Even if you already have a strong hand, it’s always nice to have an ace in the hole.
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That’s true in poker, and it’s true in the junior mining sector.
As it happens, ValOre Metals Corp. (VO.V; KVLQF.OTC) finds itself in exactly this circumstance.
The company already boasts a million-ounce platinum-palladium-gold resource in Brazil. Drills will be turning this month and considering the results from 2020, ValOre is widely considered to be one of the most exciting and high-potential exploration stories in the market today.
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But ValOre also has a big uranium story to tell as well — one that the market seems to be completely missing at this moment.
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As you’re about to see, this “hidden asset” is so valuable that it alone could justify the company’s current market cap.
It’s a value trigger that could be pulled at any moment…setting in motion a dramatic, shareholder-enriching re-rating of ValOre.
And that would surprise no one who knows where this company was born.
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The Next Big Discovery Group Winner?
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A big part of ValOre’s value proposition is its status as a long-standing member of Discovery Group.
This collection of explorers and mining entrepreneurs has backed some of the biggest success stories of the past few years.
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Leading the way is Great Bear Resources, which is in the process of outlining a multi-multi-million-ounce gold resource on its Dixie project in Ontario.
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Early shareholders in Great Bear have enjoyed life-changing profits, with gains in excess of 2,500%.
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Other winners from Discovery Group include Fireweed Zinc, which controls one of the world’s largest undeveloped zinc deposits, and Bluestone Resources, which owns a multi-million-ounce, high-grade gold-silver project that’s on the verge of a construction decision.
The list goes on and on.
But now, with the PGE market gaining steam and a clear game plan in progress to significantly grow its valuable resource, ValOre Metals shows all the signs of becoming Discovery Group’s next home run.
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A Million-Ounce PGE Resource With Big Upside
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The current, million-ounce palladium-platinum-gold resource on ValOre’s Pedra Branca project puts it in a small group of PGE exploration companies that control world-class resources.
The project’s location in mining-friendly Brazil is a key selling point, as South Africa and Russia, the two biggest producers of PGEs, are both problematic jurisdictions.
Better still, ValOre has combined an analysis of past data with surface work and drilling to identify several areas where the five deposits that comprise the Pedra Branca resource could expand dramatically.
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Those five deposits are all near-surface, which means they should be mineable by cost-effective open-pit methods.
Key targets for follow up in 2021 are the Trapia and Santo Amaro deposit areas, as well as exciting new targets, including follow up on last year’s C-04 and Golden Goat discoveries.
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As an added kicker, ValOre resampled historic core from past drilling and found 60% of its sample group yielded anomalous grades of rhodium, the rarest of the PGEs.
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With that precious metal currently trading at almost $30,000/oz., it wouldn’t take much rhodium to really juice the economics of Pedra Branca’s existing palladium-platinum resource.
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A Hidden Uranium Company Within ValOre
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Then there’s Angilak, the uranium kicker to ValOre’s PGE story.
Angilak came to ValOre in 2008, when the company was operating as Kivalliq Energy.
In the 2009-2010 uranium boom — prior to spending over C$40 million and delineating the 43 million pounds of inferred U3O8 on Angilak’s Lac 50 Trend to date — ValOre was trading at a C$90 million market capitalization.
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It’s true: ValOre’s uranium project — all by itself AND prior to any resource — was valued at more than three times the company’s current market cap.
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Then came the long bear market that followed the Fukushima disaster, and a sector teeming with hundreds of uranium plays dwindled down to just a handful.
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And that’s part of what makes Angilak’s resource so potentially valuable.
With just a few uranium exploration and development names left and the uranium market waking up right now, Angilak’s established uranium resource should add tremendous value to ValOre as the uranium bull market continues to heat up.
How much value?
Well, considering ValOre is currently getting no credit for Angilak, just applying current uranium resource valuation levels of only around U$1/lb. would justify another US$43 million in value for the company.
ValOre’s entire, current market cap is only around US$30 million.
And then consider this: A return to the more bullish valuations of the 2000s would see uranium resources valued at $4-$5/lb.
Do the math…and it’s easy to see ValOre multiplying in value based on the Angilak resource alone.
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On Auto-Pilot To Bigger Things
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But as it stands, the easiest and clearest path for higher value stands with ValOre’s Pedra Branca PGE project.
With a fully-funded and aggressive drill program set to commence and prime targets yielding significant palladium and platinum assays, investing in the company based just on its PGE story seems like a sure bet to deliver significant growth in the weeks ahead.
Here it is in a nutshell:
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There are compelling reasons to invest in a world-class PGE growth story.
…And there are compelling reasons to invest in a world-class, overlooked uranium story.
At the moment — and until the market comes to its senses — ValOre offers you the chance to do both, in a single company.
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These kinds of opportunities don’t usually last long, and that means you need to look into ValOre now, while this rare situation lasts.
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