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| In today’s weak financing market for junior explorers, it’s a major coup.
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| Scottie Resources (SCOT.V; SCTSF.OTC) just managed to attract C$9.6 million in mostly non-dilutive funding from gold royalty company Franco-Nevada.
That package includes C$8.1 million for a 2.0% royalty on Scottie’s holdings in the southern corner of British Columbia’s Golden Triangle and a C$1.5 million participation in the back end of a charity flow-through private placement.
It’s a huge cash injection for a company that normally would be hard pressed, in the current market, to attract more than C$1 million to C$2 million in a stand-alone placement.
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| But the significance of Franco’s deal goes beyond the size of the investment. This is the world’s most respected gold royalty group — and it’s not known to open up its wallet to a pre-resource company.
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| Franco has a seasoned technical team that puts the projects it finances through the wringer to ensure it is making a sound investment.
The fact that Franco elected to move forward with this deal is a tremendous endorsement of the potential of Scottie’s holdings in the Stewart Mining Camp...and particularly its high-grade discovery at the Blueberry Contact zone.
As you’re about to see, that zone alone has the potential to host a very large resource of very-high-grade gold.
And the best news is that Scottie is still trading at the level that sophisticated investors paid to get into the company, making the stock a premier opportunity as gold takes off.
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| Proven Production
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| The Scottie Gold Mine project is located 40 kilometers north of the port town of Stewart, British Columbia, and is home to a past-producing mine that generated 95,426 ounces of gold.
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| Note that the production was at an average recovered grade of 16.2 g/t gold.
Also important: Historic drilling was focused simply on production and tested the mineralization with an average hole length of just 75.2 meters.
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| This is an historic mining region known for high-grade gold resources, and as you can see below, Scottie has built a commanding property position in the midst of major discoveries and projects.
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| Click image to enlarge.
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| Considering its history of gold production, the Scottie Gold Mine was the first choice to begin drilling and, since 2019, Scottie Resources has drilled multiple high-grade intervals at the mine.
Those results include 11.8 g/t gold over 6.6 meters, 8.1 g/t gold over 5.0 meters, 11.7 g/t gold over 11.0 meters and 12.6 g/t gold over 5.2 meters.
However, it was the discovery hole along the known Blueberry vein in 2019 that really broke the potential of the project wide open....
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| Big Gold At Blueberry...
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| The hole in question returned 7.4 g/t gold over a whopping 34.9 meters in 2019.
At first, Scottie’s geologists thought they had hit into a splay of the east-west trending Blueberry vein, which had been originally identified more than 50 years prior.
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| As they stepped out along the hit to the north and south, Scottie discovered that what it has come to call the Blueberry Contact zone was a completely new mineralized structure in the area.
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| Drilling on this zone in 2019 and 2020 would yield some spectacular hits, including 35.8 g/t gold over 2.3 meters, 9.0 g/t over 13.7 meters and 22.3 g/t over 6.1 meters.
Three subsequent drill seasons have continued to expand the strike length and depth of the high-grade gold at the BCZ: The zone has now been traced for 1,550 meters in strike and to depths of 400 meters so far.
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| Click image to enlarge.
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| As large as it currently is, the most exciting thing about the BCZ is that the zone continues to remain wide open along strike and at depth. At this point it shows the obvious potential to host a high-grade gold resource well north of a million ounces.
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| The Ideal Location
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| The BCZ lies directly along the Granduc Road that connects the town of Stewart with Newmont’s Brucejack mine to the north.
A transmission line to support Brucejack lies within 1.5 kilometers of the Scottie project and, as mentioned, the deep water port of Stewart lies just 40 kilometers to the south.
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| The infrastructure in this historic mining region is ideal.
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| Better still, Ascot Mining is on the verge of completing a 2,500 tonne-per-day mill that will be operational later this year on its nearby Premier project.
The mineralization at BCZ could be easily trucked to that mill for processing, opening up a very economic path to production for Scottie.
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| Time To Act
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| With gold hitting new highs on a weekly and even daily basis, we are just now beginning to see generalist investors flocking to the mining sector.
As they do, they’ll find the high-grade zone Scottie Resources has already outlined at the BCZ and the big endorsement by Franco-Nevada makes the company one of the premier opportunities in junior mining.
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| There’s another reason the timing is urgent: Scottie plans to use the C$9.6 million from Franco to continue drilling the BCZ aggressively in the weeks and months just ahead.
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| Given the high-grade gold results delivered so far...and the potential for more discoveries as the company works toward a rich gold resource announcement...the time to start doing your homework on Scottie Resources is now.
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