Bitterroot Resources (TSX-V:BTT, OTC:BITTF) released assays for hole LM21-07 last night and they were quite impressive in terms of the high metal tenor. The company also updated its corporate presentation with several notable slides:
Notice that massive sulphide 'rip-up clast' to the right. Yes, it's only an 8 centimeter section but those massives came from somewhere and the grades are absolutely out of this world. At today's metals prices that is roughly US$2,000 per tonne rock that BTT intersected. The true width of the mineralized section of LM21-07 was 3.5 meters and it comes out to roughly US$400/tonne rock on average throughout the entire interval. In gold-equivalent terms we could say that BTT drilled 3.5 meters of roughly 8 grams per tonne Au. Not a bad hit on just the 7th hole into an entirely new greenfield target.
Investors often have too high, and unrealistic expectations in junior mining. We all dream about that massive hit that sets off a proverbial 'gold rush' on the stock that we own. However, realistically exploration is an iterative process that takes time, and often many failures, before a great success is achieved.
While BTT hasn't hit a grand slam 'hole' run yet at LM, the company has had success and the analog to Lundin Mining's nearby Eagle Mine is very much alive.
BTT intersected nickel-copper-PGM mineralization in disseminated, blebby, and semi-massive sulphides in hole LM21-10 and assays are pending:
The company has re-entered hole LM21-09 in an attempt to fill in the 'gap' between holes 20-01 and 21-07.....I had high hopes for 21-09 and the fact that it didn't reach the target zone probably has a lot to do with BTT's recent share price decline (the December financing also comes free trading next week). The drillers have brought in some additional drill fluids which they hope will allow them to get through the zone that was causing the rods to get stuck on the first attempt.
This will definitely be the final hole of this phase of drilling before BTT takes a break to compile assays, refine targets, and wait for ground conditions to improve after the spring break-up. The news release says that Bitterroot expects drilling to resume in late-May.
I don't have time this morning to review every slide in the updated presentation, however, I suggest it's worth your time to do so. One final slide that I took note of was this one:
This is the ground magnetic survey that BTT has been using, and helps to illustrate the importance of the land deal that was recently announced, tying up another 280 acres to the south. The current LM drill holes are into a strong mag high where the conduit comes to surface, and a 600+ meter long magmatic conduit extension target running to the south looks pretty damn juicy to me. There are also two 'new' larger mag high targets to the south that BTT is calling "Mag Target #1' and 'Mag Target #2' for now.
While the share price could be volatile in the short term and I have no idea where BTT will trade a week from now, a month from now, or even a year from now. I think it's important to summarize what the BTT story is all about:
- Multiple disseminated, semi-massive, and massive sulphide intersections into a brand new greenfield target in a region known for high-grade semi-massive/massive sulphide copper-nickel-PGM deposits.
- The 3 notable mineralized intervals (LM20-01, LM21-07, LM21-10) all occur within 10 meters elevation of one another.
- The mineralization came from somewhere, and that is what BTT is figuring out. Does it flow from the south? The north? Or maybe both directions?
- The LM property has now been considerably expanded and the potential is here for a large scale discovery that includes the juicy mag targets noted above.
- In addition to the LM Property joint venture with Below Exploration, Bitterroot Resources Ltd. holds a 49.9% interest in a second nickel/copper exploration joint venture with Altius Minerals Corporation (50.1%), covering more than 360 square miles in the Upper Peninsula of Michigan. This second joint venture was also formed to explore for conduit-hosted Ni/Cu/PGM-bearing sulphide deposits similar to Lundin Mining Corporation's Eagle and Eagle East mines.
And i'm leaving out the Nevada projects entirely. Assuming the market will not give any credit for them unless work is being done to advance them.
How much is this worth? I don't know, i'll leave you to decide for yourself. I will add that I have no interest in selling today, or next week, or next month. I will wait until Bitterroot begins to truly unlock the value and potential of its impressive project portfolio. There is too much smoke, and actual drilling success into high-grade mineralization, for me to even consider exiting this story so soon.
Disclosure: The author owns BTT.V shares at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by Bitterroot Resources Ltd.
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