Nearly half of Stuhini Exploration Ltd (TSXV:STU) stock is held by institutions and Eric Sprott
Bob Moriarty | October 21, 2022 | SmallCapPower: In my July 29th piece I mentioned a company named Snowline that went from $0.84 on the 29th of June to a high of $2.10 on the 3rd of August based on interesting results from their project in the Yukon. In 2021 the company drilled a 168.65 meter hole of an IRGS giving an average of 1.25 g/t gold. IRGS stands for Intrusion Related Gold System marked by a series of tiny but rich quartz veins. On June 30th the company announced a 415 meter intercept of moderate to intense sheeted quartz veins with many showing visible gold.
(The following is an article originally published on 321gold.com on August 8, 2022)
It brought to mind another company that I own shares in and haven’t written about because with a market cap of $13 million they own a moly deposit in Northern BC with $8 billion worth of molybdenum (moly) that the market has taken near zero interest in. The company is named Stuhini Exploration Ltd. (TSXV:STU) and they are in the very northern most part of BC at Atlin. I’ve been to the project three or four times when Ruby Creek was in the hands of a mostly promotional management.
Moly goes in and out of fashion. While the price has doubled in the last two years, at present retail investors have little interest in moly no matter how big. But the deep pocket investors have woken up to the incredible potential of Stuhini with or without the moly. 43% of the shares in Stuhini are held by institutions and Eric Sprott. That is a lot.
When drilling two condemnation holes for the tailings pond for the proposed moly mine, the company hit gold IRGS indications. Since I believe the Snowline assays are going to light up the market for IRGS style gold deposits and Stuhini happens to be nearby, I love the idea of them shifting the focus to gold rather than the moly component for now. The Atlin district has been mined for gold for over 120 years with millions of ounces of gold taken out. It all came from somewhere.
The company just announced a $1.5 million private placement with the lead order from Sprott Asset Management. The flow thru units are $0.45 with a two year half warrant at $0.60. The NFT units are $0.40 and the same two year half warrant at $0.60. The shares have been as high as $0.99 in February and had a low of $0.375 recently.
The money is going into a 8-10 hole drill program targeting the IRGS with a 2,500-3,000 meter plan. The drill program is scheduled for the late summer and requires little advance preparation since the ground is flat and has easy road access.
Management is cheap. The drill crew can be put up in Atlin in vacation cabins at $99 a night for two people. Cabins have private rooms with hot showers, a small kitchen, TV and internet services. The entire drill program should cost about $800,000. The president of the company takes home $2,000 a month in salary and there are no office expenses. If the project takes off, he makes a lot of money from his shares. If shareholders lose, he loses.
Stuhini has a couple more interesting projects that I am unable to cover in detail in this piece. They are not a one trick pony. As it stands now, shareholders are paying $12 million for the gold potential and get $8 billion worth of moly for free. Eric Sprott likes it and so do I.
Stuhini is an advertiser. I have purchased shares in the open market so naturally I am biased. Do your own due diligence.
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