Uranium and Gold Discoveries in Prime Locations
Mar 14, 2023
Mar 14, 2023
Exclusive Interview with Stallion Discoveries’ CEO Drew Zimmerman
Uranium and gold have both been significantly appreciating in price. Gold is up about 430% over the last 20 years, and 40% in the last 5 years. Uranium is up about 60% in the last 3 years, and 300% in the last 20 years. With gold seen as a hedge against economic uncertainty, and uranium essential for the expansion of emission-free nuclear power, the long term upward trend is well established.
As the prices rise, it makes more economic sense than ever to develop new sources of these two minerals. Recently we were able to talk to Drew Zimmerman, CEO of Stallion Discoveries Corp. (TSX-V: STUD) (OTCQB: STLNF), a company that sees the lay of the land and is going after major discoveries of both uranium and gold.
Discovery of significant mineral resources represents a proven path to value creation, especially when dealing with minerals like gold and uranium that are in high demand. According to Global Data, there were 444 M&A transactions for gold companies in 2022 with a total value of $39 billion, or just over half of the value of all mining deals last year. Meanwhile, uranium acquisitions are just beginning to heat up as western governments focus on encouraging domestic supply development for national security reasons in the face of Russian domination of the market.
In this interview, Mr. Zimmerman talks about Stallion Discoveries’ criteria for project selection and acquisition, the company’s current holdings and state of development, the executive team’s track record of developing and selling resource projects, and Stallion’s share structure and commitment to value creation.
Here, Zimmerman discusses the four fundamental principles that guide Stallion’s business, both in terms of project selection and acquisition, and in terms of the company’s structure.
- Jurisdiction - must be mining friendly to advance a prospect. Stallion’s holdings are in Saskatchewan, Idaho, and Nevada, all of them considered to be among the best mining districts with long histories of mine development.
- Large underexplored properties adjacent to proven world class resources with similar geology/deposits.
- People capable of executing throughout the process of building value.
- Attractive share structure with insiders interested in holding until exit.
In this segment, Zimmerman talks about Stallion’s multi-mineral approach, how it gives investors optionality, and how the company’s executive team experience played into its decision to acquire uranium properties.
In the next segment, Zimmerman goes into more detail about Stallion’s acquisition of two companies and nearly 80,000 hectares (about 300 square miles) of uranium holdings in Saskatchewan’s Athabasca Basin. The area is home to the world’s richest uranium deposits, with grades on average 10 to 20 times (and up to 100 times) higher than those typically mined around the world. Stallion Advisor and key investor Stephen Stanley has a long and successful history in the Basin. He led and sold the original Hathor Exploration to Rio Tinto in 2012 for $642 million based on the Roughrider uranium project the company developed, holding approximately 58 million pounds of uranium.
Mr. Zimmerman then goes on to describe the development of Stallion’s Horse Heaven Project in central Idaho. The property covers 21 square miles of mineral rights on federal property, directly adjacent to Perpetua Resources’ Stibnite Gold Project which could be permitted for operation later this year. This is the only project on Perpetua’s plate and it currently trades with a market capitalization around $227 million. Investors are looking at its measured and indicated resource of about 6 million ounces of gold (based on the 2020 Feasibility Study) along with positive signs around the permitting process and the possibility of becoming the US’ only domestic source of antimony.
Stallion is in the permitting process for an extensive drill program on the Horse Heaven Project, looking to build on promising historical work on the property as well as the company’s own geochemical and geophysical programs from the last two years.
Next up, Zimmerman fills us in on Stallion’s Richmond Mountain Project, located in Eureka, Nevada at the southern end of the prolific Battle Mountain/Eureka Trend. Richmond Mountain is literally across the street from i-80 Gold’s Ruby Hill property which demonstrates two types of mineralization. First, they have about 7.6 million ounces of gold in the ground (measured, indicated and inferred) with a history of 1.5 million ounces of gold production from the Archimedes Pit. Second, i-80 recently discovered a separate polymetallic CRD deposit on the property with indications of high grade gold, zinc, lead, and silver.
Richmond Mountain displays similar geology to the Ruby Hill property across the street and has had promising geochemical work done in the past. Stallion is conducting a geophysical program with the most modern techniques to further identify drill targets prior to implementing a comprehensive drill program.
In this clip, Mr. Zimmerman explains why Stallion Discoveries identifies jurisdiction as one of the most important considerations for its acquisition and exploration strategy. It may seem obvious, but working in a regulatory environment that helps responsible mine development can make the difference between a successful and a failed project, regardless of the size or the quality or the critical nature of the deposit in the ground. Saskatchewan, Idaho, and Nevada all are considered to be world class mining jurisdictions.
Here Zimmerman talks about some of Stallion’s key team members. President & VP Exploration William Breen is a long time veteran of Idaho and Nevada mining, a Professional Geologist and Qualified Person who has worked around the world for companies large and small. Stallion recently welcomed Austin Zinsser, a geologist who spent ten years exploring and developing the Stibnite Gold Project directly adjacent to the company’s Horse Heaven property. And, ashttps://jwp.io/s/CABwbNJC mentioned previously, Advisor Stephen Stanley previously led uranium projects in the Athabasca Basin from discovery through acquisition.
Mr. Zimmerman highlights Stallion’s commitment to value creation. Insiders and key stakeholders control about 32% of the company’s 79 million outstanding shares, with 8 million warrants out currently. According to Zimmerman, those insiders are looking for a big return from the major discoveries the company is pursuing and are focused on holding their positions over the long term, ensuring that the company’s objectives are aligned with those of the shareholders.
*Note: Since this interview Stallion Discoveries completed a financing of $4 million which changed the numbers of outstanding shares and warrants mentioned in the clip by Mr. Zimmerman.*
Finally, Mr. Zimmerman discusses his own personal background in finance and commodities, and the opportunity to lead a world class team at Stallion with the goal of making large discoveries of uranium and gold - two of the most lucrative global resource markets.
Investors are encouraged to follow Stallion Discoveries Corp. (TSX-V: STUD) (OTCQB: STLNF) as the company seeks to further define the gold and uranium resources on its promising properties.