 2018, hitting a high of $9.57, after exploration on Dixie’s Hinge Zone produced intercepts that included 16.35 metres of 26.91 g/t gold. GBR’s early success prompted famed mining investor Rob McEwen, founder and former Chairman and CEO of Goldcorp, to take an 8% stake in Great Bear.
The Red Lake area northwestern Ontario is one of the world’s most-prolific gold mining district, having produced approximately 30 million ounces of gold from 28 gold mines.
On September 3, 2019, Great Bear Resources reported multiple gold discoveries along 3.2 kilometres strike length of the approximately 18 kilometre long LP Fault target, which included 42 metres of 5.28 g/t gold at 80 metres depth. BTU Metals management believes LP Fault’s southeasterly trend appears to extend into BTU’s property. The Company says Great Bear is actively exploring the LP Fault with three drills working towards BTU’s boundary.
BTU Metals’ current drill program has focused on testing IP anomalies near the north boundary about 1.5 km south of GBR’s Hinge Zone. Historical results from several areas on Dixie Halo have shown up to 14 g/t gold in grab samples.
There is one important distinction, however, between the exploration that Great Bear Resources is doing compared with that of BTU Metals. GBR is exploring a quartz-hosted hydrothemal gold deposit similar to other mines and deposits in the Red Lake camp, while BTU is exploring volcanogenic massive sulphide (VMS) mineralization. VMS deposits have been historically rich in copper and zinc yet also have contained gold and silver concentrations that could be as rich as those found in hydrothermal deposits.
BTU Metals Corp. is encouraged by just how underexplored the Dixie Halo property is relative to the neighbouring Dixie Project. BTU Metals claims there are fewer than two dozen historic holes its property, while the Dixie Project had hundreds of holes in it before the acquisition by Great Bear Resources.
That being said, BTU Metals is a show-me story, with investors awaiting drill results. BTU Metals currently has about 68 million shares outstanding as of November 6, 2019.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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