A number of companies have announced outstanding results from the Golden Triangle. Brixton Metals and GT Gold both had impressive results bringing more attention to this historic, resource rich region. Eric Sprott did an end of week wrap up on Sprott radio and emphasized now is the time to get into junior mining opportunities. He’s been very busy investing in Crystal Lake’s direct neighbor Garibaldi and also Tudor not far away. Eric Sprott characterized the space as being a ’paradigm shift’. They move fast and he touches on how fast this massively undervalued sector can move. Crystal Lake Mining has entered the race in a big way, with a big experienced team and enormous potential. There is a lot of talk about Crystal Lake Mining and the above illustration captures the determination, the dedication and challenges this crew is committed to because the potential is blue sky.
Crystal Lake is focused strictly in the Golden Triangle with the Newmont Lake Property formerly owned by Romios Gold. I refer back to The Model often as it is my general guideline in considering a company and Crystal Lake checks off the boxes in regards to location, management and commodities; on top of all of that the timing for picking up the 100% option for Newmont Lake from Romios is impeccable. Romios was the first company to successfully consolidate the area as prior nearly 40 different companies had fragments of the area to work on during the Eskay Creek discovery. Romios had put together this very large land position but because of the size had only managed to do some exploration on small parts of it. They did amass quite a bit of data surrounding Newmont Lake from 2004-2009 through diamond drilling, metallurgical test work and ground geophysical surveys. The geophysical surveys identified large anomalous IP and magnetic zones. The management of Crystal Lake was able to see the vision and pick up the property in October 2018. Crystal Lake quickly sent an RC drill rig to the project and received great initial results back in March 08, 2019. Before we get into the results of Crystal Lakes maiden drill program lets take pause and consider the location.
An illustrative map is the best way to talk about location. They are surrounded by Pretium, Seabridge, Teck/Newmont and rising star Tudor Gold. They are engulfed by world class companies, teams and discoveries. The location is absolutely right. As with all of these companies the glacial abatement is a key story. Nature is revealing itself as the glacier recession reveals incredible ground and soil alteration and mineralization.
The focuses of this article is on the Newmont Lake Project and before going into detail about it let us touch on the other properties in the portfolio. The Ontario project is a high-grade nickel opportunity and the more recently acquired Foremore claims are located adjacent to the north of the Newmont Lake Project. Crystal Lake announced that these two assets will be rolled into a brand-new company that is currently being formulated called Sassy Resources. Every shareholder (on the amalgamation date) will receive shares in the new company. They stressed the importance of having its team firmly focused on the opportunities at the Newmont Lake Project. As such, over the beginning of 2019 they compiled and analyzed all of the historic work that has been reported and increased their project after seeing that the Chachi Corridor mineralization and glacier retreat showed new mineralized zones opening up and it trending. They staked additional claims to further lock in the potential of a mineralized system at the Chachi Corridor.
There is a great deal of information surrounding this projects which we will delve into at another time but now it is time to focus on the inaugural drill program. The flagship property is definitely Newmont Lake but that is not taking away from the other projects that have strong merit it is just that the Golden Triangle is heating up and this property comes with a lot of potential. The area is described in three regions Burgundy Ridge, Chachi Corridor and the Northwest Gold Zone.
The main thing to consider is proximity to other discoveries, access to infrastructure, road, power and vendors. The money pouring into this area is encouraging and Crystal Lake thinks that the skarn deposits reveal a deeper copper-gold porphyry system. The working theory is that at Burgundy Ridge there is a large mineralized trend that is being fed by a ‘heat engine’ from a cluster of intrusions in the heart of the project. Over at the Chachi corridor the glacial abatement revealed a system of 8 km by 3 km which the team will prove up. The Northwest Gold Zone has a historic resource of over 200,000 oz of 4.5 g/t gold with over 250,000 oz of silver in a very small section. The 2019 drill program will start its focus on the Burgundy Ridge and we await assays in anticipation.
