Gold

Palladium/Platinum Alternative in Group Ten

Bob Moriarty of 321 Gold explains why he’s a fan of this PGE explorer with a undertaking in Montana.

A few weeks again I used to be calling for a correction in gold. Impulsively everybody was speaking about gold and the way excessive it was going to go. Bullish sentiment hit an absurd excessive. I received it proper; the correction started the following day.

Buyers are likely to neglect that even in probably the most bullish of markets, corrections are widespread and fascinating. For the reason that excessive, sentiment has dropped much more than value. I see the bull resuming its run very quickly. Late July tends to be among the best instances to be taking new positions in useful resource shares.

There’s lots of low hanging fruit on the market and there are a lot of penny dreadfuls which are going to go up rather a lot greater than buyers notice. Considered one of my favorites within the palladium/platinum house has come down rather a lot since I wrote about them in February of 2018. At at this time’s value I discover the corporate very enticing.

To pretty perceive the unbelievable potential of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) first it’s worthwhile to study their next-door neighbor in Montana, Sibanye-Stillwater. A South African firm purchased the Stillwater Mining Firm in 2017 for a price of $2.2 billion. For that they picked up a mining reserve of 20 million ounce Pt+Pd at a price of $110 per ounce.

Quick-forward two years. Sibanye-Stillwater launched into a serious drill program and expanded the reserves to an unbelievable 80 million ounces at a grade of 16.eight g/t and put a 3rd mine into manufacturing on the undertaking.

In a masterpiece of timing, the Chairman of Group Ten, Greg Johnson, put collectively the Stillwater West undertaking in June of 2017 simply earlier than the Sibanye buy beneath a largely share deal. It requires PGE to personal 100% of the undertaking topic to a 2% NSR that may be purchased right down to 1% for a $2 million fee.

The settlement gave Group Ten a 25 km package deal of the decrease Stillwater stratigraphy instantly south of the Sibanye’s JM Reef deposit inside the Stillwater Complicated. The JM Reef is the biggest PGE deposit exterior of South Africa or Russia and is the best grade PGE on the planet.

Group Ten is the primary firm to have consolidated the decrease Stillwater Complicated right into a single package deal. This permits PGE to place collectively all historic knowledge to allow them to conduct a scientific exploration program. The corporate has spent the final eighteen months assembling and finding out the information from 11,000 meters of drilling and groundwork.

Progress to this point has outlined 14 large-scale tasks that embrace eight bulk tonnage “Platreef-Model” targets. These bulk tonnage areas examine in measurement to the Three-6 km particular person deposits at Platreef. These Platreef PGE prospects are a few of the largest and most worthwhile to mine PGE properties on the planet. The trade is discovering that the majority tonnage properties are much more worthwhile than the historic deep, slender reef, high-cost mines within the Bushveld Complicated in South Africa.

In 2019 Group Ten desires to concentrate on the three most superior targets, Chrome Mountain, Camp Zone and Iron Mountain. Previous drilling has proven steady mineralized zones. Historic drill knowledge reveals PGE, nickel and copper with outcomes of 50 to 200 meters of thickness with related grade to the deposits of the Platreef in South Africa.

3D Modeling of the deposit signifies the magmatic layers at Stillwater West begin at floor and will prolong to kilometers of depth. Mineralization varies in thickness and depth with areas of thickening and better grade termed “ballrooms” at Stillwater on the JM Reef and known as “potholes” within the Bushveld. Platreef deposits are sometimes 2-6 km in width, which is akin to the person geophysical and geochemical targets at Stillwater West.

Firm President and CEO Michael Rowley has laid out a staged drill program for 2019 to hit the very best grade areas inside the three most superior tasks. The corporate sees a possible for a multi-million ounce useful resource of platinum, palladium and gold with doubtlessly greater than a billion kilos of nickel and copper.

The preliminary drill program will value $1 million to $1.5 million for a 5,000–10,000 foot program essential to outline an preliminary 43-101 useful resource. With some extra funding this system may very well be expanded. Drilling ought to start in August and proceed by October. The corporate has introduced in $350,000 in early warrant train and is in discussions with present warrant holders to hopefully train the rest of the excellent $2.5 million in warrants. Ought to these warrants not be exercised, Group Ten would virtually actually do a non-public placement shortly.

I occur to be an enormous fan of platinum proper now. It’s on the biggest low cost to gold in historical past and is absurdly low cost. I do not understand how low cost palladium is, it has had an enormous run. However the entire metals are about to embark on a historic run. There are solely a handful of Pt/Pd junior firms to select from and it certain seems to be to me as if Group Ten is probably the most enticing. Beginning in September or so there can be assays popping out from the drill program. In the end the market will get it and bid up the shares.

I used to be a purchaser of shares within the open market at greater costs and I do not thoughts including to my place in right here and averaging down. The corporate has wonderful administration, a superb technical staff and one of the undervalued mineral tasks I’ve ever seen. Greg Johnson has executed this earlier than with nice success.

Group Ten is an advertiser and naturally that makes me biased. I do personal shares purchased within the open market. Do your personal due diligence.

Group Ten Metals
PGE-V $zero.15 (Jul 10, 2019)
PGEZF OTCBB 62.1 million shares
Group Ten web site.

Bob and Barb Moriarty introduced 321gold.com to the Web virtually 16 years in the past. They later added 321vitality.com to cowl oil, pure gasoline, gasoline, coal, photo voltaic, wind and nuclear vitality. Each websites characteristic articles, editorial opinions, pricing figures and updates on present occasions affecting each sectors. Beforehand, Moriarty was a Marine F-4B and O-1 pilot with greater than 832 missions in Vietnam. He holds 14 worldwide aviation information.

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Disclosure:
1) Bob Moriarty: I, or members of my quick family or household, personal shares of the next firms talked about on this article: Group Ten Metals. My firm has a monetary relationship with the next firms talked about on this article: Group Ten Metals is an advertiser on 321 Gold. I decided which firms can be included on this article primarily based on my analysis and understanding of the sector.
2) The next firms talked about are billboard sponsors of Streetwise Stories: Group Ten Metals. Click on right here for necessary disclosures about sponsor charges. As of the date of this text, an affiliate of Streetwise Stories has a consulting relationship with Group Ten Metals. Please click on right here for extra info
Three) Statements and opinions expressed are the opinions of the creator and never of Streetwise Stories or its officers. The creator is wholly answerable for the validity of the statements. The creator was not paid by Streetwise Stories for this text. Streetwise Stories was not paid by the creator to publish or syndicate this text. The data supplied above is for informational functions solely and isn’t a suggestion to purchase or promote any safety. Streetwise Stories requires contributing authors to reveal any shareholdings in, or financial relationships with, firms that they write about. Streetwise Stories depends upon the authors to precisely present this info and Streetwise Stories has no technique of verifying its accuracy.
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5) Now and again, Streetwise Stories LLC and its administrators, officers, staff or members of their households, in addition to individuals interviewed for articles and interviews on the positioning, might have a protracted or brief place in securities talked about. Administrators, officers, staff or members of their quick households are prohibited from making purchases and/or gross sales of these securities within the open market or in any other case from the time of the interview or the choice to put in writing an article till three enterprise days after the publication of the interview or article. The foregoing prohibition doesn’t apply to articles that in substance solely restate beforehand printed firm releases. As of the date of this text, officers and/or staff of Streetwise Stories LLC (together with members of their family) personal securities of Group Ten Metals, an organization talked about on this article.

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