A great combo can be a powerful weapon.
|
In boxing, it can be the key to winning a fight; in mining stock investing, it can be the key to outsized profits.
|
And a one-two combo is essentially what ValOre Metals Corp. (VO.V; KVLQF.OTC) offers investors via potential leverage on the platinum-group element (“PGE”) and uranium markets.
|
Dominated by palladium and platinum, the PGEs continue to show extraordinary strength in the post-Covid economy, as demand for vehicles accelerates and, along with it, demand for the emission-reducing catalytic convertors that are PGE’s primary end use.
Uranium, meanwhile, looks primed to break out of a multi-year bear market, as the world intensifies its demand for low-emission sources of baseload power.
Between its flagship Pedra Branca PGE project in Brazil and the large resource hosted by its Angilak Property uranium project in Canada, ValOre has been cranking out big news in 2021.
|
| |
It’s a news flow pace set to continue in the back half of the year, as ValOre feeds the market a steady diet of reminders on the progress it is making on both projects.
|
Exploration In High Gear At Pedra Branca
|
In all of 2020, ValOre issued no less than 20 press releases, which for a junior explorer is a solid pace of news flow.
In 2021, though, the company has really hit the gas, issuing 21 pieces of news to date.
Key developments this year at ValOre’s district-scale Pedra Branca project in Brazil include:
|
• Resource expansion drilling on the Trapia 1 and Trapia 2 targets that shows signs of growing Pedra Branca’s already-large, million-ounce PGE resource…
• Strong results from holes drilled at Trapia South, as well as the Esbarro NW and Cana Brava targets…
• A program that’s now shifting to Santo Amaro and C-04 (the next two high-profile targets at Pedra Branca) and to the very high-impact task of identifying new targets (i.e., making discoveries)…
• Closing an C$8.3 million private placement that included 20% participation by insiders…
• Key additions to ValOre’s staff and board, including adding the highly respected Darren Klinck as director and Colin Smith as VP of Exploration.
|
Plus, just this month, ValOre grew its already commanding land position in this part of Brazil by 29% by acquiring an additional 16,000 hectares. The company now controls an entire PGE district.
This new land package will give the company the chance to apply the systematic exploration methods it has developed to outline new targets at Pedra Branca.
Simply put, ValOre has the people, property and funding to keep advancing Pedra Branca via exploration and prepping it for an eventual takeout.
Save
Not A Subscriber Yet?
Get Golden Opportunities For Free
Subscribe to our Golden Opportunities e-letter to receive timely market
updates from the Gold Newsletter research team, plus video
presentations by expert speakers from the New Orleans Conference
— and the Investor’s Guide to Gold and Silver — all at no cost!
CLICK HERE to start your subscription.
|
A “Hidden” Asset Provides Stealth Lever
On A Uranium Market Rebound
|
To Pedra Branca’s takeout potential, ValOre adds the Lac 50 uranium deposit at Angilak.
|
Consider this: At 43 million pounds inferred U3O8, Lac 50 is one of the larger undeveloped uranium deposits in the world.
|
In fact, outside of deposits in Saskatchewan, Canada’s Athabasca Basin, Lac 50 is one of the highest-grade deposits on a global basis.
Better still, because ValOre has held this project through the lean years in the uranium market, it is one of the few uranium names out there and one of the very few with such an advanced-stage asset.
ValOre has a geophysical/geochemical team going through the $55 million of data accumulated on the project and re-examining historic drill core.
The leverage provided by this significant data set is tremendous.
|
 |
This work will result in an announcement later this year that will highlight the many targets that remain that could grow Angilak’s resources still further.
|
Management suspects the market may be blown away by the quality and number of drill targets this work produces.
|
The bottom line is this: The number of nuclear reactors in operation right now is equal to those operating in February 2011, when uranium prices were double what they are today.
And the consumption of uranium by the world’s 443 nuclear reactors is steady while the production numbers from uranium mines have been decimated in the past decade.
This deficit has aggressively consumed the global inventory levels and left the industry in quite a pickle.
The day is rapidly coming when fuel buyers will have to sign long-term contracts to secure uranium, rather than buying in the spot market.
When that happens, uranium prices will likely spike sharply, and the small number of uranium names, of which ValOre is one, should see their share prices soar.
And this isn’t a hypothetical factor: In the last uranium bull market, ValOre (then named Kivalliq Energy Corp.) soared to a market capitalization of over C$90 million based on the Lac 50 project alone!
|
The Discovery Group Advantage
|
There should be no doubt that ValOre Metals has the wherewithal to get Pedra Branca “takeout ready” and to add value at Angilak.
You see, ValOre is part of Discovery Group, a collection of some of the top-performing companies in the sector in recent years.
Discovery Group companies have had their hands in some of the market’s biggest recent winners, including:
|
• Great Bear Resources: This company’s Dixie project is the most important discovery in this gold cycle, likely hosting a multi-million-ounce deposit that generated a peak gain for Great Bear shareholders of more than 3,300%
• Kaminak Gold: Key players from Discovery Group advanced Kaminak’s Coffee gold project from a discovery to a multi-million-ounce deposit in just a few years. Goldcorp would eventually acquire Kaminak in 2016 for C$520 million
• Northern Empire Resources: In the span of just 18 months, Discovery Group team members proved up enough value on the forgotten Sterling gold project to sell the company to Coeur Mining for C$117 million
|
And these are just some of the high points from this team’s collective resumes.
|
| |
This is a group that knows how to establish value on a project, clear away impediments to development and find strategic buyers willing to take it off their hands at a premium.
|
Torrid Pace Of News Makes
Now A Great Time To Invest
|
Based on the torrid pace of news flow ValOre is maintaining, it could well be next on Discovery Group’s long list of winners.
|
With no less than two projects boasting established, world-class resources…in two of today’s most exciting resource markets…ValOre is coiling the spring for explosive share price growth in the near future.
|
Palladium and uranium both look like smart-money trades right now, and ValOre is among a limited number of names that have compelling projects in either sector (much less both).
Momentum and management talent are powering ValOre Metals toward a very busy and potentially lucrative back half of the year.
For PGE and uranium enthusiasts, ValOre deserves a place on your “to buy” list.
|
|
.png)