Putting this all together and leading at the helm is Richard Savage, President and CEO who was a well respected and top producing advisor at Yorkton Securities (which became Richardson GMP) in 1988 and remained there for 28 years.
Wally Boguski takes on the role of COO and he brings 30 years experience in banking, financing and early stage financing of mining projects. He has a deep knowledge of strategic development planning and capital market financing.
It is important to understand the depth of business sense and market acumen Mr. Savage and Mr. Boguski. They bring a deep understanding of logistics, markets, financing, ‘deal flow’ and cost efficiency. We know they have an incredible location with commodities that are performing strong in a challenging market. Feeling confident in the management of cash flow, markets and drilling is vital when working with a limited drill season.
Another notable board member is Lawrence Roulston, a respected analyst and writer on the Golden Triangle. Mr. Roulston founded the newsletter, Resource Opportunities, and is well known and well respected in the industry not just for the expertise in the Golden Triangle but in the mining sector as a whole.
There are four people on the technical advisory team led by VP Exploration Maurizio Napoli. Mr. Napoli has over 40 years in exploration with most of his career spent heading exploration for Vale Canada. The other stand out name is Dr. Peter Lightfoot who is a technical advisor on the project and whose insights into the Eskay Rift have helped reshape the Eskay district. He is a renowned geologist who enjoyed a long career with Vale Canada and the Ontario Geological Survey.The other pair of geologist brings another 65 years of experience to the project leaving us feeling confident in the direction, speed and accuracy of the plan moving forward.The technical team is aided by a strong team of four on the ground and in the exploration team. They have three members from HEG Exploration services group who have deep experience in the region.
The share structure is sound with 101.4 million shares outstanding; 7,146,737 warrants and 6,913,334 options out. The company had an oversubscribed offering which totaled $4,296,187 and a minimum $3 million will go towards the Newmont Lake exploration project. The stock does trade which means you can get involved with less concern of liquidity. Overall, Crystal Lake is well funded, well respected and ready to succeed.
Oh wait, I almost forgot to mention: as of June 25th the company plans on spinning out another company called Sassy Resources. This standalone company or ‘Dividend spin-out’ of Nicobat Project and Foremore claims will mean that ‘shareholders of Crystal Lake will receive a total of 10 million common shares of subsidiary Sassy Resources which is expected to be listed on the TSX Venture Exchange. This strategy means that the management can remain focused on Newmont Lake while having another team focus on the Northwest Ontario project and the Foremore claims but you also get the benefit. This planned strategic spinout will keep Crystal Lake focused on Newmont Lake and Sassy on unlocking the value of its Nicobat Project in Northwest Ontario and the recently-acquired Foremore claims covering 145 sq. km directly north of the Newmont Lake Project.
One last thing!
I am lucky to know and speak with John Newell, portfolio manager at Fieldhouse Capital Management and to consider John to be a friend. John is the ‘go to’ Golden Triangle fund manager. He has a great deal of experience in the market, well established and known in the sector and is an incredible technical ‘chartist’. That chart for CLM is below.
John commented to me that:
‘Crystal Lake Mining has successfully tested its long term upward sloping trend-line a few tines suggesting good support in the mid $0.30 area. The declining wedge suggests that as CLM has gone down fewer sellers are prepared to sell. CLM.V could be poised for a run up in this strong seasonal period. The shorter term chart has three well defined technical targets that could be met if we see some strong drilling results from this well managed company, with deep geological experience in the prolific Golden Triangle mining district in northern British Columbia.”
Gold and silver prices have made enormous gains since 2000 and are garnering a great deal of attention in the mainstream news. There is infrastructure and major discoveries in the region. The obstacles that once stood in the way have been removed (as discussed in the article The Golden Triangle) to unleash, and unearth the vast riches that certainly lay beneath the surface. This is an early stage player in the region but has a lot of support from the mining sector. It is one to watch over the summer and the next year and as in all plays one to consider building a position in as they reach milestones.
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Securities Disclosure: I, Andrew O’Donnell, hold no direct investment interest in any company mentioned in this article. I was not paid for this article.
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